global expansion of the Volkswagen Group continues its course as evidenced by the sales that have been achieved during the past year, 2016. All the brands of the German conglomerate have the roadmap marked so that in a matter of five years, their ranges are full of electric vehicles, hybrid and autonomous. While all of them come in charge of development and product planning continue to work to strengthen the brands in the major markets of the world.
Audi China is one of the most important markets and as proof of this, is that every time their models have details to please the demanding consumer. Currently the Volkswagen Group and Audi are working with its local partner FAW Motor Corp to make jointly some of their models. In addition, another of the points that also work in the marketing through the use of a commercial network shared.
This business relationship dates back to when Audi decided to enter the chinese market. However the makers of the German conglomerate it seems that is not enough then also have decided to establish ties to work with another major manufacturer of the country. SAIC is the bridegroom chosen, but their collaboration is not yet official (in terms of working together) so still need to formalize and establish its ties with FAW Motor Corp.
The idea pursued in the Volkswagen Group is to strengthen the positioning of Audi in the market of luxury vehicles in China. The signing of the four rings is the most sold among the foreign luxury, however, with the slowdown being experienced by the chinese economy, their sales seem to be stagnating. For this reason, associating Audi with SAIC the benefits will be directly proportional to the size of the largest car manufacturer of China (in terms of increase sales) and part of this will reverse over the china as well (in terms of improvement of image of their products).
Another reason that drives Audi and the Volkswagen Group to take this partnership forward, is that the benefits that they gain will be at 50 percent. In this sense the numbers that have with FAW Motor Corp are different in that they split the 40 – 60 percent, respectively. However, as stated by the German consortium this agreement will not ride until the year 2018 (or later) as they have to adjust each agreement with each brand so as not to incur a conflict of interest multiple.
Source – Volkswagen Group AG