CHINA’S SAIC Motor Corp and Volkswagen have signed an agreement that could pave the way for SAIC-Volkswagen, the German automaker’s joint venture with Shanghai-based SAIC, to make Audi-brand cars.

SAIC signed a memorandum of understanding with VW in Germany on Friday for a long-term collaboration, including allowing SAIC-VW to make Audi cars and providing the Chinese market with new-energy cars, SAIC said in a statement yesterday.

However, the statement said the MOU is subject to uncertainties and didn’t mention any new joint venture to be set up between SAIC and Audi, a market rumor which had been going viral over the weekend.