Huawei makes a major move in automotive industry by creating a new company

Huawei on November 26 signed an investment to build a new automotive company in a joint partnership with Chinese car maker, Changan Auto. This partnership marks a major shift in the intelligent car industry and a major move from Huawei to aim for better business.

The new company, which is unnamed for the time being, has two owners – Huawei and Changan. The latter owns 40% of this new firm and the rest will be owned by Huawei and future shareholders. However, more of the information on this matter is yet to be discussed between these two parties.

Huawei said that this firm will focus on research and development, production, sales, and services of smart automotive systems and component solutions for smart vehicles.

The Chinese tech maker is planning to integrate the core technologies and sources of the smart car solution business into this new company. Meanwhile, Changan will invest to support all of its operations and future developments.

Huawei will announce open equity to investors such as existing partners car companies, and other industry leaders to join the new automotive company for diversified ownership. The investment cooperation memorandum is signed by top officials from both companies.

Zhu Huarong, Chairman and Party Secretary of Changan Auto said “Changan Auto and Huawei will leverage their respective advantageous resources and work with strategy partner car companies to achieve in-depth collaboration to accelerate the large-scale commercialization of smart technology.”

Huawei Managing Director and Chairman of Smart Car Solutions Business Unit said “We have deepened our cooperation with Changan and will work with more strategic partner car companies to continue explore new open and win-win situations. This partnership will help in the electrification and intelligent transformation of the automotive industry.”

Huawei started its car industry journey with Chinese car maker, SERES, and both of them built a new collaborative brand, AITO. Since then, AITO has launched a number of electric vehicles, and the recent AITO M7 has made rapid sales among consumers.

On November 28, Huawei will also unveil a new LUXEED S7 sedan jointly developed with carmaker Chery.

(source)