Shanghai (ZXZC)- Huawei is merging the businesses of its Consumer Business Group (BG) and Smart Car Solutions Business Unit (BU), and the merger is directed by Yu Chengdong, CEO of Huawei Consumer BG, according to a local media outlet, citing persons close to Huawei’s senior management.

“The two departments have been combined at the level of investment, while there are no change in personnel or business yet,” according to persons with direct knowledge.

Currently, Huawei possesses three major BGs, namely the Carrier, the Enterprise and Consumer BGs, and two BUs—the Cloud & AI and the Smart Car Solutions.

In May 2019, Huawei's Smart Car Solutions was established, which operates under the ICT Management Committee.

"Huawei will not make cars. Focusing on developing ICT technologies, Huawei will enable car manufacturers to build better smart vehicles,” Huawei said in an internal document.

The young business unit is dedicated to offering end-to-end smart vehicle solutions including ICT components and solutions for car manufacturers, according to the document.

Each business unit of Huawei is supervised by a management committee or an investment decision-making committee, which have the right to conduct examination and approval over the resources and manpower required by specific businesses, according to a person familiar with Huawei’s internal operating structure.

The Consumer BG has its own management committee, which is headed by Yu. The Smart Car Solution BU belongs to the ICT Management Committee chaired Xu Zhijun, rotating chairman of Huawei.

“The merger of Smart Car Solutions BU and Consumer BG is to put the former under the latter’s management Ccommittee, and Mr. Yu will serve as the leader,” a person briefed on the matter told the local media outlet. It means Xu will hand over the car solution business to Yu.

Huawei has not made any comment on the matter when the report is prepared.

Huawei's Smart Car Solutions BU focuses on five aspects, namely smart driving, smart cockpit, intelligent network, intelligent electrification and cloud services. “Each business of Huawei's smart car solutions is associated with the company's conventional ICT (information and communications technology) business and is designed to serve ICV (intelligent-connected vehicles)-related scenarios,” Xu told a local media outlet.