On the river side opposite, the Mercedes-Benz Arena is decorated entirely in red and can be seen for kilometers. It has something of a greeting from colleagues from Stuttgart to the car manufacturers from Ingolstadt. Because on this side of the river, on an old shipyard in the middle of Shanghai, Audi invited people to one of the biggest celebrations in China in years this Thursday evening. Everything is bluish-purple. One almost thinks that China’s old car world, which was dominated by German manufacturers, is still intact. In fact, the opposite is the case. Because the sales figures of all manufacturers from the Federal Republic are collapsing. German cars are too expensive and too old-fashioned. And Audi’s event is not a sign of strength either. Instead, the brand with the four rings is signaling that it will not give in without a fight in China. To do this, it is taking a radical step: it is removing these legendary four rings that have adorned the radiator grilles of this traditional brand’s vehicles since the 1930s. CEO Gernot Döllner presented a new electric brand in Shanghai that is intended to be tailored to China: AUDI. The sister brand is written in capital letters and does not have any rings at all. To achieve this, Audi is cooperating with the Shanghai state-owned company Shanghai Automotive Industry Corporation (SAIC), a partner of Volkswagen for decades. The company also presented its first concept car in Shanghai, which is much more digital and modern than the somewhat outdated Audi models, which are finding fewer and fewer buyers in China. Exhibits from the Far East in Ingolstadt China Weeks are also available for Audi in the old one Hometown. In Ingolstadt, more than ten hours’ flight away, the Audi employees were familiarized with the Chinese competition at the Bavarian headquarters. In the technical development center, the local engineers were able to marvel at some exhibits from the Far East in the foyer that are not available for sale in this country. There are electric cars from young, up-and-coming brands with some superior technology on board. These are exactly the competitors that Audi now has to take on, says a company spokesman. And that has to happen quickly. In an interview with journalists, Audi boss Döllner raves about the “China speed” in Ingolstadt: No Audi has ever been developed as quickly as with the Chinese cooperation partner SAIC. This only took three years because Audi was able to use the entire vehicle architecture of SAIC’s premium brand IM Motors. This is considered fast for German manufacturers, but in China two years is often enough for companies. There was a “fruitful collaboration” between the development teams in Ingolstadt and Shanghai, says Döllner, and all decisions were made together with SAIC – just as Audi did with them Sister company Porsche practices on the so-called Premium Platform Electric (PPE), the modular system for large, fully electric vehicles. Döllner therefore also speaks of a “sister brand” that should be aimed at a particularly technology-savvy clientele that has not yet come into contact with Audi. Audi has a two-pronged approach in China. The Audi without four rings is definitely not an “entry-level brand”: “Audi is has been known in China for 36 years, but now we want to address a different, younger target group with our ‘New Energy Cars’.” Döllner is already adopting the terms from the People’s Republic. Electric cars, hybrids and cars with fuel cells are referred to there as “new energy vehicles”. In the future, Audi will operate on a two-pronged basis in the vast empire: the Chinese Audi models with the four-ring symbol come solely from the production partner First Automotive Works (FAW). State-owned company from Changchun in northern China, in which the VW subsidiary has been involved since 1991 and which is still subordinate to the central government in Beijing. With SAIC there will now be electric Audi vehicles without the four rings. Specifically, three smart electric cars are planned that will have illuminated Audi lettering on the front and rear and even on the seats. And even without the rings, these models are characterized by the “special Audi DNA,” claims Döllner.More on the topicAudi, like its parent company Volkswagen, has a lot of catching up to do in the electric car business. The subsidiary is dependent on its Chinese partners for the next generation of models. The cars have to be closer to the customer, and of course the costs also have to be significantly lower than before. While Audi is celebrating in distant China, the mood at the headquarters in Ingolstadt is declining. According to information from “Manager-Magazin”, the board is planning a new savings program that could result in the loss of several thousand jobs. In development alone, 2,000 of the 10,000 jobs are threatened, as well as areas outside of production. The talks with the works council have just begun. Works council boss Jörg Schlagbauer said on Thursday that the works council was in discussions with the company about the content goals in order to make Audi weatherproof. “We’re interested in clear structures, faster decision-making, improved processes and more added value at Audi.” He referred to an agreement from 2019, according to which, in economically difficult times, the works council and the company talk about how redundancies can be avoided. ” Everything else is rumors and speculation in which we do not participate.”
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