CHONGQING (CQNEWS) -- Huawei and Changan Auto signed a Memorandum of Investment Cooperation in Shenzhen on November 25, said Huawei on November 26. Huawei intends to set up a new company focusing on the research and development, production, sales, and services of intelligent driving systems and components for intelligent connected vehicles. At the opening of trading on Monday, the stock price of Changan Automobile rose by the trading limit at CNY19.56. Before noon, more than 1.87 million manual orders were queuing for entering the market.

According to the Memorandum, Huawei intends to integrate the core technologies and resources of the intelligent vehicle solutions business into the new company, and Changan Auto and its affiliates intend to invest in the new company and together with Huawei, support the future development of the company. As an open platform to serve the automotive industry, the new company will open its equity to existing strategic partners, automotive companies with strategic value, and other investors and become an equity-diversified company.

Changan Auto said it would invest in the company and carry out strategic cooperation. It is learned that in this transaction, Changan Automobile and its affiliated parties plan to make investments to acquire the equity of the new company, with a proportion not exceeding 40%. The specific equity proportion, investment amount, and term will be separately negotiated by both parties.

The announcement also said that the new company's businesses would include intelligent driving solutions, intelligent cockpit, intelligent automotive digital platforms, intelligent vehicle cloud, AR-HUD, and intelligent vehicle lights. Huawei will supply relevant technologies, assets, and personnel to the new company. The specific business scope and loading scheme will be determined in the final transaction documents.

It is worth mentioning that AVATR 11 and AVATR 12, launched by Changan Auto, Huawei, and Contemporary Amperex Technology (CATL), are all equipped with a complete set of Huawei intelligent car solutions. (Translated by Yuki, Fathom Language Limited)