BMW, Mercedes-Benz catch up as VW irks dealers in China
BMW and Mercedes-Benz's sales are closing in on Volkswagen's in China's luxury car market. Audi, the preferred choice for China's upper class, made a strategic shift aimed at boosting sales but this backfired. By signing an agreement with SAIC Motor to generate more Audi sales in China – which is vital for VW after the recent emissions scandal – VW provoked a backlash from its existing Chinese partner, FAW Group, and affiliated Audi dealers. Although the SAIC deal has now been put on hold, dealers continue to protest and are refusing vehicle deliveries.
GUANGZHOU -- A strategic shift aimed at boosting sales of luxury Audi cars in China is backfiring on Volkswagen.

Audi has long been the high-end marque of choice for the country's upper echelon. But the brand can no longer count on the Chinese government buying up fleets of its cars, due to President Xi Jinping's war on official extravagance. Though the luxury car market is expanding, German rivals BMW and Mercedes-Benz are gaining ground fast.