It was recently reported that Huawei’s smart car solution BU will be separated from Huawei’s system, with an overall valuation of 250 billion RMB. After the change of hands, the largest shareholder is the Chongqing State-owned Assets Supervision and Administration Commission. Among them, Changan is the only car company participating in the acquisition, and will pay 37.5 billion RMB to acquire 15% of its equity. There is also news that Changan Automobile will acquire a 30% stake in Huawei’s automotive BU business for 300 billion RMB.
According to China Business News, the latest response from the head of Changan Automobile’s strategic planning department stated that Changan Automobile and Huawei have established strategic cooperation, and both parties have in-depth cooperation on Avita and Deep Blue Automobile. However, the information circulated on the Internet is inconsistent with the facts.
Note: “Huawei Smart Car Solution BU” is referred to as “Car BU”, where BU is the abbreviation of “Business Unit”.
It is worth mentioning that the automotive media “HiEV Garlic Grain Automotive Research Institute” reported in August this year that multiple information sources close to Huawei stated that Huawei intends to promote the independent operation of the vehicle BU and is currently in close contact with the Chongqing State-owned Assets Supervision and Administration Commission on cooperation matters. .
According to its statement, the independent BU will likely become a new Tier 1 (first-tier supplier) giant. At the same time, Huawei will also recover its many years of R&D and investment in automotive BU. As the core supply chain of phones gradually recovers, the consumer business BG will put more effort into the main channel (consumer products such as phones). As a new Tier 1 company, Che BU will have the following characteristics after independence:
It can still provide parts and components to Huawei Smart Car as a core supplier;
And it can take advantage of Chongqing’s geographical advantages to deepen cooperation with car companies such as Changan and Thalys;
The new entity also means that Auto BU is expected to lift the blockade of some supply chains and obtain some important chip resources to provide more competitive products.Many people said that Huawei’s intention to promote the independent operation of the car BU at that time was “formally similar to Honor’s solo flight.” However, according to the Science and Technology Innovation Board Daily, Huawei responded to this rumor by saying that “online rumors are inconsistent with the facts. Huawei has not negotiated car BU-related matters with the Chongqing State-owned Assets Supervision and Administration Commission.”
