Changan Automobile and Huawei have cooperated to establish Newcool, a joint venture company in seven major areas, focusing on areas such as intelligent driving and intelligent cockpits.

It is reported that Chairman Zhu Huarong talked about the development of the joint venture between Changan and Huawei at the 2024 Changan Automobile Global Partner Conference. This conversation sheds some light on the progress of this joint venture.

On November 25, 2023, Changan Automobile and Huawei signed an "Investment Cooperation Memorandum" and planned to cooperate to establish a new company. The company will focus on the research and development, production, sales and service of intelligent driving systems and incremental components for intelligent connected vehicles.

Zhu Huarong mentioned that the two parties had established a working team on January 8 this year to jointly discuss the new direction of the future development of Auto BU, aiming to create a platform based on the entire industry and contributing to the world. According to the plan, the joint venture between Changan and Huawei will be named "Newcool".

#According to the memorandum signed last year, Huawei plans to integrate the core technologies and resources of the smart car solution business into the newly established company. The company will receive investment from Changan Automobile and related parties, and Huawei will jointly support the company's future development.

Referring to previous reports on this site, the main contents mentioned in the memorandum include the business scope of Huawei’s establishment of target companies. These business scopes cover automobile intelligent driving solutions, automobile intelligent cockpits, intelligent automobile digital platforms, intelligent car clouds, AR-HUD and smart car lights, etc. In addition, the memo also mentioned that Huawei will inject relevant technologies, assets and personnel specifically used within the target company's business scope. The specific business scope and loading plan will be determined in the final transaction documents.

Changan Automobile and its related parties plan to obtain the equity of the target company with an equity ratio of no more than 40% and a specific investment amount and period negotiated by both parties. According to the cooperation principle, the target company will operate independently and adopt a market-oriented management system and salary incentive framework.

Both parties commit to long-term cooperation and strategic coordination with the target company. The target company will be mainly responsible for providing components and solutions within the business scope to vehicle customers. In principle, Huawei will not get involved in businesses that compete with the target company's business scope, while Changan Automobile will fully promote strategic synergy with the target company.

Zhu Huarong said that Changan and Huawei will continue to promote the establishment of new companies. The company will not get involved in the vehicle business, and Huawei has promised not to participate in its business.

He also mentioned that Huawei’s rotating chairman Xu Zhijun led a team to communicate with Changan Automobile in August last year. Both parties hope to help the rise of China’s intelligent automobile industry through cooperation, so from the proposal of cooperation intention to the final signing of the investment The memorandum of cooperation only took 3 months in total.

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