Shanghai (ZXZC)- China FAW Group Corporation (FAW) signed two MoUs on establishing two new companies with Volkswagen AG and Audi AG on Mar. 7 in Geneva. It is said that one company will engage in sales business and the other will focus on mobility and digitalized service.

The two MoUs are jointly signed by FAW Group, Audi AG, Volkswagen AG, Volkswagen Group China and FAW-Volkswagen. According to the MoUs, all partners will set up FAW-Audi Sales Company and FAW-Audi Mobility Service (China) Co., Ltd. in 2018. It is expected that the two new companies will be put into operation by the end of 2018.

FAW-Volkswagen will invest in the FAW-Audi Sales Company, which will be a wholly-owned subsidiary of FAW-Volkswagen. The FAW-Audi Sales Company will improve and expand its business based on the existing business functions of FAW-Audi's sales division. The new sales company will have a simple and efficient market response and decision procedure with its own functions in human resource, finance and purchasing. Besides, the new sales company will continuously boost the development of dealership network, improve its current capabilities of business and profitability, as well as strengthen the service for customers.

The to-be-built FAW-Audi Mobility Service (China) Co., Ltd. will be co-invested by FAW, Audi, FAW-Volkswagen and Volkswagen China. The new company will focus on emerging digitalized sharing and mobility field in order to provide personalized high-end mobility experience for Chinese customers. What's more, the new mobility company will take over Audi on demand +, a premium mobility service launched in Beijing in September, 2017.

It is known that both Chinese and German shareholders are adding investment in FAW-Volkswagen because they believed that China holds great potential in premium vehicle market. In 2018, FAW-Volkswagen Changchun Qplant and Foshan base, which will manufacture Audi models, will be finished construction and begin production. By 2020, five new NEV models under Audi brand will be introduced into the Chinese market. At the same time, all parties will jointly invest more to start Audi's brand upscale plan, and collect more customers' feedbacks from the Chinese market.