Recently, Chongqing Changan Automobile Co., Ltd. issued an announcement regarding the signing of the Investment Cooperation Memorandum.
According to the announcement, on November 25th, Changan Automobile signed an investment cooperation memorandum with Huawei Technology Co., Ltd. in Longgang District, Shenzhen, Guangdong Province. After mutual consultation, Huawei plans to establish a company engaged in the research and development, design, production, sales, and service of automotive intelligent systems and component solutions. The company plans to invest in the target company and carry out strategic cooperation. Both parties will jointly support the target company to become a leader in the automotive intelligent systems and component solutions industry based in China, facing the world, and serving the industry.
The main content of the memorandum includes Huawei's establishment of a target company, whose business scope includes intelligent driving solutions for automobiles, intelligent cabins for automobiles, intelligent digital platforms for automobiles, intelligent car clouds, AR-HUD and intelligent headlights, etc. The relevant technology, assets, and personnel dedicated to the target company's business scope will be injected into the target company. The specific business scope and loading plan will be determined in the final transaction document.
Changan Automobile and its affiliated parties plan to invest in the acquisition of equity in the target company in this transaction, with a proportion not exceeding 40%. The specific equity ratio, investment amount, and deadline will be discussed separately by both parties. The principle of cooperation is that the target company will operate independently based on market-oriented principles, adopting a market-oriented management system and compensation incentive framework.
Both parties promise to engage in long-term cooperation and strategic collaboration with the target company. In principle, the components and solutions within the business scope will be provided by the target company to vehicle customers. Huawei generally does not engage in business that competes with the target company's business scope, and Changan Automobile will comprehensively promote strategic collaboration with the target company.