FRANKFURT (Reuters) - Volkswagen's <VOWG_p.DE> Audi AG <NSUG.DE> 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.[SASACJ.UL] whose brands have struggled.
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)