Volkswagen announced this week it will further delay collaboration talks between Audi and China's SAIC Motor in a move designed to appease existing dealers and its current Chinese partner FAW Group.
Last November Audi signed a memorandum of understanding (MoU) with SAIC Motor to set up a joint venture to produce and sell cars in the country which left current dealers uneasy about access to new models and territory.
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Talks between the two companies were called off soon after following complaints by the brand's existing dealers, which are affiliated with FAW Group. The discussions were scheduled to resume in March this year, but these have been delayed again – until at least next year.
Audi currently has a network of 457 dealers in 190 cities in China, the strongest premium brand network in the country. It sold 589,100 vehicles in China last year, including 539,000 assembled locally by FAW-Volkswagen.
Volkswagen Group China CEO Jochem Heizmann said this week "nothing will happen this year" between Audi and SAIC in terms of joint production and sales collaboration talks. He added that Audi's current priority is to ensure it has a strong partnership with FAW and that its existing dealers are successful.
See also: Audi-FAW JV to include EVs
