According to Chairman Chang’an, based on the agreement between the two companies, Huawei has promised not to be involved in the automobile manufacturing business and not to be involved in the same business as the new company.
Changan Automobile’s chairman revealed the name and details of the joint venture with Huawei after the two companies signed an agreement about two months ago.
The Chinese auto giant’s chairman, Zhu Huarong, said today at a global partner meeting that the joint venture between Changan and Huawei has been tentatively named New Cool.
Zhu said that based on the mutual agreement, Huawei has promised not to be involved in the car manufacturing business and not to be involved in the same business as the new company.
According to a previous stock exchange announcement by the automaker, on November 25, Changan Automobile entered into an investment cooperation with Huawei to jointly support a company established by Huawei to provide automotive smart systems and component solutions. A memorandum of understanding was signed.
According to the announcement, Huawei plans to establish a target company, in which Changan and its affiliates plan to acquire less than 40% of the shares.
The company’s business scope includes automotive smart driving solutions, smart cockpits, smart car digital platforms, smart car clouds, AR-HUDs, and smart car lights.
According to the announcement, Huawei plans to integrate the core technologies and resources of its smart car solutions business into the new company, aiming to become a world-class industry leader in smart vehicle driving systems and components.
The new company will be an industry-wide public resource platform company, and Changan and Huawei will first consider launching specific products and achieving scale, Zhu said at today’s partner conference.
Zhu noted that Huawei’s rotating chairman Xu Zhijun brought a team to meet with Chang’an in August 2023, and the two sides agreed to support the rise of China’s automobile industry in the field of vehicle intelligence. He said he would like to cooperate.
According to Zhu, it took only three months from the time they expressed their intention to cooperate to the signing of the investment memorandum.
Huawei has three types of cooperation with car companies, among which the OEM and car manufacturing model is the model in which Huawei is most deeply involved, and is known as “Zhixuan”.
In the model with the least involvement of Huawei, the tech giant will only provide the components and the HarmonyOS system. In between are models that offer “Huawei Inside” solutions.
The first automaker to partner with Huawei on the Zhixuan model was Chongqing-based Seres, which jointly launched the Aito brand and launched the Aito M5, Aito M7, and Aito M9.
In addition to Seres, Huawei co-branded Luxeed with Chery and launched the new brand’s first model, the Luxeed S7, on November 28th.
Changan’s sub-brand Avatr is also one of the automakers partnering with Huawei, but has chosen to use “Huawei Inside” solutions.
Changan and Huawei sign a memorandum of understanding to establish a joint venture that aims to become one of the world’s leading parts suppliers