Huawei Technologies along with China state-owned automaker Changan Automobile is setting up a joint venture. The new venture will research, develop, produce and sell smart vehicle systems and components. Changan will own 40% and supply core automotive technologies.
Huawei chairman Xu Zhijun said the company wants to help OEMs make better cars. Chairman of Huawei’s intelligent automotive business Richard Yu Chengdong said along with Changan they will work with other car manufacturers to explore mutually beneficial models. Huawei spokesperson said that it is open to selling equity in the new JV to other players, solidifying its role as a tier one supplier and doing away with concerns it could become a rival automaker.
The joint venture will cover areas like intelligent solutions, digital platforms, cloud services and heads-up displays. Huawei will no longer compete in those areas with the JV, after transferring technology and staff.