Changan Automobile's Progress with Huawei in Joint Venture
TapTechNews July 3rd news, Zhu Huarong, the chairman of Changan Automobile, said today that the matter of establishing a joint venture company with Huawei is progressing in an orderly manner. 'Due to the heavy workload, Changan Automobile is a listed company, and there is an agreement between the two parties with Huawei. We can't say it's finalized until the day it's signed.'
He disclosed that if the approval can pass, then Avatr, which is established by Changan, Huawei, and CATL, will also participate in the new joint venture company project. According to the announcement of Changan Automobile, the company expects to sign the final transaction documents with Huawei no later than August 31, 2024.
On November 25, 2023, Changan Automobile and Huawei signed the 'Memorandum of Investment Cooperation' and planned to establish a company engaged in the research and development, design, production, sales and service of automotive intelligent systems and component solutions.
On January 16, 2024, Huawei completed the registration of the target company, named 'Shenzhen Yingwang Intelligent Technology Co., Ltd.', and its business scope mainly includes automotive intelligent driving solutions, automotive intelligent cockpit, intelligent automotive digital platform, intelligent vehicle cloud, AR-HUD and intelligent vehicle lights, etc.
Zhu Huarong also said at the beginning of this year that the promoter of this round of cooperation is Xu Zhijun, the rotating chairman of Huawei. In the cooperation, Huawei promised not to be engaged in the whole vehicle business.
In addition, Zhu Huarong also especially responded to why Changan Automobile insists on using the HI model instead of the Hongmeng Zhixing (TapTechNews note: that is, the original Smart Selection Vehicle business) model:
The strategy of Changan is that to make a car, you must have your own brand, not someone else's brand. If it is to make someone else's brand, that would be wrong. What Changan does must conform to the requirements of the national industrial policy, because I think other models have problems.