Huawei Denies Joint Venture with Automobile Firm Volkswagen
Today, 36Kr reported that Huawei plans to form a joint venture with Volkswagen Group to develop its autonamous driving technology. However, this rumor has been denied by Huawei.
It is reported that the JV to be established by Huawei and Volkswagen aims to provide solutions to Volkswagen as a supplier. Both sides agree to cooperate in ways that Volkswagen will pay as “the controlling party of the JV, and Huawei will provide technology”. The technology by Huawei includes software and chip.
The report also mentioned that many Huawei senior technical staff would join the new venture, including Su Qing, former senior executive of Huawei’s autonomous driving business line and head of the company’s smart driving products department.
Huawei has adopted a two-pronged approach in developing its automobile business. First, as a supplier, Huawei sells the whole design or individual parts. Second, in Huawei’s Smart Selection mode, the company is developing models with automobile companies, selling cars through Huawei’s sales channels, and taking a share of profits along the way.
In April this year, Huawei Car Business Unit launched the HI brand, intended to be an overall solution for smart cars, also known as Huawei Inside Solution. At present, Huawei is cooperating with BAIC Group, Changan and GAC Motor based on Inside Solution.
SEE ALSO: Huawei and BAIC Seal Cooperation on Co-Brand’s R&D
In addition to the Inside Solution and spare parts, Huawei has also started a smart selection business, and cooperated with a car company SERES. According to SERES, the SERES SF5 model received thousands of orders within a week after the deal with Huawei’s Smart Selection. Huawei will also cooperate with SERES to launch another new car named SERES Auto.