In a significant development for the worldwide automotive sector, Changan Automobile and technology giant Huawei have once more united for a new collaborative endeavor.
Changan declared in a statement to the Shenzhen Stock Exchange that it has entered into a memorandum of cooperation with Huawei. The collaboration involves investments in a new company dedicated to the design and production of intelligent automotive systems and components.
The technology giant will establish the company, and the automotive giant aims to acquire a stake of up to 40%. Changan anticipates that this strategic partnership with Huawei will facilitate its transformation into a low-carbon, smart transportation technology company.
While this isn’t the initial collaboration between the two companies, with their existing engagement in the Avatr brand featuring the Avatr 11 and Avatr 12 vehicles, the recent memorandum of cooperation signifies Huawei’s inaugural financial involvement in their joint ventures.
In the past, the technology giant contributed technology through its automotive division. Under the new collaboration, Huawei will establish a company dedicated to research and development, along with the production of smart driving systems and components.
The company’s business scope is characterized as “comprehensive and forward-thinking,” encompassing various domains in the automotive industry. This includes engagement in 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.
Furthermore, Huawei is anticipated to incorporate its essential technologies and resources in smart car solutions into this collaboration. It is noteworthy to highlight that the signing of the memorandum of cooperation signifies the preliminary expression of intent in this venture.
The specifics of the transaction, including formal agreements such as an equity purchase agreement and a shareholders’ agreement, are anticipated to be concluded within the next six months.
