The Audi global CEO denies the merger of North and South Audi; progress has been made in discussions with SAIC to deepen cooperation.

“We are currently discussing deepening cooperation with SAIC. The dialogue is positive and making progress, and we will update the latest developments at the appropriate time,” Gernot Döllner, CEO of Audi globally, told Yicai on March 17.

Audi has two major partners in China: FAW and SAIC. In May 2024, Audi announced it would jointly develop a new platform with SAIC focused on the Chinese market, launching the “AUDI” brand as the first luxury brand dedicated exclusively to new energy vehicles in China. Döllner said that the AUDI brand is still in its early stages, with the focus on strengthening the brand foundation, increasing brand awareness, and improving the product lineup.

Recently, there have been rumors that SAIC Audi might merge into FAW Audi in the future. When asked whether North and South Audi would merge, Döllner stated that the current cooperation models with both partners are highly beneficial for Audi, and the company will stick to its existing dual-partner strategy. Currently, the main focus of Audi’s collaboration with SAIC is to promote the development of the Audi lettermark. The first product, E5 Sportback, is set to launch in the second half of 2025. This year, Audi will launch the E7X, and another model will follow next year. The partnership with FAW mainly focuses on the product lineup of Four Rings Audi, with pure electric vehicles based on the PPE platform and internal combustion engine models expanding the lineup based on the PPC platform. In the future, Audi will introduce more features tailored for the Chinese market, including collaborations between Four Rings Audi and Huawei. Audi will continue to maintain open cooperation with Chinese innovative companies.

Currently, multinational automakers are experiencing pain points in their electric transformation. ABB (Audi, Mercedes-Benz, BMW) saw declines in revenue and profit in 2025, implementing various measures to reduce costs and increase efficiency. Döllner said that Audi is undertaking major internal restructuring, implementing a new strategy to create a leaner organization, clarify work priorities, streamline management levels, and shorten decision-making processes to improve efficiency. Regarding the complex and changing geopolitical landscape, Audi is re-evaluating its business model and diversifying its supply chain to reduce reliance. Currently, the supply chain has not been affected by the Middle East situation.

Audi has launched the largest product lineup in its history worldwide. 2025 is the starting year, and efforts will continue this year, focusing on flagship SUV Audi Q9 and the new compact electric model Audi A2 e-tron. In 2026, eight new models will be launched in China, including Audi Q5L, Audi A6L, Audi A6L e-tron, and the second mass-produced model under the AUDI brand, the Audi E7X.

Financial reports show that in 2025, Audi Group’s revenue slightly increased to €65.5 billion, operating profit decreased from €3.9 billion in 2024 to €3.4 billion, with an operating margin of 5.1%. The company’s net cash flow grew by 11% to €3.42 billion.

Jürgen Rittersberger, CFO of Audi Group, stated that in 2025, Audi faces many external challenges, including increasing political uncertainties and trade barriers affecting business operations. Competition in the global auto market is intensifying, and the pace of electrification in some regions is below expectations. Tightening policies in Europe also pose financial pressures. Due to US tariffs, the largest single expense reached €1.2 billion, nearly eroding 2% of sales returns. Audi Group expects revenue in 2026 to reach between €63 billion and €68 billion, with an operating profit margin of 6% to 8%.

(Source: Yicai)