According to a report by Reuters, Audi is in talks with SAIC Motor to buy an electric vehicle (EV) platform from the Chinese carmaker. Sources familiar with the matter told the news outlet that the premium division of Volkswagen Group is looking to take over the EV platform owned by IM Motors, which is a joint venture between SAIC Motor and Chinese technology companies Zhangjiang Hi-Tech and Alibaba Group.
At present, IM Motors’ line-up includes the L7 sedan and LS7 SUV, with the former being a direct rival to the Tesla Model S. The EV maker also has the L5 on the way, which will sit below the L7 and competes against the Model 3.
Audi and SAIC Motor are declining to comment on the matter for now, but the proposed move highlights the pressure on all legacy and Western brands to compete in the EV space in the world’s largest auto market. Sales of the German carmaker’s EVs in China are well behind the competition, with departing Audi chief executive Markus Duesmann revealing the lack of vehicles serving Chinese needs being the primary reason.
Data from the China Association of Automobile Manufacturers (CAAM) show Audi sold just over 3,000 EVs in the first quarter in China, while BMW sold 21,646 units and Tesla sold 137,429 units.
Audi has not bought a platform from another manufacturer before and is currently using Volkswagen Group’s EV-dedicated MEB platform, while concurrently developing the new Premium Platform Electric (PPE) platform with Porsche. However, the first PPE-based EVs won’t be produced in China until next year – Audi is partnering with First Automobile Works (FAW) for this. Currently, Audi offers the Q4 e-tron and Q5 e-tron built on the MEB platform, along with the MQB-based Q2L e-tron in China.
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That makes Audi irrelevant to be considered as luxury brand
So what defines luxury for you?
Since Geely is already with Daimler and Aston Martin, I guess VAG has no choice but to talk to the next available potential partner.
When Father P created his beloved car, China was manufacturing bicycles in droves. Today, they’re buying up all the big name manufacturers, and Father P’s very small one too. But look at all the damage done by Father P? Manufacturers prefer to build their factories in Thailand or Indonesia, investing tens of billions while you and I ended up feeding Father P’s company in billions. Please thank him for all our sufferings. Really.