· SAIC Audi project restarts the first domestic car identified as Audi A7

    Yesterday, the interface car was exclusively informed by SAIC Volkswagen's close technical solution partner office that the SAIC Audi project has been officially restarted. The company has already obtained the preliminary project cooperation of the SAIC Audi project.
    "We got the preliminary design requirements for SAIC Audi's domestic project yesterday. At present, all the energy of the company will be spent on this project." The aforementioned relevant person disclosed to the interface car, "SAIC Audi has never really stopped, but currently This process is accelerating."
    According to SAIC's requirements, the preliminary projects they carried out were mainly the redesign and certification of domestically produced parts. The SAIC Audi domestic model has been clearly scheduled, and the A7 is probably the first localized production model of SAIC Audi.
    "In the future, SAIC Audi will have a number of domestic models, and the A7 is only one of the first."
    The interface car found that the first domestically produced model of SAIC Audi is that the A7 is not unfounded. SAIC Audi has actually acquired the production capacity of the A7 model platform MLB Evo at the time of its domestic production. At present, what SAIC needs to do is precisely the design and certification of domestic parts required by A7. This coincides with the above-mentioned sources.
    Coincidentally, according to the official website of the public, Fred Schulze, the current head of the Audi brand C-class, D-class SUV and cross-border models, will replace Feng Keding in SAIC Volkswagen, responsible for SAIC Volkswagen's manufacturing, logistics and product management business.
    The entry of Audi executives into SAIC Volkswagen also indicates that the two sides have entered a substantive stage of cooperation.
    As the successor to Feng Keding, Fred Schulze is also a veteran veteran with a strong technical background. Fred Schulze holds a degree in Production Engineering and is qualified as a Welding Engineer. In 1993, he began his career at the Audi brand Neckarsulm factory.
    After that, he successively served as the head of quality assurance and body production, and joined the Volkswagen commercial vehicle brand in 2004. Until 2010, Fred Schulze began as the production manager of the Volkswagen Emden plant, in 2012 as the manager of the Audi Neckarsulm plant, and in 2015 as the plant manager of Audi Ingolstadt.
    Since 2016, Fred Schulze has been the head of the Audi brand C-Class, D-Class SUV and cross-border models.
    At this year's Geneva Motor Show, Volkswagen Group CEO Mulun publicly stated that Volkswagen will fully promote cooperation with SAIC and FAW, and steadily promote cooperation with JAC.
    As early as November 2016, SAIC Motor announced that it has signed a contract with German Volkswagen to form a joint venture to manufacture and sell Audi brand cars. As soon as this news came out, more than 30 FAW-Volkswagen Audi dealers jointly sent representatives to negotiate with Audi, suggesting that if Audi does not cancel the cooperation with SAIC Volkswagen, it will suspend the car to protest. In the end, it was necessary to end the internal friction between the dealer and the manufacturer by temporarily suspending the SAIC Audi project.
    In February of the following year, the CADA Audi Dealer Association was established. The Federation issued the "Sanya Declaration", stating that the SAIC Audi project must be suspended before Audi's annual sales target of 1 million units is reached. Finally, Audi and FAW-Volkswagen Audi dealers reached an agreement to ensure that sales of 900,000 units will be achieved in 2022. SAIC Audi will not be sold in China as early as January 2022. After suspending the SAIC Audi project, the dealers' sentiment was stabilized and the sales volume rebounded rapidly. Finally, with a sales volume of 599,300, Audi won the 2017 luxury car market sales champion and achieved 30 consecutive championships.
    On March 7 this year, Audi and FAW signed the Memorandum of Understanding on the establishment of FAW-Audi Sales Company and the Memorandum of Understanding on the establishment of a new joint venture for mobile travel and more digital business related services.
    Among them, China First Automobile Group Co., Ltd., Audi AG, Volkswagen AG, Volkswagen (China) Investment Co., Ltd. and FAW-Volkswagen Automotive Co., Ltd. signed the agreement. According to the memorandum, the partners will set up a new “FAW-Audi Sales Company” and “FAW Audi Mobile Travel Service (China) Co., Ltd.” in 2018. The two new companies will focus on sales and mobile travel and digital services. .
    Through these measures, the two sides will fundamentally restructure their business in China. According to relevant media reports, among the independent sales companies established by the two parties, the shareholding ratio of FAW and Audi is 50:50, and Audi’s right to speak has been further improved. At the same time, in order to realize the commitment to the sales of 900,000 dealers, The company's top priority is to boost sales.
    At present, the share ratio of FAW-Volkswagen joint venture company is 60% for FAW, 30% for Volkswagen and 10% for Audi. Due to the increasing sales volume in the Chinese market, Germany has always wanted to redistribute profits through the increase in share ratio.
    For the equity adjustment, Volkswagen and Audi have always held a positive attitude, while FAW has always been relatively strong. Hezman, president and CEO of Volkswagen Group (China), also publicly stated that the Volkswagen Group is very concerned about the discussion of the stock ratio than the open. According to industry analysts, Germany has a larger share ratio in the joint venture company and is one of the reasons why the SAIC Audi project has been promoted.

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