China’s Huawei announced on Sunday that it will transfer key technologies and assets from its smart car division—which has had strong sales of many new cars—to a newly formed joint venture called Changan Auto.
According to a press statement from Huawei, the new business will work on the creation, manufacturing, marketing, and servicing of intelligent automotive systems and component solutions.
In a filing with the Shenzhen Stock Exchange on Sunday, Chongqing Changan Automobile stated that the parties will negotiate the equity ratio and amount of capital invested.
The chairman of Huawei’s smart car solutions unit and managing director, Yu Chengdong announced at a signing ceremony in Shenzhen, that the smartphone maker would collaborate with more automakers to “seize the opportunities of the electrification and intelligent transformation of the auto industry.”
Huawei has maintained on multiple occasions that it does not produce cars itself; rather, it merely assists other automakers in producing better cars.
It currently collaborates with Changan and other businesses, such as Seres Group. Aito-branded automobiles, like as the M7 model, are jointly produced by Huawei and Seres.
