Audi, China deal­ers reach agree­ment over SAIC cars

New Straits Times - - Business -

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

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