The cooperation between Huawei and Changan Automobile can be described as twists and turns.
In November 2023, the two companies announced that Huawei intends to establish a new company to focus on automotive intelligent systems and component solutions, while Changan Automobile intends to invest no more than 40% of the company's shares and enter into a strategic alliance.
However, at the beginning of 2024, Zhu Huarong, chairman of Changan Automobile, raised three questions about Huawei's smart selection model: whether it conforms to industrial laws, industrial policy requirements, and whether it protects the fundamental interests of users.
The implication is that Chang'an seems reluctant to fully accept Yu Chengdong's favorite smart selection model.
To understand Changan Automobile's entanglement with this marriage, you might as well review its family history.
In the nineties of the last century, Changan started by producing miniature car engines, and won the national sales championship in 1995.
By 2002, Changan had a number of leading models such as Alto and Antelope, with sales of 270,000 units, second only to SAIC, FAW and Dongfeng, ranking fourth.
In the field of mini-vans, the two major production bases of Chang'an Nanjing and Chang'an Hebei occupy one-third of the country.
It can be said that at that time, Changan Automobile was in full swing and had a bright future.
However, the good times did not last long, with the rise of independent brands and the impact of foreign-funded joint ventures, Chang'an's life gradually became difficult.
In order to break through the transformation, Chang'an has increased its own brand on the one hand, and on the other hand, it has continuously sought external cooperation.
A series of joint ventures such as Changan Suzuki, Changan Ford, and Changan Mazda came into being.
Through the two-pronged approach of "left-hand autonomy and right-hand joint venture", Chang'an once relied on equity investment income to support most of the sky.
For example, in 2016, Changan Ford contributed 9 billion investment income, equivalent to 95% of Changan Automobile's net profit that year!
Unfortunately, with Changan Ford and Changan Suzuki falling into the quagmire of losses one after another, the life-saving straw of investment income is also in jeopardy.
In 2023, Changan Ford's book investment has been reduced to zero, and although the two parties have set up a new company to seek a turnaround, the outlook is still uncertain.
At present, only Changan Mazda can still contribute some investment income, but it is far from the glory of the year.
It can be seen that the myth of equity investment in the past is now at the end of the crossbow.
Chang'an had to find another way.
On the side of independent brands, Chang'an has also made a small gain.
In 2022, the sales of independent models such as the CS series and UNI series reached 600,000 units, a year-on-year increase of 32%.
But in the face of the rapid rise of independent brands such as Geely and Great Wall, Changan did not dare to take it lightly.
It is imperative to increase intelligence and new energy.
As a result, Changan chose to join hands with Huawei to jointly incubate the high-end smart electric vehicle brand AVATAR.
However, it backfired, and the first model, AVATR 11, was on the market for more than half a year, with sales of only more than 1,200 units, and its reputation was average, which did not seem to help Chang'an win back a city.
It can be seen that Huawei's skills in the automotive field may not be as miraculous as imagined.
In desperation, both sides made compromises.
Huawei established a new company, Hope Intelligence, saying that it will no longer push the "Huawei Inside" model, but will provide more flexible cooperation solutions.
Changan also relentlessly agreed to adopt Huawei's "Hi mode" and use some of Huawei's software and hardware capabilities.
From this point of view, both sides took a step back, and finally resolved the temporary embarrassment.
However, the future path of Changan and Huawei is still unknown.
On the one hand, although Huawei has a huge reputation in the automotive circle, there are not many cases that can really get it, and the cooperation with other car companies such as FAW and Dongfeng is also progressing slowly.
On the other hand, although Changan has the momentum of the rise of its own brand, it still needs to make up for the intelligent electrification, and it is unknown whether it can overtake in corners with the help of Huawei's strength.
In the short term, the two sides will continue this game of back and forth and mutual accommodation.
In general, Chang'an Huawei joined hands with each other, more out of expediency, rather than a perfect marriage with similar smells.
After all, Huawei's ambition to build cars and Chang'an's moat consciousness cannot be changed overnight.
Whether the two sides can create a spark depends on the degree of subsequent integration and market feedback.
For the people who eat melons, you might as well be a little more rational and patient.
Whether it is looking forward to Huawei's "black technology" protection, or looking forward to Chang'an's rebirth through the east wind, it should not be too idealistic.
After all, in the cruel car rivers and lakes, no one dares to sit back and relax.
What do you think about this? Feel free to interact with me in the comment section!