VW's Audi strikes deal for China business

VW's Audi strikes deal for China business

Volkswagen AG's premium unit Audi AG has resolved a dispute with its retail store operators in China that could have disrupted its business in the world's biggest auto market, according to a person with direct knowledge of the matter.

The company logo of Volkswagen's Audi AG premium unit is pictured on the hub caps of a car during the annual news conference in Ingolstadt March 11, 2008. REUTERS/Michael Dalder

FRANKFURT: German luxury carmaker Audi , a unit of Volkswagen , on Saturday said it had signed an agreement with its dealers in China regarding how it will do business in the world's largest car market.

Audi board member Dietmar Voggenreiter said the agreement with China's FAW Group , the FAW-Volkswagen joint venture and the Audi dealer council was a "strategic milestone for Audi's business in China".

Audi said the parties reached a "mutual understanding" that Audi models from a potential partnership between the carmaker and China's SAIC Motor Corp Ltd would be sold through its existing dealer network in China.

(Reporting by Christoph Steitz, editing by Louise Heavens)

Source: Reuters