Audi and FAW set up new sales company and set up second joint venture

On March 7, China FAW Group Co., Ltd., together with Volkswagen AG and Audi AG, signed two memorandums of understanding on the establishment of two new companies in Geneva. It is reported that the two new companies will focus on sales operations and mobile travel and digital services, respectively.

Audi and FAW set up new sales company

Established a second joint venture to focus on mobile travel and digital services

The two memorandums are the “Memorandum of Understanding for the Establishment of FAW-Audi Sales Company” and the “Mou Memorandum for the Establishment of a New Joint Venture for Mobile Travel and More Digital Services-related Services” by China First Automobile Group Co., Ltd. and Audi Co., Ltd. , Volkswagen AG, Volkswagen (China) Investment Co., Ltd., and FAW-Volkswagen Automotive Co., Ltd. and other parties jointly signed.

The industry believes that as a pioneer in the opening up of China's manufacturing industry, the cooperation between FAW and Audi has set an example for the industry. The newly signed service upgrade agreement is based on the mutual trust accumulated through 30 years of tacit cooperation, and also reflects the determination to seize the opportunity of historic changes, and conveys the strong information of the Chinese auto industry to expand its opening up and adapt to the technological revolution.

According to the memorandum, the parties will establish a brand new "FAW-Audi Sales Company" and "FAW Audi Mobile Travel Service (China) Co., Ltd." in 2018. FAW-Volkswagen Automotive Co., Ltd. will establish a FAW-Audi sales company. The sales company is a wholly-owned subsidiary of the joint venture FAW-Volkswagen. The current FAW-VW Audi sales division will be integrated into the new company. After the establishment of the new sales company, it will have personnel, finance, procurement and other functions, and the market reaction and decision-making process will be more concise and efficient. The new sales company will continue to promote the development of dealer networks, enhance existing businesses and profitability, and strengthen user services.
The forthcoming FAW Audi Mobile Travel Service (China) Co., Ltd. is jointly funded by FAW, Audi, FAW-Volkswagen and Volkswagen China Sifang, focusing on the emerging digital sharing and mobile travel fields, providing Chinese users with comprehensive personalized high-end travel. Experience. The mobile travel new company will also take over the high-end mobile travel service Audi on demand + launched in Beijing in September 2017.
It is expected that by the end of 2018, the two new companies will begin operations.

It is understood that with the confidence in the future development potential of China's premium car market, Sino-German shareholders are continuing to increase their investment in FAW-Volkswagen:

In the new factory construction, in 2018, the FAW-Volkswagen Changchun “Q Factory” producing Audi models and Foshan Base Phase II will be completed and put into production;

In terms of new energy product R&D, by the year 2020, five Audi brand new energy models will be introduced into the Chinese market;

With regard to the layout of the new industry, by 2022, FAW-VW Audi will achieve 100% car networking pre-installation.

At the same time, all parties involved in the cooperation are jointly investing more and more to start up the Audi brand's “brand up plan” and use the “product advisory committee” and other innovative forms to solicit and input more voices from the Chinese market.