Huawei Wants A Bigger Share Of China's EV Bounty
Date
11/29/2023 12:16:01 AM
(MENAFN- Asia Times) Chinese Telecom giant Huawei Technologies is fast reforming its electric vehicle (EV) unit in a potential bid to replicate the business model of Germany's Bosch, which supplies core auto parts but does not make automobiles outright.
The Shenzhen-based company, which has faced several rounds of sanctions imposed by the United States since 2019, signed an investment cooperation memorandum with Changan Automobile, a Chongqing-based automaker, to establish a joint venture to develop, produce and sell smart-driving systems and related components for EVs.
Changan and associated parties will acquire a stake not greater than 40% in the venture while its initial investment size will be determined at a later date.
Media reports suggested the joint venture may be worth about 250 billion yuan (US$35.2 billion) as Changan will reportedly take a 15% stake for 37.5 billion yuan. The state-owned Assets Supervision and Administration Commission (SASAC) in Chongqing, Changan's parent, will also reportedly be a strategic investor.
Huawei and Changan said in a statement that the new unit will serve as an open platform for the automotive industry and will extend equity participation invitations to existing strategic partner automakers and other investors.
Seres, a Chongqing-based EV maker jointly established by Dongfeng Automobile and Jinkang Automobile, said it has received an invitation from Huawei to invest in the joint venture.
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