On November 26, Huawei announced on its official website that it had signed a Memorandum of Investment Cooperation with Changan Automobile in Shenzhen on the 25th.。Huawei said it intends to set up a new company to focus on the research and development, production, sales and service of intelligent driving systems and incremental components for intelligent connected vehicles.。

According to the memorandum, Huawei intends to integrate the core technology and resources of the smart car solutions business into the new company, and Changan Automobile and related parties will intend to invest in the company and work with Huawei to support the company's future development.。

On the same day, Changan Automobile also disclosed the cooperation matters in the official announcement.。Changan Automobile said that Huawei intends to set up a target company, the business scope includes automotive intelligent driving solutions, automotive intelligent cockpit, intelligent car digital platform, intelligent car cloud, AR-HUD and intelligent lights, Huawei will be dedicated to the target company's business scope within the relevant technology, assets and personnel injected into the target company, the specific business scope and loading plan to be determined in the final transaction documents。

Changan's investment ratio does not exceed 40%, and more car companies may join in the future.

The cooperation between Huawei and Changan marks Huawei's plan to spin off the car BU into an independent company to help the business grow better.。

In August this year, Huawei and Deep Blue signed a cooperation framework agreement, making it clear that the two sides will focus on the field of automotive intelligence and jointly promote the development and application of new technologies in the field of intelligent electric vehicles, marking the acceleration of cooperation between Huawei and Changan in the field of automotive BU.。Last Thursday, another media received a rumor that Huawei's smart car solution BU will be divested from the Huawei system, with an overall valuation of 250 billion yuan, and Changan is the only car company to participate in the acquisition, with a price of 37.5 billion yuan to acquire a 15% stake in the car BUA.。

For this cooperation, Changan Automobile said in the announcement, the transaction company intends to invest in the acquisition of the target company's equity, the proportion of not more than 40%, the specific equity ratio, the amount of capital and the duration of the two sides to discuss separately.。The announcement also pointed out that the target company will gradually open up its equity to investors such as existing strategic partner car companies and strategically valuable car companies to become a diversified company.。

This suggests that Huawei Auto BU Independent may also have a new capital injection to join, further affecting the domestic auto industry landscape。On the one hand, Huawei's existing smart selection model partners, including Sailis, Jianghuai, Chery and Arctic Fox, are likely to continue to take stakes to help Huawei's BU reach the leading level; on the other hand, domestic Xiaomi and Wei Xiaoli, which have certain advantages in smart driving and smart cockpit, may also be challenged by Huawei's BU in the future.。

Zhu Huarong, Chairman and Secretary of the Party Committee of Changan Automobile, said: "Changan Automobile and Huawei will give full play to their respective advantages and resources, and join hands with strategic partner car companies to deeply collaborate and strategically cooperate, which will accelerate the large-scale commercialization of intelligent technologies, so that users around the world can enjoy a first-class intelligent experience, promote the large-scale, intensive and shared development of China's intelligent automobile industry, enhance the resilience of。"

Huawei's rotating chairman Xu Zhijun said: "Huawei insists not to build cars, but to give full play to its ICT technology advantages and marketing capabilities to help car companies build and sell good cars.。We will continue to fulfill our commitment to our customers and partners to jointly promote the rise of the automotive industry.。"

Yu Chengdong, managing director of Huawei and chairman of Smart Car Solutions BU, said: "We have always believed that China needs to build an open platform for electrification and intelligence with the participation of the automotive industry, an open platform with a 'locomotive'.。We will deepen cooperation with Changan, and at the same time, we will work with more strategic partner car companies to continuously explore new models of openness and win-win, and jointly seize the opportunity of electrification and intelligent transformation of the automotive industry to realize the dream of the rise of China's automotive industry.。"

Sailis: Welcoming Huawei's decision has received an invitation to co-invest in target companies

After Huawei and Changan issued a statement of cooperation, Sailis Group also issued an information note on the evening of the 26th, welcoming Huawei's decision and stressing that it would not affect the cooperation between the two sides.。

For its part, Sailis said, "Sailis is currently Huawei's BU partner with the deepest cooperation, the widest scope and the largest loading volume.。According to the relevant provisions of the long-term strategic cooperation agreement signed between the two parties, the strategic adjustment of the car BU will not affect the long-term strategic partnership between the two parties, the supply relationship of parts to Cyrus, and the continued provision of products and services to AITO owners and potential users.。"

As the first partner of Huawei's smart car selection model, Sailis is quite generous in Huawei's embrace of "new love."。Cyrus also said that Cyrus has received an invitation to jointly invest in target companies to jointly participate in building an electric, intelligent and open platform, and the company is actively demonstrating its participation in investment and cooperation related matters.。

According to Huawei's 2022 Annual Report, the smart car solutions business will be Huawei's long-term strategic opportunity。Huawei said that since the establishment of the smart car solution BU, the cumulative investment has reached 3 billion U.S. dollars, and the R & D team has reached 7,000 people.。In 2022, Huawei's smart car solutions business achieved revenue of 20.7.7 billion yuan; in the first half of 2023, the business achieved revenue of 1 billion yuan.。Yu Chengdong has said that Huawei's car BU will achieve its profit target by 2025。