Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Huawei to move smart car operations to new joint company with Changan

Published 11/26/2023, 03:52 AM
Updated 11/26/2023, 05:00 AM
© Reuters. FILE PHOTO: A Chinese flag flutters near a Huawei store in Shanghai, China September 8, 2023. REUTERS/Aly Song/File Photo

BEIJING (Reuters) -China's Huawei said on Sunday it will move core technologies and resources in its smart car unit, which has chalked up robust sales for a number of new vehicles, to a new joint company owned up to 40% by automaker Changan Auto.

The new company will engage in research and development, production, sales and service of intelligent automotive systems and component solutions, Huawei said in a press release.

"The new company will ... work with partners to promote innovation and leadership in smart car technology and promote the prosperity and development of the automotive industry," the release said.

The equity ratio and amount of capital contributed will be negotiated by the two parties, Chongqing Changan Automobile said in a filing with the Shenzhen Stock Exchange on Sunday.

"The two parties will jointly support the target company to become an industry leader in automotive intelligent systems and component solutions based in China," the filing said.

Huawei managing director and chairman of the smart car solutions unit Yu Chengdong said at a signing ceremony in Shenzhen that the smartphone manufacturer would work with more auto firms to "seize the opportunities of the electrification and intelligent transformation of the auto industry," the press release said.

Huawei has repeatedly said it does not make cars on its own but only helps other automakers make better vehicles.

It has an existing partnership with Changan as well as other companies, including Seres Group. Huawei and Seres jointly produce Aito branded cars, including the M7 model.

© Reuters. FILE PHOTO: A Chinese flag flutters near a Huawei store in Shanghai, China September 8, 2023. REUTERS/Aly Song/File Photo

Huawei has also built the S7 sedan with Chinese automaker Chery under a new marquee, Luxeed, that it intends to position as a competitor to Tesla (NASDAQ:TSLA)'s Model S.

Huawei said in October it had received more than 50,000 orders for its revamped M7 model during the first 25 days of sales, which would put Aito among China's five top-selling new energy vehicle manufacturers based on August data.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.