Audi AG partnership spurs dealers' dispute

People look at Audi cars on display at a mall in Singapore April 28, 2016. [Photo/Agencies]

German carmaker Audi AG signed a deal on Nov 11 to produce and sell cars with China's SAIC Motor, angering dealers of its joint venture with FAW, fearing for their business interests. The dealers, who were not informed of the cooperation in advance, even threatened to stop taking in cars if Audi could not give them a satisfactory answer on how to protect their profits.

After several rounds of lengthy and difficult negotiations, Audi finally agreed to suspend talks with SAIC about building a new sales network until the current dealers see stable profitability. Yet their talks on providing Audi cars continue and the first Audi model to be produced at SAIC Volkswagen is scheduled to be showcased in April.