Huawei adjusts high-level personnel, Yu Chengdong counterattacks again to meet Tesla's challenge
In May 2024, in an important personnel change in the technology industry, Huawei made changes to the top management. At the heart of this reshuffle is Yu Chengdong, who will become the chairman of Huawei's device BG (business group), and at the same time step down as CEO of the automotive business and become chairman. This move was interpreted by the outside world as Huawei's increased emphasis on the two major businesses of mobile phones and automobiles, and cleared the way for Yu Chengdong to contribute to these two major fields.
I. Personnel adjustments at Huawei's top management
According to Huawei's official information, the specific contents of this personnel adjustment include:
Yu Chengdong will assume the position of chairman of the terminal BG, and He Gang, former chief operating officer of Huawei device BG, will take over as CEO of Huawei device BG. This is the first time that Huawei has set up the position of chairman of the terminal board, which shows that Huawei attaches great importance to the mobile phone business. Yu Chengdong will focus on creating high-quality terminal products for consumers, while being responsible for the overall operation and strategic decision-making of the terminal business.
Yu Chengdong will step down as CEO of Huawei's automotive business (intelligent vehicle solution BU) and become chairman of the board. Jin Yuzhi, President of Huawei's Optical Product Line, took over as CEO of Che BU. This means that Yu Chengdong will be relieved from the day-to-day operation of the automotive business and will contribute to the commercial development of the automotive business at a higher level.
This adjustment is considered to be Huawei's affirmation and reuse of Yu Chengdong. Previously, Yu Chengdong was appointed CEO of Huawei's Intelligent Vehicle Solution BU in May 2021, where he was responsible for the automotive business together with Wang Jun. Under his leadership, Huawei's automotive business has made remarkable progress.
II. Reasons for Adjustment
For the reasons for this personnel adjustment, industry insiders and teachers have the following interpretations:
Let Yu Chengdong have more energy to create high-quality products for consumers. Yu Chengdong has been a leader in Huawei's mobile phone business, and under his leadership, Huawei mobile phones once became the world's No. 1 in terms of shipments. However, in recent years, affected by US sanctions, Huawei's mobile phone business has fallen into a trough. Now, with the gradual easing of U.S. sanctions on Huawei, Huawei's mobile phone business is expected to make a strong comeback. This adjustment allows Yu Chengdong to focus more on the research and development and marketing of consumer terminal products such as mobile phones.
Yu Chengdong will focus on overall business management and commercial operations, which will contribute to the commercial success of Huawei's automotive business. Huawei's automotive business is an emerging business that requires experienced senior management to plan and promote it. As Huawei's old courtier, Yu Chengdong has enough prestige and decision-making power within the company, and his joining will inject new impetus into the commercial development of the automotive business.
This adjustment is also seen as Huawei's great importance to the two major businesses of mobile phones and automobiles. The mobile phone business is the foundation of Huawei, and the automotive business is the future growth point. Through personnel changes, Huawei hopes to occupy a place in both areas, and ultimately achieve the goal of grasping both hands.
III. Huawei's latest progress in automotive business
Under Yu Chengdong's leadership, Huawei's automotive business has made remarkable progress.
Huawei's first model, the M7, has sold well, with orders exceeding 20,000 units. The M7 is a medium-to-large pure electric SUV designed by Huawei and produced by GAC. The model was launched in the second half of 2022 and has won the favor of consumers with its excellent intelligent experience and good product strength.
Huawei's car BU is positioned as "Bosch in the era of smart electric vehicles" and has become a supplier of incremental ICT components for automobiles. This means that Huawei does not directly build cars, but provides intelligent solutions for car companies, including autonomous driving, intelligent cockpits, and Internet of Vehicles. This positioning coincides with Huawei's previous commitment to "help car companies build good cars without making cars".
Huawei is also increasing its investment in the automotive business. It is understood that Huawei has invested billions of dollars in the automotive business and plans to continue to invest on a large scale in the next few years. Huawei is also recruiting automotive-related talent globally to support its business development.
Under Yu Chengdong's leadership, Huawei's automotive business has made gratifying progress. However, compared with established car companies such as Tesla, Huawei is still a latecomer in the automotive field. This personnel adjustment is also seen as a strategic layout for Huawei to deal with strong competitors such as Tesla.
IV. Rise to the Tesla Challenge
As a global leader in electric vehicles, Tesla's performance in the Chinese market is also very eye-catching. According to the data, Tesla's sales in China will exceed 650,000 units in 2023, accounting for nearly one-third of China's new energy vehicle market. In the face of such a strong opponent, it will be a huge challenge for Huawei to get a share of the automotive intelligence field.
Industry insiders believe that this personnel adjustment is Huawei's strategic layout to deal with Tesla. The transfer of Yu Chengdong to the automotive business means that Huawei will devote more resources and energy in this area.
Yu Chengdong will be responsible for formulating the overall strategy of Huawei's automotive business and developing deeper cooperation with automakers. In the future, we may see more models equipped with Huawei's intelligent solutions come out. Huawei will also increase investment in autonomous driving and Internet of Vehicles, with a view to surpassing Tesla in terms of intelligence.
On the other hand, allowing Yu Chengdong to focus on consumer terminal products such as mobile phones is also to hold a position in this traditional advantageous field. The experience of intelligent cockpits and in-vehicle systems relies heavily on the seamless connection of mobile terminals such as mobile phones. If it lags behind in the field of mobile phones, Huawei will also be passive in terms of automotive intelligence.
This personnel adjustment reflects Huawei's great importance to the two major businesses of mobile phones and automobiles, and is also a strategic layout for Huawei to meet strong competitors such as Tesla. We can expect Huawei's leadership to perform well in both areas.
In the field of mobile phones, Huawei is expected to regain its strength under the leadership of Yu Chengdong and maintain its traditional advantages. In the field of automotive intelligence, Huawei will strive to surpass Tesla and other strong competitors in this emerging track by increasing investment and deepening cooperation.
The personnel reshuffle aims to further strengthen Huawei's competitiveness in the two major business areas of consumer devices and automobiles, reflecting Huawei's development strategy of "grasping both hands and doing both". In the fierce competition in technology, a reasonable personnel layout will win Huawei an opportunity and help it occupy a favorable position on multiple tracks.