What does 1pc mean? It buys Audi the first step to making cars with China’s biggest automaker
Deal revives a 2016 pact with SAIC that was shelved in the face of opposition from dealers who sell Audi vehicles produced with FAW Group
Audi – Volkswagen’s premium brand – has taken a crucial step to produce cars in China with a second Chinese partner SAIC Motor by taking a minor stake in SAIC VW, the long-established joint venture between its German parent and the mainland’s largest automaker.
The 1 per cent share acquisition by Audi in the Shanghai-based joint venture paves the way for the bestselling premium brand in China to produce its namesake models with SAIC, a move that will consolidate its leading position in the world’s largest auto market.
It also revives a 2016 pact between Audi and SAIC to produce and sell vehicles in mainland China that was shelved in the face of opposition from dealers for Audi vehicles produced by its first joint venture partner FAW Group. A consensus was then reached after Audi agreed that it would not make cars with SAIC until January 2022.
The shares, transferred to Audi from its parent VW, enables the partners to comply with Chinese rules to make and sell Audi-branded vehicles, SAIC said in a statement.
“The programme between SAIC and Audi is going on according to the planned time frame,” SAIC said.
It did not elaborate on which models the Shanghai-based joint venture will assemble.