With the festering energy crisis and dramatic shifts in weather patterns on the entire earth, car companies look inclined towards electric engines while ignoring traditional petrol machines. Auto makers round the world are embarked on securing a spot on the podium for dominance in EV market.
In a recent development, Audi, subsidiary of Volkswagen Group, wants to acquire an electric platform of MG, known as a Chinese state-owned car company. For this purpose, Audi reportedly is in talks with MG’s parent company SAIC Motor Corp. A British news Agency dubbed ‘Reuters’ has considered it a strange sight to be hold calling it an ‘unusual move’ for other carmakers.
Audi’s Plan after Decline
As Audi faces a decline in electric vehicle (EV) sales compared to Tesla and domestic rivals like Nio, underscores the challenges that prominent brands are experiencing in China, the world’s biggest market for EVs.
According to the sources, Volkswagen Audi Group (VAG) is reportedly seeking to acquire IM Motors, SAIC’s electric vehicle (EV) brand. The discussions are said to be progressing, as per one of the sources.
IM Motors, a luxury EV manufacturer jointly owned by SAIC and Alibaba Group, recently commenced deliveries of its L7 sedan in June 2022. While Audi has not officially confirmed these talks, SAIC has chosen not to comment on the matter.
Reuters has been unable to ascertain the specific details of Audi’s offer for the EV platform or whether SAIC would continue producing the L7 car. However, several local media reports have hinted at this potential development, as reported by Reuters.
In a recent interview with Reuters, Audi CEO Markus Duesmann, who is set to retire in September, emphasized the need for the company to expedite its model development in order to meet the increasing demand for electric vehicles (EVs), particularly in China.
Duesmann highlighted that Audi’s sales have been negatively impacted by a shortage of vehicles tailored for the Chinese market. The CEO acknowledged the importance of addressing this issue and accelerating their EV offerings to effectively cater to the growing demand in China.
What do you think about Audi’s strange move? Tell us in the comments section.
“While Audi has not officially confirmed these talks, SAIC has chosen not to comment on the matter.”
Then why are you making a biased article for MG ?
Both of the parties doesn’t want to make any comments.
And this negociation is more because Audi is currently developping a new EV platform that will took up to 2029 before releasing it, it is more to keep sales in China than anywhere else.
Everything else is your interpretation.
“What do you think about Audi’s strange move?” There is nothing strange about it. They recognize that they are losing to the Chinese brands; especially in China. Audi doesn’t even have a dedicated EV platform of its own. They know that the Chinese have much more extensive experience in EV development and are desperate to get some of the technology from SAIC. It sounds like Audi is seriously making a push for this.
Unfortunately, with the strange brand obsession that we have in this country we tend to ignore the facts. The old legacy brands were the kings of their respective hills “back then”. Now, because they chose to ignore the trends, they are facing a very steep uphill battle. The Chinese are generations ahead of the curve. Apart from Tesla, the Chinese brands are the ones who do/will dominate.
I understand that the brand is very important in our market. Much rather buy a small compact sedan for a caror rather than buy an SUV from a Chinese brand (which has proven its mettle around the region but not in Pakistan) and which, compared to the small compact sedan, is miles ahead in luxury. Similarly, much rather buy a luxury EV from a European brand which we recognize rather than explore the Chinese brands and their luxury EV offerings with features that put the Europeans to shame. The name is everything for us.
Look at it this way. If the Chinese EV brands were not that great. Why is it that top tier brands like Audi are clamoring after their tech? (Even Toyota is having BYD make sedans for them in China.)
@Ali Khan
Are you paid by chinese’s brands?
No because read again your own comment
“Audi doesn’t even have a dedicated EV platform of its own.”
What about e-tron range ??? ain’t it hyped the world ???
“They recognize that they are losing to the Chinese brands; especially in China.”
They aren’t losing anything only in China, they just want their share from the biggest car market of the world
China = 28 million brand new cars sold each years
It’s economy baby
To resume you are trolling ? because you can’t be serious with the comment above
@Waqas
Thank you for proving my point in spades! Brand obsession before facts; always!
The E-tron is made on the VW MEB platform which is from 2015. This was/is a modular platform that was intended to be used for multiple EV vehicles under the VW group. This was a prototype platform which VW shoe-horned into their EV lineup because they had nothing else to go on. Unfortunately it suffered, and still suffers, from a lot of design inefficiencies that make it costly. This is a problem not only in china but for its overall EV production. The MEB was supposed to be replaced with the SSP platform and there in lies the core of the problem. VW/Audi was supposed to have some readiness of the platform in the next couple of years. Unfortunately, as I said, because of their initial attitudes towards EV, fast tracking the new SSP platform is not working out for them. Audi parent Company VW has an SSP based model in the works called project trinity. Originally the launch date was around 2026. Now its been delayed up to 2030 (because of the delayed SSP platform).
That is not ideal and is one of the main reasons for Audi’s purchase decision. We are talking purchase here. If, like you said, only china was the target, they would have just paid MG some royalty to use the platform. No, they are buying it. That means they will be using this tech far and wide in their global line up because they are running out of options (until they get SSP up and running). And yes, it will always start from China for them. Like you said it is the biggest EV market.
I would love to share links and details with you but comments with links have always been rejected by PW when ever I have tried. You can look all this up your self if you like.
@Ali Khan
For your information Audi is part of Volskwagen group, there are sharing many things in common, as well Bentley
yeah you read right.
But it seem you don’t know that with your pathetic comment
They are no stiffness between Volskwagen and Audi, is just Volskwagen got into a partnership with Ford, wich you don’t seem to know with your pathetic comment
Of course, you don’t even understand our local market, you would not know about international car market.
Update yourself don’t be biazed
@waqas
“The E-tron is made on the VW MEB platform which is from 2015”. “…intended to be used for multiple EV vehicles under the VW group”. “Audi parent Company VW…”
From the above examples from my second comment, it seems clear that YES Audi is part of the VW group. i.e. VW is the parent company.
“They are no stiffness between Volskwagen and Audi”. You lost me there bro?!🤦♂️🤷♀️ “stiffness”?!!!😮
What has that Ford partnership got to do with this? Ford wanted to get into the European market. Thus, they partnered with VW to use their MEB platform to make EVs for the European market under the Ford brand. That was in 2020. Even though Ford is still using VW’s MEB to make EVs, Ford is looking to move away from that by developing its own EV platform in-house.
Come to think of it what Audi is trying to do in china is similar. They want to make EVs using MG’s EV platform. Only this time Audi wants to buy the technology outright. That means it has other plans to use this tech.
Learn to read a comment in its entirety before hating. What’s going on Waqas? Have you been taking Khurram lessons? 😜
@Ali Khan
Don’t bring someone else in your pathetic comments.
If you know Audi is part of Volskwagen group then why are you going to technical details ?
Ford is already available in Europe, and the best selling american brand here.
For EV Ford is selling the Explorer as PHEV for example.
All the big brand in the world are making two divisions one for ICE and one for EV, because today they are two different market needs.
It is all about business strategies not about being technologicaly outdated
Again update yourself
@waqas
🤯 🤦♂️
@Ali Khan
Putting facts over brand name eh? Well, one thing is for sure, you are cheap liar. Anyways, can you read and comprehend the material being read as well?
Well, if so, then read through this link and tell me where it says that Toyota is having BYD make its sedans.
https://bydeurope.com/article/303
PS The only biased person who is reading from inner mind is you Ali Khan and I have said once before, we are not interested in whatever is going on in that illiterate mind.
@Khurram
Why is it that everyone is a liar except for you?
https://thedriven.io/2023/04/19/toyota-launches-bz3-its-first-full-electric-sedan-driven-by-byd-powertrain/
The article clearly states:
“The new model is driven by BYD’s battery and motor powertrain setup.”
Battery, Motor AND Powertrain… What else is left? Toyota fairy dust?
The only reason I did not answer the other “truth Sayer” was because he himself is so confused. On the one hand he is screaming about how Ford is making an “EV” Plug-in Hybrid. And in the very next line he is (correctly) acknowledging that ICE and EV are two separate things. Doesn’t he know that Hybrids and Plug-in Hybrids (PHEV) are made on the ICE vehicle platform? We were talking about pure EV (Battery only) Platforms. Hybrids are NOT made on EV Platforms. Hybrids are ICE powered vehicles with an internal combustion engine. EVs do not have and do not need internal combustion engine. Thus, they require a whole separate platform to keep the costs down and improve ride, handling, structural rigidity etc. Companies don’t have to extensively modify an existing ICE platform every time they want to make an EV which is costly and negatively impacts the other factors I mentioned.
The only reason that Audi is trying to buy a pure EV platform and even Toyota is doing a JV with BYD is because, 1) making pure battery EVs on ICE vehicle platforms is NOT COST EFFICIENT; and 2) In the case of Audi, even though their MEB platform is a pure battery EV platform; it is so old, inefficient and costly that they are thinking of buying a whole division from another company just to bring their costs down? Wanna talk about business strategies; well, there you go! It’s all about staying relevant and cost effective.
Maybe next time it will do you both good if you really DO go into the technical details instead of name calling and ranting.
And Khurram; if you are “not interested in whatever is going on in my illiterate mind” why bother barging in on this very old discussion?