Audi Celebrates 20 Years in China

Partnership with First Automobile Works (FAW) established 1988

June 6, 2008 -- Audi celebrated the 20th anniversary of its partnership with First Automobile Works (FAW) in Changchun today and laid the cornerstone for a new assembly hall. The company also announced the local production of the Audi Q5 at the Changchun plant.

Highlights:
-Cornerstone laid for new assembly hall in Changchun
-Local production of the Audi Q5 in China announced

“We hope to deliver up to 200,000 vehicles per year to customers in China by 2015. The new assembly hall is an important milestone toward achieving this goal,” says Rupert Stadler, Chairman of the Board of Management of AUDI AG during the celebrations for the 20th anniversary of the joint venture between FAW and Audi in Changchun. Xu Jianyi, President of FAW, adds: “We need the additional capacity to keep up with the rising demand for the Audi A6L and A4 models.”

Since 1988, Audi has delivered more than 570,000 automobiles to Chinese customers. Today the brand with the four rings is the market leader in the local premium segment, selling more than 100,000 automobiles in the People’s Republic for the first time in 2007. Besides expanding its production capacity, Audi also plans to expand its exclusive dealership and service center network to more than 200 locations by 2015. Currently there are 125 Audi dealerships and nine Audi service centers in 86 Chinese cities.

The Audi success story in China began with a license agreement between Audi and FAW covering the assembly of the Audi 100 from SKD/CKD kits at the FAW plant in Changchun. Besides the technology transfer required for production and planning, the agreement also included the establishment of a customer service organization and the training of roughly 500 Chinese workers. Established in 1953, First Automobile Works (FAW) is the oldest automotive group in the People’s Republic and now comprises more than 100 companies employing over 100,000 people in total.

In 1995, FAW and VOLKSWAGEN AG signed a Letter of Intent integrating the Audi production into the FAW-Volkswagen joint venture, in which Audi has since held a ten percent stake. The Audi 200 began rolling off the assembly line in 1996 and was produced with a local fabrication content of 60 percent until the summer of 1999.

The Audi A6, which Audi and FAW jointly adapted to satisfy the requests of Chinese customers, was introduced to the market in 2000. The new Audi A6L, also with an extended wheelbase, followed in mid-2005. In addition to the models produced locally, Audi also offers the Audi TT Coupé, A5, S5, Q7, A8L, S8 and R8 models in China.

About AUDI AG

AUDI AG sold a total of 964,151 cars in 2007 and thus achieved its twelfth consecutive record year. With revenue of €33,617 million and profit before tax of €2,915 million, the company attained its best figures ever. Audi produces vehicles in Ingolstadt and Neckarsulm (Germany), Györ (Hungary), Changchun (China) and Brussels (Belgium). At the end of 2007, production of the Audi A6 started in Aurangabad, India. The company is active in more than 100 markets worldwide. AUDI AG’s wholly owned subsidiaries include Lamborghini S.p.A. in Sant’Agata Bolognese, Italy, and quattro GmbH in Neckarsulm. Audi currently employs around 54,000 people worldwide, including 45,000 in Germany. The brand with the four rings invests more than € 2 billion each year in order to sustain the company’s technological lead embodied in its “Vorsprung durch Technik” slogan. Audi plans to significantly increase the number of models in its portfolio by 2015, from the 26 currently on offer to 40.

About Audi of America

Audi of America, Inc. offers a line of luxury vehicles that include the Audi A3 sport compact; the sporty A4 sedan, Avant and Cabriolet models; the high performance S4 sedan, Avant and Cabriolet models, the high-revving RS 4 sport sedan and Cabriolet; the all new A5 Coupe with FSI direct injection technology; the S5 Coupe with 354 hp; the design-leading A6 sedan and Avant; the V-10 powered high performance S6 sedan; the Audi Q7 performance SUV; the new all-aluminum Audi A8 and A8L; the new S8 with V10 power; the all-new 2008 TT Coupe and Roadster models; and the all-new, all-aluminum R8, one of the most exclusive mid-engine sports cars in the world. Upcoming Audi vehicle launches in the USA include the updated A3 (Sept. 2008), all-new A4 sedan/Avant (Sept. 2008), TTS coupe and Roadster (end 2008), Audi Q7 3.0 TDI (early 2009), and Audi Q5 (Q1 2009). For more information, visit audiusa.com

Source: Audi

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