TU-TESL

• 22

According to relevant media reports, a "three-year improvement plan" is being worked out with partners in China to stabilize sales and enhance brand value, while the long-standing SAIC Audi may officially launch its products in 2022. "SAIC Audi may launch products after 2022" on November 11, 2016, SAIC Group and automobile group company signed the memorandum of understanding on the cooperation framework agreement on manufacturing and selling Audi brand products in China, selling Audi brand cars and providing relevant mobile services in wolfburg, Germany, and SAIC Audi project emerged. But SAIC's Audi project has met with strong opposition from Audi Volkswagen and its dealers. Subsequently, in January 2017, Audi and FAW Group formally signed the FAW and Audi ten year business plan in Changchun to appease FAW Group. In February 2017, FAW Volkswagen Audi dealers issued the Sanya statement, requiring Audi to discuss such issues as "selecting new partners in China" only after the annual sales of 1 million vehicles in China. "It is of great significance for Audi to land as soon as possible." in June 2018, Audi officially held 1% of the equity of SAIC Volkswagen; in November 2019, SAIC Volkswagen MEB factory was completed. There are more and more "guesses" about Audi project of SAIC. Now, Audi China finally relented, implicitly saying that SAIC Audi may launch products after 2022, which means that the above time point is likely to become a reality. From the global sales volume up to October, the current ranking of the top three luxury brands is (including mini) 2.07 million vehicles, (including smart) 2.021 million vehicles, and Audi 1.506 million vehicles. That is to say, Audi is far lower than the two competitors. If SAIC Audi project is implemented as soon as possible, it is a good thing for Audi.