Audi and FAW sign China electric car cooperation deal

[January 17, 2017]  FRANKFURT (Reuters) - Volkswagen's Audi AG  said it will expand its model portfolio in China to include locally produced electric cars produced by FAW VW, handing a lifeline to China FAW Group Corp. whose brands have struggled.

Logos of Volkswagen (R) and Audi are seen on a wheel of a car at a used car dealership in Seoul, South Korea, October 2, 2015. REUTERS/Kim Hong-Ji

On Tuesday, Audi outlined a 10-year plan with FAW Group with a new company for mobility and digital services and closer cooperation in the area of financial services. Audi and FAW also agreed to produce five additional e-tron models for China in the next five years, including purely battery-powered cars with ranges of more than 500 kilometers.

An early entrant to China, the world's largest car market, Audi remains the best-selling premium car brand although it is rapidly losing ground to newer car models from Daimler's <DAIGn.DE> Mercedes-Benz.

(Reporting by Edward Taylor; Editing by Harro ten Wolde)

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