In a significant development for the global automotive industry, Changan Automobile and tech giant Huawei have once again collaborated on a groundbreaking venture. Changan, in a statement to the Shenzhen Stock Exchange, revealed the signing of a memorandum of cooperation with Huawei, marking the inception of a new company dedicated to designing and producing intelligent automotive systems and components.
Under the terms of the collaboration, Huawei will establish the company, and Changan will acquire a stake of up to 40%. This strategic move aligns with Changan’s vision to evolve into a low-carbon, smart transportation technology company through this joint venture with Huawei.
While the two companies have previously collaborated on the Avatr brand, introducing vehicles like the Avatr 11 and Avatr 12, this memorandum signifies a deeper financial involvement by Huawei. Previously, Huawei had contributed technology through its automotive division. Now, Huawei’s role expands as it sets up a company focused on comprehensive research and development and the production of smart driving systems and components.
The business scope of this new venture is described as “comprehensive and forward-thinking,” encompassing various areas within the automotive industry. This includes automotive smart driving solutions, smart cockpits, smart car digital platforms, smart car clouds, AR-HUD (Augmented Reality Head-Up Display), and smart car lighting systems. Huawei plans to integrate its key technologies and resources in smart car solutions into this collaborative effort.
It’s crucial to note that the memorandum of cooperation serves as an initial expression of intent, and the transaction details, including formal agreements like an equity purchase agreement and a shareholders’ agreement, are anticipated to be finalized in the next six months. This strategic partnership marks a significant step in shaping the future of intelligent automotive systems through the combined expertise of Changan Automobile and Huawei.
