Mao sedan resurfaces to compete with Audi

Red Flag sedans, once a symbol China’s communist elite, are set to go on sale Thursday in an attempt to give Volkswagen’s (VOW3.ETR) Audi a run for its money, Bloomberg reported. China FAW Group will launch the Hongqi – or Red Flag – sedans for retail after a US$300 million overhaul of the version that was first built in 1958 for former Chinese leader Mao Zedong. The Chinese brand will go head to head with Audi, BMW (BMW.FRA) and Daimler’s (DAI.FRA) Mercedes-Benz for private sales. FAW has supplied 500 Red Flag sedans to Communist Party leadership in a nod to President Xi Jinping’s comments in December that officials shouldn’t be continually spotted riding in foreign vehicles.