Audi, China dealers reach agreement over SAIC cars
BEIJING: Audi and its dealers in China have reached an agreement on how cars produced with SAIC Motor Corp will be sold in the country.
The deal, announced on Saturday, ends months of tension after Audi-parent Volkswagen AG set out plans in November to produce cars with SAIC.
Previously, the German company had made Audis in China exclusively with China FAW Group Corp. Dealers expressed concern that the arrangement with Shanghai-based SAIC could have added more distributors and depressed their profits.
Under the accord between Audi and the dealers, any SAIC-produced cars will be distributed through the existing sales network. A new sales steering structure will be defined to handle distribution from the two partners.
Sales in China, Audi’s largest market, plunged after the dispute broke out, declining 35 per cent in January from a year earlier. Bloomberg