Audi, FAW form electric-car production JV in China

Audi AG and China's FAW Jiefang Group Co. Ltd. will set up a new company to produce electric vehicles in China under the Audi brand, the Volkswagen AG subsidiary said Jan. 18.

Under the joint venture, Audi and Volkswagen Group China will own 60% of the new cooperation company, which will manufacture fully electric Audi models based on the premium platform electric, or PPE, co-developed with Porsche.

The new business is the first joint venture with a majority interest held by Audi in China, the release said.

The production site will be headquartered in Changchun, China, which is also where Volkswagen and FAW's joint venture is based. Audi has been involved in the FAW-Volkswagen company for over 30 years, producing models locally in addition to other locations in the country, according to the release.

The partnership with the Chinese automaker will allow Audi to increase the number of China-produced models to 12 by the end of 2021, the German car brand said.

It expects to start locally manufacturing the first PPE-based model jointly with FAW by 2024.

Financial details of the deal were not disclosed.

In the same announcement, Audi said it will partner with SAIC Volkswagen Automotive Co. Ltd. next, aiming to introduce models produced by the joint venture in 2022. SAIC Volkswagen is jointly run by SAIC Motor Corp. Ltd. and Volkswagen.

Audi said the new company with FAW is scheduled to be finalized in the first quarter, as soon as they secure the consent of all stakeholders and Chinese regulatory authorities.