Huawei has invited four smart car cooperative car companies to invest in a joint venture company, and Yu Chengdong ＂named＂ FAW to join.

Huawei’s new joint venture company for automotive intelligent systems and component solutions wants to "expand the circle" again. On November 28th, Yu Chengdong, managing director of Huawei and chairman of BU, a smart car solution, said at the press conference of Zhijie S7 and Huawei’s whole scene that the new company had issued an invitation for equity opening to Cyrus, Chery, Jianghuai and BAIC, and hoped that FAW Group would join in. "Welcome powerful car factories in China, such as FAW, to participate in joint construction and jointly create the most advanced and ultimate smart car solution products."

With the news fermenting, faw liberation and FAW Fuwei, the A-share listed companies of FAW Group, both had daily limit, while faw liberation rose by 9.98% and FAW Fuwei rose by 10.02%. In this regard, the interface journalist called the investor relations department of FAW Fuwei as an investor, and its response said that the relevant matters were "unknown and unclear".

Yu Chengdong’s speech showed that the equity of the new joint venture company still changed, after Huawei said that it would open equity financing to strategic cooperative car companies and other enterprises. After the news was released, it triggered a shock in the industry.

On November 26th, Huawei announced that Huawei and Changan Automobile signed the Memorandum of Investment Cooperation in Shenzhen on 25th. After negotiation, Huawei plans to set up a new company, focusing on the R&D, production, sales and service of intelligent driving system and incremental components of intelligent networked vehicles.

According to the memorandum, Huawei intends to integrate the core technologies and resources of the smart car solution business (hereinafter referred to as "Car BU") into the new company. Changan Automobile and its related parties will be interested in investing in the company and jointly support the future development of the company with Huawei. The new company will serve as an open platform for the automobile industry, open its equity to investors such as existing strategic partner car companies and car companies with strategic value, and become a company with diversified equity.

The main assets and team of this new company come from Che BU, which is the technical carrier of Huawei’s automobile business. Whether the whole vehicle enterprise invests in this new smart component company means to some extent whether it should form a binding relationship with automotive intelligent technologies such as Huawei Intelligent Driving.

For the new company, Changan Automobile said that it will invest in the company and carry out strategic cooperation. It is reported that in this transaction, Changan Automobile and its related parties intend to contribute capital to acquire the equity of the target company, with the proportion not exceeding 40%. The specific equity proportion, capital contribution amount and term shall be discussed separately by both parties.

On November 26th, Cyrus, the first company to cooperate with Huawei in the business of "smart car selection", published a statement overnight, saying that the cooperation with Huawei would not be affected, and had received an invitation to invest in a new Huawei company, and was actively demonstrating relevant matters.

On November 27th, Jianghuai Automobile issued a statement saying that this adjustment of Huawei’s automobile business will not affect the existing cooperation between the two parties, and Jianghuai Automobile will actively discuss with Huawei about participating in investment and cooperation.

As for FAW Group mentioned by Yu Chengdong, it had a cooperative relationship with Huawei before. According to faw liberation, on October 24th, faw liberation Automobile and Huawei signed a comprehensive deepening cooperation agreement at Huawei’s Shenzhen Bantian Base. The two sides will further integrate their respective superior resources and deepen their strategic partnership in AI model technology innovation, intelligent driving and intelligent cabin driving.