Audi Won’t Begin Making Cars with SAIC Until 2018

In a move to placate its existing dealers in China, Audi AG says it won’t begin making or selling cars with new partner SAIC Motor Corp. until at least 2018, China Daily reports.

Audi has been making cars under an older partnership with China FAW Motor Corp. since 1988. The company became a 10% shareholder in FAW’s venture with Volkswagen Group in 1995 and set up a sales unit within that company 11 years later.

Audi announced plans last November for the SAIC second joint venture, which will include a second dealer network. The company’s existing dealers have protested that the move will erode their market position.

Audi and FAW make A4 and A6 midsize sedans and Q3 and Q5 midsize crossover vehicles. Earlier this week they announced a 10-year product expansion that will add five “e-tron” hybrid and electric models.

The company hasn’t specified which models its venture with SAIC will make locally or import for sale, but they will include hybrid and all-electric variants.