Accident – death – Obituary News :

Huawei Seeks Potential Investors from Mercedes Benz and Audi for its Smart Car Software and Components Firm

SHANGHAI/HONG KONG – China’s leading technology company, Huawei Technologies, has reportedly approached renowned automobile manufacturers, Mercedes Benz and Audi, to explore the possibility of acquiring small stakes in its smart car software and components firm. These discussions aim to expand Huawei’s partnerships beyond Chinese brands, as the company faces ongoing US sanctions. In addition, Huawei hopes that the presence of foreign investors will help safeguard its business from potential geopolitical tensions.

Last month, Huawei announced its plans to spin off its Intelligent Automotive Solution (IAS) business unit, which focuses on developing software and components for smart electric vehicles (EVs). As part of this move, Huawei initiated preliminary talks with Mercedes, offering the German auto brand a stake ranging from 3% to 5%, with the valuation to be negotiated. However, Mercedes expressed limited interest, as it intends to retain control of its software to maintain its premium brand positioning, instead of outsourcing it to a supplier.

On the other hand, Audi’s level of interest in Huawei’s offer remains uncertain. Nevertheless, insiders suggest that Audi and Huawei are considering a partnership to jointly develop autonomous driving technologies for Audi vehicles. These technologies are expected to be integrated into vehicles specifically designed for the Chinese market from 2025. The manufacturing of these vehicles is planned to be carried out by Audi’s joint venture with FAW Group, a prominent Chinese automaker.

It is worth noting that the discussions between Huawei, Mercedes Benz, and Audi are confidential, and the sources requested anonymity. While Mercedes declined to comment on the matter, both Huawei and Volkswagen, the parent company of Audi, have not responded to requests for comment.

Huawei’s pursuit of strategic partnerships with international automakers comes at a time when global automakers operating in China are increasingly seeking collaborations with local companies. Chinese companies have gained a competitive edge in developing high-end features for tech-savvy Chinese consumers. For instance, Volkswagen has been working closely with EV automaker Xpeng and autonomous driving chip designer Horizon Robotics to create intelligent and connected electric cars tailored specifically for the Chinese market.

Audi has also joined forces with SAIC Motor to develop EVs in a segment where it previously had no presence. These partnerships enable foreign automakers to leverage the expertise and market insights of Chinese companies, ensuring their offerings align with the preferences and demands of Chinese consumers.

Richard Yu, the executive overseeing Huawei’s smart car business, highlighted the challenges faced by European, American, and Japanese companies in selecting Huawei as their primary supplier of intelligent solutions due to US sanctions. Despite these challenges, Huawei has managed to form partnerships with smaller electric car manufacturers like Seres Group and established automakers such as Chongqing Changan Automobile.

Changan Auto has already expressed its intention to invest in Huawei’s smart car business once it is spun off, potentially owning up to 40% of the company along with other relevant parties. In November, Yu revealed that Huawei had invited Seres, Chery Automobile, Jianghuai Automobile Group, and BAIC Motor to invest in the smart car firm. Additionally, there are rumors suggesting that Dongfeng Motor could also become an investor in the company.

As of now, the discussions between Huawei, Mercedes Benz, and Audi remain ongoing, with further developments anticipated in the coming months. By securing investments from renowned international automakers, Huawei aims to strengthen its position as a key player in the development of smart car software and components.

(Reporting by Zhang Yan and Julie Zhu; Editing by Brenda Goh and Edwina Gibbs)

.