Audi in China
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Case Code: BSTR431 Case Length: 16 Pages Period: 1988-2012 Pub Date: 2013 Teaching Note: Not Available |
Price: Rs.500 Organization: Audi, Volkswagen Industry: Automobile Countries: China Themes: International Business, Globalization |
Abstract Case Intro 1 Case Intro 2 Excerpts
Audi Conquers China
In 2013, Germany-based luxury automobile manufacturer Audi AG's (Audi) China arm, Audi (China) Enterprise Management Co. (Audi China), entered its silver jubilee year in China. Over the years, it had a hugely successful run in the country, had established its own benchmarks and standards, and had become the most popular luxury brand in China. In the year 2012, Audi sold 405,838 units in China, an increase of 29.6% over the previous year. Luca de Meo ( de Meo), board member for sales and marketing, Audi AG, said, "In the year 2012, we continued the success story in our biggest sales market.With this record we have increased our lead over the competition, further strengthening our number one position in the premium segment in China."
Audi AG's history in China dates back to 1986, when it contacted First Automobile Works Group Corp (FAW) to conduct a feasibility study on automobile technology. In 1988, FAW and Audi signed an agreement for producing the Audi 100 model as a completely knocked down (CKD) unit . In 1990, Audi's parent company, Volkswagen, formed a JV with FAW and formed the FAW-Volkswagen Automotive Company (FAW-VW), with its headquarters in Changchun. In 1990, FAW started an assembly line for Audi with the capacity to produce 50 vehicles every day. In 1993, Audi became a stakeholder in the FAW-VW JV, with a ten percent stake . In 1996, the production of the Audi 200 with the advanced V6 engine began. Sensing the potential of the Chinese automobile market, Audi started strengthening its product line and brand appeal by importing a few of its models into China. In 1999, Audi started producing a few international models at the Changchun plant and made them accessible to Chinese customers.
Audi China was established in 2009 in Beijing. Prior to it, Audi functioned as a subsidiary of FAW-VW. As of 2013, Audi's product range in China was a mix of three locally produced models (the A4, the A6, and the Q5) and 22 imported models ....
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