Volkswagen receives Audi's imported car business

The Chinese luxury car feast is really tempting. The Volkswagen Group seems to worry that it is not enough to eat. The news about the rights of VW import cars is like a wave. In fact, despite including Lamborghini, Bugatti, Bentley, Porsche, Volkswagen, Skoda, Audi The eight major brands, including the soon to be introduced SEAT, have been involved in the rumors of the right to receive power. However, in fact, it is Audi's imported car that is actually being authorized to receive the rights. If there is no FAW-Volkswagen, will Audi's imported car market share in China continue to maintain high growth? Is Audi willing to receive power? We wait and see what happens.

As China's luxury car market continues to heat up, the intention of the multinational auto giants to gain power is growing.

A few days ago, the news about the admission of the mass-imported car business was the same. According to various sources, the Volkswagen Group intends to set up an import vehicle sales company of the Volkswagen Group (China), which will acquire the eight brands including the top five luxury car brands. At present, Volkswagen's headquarters in Germany has approved the establishment of Volkswagen (China) Automobile Sales Co., Ltd., which is promoted by Su Weiming, Executive Vice President of Volkswagen Group (China). Volkswagen Group will follow Daimler Automotive Group and build the Volkswagen Tower around 2014. All of its branded Beijing offices will be relocated to the Volkswagen Building.

Audi's imported car business has become the focus of attention in the industry. Insiders said: "Although the eight brands are involved in the rumors of power-reception, including Lamborghini, Bugatti, Bentley, Porsche, Volkswagen, Skoda, Audi and the upcoming introduction of SEAT. But in fact it is really the right to receive the Audi imported cars." Related The information shows that in addition to Audi's imported cars, other brands are mostly directly controlled by foreign investment.

People close to FAW Group stated that if the Volkswagen Group intends to receive rights, it will affect the interests of FAW Group. FAW Group will not easily surrender, and it is expected that the two sides will start fierce negotiations. It is reported that FAW-Volkswagen is responsible for managing Audi's imported car business and enjoying the profit sharing of imported Audi cars. The specific ratio is divided according to the joint stock company's stock ratio. FAW Group holds 60% of the shares of FAW-Volkswagen, Volkswagen holds 30% of FAW-Volkswagen, Audi holds 10% of FAW-Volkswagen, so FAW Group will receive 60% of Audi's annual profits.

Industry insiders are skeptical about the effectiveness of the gains. Some insiders questioned: "If there is no FAW-Volkswagen, Audi's imported car business will not be so beautiful. Initially, Audi China is responsible for Audi's imported car business, the results of the previous generation Audi A8 car sales are not ideal. Desperation, Audi China is responsible for Preparation of Audi in China R & D center and other issues, FAW - Volkswagen took over Audi's imported car business, and since then, Audi imported car sales have achieved fruitful results. "Statistics data from Zhongjin Automobile and Trade shows that Audi's imported car business grew far in the first three quarters of this year. Higher than Mercedes and BMW, and far higher than the industry average. Audi's imported car sales volume was 46,700 units, an increase of 68.3% year-on-year; BMW's imported car sales were 117,300 units, an increase of 41.8%; Mercedes-Benz's imports were 96,300 units, an increase of 7.1% year-on-year. In the first three quarters of this year, China imported a total of 712,000 cars, an increase of 26.6% year-on-year; imported car licenses were 612,000, an increase of 30.2% year-on-year.

People close to Volkswagen said that Audi will not easily agree that Volkswagen Group will receive rights in China. First of all, in accordance with the Volkswagen Group's plan, after the rights to import imported brands, the functional departments will be merged to achieve resource integration. In the future, each brand's IT department, finance department, legal department, and human resources department will all be merged into the respective departments of the Volkswagen Group Imported Vehicle Sales Company, and only the brand communication department and the marketing department will maintain relative independence. According to this plan, the rights of Audi's original institutions in China will shrink; secondly, the high growth of the global luxury car market in recent years further strengthens Audi's right to speak. Once Volkswagen Group has incorporated Audi's imported car business, it may affect Audi's high growth in China. It is understood that since Volkswagen Group does not have a strong marketing system in China, it still needs to resort to FAW-Volkswagen. If the cost of communication between the two parties increases, it will drag on Audi's rapid growth. In addition, over the years, Audi has always had the upper hand in the internal struggle of the Volkswagen Group.