Audi Plans to Set Up Taiwan Branch for Hands-on Operation

Taipei, July 22, 2008 (CENS)--As Audi AG, the German automaker, plans to set up a branch in Taiwan under global tactical considerations, Taikoo Motors or the existing local agent, may suffer some impact, according to local Chinese-language economic daily newspaper Economic Daily News (EDN).

Taikoo imports vehicles and operates dealerships in Taiwan where it is the exclusive agent of Volkswagens, VW light commercial vehicles, Kia cars, Audi cars and Harley-Davidson motorcycles.

Industry sources said that top management of Taikoo is negotiating with Audi headquarters in Germany-offering to invest in the new local branch or become its major distributor.

The sources also added that both BMW and Audi plan to set up branches in Taiwan to directly manage the market.

Audi reportedly has found an industry veteran to captain as president of the new local branch, and the German car maker has invited local media to talk to its German headquarters and plants in late July, when the branch-setup news is expected to be formally released.

The sources also added that if Audi's new strategy goes as planned, Volkswagen may also follow suit to take over its local agency from Taikoo.

Audi has yet to negotiate with Taikoo over issues as the vehicle inventory, spare parts, sales/service people, and the existing seven dealerships islandwide, people familiar with the progress said.