[CIIE] Audi Has Reshaped China Business to Drive Long-Term Growth, CEO Says(Yicai) Nov. 11 -- Audi’s business reorganization in China around a clearer two-brand, two-partner structure is aimed at concentrating resources and improving coordination and execution to support the German carmaker's long-term growth in the world’s biggest auto market, Chief Executive Officer Gernot Döllner said.
Audi is responding to local market needs through two complementary development paths, supported by its two partners and two brands in China, Döllner told reporters at the China International Import Expo, which ended yesterday. The AUDI brand is a highly localized product developed in cooperation with Chinese partners, he pointed out.
Audi's two Chinese joint ventures are with FAW Group and SAIC Motor. At the end of last month, the Ingolstadt-based company announced that it was dividing its China operations between them, with SAIC Audi entirely shifting focus to the Audi brand, which specializes in premium intelligent electric vehicles, and FAW Audi taking sole charge of the four-ring brand.
Audi brand models are built specifically for Chinese consumers, so focusing fully on the local market is its core task for the next few years, said Fred Schulze, who oversees Audi's partnership with SAIC. The brand will launch three new models over the next three years, with the plan already underway, he added.
The Audi brand launched its first model, the E5 Sportback, last year, followed by the E7X this year. The Audi Innovation & Technology Center, which became operational on Nov. 5, will take full charge of and coordinate the end-to-end development of Audi brand models, vehicle concept through to mass production and delivery.
Regarding the recent key personnel changes at Audi China, Döllner told Yicai that the management reshuffle was intended to establish an organizational structure better suited to the Chinese market.
As global markets become increasingly complex, further localization is necessary to stay closely aligned, so appointing managers familiar with the market is a natural step, he noted, adding that Audi may take a similar approach in other regions worldwide.
Jeff Zhang was named president of Audi China effective Nov. 1. His appointment marked the first time since Audi entered the Chinese market that the top regional post was given to an ethnic Chinese executive. In addition, the company introduced a chief operating officer role and streamlined its board of directors into a two-person leadership structure.
Editors: Tang Shihua, Martin Kadiev
