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Changan Automobile announced the big news, Cyrus responded urgently.

2024-04-22 Update From: AutoBeta NAV: AutoBeta > News >

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On November 26, Chang 'an Automobile issued an announcement saying that the company and Huawei signed the Memorandum of Investment Cooperation in Shenzhen on November 25. According to the announcement, after negotiation between both parties, Huawei plans to establish a company engaged in R & D, design, production, sales and service of automobile intelligent system and component solutions. Chang 'an Automobile plans to invest in the company and carry out strategic cooperation. Both parties jointly support the company to become an industry leader of automobile intelligent system and component solutions based in China, facing the world and serving the industry.

According to the Memorandum of Investment Cooperation signed by both parties, Huawei intends to integrate the core technologies and resources of the smart car solution business into the new company, Changan Automobile and related parties will be interested in investing in the company and jointly support the future development of the company with Huawei. It is reported that the business scope of the new company includes intelligent driving solutions for automobiles, intelligent cockpit for automobiles, digital platform for intelligent automobiles, intelligent vehicle cloud, AR-HUD and intelligent lights, etc. Chang 'an Automobile said that Chang' an Automobile and its related parties intend to invest no more than 40% of the equity of the target company, and the specific equity proportion, investment amount and time limit shall be discussed separately by both parties.

Influenced by the news, Chang 'an Automobile opened today, closing at 19.56 yuan/share, with a total market value of 194 billion yuan.

In this cooperation with Chang 'an Automobile, Xu Zhijun, Huawei's rotating chairman, reiterated the concept of "Huawei insists on not building cars, but giving full play to its ICT technology advantages and marketing capabilities to help automobile enterprises build and sell good cars."

In May 2019, Ren Zhengfei issued the organization change document, and Huawei officially established the intelligent vehicle solution BU, which is managed by the ICT Management Committee and belongs to Huawei's first-level department. The president is Wang Jun and the highest person in charge is Xu Zhijun. According to a Huawei intelligent driving in-depth interpretation telephone summary, the intelligent automobile solution BU has three business modes: Tier1 (traditional parts supplier mode, supplying intelligent parts for automobile enterprises), HI mode (Huawei Inside mode) and intelligent selection mode.

Changan Automobile is the only automobile company currently cooperating with Huawei under HI mode. In 2022, Chang 'an Automobile, Ningde Times and Huawei jointly launched the Avita brand. Although Huawei has no shareholding, it is one of the main selling points of Avita that it is deeply tied with Huawei. Avita 11 is the first mass production model of Avita brand, positioned as a medium and large pure electric SUV, with a price range of 349,900 - 409,900 yuan. The biggest selling point of this car is that Huawei HI (Huawei Inside) full-stack intelligent car solution is standard in the whole series, equipped with Huawei Drive ONE two-in-one electric drive unit and integrated HarmonyOS vehicle operating system, Huawei AOS intelligent driving operating system and Huawei VOS intelligent vehicle control operating system. On November 10, Avita's second model-Avita 12 went on sale, with a price range of 300,800 - 400,800 yuan.

However, in contrast, the cooperation of intelligent car mode is deeper. Huawei not only deeply participates in the R & D and design of products, but more importantly, it can also sell through Huawei channels. At present, Huawei's smart car business partners include Selis and Chery, among which Selis and Huawei cooperate with each other for the world, and have launched M5, M7 and M9 models, while Huawei and Chery cooperate with each other for the smart world, and the first model is S7.

Yu Chengdong, executive director of Huawei and chairman of BU, said,"China needs to build an electric intelligent open platform with the participation of the automobile industry, an open platform with a 'locomotive.' We will deepen cooperation with Chang 'an, and at the same time, we will work hand in hand with more strategic partner automobile enterprises to continuously explore new modes of opening and win-win, jointly seize the opportunity of electric intelligent transformation of automobile industry, and realize the dream of the rise of automobile industry in China. "

In fact, the head technology players open equity, the way the whole vehicle factory shares, at present in the industry is rare. Chang 'an Automobile Chairman and Party Secretary Zhu Huarong's speech after signing the contract also indicated that more automobile enterprises would join the BU. He said: "Chang 'an Automobile and Huawei will accelerate the large-scale commercialization of intelligent technology by giving full play to their respective advantageous resources and working hand in hand with strategic partner automobile enterprises."

In response to whether the signing of the contract between Chang 'an Automobile and Huawei will affect the status of Celis, Celis issued a statement saying that this strategic adjustment of Huawei BU will not affect the long-term strategic partnership between the two parties, will not affect the parts supply relationship with Celis, and will not affect the continuous provision of products and services for AITO owners and potential users. At present, Celis has received an invitation to jointly invest in target companies and jointly participate in building an electric and intelligent open platform. The company is actively demonstrating matters related to investment and cooperation.

As stated in the announcement, the new company will gradually open equity to investors such as existing strategic partners and strategically valuable automobile enterprises to become a diversified equity company. This means that Chang 'an Automobile is the first vehicle manufacturer to cooperate with Huawei, and then more automobile companies will join, such as Celis, Chery, Beiqi, Jianghuai, etc., but it is impossible to determine whether the newly established company is the only carrier of Huawei's intelligent automobile business. However, as more and more car companies join the new company, Huawei's shareholding ratio will be greatly reduced.

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