Shanghai (ZXZC)- On November 25, Changan Automobile and Huawei signed an "Investment Cooperation Memorandum", under which Huawei is set to establish a new company, focusing on the R&D, production, sales, and services of intelligent driving systems and incremental components for intelligent connected vehicles (ICVs).

This collaboration entails the integration of Huawei's core technologies and resources in the intelligent automotive solution business into the new company. Changan Automobile and its affiliates express their intention to invest in the venture, collectively supporting its future development. The targeted equity acquisition by Changan Automobile and its affiliates will not exceed 40%, with specific equity ratios, investment amounts, and timelines subject to further negotiation between the parties.

Photo credit: Changan Automobile

Changan Automobile emphasized the new company's commitment to becoming a global leader in intelligent driving systems and components. Positioned as an open platform serving the automotive industry, the new company will extend its equity to existing strategic partners in the automotive sector and other investors with strategic value, fostering a diversified ownership structure.

This development implies that beyond Changan Automobile, other automotive companies collaborating with Huawei's Intelligent Automotive Solution (IAS) Business Unit (BU), such as SERES, Chery, Foton Motor, and JAC Group, may also explore investment opportunities in the new venture.

According to Changan Automobile's announcement, the new company's scope of business encompasses intelligent driving solutions, intelligent car cockpit, intelligent automotive digital platforms, intelligent car clouds, AR-HUD, and intelligent car lights. Huawei is poised to inject relevant technologies, assets, and personnel dedicated to the new company's business scope, indicating a comprehensive transfer of Huawei's IAS BU operations to the new entity.

Yu Chengdong, Chairman of Huawei's IAS BU, expressed, "We have always believed that China needs to create an electrified and intelligent open platform, one that involves collective participation from the automotive industry—a platform with a 'locomotive.' Deepening our collaboration with Changan and working hand in hand with more strategic partner automakers, we aim to continually explore new models of open collaboration, seizing the opportunities presented by the electrification and intelligence transformation of the automotive industry to realize the dream of China's automotive industry great rise."