Volkswagen enters talks with SAIC over Audi collaboration, making existing partners uneasy

The logo of German car maker Audi is seen outside a garage in Vienna, Austria, September 29, 2016. REUTERS/Leonhard Foeger

By Aditya Madanapalle /  14 Nov 2016 , 17:50

Volkswagen’s Audi AG said on Monday that it was in talks with China’s SAIC Motor Corp Ltd for a long-term collaboration, which dealers for its existing joint venture say would cause them “potentially fatal damage.” Reuters reported on Saturday, citing a source familiar with the matter, that the two sides had signed an agreement that could pave the way for Volkswagen’s joint venture with SAIC, China’s largest automaker, to make Audi brand cars.

Audi cars are now made in China through a joint venture with China FAW Group Corp, providing a lifeline to the state-owned company whose own brands have struggled with falling sales. An early entrant to China, the world’s largest car market, Audi is the best-selling premium car brand although it is rapidly losing ground to newer car models from Daimler’s Mercedes-Benz and non-German automakers such as Toyota’s Lexus and General Motor’s Cadillac.

Audi has been slow to introduce new products, hurting sales growth, so Audi dealers are generally losing money, existing Audi dealers said in a letter to the automaker in response to the talks. “The interests of Audi dealers will be further damaged if your company sets up a new sales company in China,” they said. The dealers, in the letter seen by Reuters, requested Audi to collect their opinions and guarantee their rights before making a final decision.

Volkswagen gets a larger proportion of its proceeds from the 50-50 tie-up with SAIC than from its 40 percent stake in the venture with FAW. Audi reaffirmed its commitment to FAW in the statement announcing the talks with SAIC, saying it had outlined growth plans with FAW for the next 10 years that include making green energy sport utility vehicles and sedans in every major segment. “With this 10-year plan, everything is set for future growth together with FAW, including the dealership investors,” an Audi spokesman said.

Audi will also form a new joint venture company with FAW that will be based in Beijing to focus on mobility and digital services, according to the statement.

Reuters

US regulator found another cheat device in Audi car

Image Credits: REUTERS

  06 Nov 2016 , 10:51

A U.S. regulator found software in some Audi vehicles that lowered their carbon dioxide emissions if it detected they were being used under test conditions, Bild am Sonntag reported.

The California Air Resources Board (CARB) discovered the software in an automatic transmission Audi last summer, the German weekly newspaper said, without citing any sources.

CARB had no immediate comment and Audi was not immediately available for comment on Sunday’s Bild am Sonntag report.

The paper said the device, which was not the same as the one which triggered last year’s diesel emissions scandal at Audi parent Volkswagen, was also used in diesel and gasoline-powered cars in Europe.

VW’s admission that it had installed software that deactivated pollution controls on more than 11 million diesel vehicles sold worldwide, triggered the deepest business crisis in the German carmaker’s history.

Audi, the main contributor to VW group profit, has also admitted its 3.0 litre V6 diesel engine was fitted with emissions-control software.

Bild am Sonntag said the software discovered by CARB, which was installed in vehicles with certain automatic transmissions, detected whether a car’s steering wheel was turned.

If it was not, indicating laboratory testing conditions, the software turned on a gear-shifting programme which produced less carbon dioxide than in normal road driving. If the wheel was turned in any direction by more than 15 degrees, the programme was switched off, the paper said.

Audi stopped using the software in May 2016, just before CARB discovered the manipulation in an older model, the paper said, adding that the carmaker had suspended several engineers in connection with the matter.

Bild am Sonntag said a spokesman for Audi had declined to comment, citing ongoing talks with U.S. and California regulators on a proposed fix for cars with 3.0 litre engines.

Reuters

Audi Q3 gets special offers and discounts this festive season

By tech2 News Staff /  11 Oct 2016 , 17:43

The festive season is here and that means special offers from car makers and dealers. The recent one comes from German automobile maker Audi as the company has announced a range of discounts and offers on its popular SUV, the Q3.

This year the luxury car brand has announced city based offers which include:

1. Delhi and NCR: Down payment of Rs 5.99 lakh with EMI of Rs 48,888.
2. Mumbai and Greater Mumbai: Base model starting price of Rs 30.78 lakh with an EMI package of Rs 26,999.
3. Bangalore: Zero percent interest loans.
4. Chennai: Four years manufacturers warranty with a four year service plan. Also, four years guaranteed buyback at 45 per cent of original value with a four per cent rate of interest loan

According to NDTV, these offers have been confirmed and are