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Gernot Döllner, the CEO of the luxury automobile manufacturer, has dismissed rumors suggesting that the company’s joint venture in China with the local automotive giant SAIC Motor will be merged into its partnership with Chinese automaker FAW Group.
He emphasized that the current collaborative approach with both Chinese partners remains highly advantageous for the company. Döllner reaffirmed the intention to continue with its dual-partner strategy within the Chinese market.
In May 2024, the company announced the development of a new platform specifically for China, in partnership with Shanghai-based SAIC. This initiative will introduce the premium brand for new energy vehicles, marking its first dedicated to the Chinese market.
The brand, still in its initial phase, aims to establish a strong foundation, build brand awareness, and complete its product lineup, Döllner explained. He highlighted ongoing positive discussions with SAIC aimed at strengthening the partnership, with further details to be disclosed at the right time.
The collaboration with SAIC is primarily centered on growing the new energy brand. The debut model, the E5 Sportback, was launched in the second half of last year, with plans to introduce the E7X later this year and another model in the following year.
Meanwhile, the partnership with FAW primarily pertains to the original brand, focusing on expanding its electric and fuel vehicle offerings using platforms like the Premium Platform Electric and the Premium Platform Combustion.
Looking ahead, the company plans to implement more features tailored to Chinese consumers, including a partnership with Huawei Technologies. The company also intends to continue collaborating with innovative Chinese firms.
Amid the rapid shift towards electrification globally, the automaker has undertaken significant internal restructuring and adopted a new strategic approach. In light of complicated geopolitical issues, the company is reassessing its business model and diversifying its supply chains to mitigate risks. Despite ongoing regional tensions, it confirmed that supply chains remain unaffected by the Middle East conflicts.
The company is launching its most extensive product lineup ever, with plans to introduce eight new models in China this year, including the Q5L, A6L, A6L e-tron, and E7X.
Last year, the company’s operating profit declined by 13 percent to 3.4 billion euros (approximately $3.9 billion). Despite this, revenue increased to 65.5 billion euros (around $75.6 billion). Its operating margin stood at 5.1 percent.
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