With China’s car market being the biggest in the world, this strategic step by VW could have potentially big payoffs.
Undeterred by its troubles, Volkswagen has deepened its collaborations with Chinese internet technology groups in order to increase and expand its digital services in China.
Audi has disclosed, without detailing the financial terms, that Audi and FAW-Volkswagen, Volkswagen’s JV with FAW Car Co Ltd, have signed letters of intent with Alibaba, Baidu and Tencent.
VW’s CEO has reportedly said that it is important that the company remains in control of its relationship with its customers. The comment comes in the wake of VW stopping its talks with ride hailing services and tech giants which include, Uber, Apple and Google.
With Baidu’s expertise with online searches, Audi aims to place smartphones apps in its cars which capitalizes on this strength.
Its partnering with Tencent, an online gaming group, is likely to be for its WeChat communication app, which could help its drivers to keep in touch.
As for Alibaba, its alliance with it is likely to be for its real-time traffic news service and for its 3D maps.
Significantly, earlier in May this year, VW has poured $300 million in Gett, a small sized ride-sharing company.
Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy
manageria.biz 
Leave a comment