AutoBeta(AutoBeta.net)12/27 Report--

FAW Audi, which has followed FAW-Volkswagen Group for many years, has recently been reported with new news. According to the "announcement of Enterprise name Application and Registration of the State Administration of Market Supervision and Administration" recently announced by the State Administration of Market Supervision and Administration, it is found that "FAW Audi sales Co., Ltd." as an enterprise name has been formally approved by the State Administration of Market Supervision and Administration, which means that FAW Audi will be expected to be independent.

For a long time, the name of domestic Audi has existed under FAW-Volkswagen, which was established in January 2006 and has been 13 years since. As Audi's business in China, the sales Division of FAW-Volkswagen Audi can only be said to be a branch of FAW-Volkswagen, and its budget also needs to be approved by FAW-Volkswagen.

It took so long for Audi to make the sales department independent of the company, which is considered by many to be the decision made by FAW Audi for SAIC Audi. Some people in the industry said that the establishment of a sales company by FAW Audi will improve the decision-making efficiency of FAW Audi, help to cope with market changes, and occupy more initiative in the game with SAIC Audi in the future.

The decision was made as early as March 2018, when FAW Group, Volkswagen AG and Audi AG signed a Memorandum of understanding for the Establishment of FAW Audi sales Company. However, FAW Audi sales Company, which was originally scheduled to be established at the end of 2018, did not register as scheduled. It was not until May 22 this year that the name of "FAW Audi sales Co., Ltd." was found in the "Enterprise name approval announcement of the General Administration of Market Supervision". But since then, there has been no news about "FAW Audi sales Co., Ltd.".

Some people in the industry believe that there is another reason for the establishment of a company. The benefit distribution of FAW-Volkswagen is determined according to the stock ratio of all parties. At the beginning, before Audi introduced domestic shares, FAW-Volkswagen stock ratio structure is FAW holding 60%, Volkswagen holding 30%, Audi holding 10%.

Since Audi series products were formally incorporated into FAW-Volkswagen production, and after many negotiations, the two sides agreed to jointly promote the change of FAW-Volkswagen stock ratio, FAW stock ratio reduced from 60% to 51%, Audi stock ratio increased from 10% to 19%, but Volkswagen did not change. However, Audi believes that it has gained more benefits, but the rights issue is still very small, so it hopes to set up an independent sales company that can readjust the distribution of interests among all parties in the current situation.

Since the news of SAIC Audi has been reported one after another, including at the beginning of this month, SAIC-Volkswagen directly issued a number of tenders related to Audi A7L, which made FAW Audi will press ahead with the decision to land. Although SAIC Audi is developing rapidly at present, it will not pose too much threat to FAW Audi's interests in the short term. According to January 2017, Audi and FAW Group formally signed the "FAW, Audi 10-year Business Plan" in Changchun, SAIC Audi products can not be sold earlier than January 2022.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat