Author：He Lun, IIA’s Co-Chief Content Officer, Deputy Head of IIA Academy of Auto

Automobile hot topic Q&A (Ep.238)

TEXT：

After 4 years of seemingly inconsistent disputes and overt and secret competition, Audi, FAW Group, and SAIC Motor finally reached a consensus on the sales and service models of the two Audis in the north and south in the future, bypassing the launch of SAIC Audi’s first model in 2022. The three parties respectively issued announcements on this, which is undoubtedly a major event in the automotive industry this year.

Q: You once talked specifically about the sales model of FAW Audi and SAIC Audi. Now the three parties have reached a consensus on a shared sales network. What is your comment?

A: Please note that the so-called "shared sales network" is a term used by some media, and none of the three parties said so. The statement agreed by the three parties is: "SAIC Audi products will be sold through the existing FAW-Volkswagen Audi investor network for sales-related services and after-sales services." The key is how to interpret the "FAW-Volkswagen Audi Investor Network". One kind of understanding refers to FAW-Volkswagen Audi’s existing dealer network. To put it bluntly, SAIC-Audi products are directly sold in FAW-Volkswagen Audi’s existing dealer 4S stores, and after-sales service is also distributed by this network. Store; another understanding is that the existing FAW-Volkswagen Audi dealer investors establish new sales entities, such as city showrooms, brand experience centers or 4S stores, to sell SAIC Audi products, but after-sales service can be Available in the existing FAW-Volkswagen Audi S4 store.

Q: Does this latter understanding sound like the pattern you mentioned 4 years ago?

A: One thing is different from what I said at the beginning, that is, the new sales entities and their network must be established by FAW-Volkswagen Audi dealer investors. Although this prevented SAIC Audi's own dealer investors from entering the market, it dispelled the strong concern of FAW-Volkswagen Audi dealer investors that SAIC Audi's new network would seriously harm their own interests, and resolved one of the biggest difficulties in the game between all parties. , It can also avoid the vicious competition between FAW Audi and SAIC Audi, which is a win-win model. This is a kind of wisdom, an art of compromise.

Q: But none of the three parties’ statements clearly stated this model. What do you think?

A: SAIC's announcement specifically mentions the "new SAIC Audi brand". This "SAIC Audi" should not only be reflected on Audi's tail, but naturally also on the dealership store. Can you imagine FAW-Volkswagen Audi and SAIC Audi, two manufacturer brands appearing on the same dealership store? Look at this kind of expression again, "SAIC Audi will build an innovative business model", "committed to changing the way the brand communicates with consumers, and breaks through the information barriers in marketing, sales, after-sales, and services, and creates more convenient, Reliable and exclusive physical e-commerce ecological experience" and so on, you can feel that this is not like selling products in FAW-Volkswagen Audi’s existing 4S store network, but building another SAIC Audi sales network— -A new network based on e-commerce platforms.

Establish a new SAIC Audi sales and service network based on the e-commerce platform, with the focus on sales. At the same time, after-sales repair and maintenance services are mainly channeled to FAW-Volkswagen Audi’s existing 4S stores through this e-commerce platform. This is my As expected, the reason is that the new network should take care of the interests of dealers, improve sales and service efficiency, reduce sales and service costs, and at the same time avoid competing products from two joint ventures in the same dealership. Now, there is a premise that the national partner recruitment activity will also be launched within the existing Audi investor network.

Q: Do you think this is the best model?

A: It should be said that this is the worst model. The interests of all parties have been properly considered. It is indeed not easy. Of course, this is just the beginning, and there will be many specific challenges that will test all parties. In this consensus, what role Audi China will play in the future has not yet been stated. I estimate that in the past, FAW-Volkswagen Audi’s simultaneous production of products and brands may change. The responsibility for brand building will be mainly borne by Audi China. FAW-Volkswagen Audi and SAIC Audi will concentrate on doing their own products. This is for the two joint ventures. It is fair and beneficial for Audi to maintain a unified brand image.