Audi Sells One Millionth Vehicle in China after 22yrs, Plans to Reach the Next Million within 3yrs

Audi reached a new milestone on Wednesday with the sale of its one millionth vehicle in China. The car was a metallic blue Q5 crossover, which was handed over to a customer from Changchun. The German company said of the 1 million cars delivered to Chinese customers, 950,000 were produced in Changchun and the other 50,000 imported.

"This record is yet another milestone in the history of Audi in China," remarked Rupert Stadler, Chairman of the Board of Management of Audi AG. "We were the first premium brand in China 22 years ago and have been the unrivaled market leader in this segment ever since – a success story we're extremely proud of."

As demand in China for luxury cars continues to boom, Audi believes it can reach the next million there by 2014.

"Over the entire year, we will deliver well over 200,000 cars to customers in China," stated Dr. Dietmar Voggenreiter, President of Audi China. "And we have already set our sights firmly on the next sales target: We intend to reach the second million within the next three years."

The history of the brand from Ingolstadt in China began in 1988 with a license agreement between Audi and FAW covering the assembly of the Audi 100 with imported parts kits. In 1995, the VW Group and FAW formed a new joint venture resulting in the local production of the Audi 200 a year later. In Changchun today, the company with the four-rings produces the long-wheelbase A6L and A4L and, since 2009, the Q5 for the Chinese market.

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MG to Build First All-New Model in 15 Years at its UK Plant

MG Rover's old Longbridge car plant is set to comeback in a big way when SAIC / MG begins building its first all new car in 15 years at the end of the year. The plant will start producing the MG6 mid-size model from knocked-down kits imported from China, preceding the UK relaunch of MG as a "value brand" in 2011.

The all new car will be available initially as a five-door fastback, with a four-door saloon to follow later on. The automaker optimistically told the Financial Times that customer clinics have compared the MG6 with the likes of the Ford Mondeo, Skoda Octavia and even with small BMWs. Prices in the UK are said to range between £16,000 to £20,000 (US$25,425 to US$31,780).

Shanghai Automotive (SAIC) bought the intellectual property rights to some of MG's cars and engines after the collapse of parent company MG Rover in 2005. Meanwhile, Nanjing Automobile bought much of the production equipment back in 2007.

The latter's 2007 estimate of selling 50,000 cars a year appears to have been rather optimistic, with actual sales being more of the order of, "hundreds, not thousands". The two companies are now merged under the SAIC name.

MG's Birmingham office employs some 300 engineers and 30 design staff, who provide design and engineering services to parent SAIC. MG Birmingham has previously contributed its extensive knowhow to the development of the Roewe 550 and 350 sedans and the MG Zero concept car that was shown at the Beijing Auto Show earlier this year.

Chinese automakers have had no success exporting cars to Western Europe and the United States in the past. MG Birmingham's input is especially important for SAIC, with the Chinese still struggling to make large cars that are competitive with the Europeans. David Lindley, Head of SAIC's Technical Centre explains:

"There's still a lack of capability in Shanghai, and probably will be for years, to design a new vehicle from a clean sheet of paper."

The success of the MG6 is essential for the future of Longbridge and for MG's European operations. At present, Longbridge only builds small numbers of the outdated MG TF roadster.

Only time will tell if MG can buck the trend and recapture the hearts and minds of British consumers. The MG6 will hopefully be the first step in this difficult process.

By Tristan Hankins

Source: FT (sub. req.) , Kudos to Aikiv for the tip!

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