· SAIC Audi project holds a year to confirm restart

· SAIC Audi project holds a year to confirm restart

Audi executives joined SAIC Volkswagen, Audi official website announced the promotion of SAIC Audi project statement, Chinese and foreign stocks than the game or one of the factors for the project.
The one-year SAIC Audi project will be restarted. Recently, Volkswagen China official website announced that the current Audi brand C-class, D-class SUV and cross-border model product owner Fred Schulze will replace Feng Keding in SAIC Volkswagen, responsible for SAIC Volkswagen's manufacturing, logistics and product management business. In addition, Audi's official website also issued a statement saying that it is discussing with SAIC on future cooperation.
Official confirmation that the project is advancing
A year after the suspension of the SAIC Audi project, Audi has frequently revealed to the outside world that the project with SAIC Audi is progressing, including Audi executives entering SAIC Volkswagen and Audi official website to announce the promotion of SAIC Audi project.
On March 5th, Volkswagen China official website announced that Fred Schulze, the current head of the Audi brand C-class and 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. .
On March 6, Volkswagen Group CEO Mulun publicly stated at the Geneva Motor Show that China is a very important market, and Volkswagen will do its utmost to expand cooperation with SAIC and FAW, and steadily promote the cooperation with JAC. Cooperation. Subsequently, Audi official website issued a statement saying that it is discussing with SAIC on future cooperation.
On March 7, FAW and Audi signed two Memorandums of Understanding. In the memorandum, FAW and Audi plan to form two new companies. One of them is an independent sales company, and the other will be a joint venture company dedicated to providing digital and mobile travel services. According to relevant media reports, among the independent sales companies established by the two parties, the share ratio of FAW and Audi will be 50:50. According to industry analysis, Audi's share ratio in the new company will increase its voice, and boost Audi sales. It will reach an agreement with FAW-Volkswagen Audi dealers with an annual sales volume of 900,000 units to accelerate the launch of the SAIC Audi project.
SAIC Audi has attracted a storm
The SAIC Audi project has been proposed for more than a year, due to the delay of FAW-Volkswagen Audi dealers. As early as November 2016, SAIC announced an official announcement that it had signed a contract with Volkswagen, and the two parties will establish a joint venture to manufacture and sell Audi-branded cars. After the news of the SAIC Audi project, 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, and finally Audi agreed to temporarily suspend the SAIC Audi project. In February 2017, the CADA Audi Dealer Association was established. The Federation issued the "Sanya Statement", 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 Audi agreed to suspend the SAIC Audi project, Audi sales quickly recovered, and finally regained the 2017 luxury car market sales champion with a sales volume of 599,300.
The industry generally believes that the SAIC Audi project can be achieved, on the one hand, because SAIC is also seeking to cooperate with luxury brand foreign-owned car companies to fill the gaps in its models; on the other hand, it is due to the sales growth of Audi in China in recent years. Slowing down, Volkswagen and Audi hope to solve the equity problem, enhance the right to speak, and boost sales.
Audi equity issue remains the focus
At present, the share ratio of FAW-Volkswagen joint venture company is 60% for FAW, 30% for Volkswagen and 10% for Audi. As the sales performance of FAW-Volkswagen has increased year by year, the problem of profit distribution due to equity has become increasingly apparent. For the issue of equity adjustment, Volkswagen and Audi have always taken a positive attitude, and FAW has always been reluctant to let go. Hezman, President and CEO of Volkswagen Group (China), has publicly stated that the Volkswagen Group is very concerned about the open-ended discussions and welcomes this open policy.
Until 2014, Premier Li Keqiang proposed that China will actively consider the request of Volkswagen to increase the proportion of shares in the FAW-Volkswagen joint venture. In the same year, FAW-Volkswagen China and foreign parties reached an agreement that the Sino-foreign equity ratio structure of the FAW-Volkswagen joint venture will be adjusted to 51:49. In 2015, affected by the “emission gate”, Volkswagen China President Jochem Heizmann publicly stated that Volkswagen will The plan to postpone the increase in the shareholding of FAW-Volkswagen will be postponed for two or three years for financial reasons.
At the opening ceremony of the Boao Forum for Asia 2018 Annual Meeting on April 10 this year, President Xi Jinping said that China will greatly relax market access, and the next step is to relax the restrictions on foreign shares as soon as possible, especially the foreign investment restrictions in the auto industry. After the news was released, Volkswagen Group (China) told the media: "We strongly support and welcome China's further reform and opening up measures, which will continue to boost global confidence in China's investment and have a positive impact on the innovation capability of the automotive industry. ”
FAW-Volkswagen Audi told the Beijing News reporter: "We have noticed the adjustment of relevant national policies and will closely monitor the future development of the industry under the premise of complying with national policies and laws."

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