According to "Nihon Keizai Shimbun" reported on November 16, Volkswagen (VW) will jointly produce and sell its Audi car with Shanghai Automotive Group of China (hereinafter referred to as SAIC). The model has been produced by a joint venture between Volkswagen and First Automobile Group (hereinafter referred to as FAW). However, due to the slower growth of sales of other high-end cars, Volkswagen decided to promote production with SAIC at the same time, thus strengthening the offensive in the Chinese market.
On November 11, Volkswagen and SAIC signed a memorandum on “production and sales of Audi cars in Chinaâ€. Cooperation will also be made on new energy vehicles and information services for automobiles. Although there is no information such as the start time of production and the model, it is known that the Audi will be produced and sold by Shanghai Volkswagen, which is funded by both parties.
Previously, Volkswagen had been producing the main car "A4" of Audi, FAW Volkswagen, a joint venture with FAW. Audi has always been synonymous with high-end cars in China. However, according to Chinese media reports, Audi's sales in China from January to September this year were 440,000 units, an increase of only 6% compared with the same period last year. The sales of the competing Mercedes increased by 29% year-on-year to 340,000 units, and the sales of German BMW also increased by 11% to 380,000 units, which is catching up.
Volkswagen intends to continue production with FAW, and the joint venture with SAIC also carries out Audi's production and sales, thereby strengthening the offensive in the Chinese market. However, for the Shanghai Volkswagen series of stores can also sell Audi in the future, FAW Volkswagen dealers have appeared in opposition.
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