Audi Marriage SAIC Dealers Require Hundreds Of Billions Of Compensation Progress

- Nov 23, 2016-

Progress          

FAW Volkswagen Audi dealer negotiation team to Foshan          


The latest news shows, FAW Volkswagen and Audi dealers have set up the negotiation team, interviewed Audi director in Foshan in November 21st. FAW - Volkswagen Audi Dealers Association Committee expressed firmly against Audi and Volkswagen joint venture, Audi does not agree, they will take counter measures to influence counter measures will make the Volkswagen Group's stock than the loss event bigger discharge door.          


In fact, from the outflow before the "on Audi and Volkswagen joint venture may damage the Audi dealer rights Enquiry" is not difficult to understand the FAW - Volkswagen Audi dealers for the three major concerns of the event: one is whether Audi plans to set up a joint venture with SAIC Volkswagen sales company? Two is the new sales company's sales channels how to build? Three is how to balance the interests of FAW Volkswagen Audi dealer and SAIC Audi dealer?          


In this regard, the Volkswagen Group management board, Volkswagen Group (Chinese) president and CEO heizmann interview at the Guangzhou auto show responded that the important reason to promote Audi and SAIC, is the rapid growth of the luxury car market based on the judgment. Cooperation between Audi and SAIC FAW FAW - Volkswagen has no damage.


Analysis          

Operating loss of Audi dealers face pressure          

When the North American market is still trapped in the "emissions scandal", the Chinese market has become particularly unacceptable. In order to stabilize the market share, Audi to more sales, higher profits, and even peer shares than to gain the initiative. SAIC to higher brand, better performance, while also get higher profits, the cooperation between the two sides hit it off.          


But SAIC, Audi's cooperation is the dealer's sensitive nerve. This is hidden behind the luxury car market competition is becoming increasingly fierce, and Audi brands due to sluggish growth in the dealer into a loss of state, business is facing a lot of pressure.          


Data show that FAW - Volkswagen Audi total sales of 9 units in the first 411 thousand and 200 months of this year, an increase of 12.57%. Among them, the main models of Audi A4L and A6L sales have suffered different degrees of decline, competitors are making strides to catch up with the. BMW brilliance in the first 9 months of this year, the cumulative sales of 220 thousand and 300 vehicles, an increase of 4.10%. Among them, the BMW 3 series of the first 9 months of sales increased by 3%. Even with the decline of the BMW 5 series, the first 9 months of sales are also higher than the Audi A6L. Mercedes Benz's growth is even more terrible, the first 9 months of this year, Beijing Benz cumulative sales of 226 thousand and 800, an increase of 29.39%.          


In the FAW Volkswagen Audi dealer seems, SAIC Audi once established is bound to establish an independent network, which will compete with the existing dealers, the interests of dealers will be infringed. "No way out and Audi dealers conspiracy, but choose to find another partner, we are doing for so many years, a little chilling." Some dealers say.


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