Category: Huawei

VW denies talks with Huawei on auto software licensing in China

There have been no discussions between Volkswagen China and other companies about operating system licensing, local media quoted the German carmaker as saying.

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Volkswagen China denied it was in talks to use software in its cars in China, after a report yesterday sparked widespread discussion.

There have been no discussions between Volkswagen China and other companies about operating system licensing, local media Economic View cited the German automaker as saying today.

To provide the greatest possible convenience to customers, Volkswagen is continuing to push further into the development of existing software, the automaker said.

The Financial Times said in a report yesterday that Volkswagen has been in talks to use Huawei software in its cars in China, hoping to boost its efforts to gain a bigger share of the country's electric vehicle market.

Three people familiar with the situation said Volkswagen has talked with Huawei about using the latter's technology in its cars, while another person said the German carmaker has held similar talks with other Chinese groups, according to the Financial Times report.

Volkswagen's software is seen as lagging behind some local players in China, but it is one of the most aggressive of foreign car companies seeking change.

In late 2021, there were rumors that Huawei and Volkswagen Group were planning to form a joint venture to develop self-driving technology. But this was never confirmed.

Last October 13, Horizon Robotics, one of the leading providers of computing solutions for smart vehicles in China, announced that Cariad, Volkswagen's software subsidiary, would form a joint venture with it to accelerate efforts to develop smart driving technology locally.

Volkswagen plans to invest about 2.4 billion euros for a 60 percent stake in the joint venture, which is expected to close in the first half of 2023, according to a statement from Horizon Robotics.

Last October 24, local media outlet 36kr reported that Su Jing, a former Huawei executive and self-driving industry veteran, would join the joint venture, possibly as head of one of the technologies.

VW reportedly in talks to use Huawei software in its cars in China

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VW reportedly in talks to use Huawei software in its cars in China

Volkswagen is one of the top-selling car companies in China, but it is lagging behind local carmakers in the country's NEV market.

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Volkswagen has been in talks to use Huawei software in its cars in China, hoping to boost its efforts to gain a bigger share of the country's electric vehicle (EV) market, a Financial Times report said today.

Three people familiar with the situation said Volkswagen has spoken with Huawei about using the latter's technology in its cars, while another person said the German carmaker has held similar talks with other Chinese groups, according to the report.

Volkswagen is one of the top-selling car companies in China, but it lags behind local carmakers in the country's new energy vehicle (NEV) market.

In the January-April period, Volkswagen's joint venture in China, FAW-Volkswagen, sold 509,774 units at retail, up 1.4 percent from a year earlier, and came in second with an 8.6 percent share, according to the China Passenger Car Association (CPCA).

BYD sold 702,608 vehicles during the period, up 79.2 percent year-on-year, and ranked first with an 11.9 percent share.

Volkswagen's other joint venture in China, SAIC Volkswagen, sold 338,673 vehicles at retail from January to April, down 2.7 percent year-on-year, and ranked fifth with a 5.7 percent share.

In the NEV segment, BYD ranked first with a 38.1 percent share from January to April, while was second with a 9.6 percent share.

The NEV sales of Volkswagen's two joint ventures were not in the top 10 of the January-April list published by the CPCA. The No. 10 on the list is , with 33,529 units sold from January to April and a 1.8 percent share.

In July 2020, Volkswagen founded software company Cariad under former CEO Herbert Diess, but earlier this month it removed almost all of Cariad's top executives from their positions.

The Financial Times report cited a person familiar with the talks between Volkswagen and the Chinese companies as saying the discussions reflected how big the problem is for a group like VW, whose unique selling proposition is their scale and platforms.

Another person said Volkswagen is also aware that a Chinese software partner could appeal to Chinese customers who favor local suppliers and are obsessed with stories of technological self-reliance.

Although its software is seen as lagging behind some local players in China, Volkswagen is one of the most aggressive of foreign car companies seeking change.

Last October 13, Horizon Robotics, one of the leading providers of computing solutions for smart vehicles in China, announced that Cariad would form a joint venture with it to accelerate its efforts to develop smart driving technology locally.

Volkswagen plans to invest about 2.4 billion euros for a 60 percent stake in the joint venture, which is expected to close in the first half of 2023, according to a statement from Horizon Robotics.

VW to invest €2.4 billion to form JV with Chinese firm Horizon Robotics

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Huawei, JAC partner to target ultra-luxury pure electric vehicle market, report says

and JAC will jointly build models targeting the ultra-high-end luxury pure electric vehicle market with a price range of around RMB 800,000-1 million, according to local media.

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Huawei will reportedly partner with 's vehicle OEM JAC Motors to target a market priced up to RMB 1 million ($146,000), after the tech giant partnered with Seres Group to target the mainstream premium market.

Huawei and JAC will jointly build models targeting the ultra-high-end luxury pure electric vehicle market, with a price range of around RMB 800,000-1 million, local media outlet 36kr reported today.

In the electric car era, JAC's better-known identity is as an OEM for NIO. However, in its partnership with NIO, JAC only provides the factory and vehicle building qualifications, and is not involved in vehicle development or manufacturing, the report noted.

In its partnership with Huawei, JAC intends to learn from the tech giant's engineering development system, thus opening up a more flexible cooperation space to it, according to the report.

Huawei will be involved in the development of the project's vehicles, electrical and electronic architecture, and core systems, the JAC is very enthusiastic in the cooperation, the report said, citing a source familiar with the matter.

"JAC is already learning from Huawei's management model, and even the vehicle development is following the IPD process," the person familiar with the matter said.

The site of the Huawei-JAC car-making project is located in the JAC Xingang Industrial Park in Feixi county, Hefei, Anhui province, with a total investment of about 2.6 billion yuan and is expected to be completed early next year, according to a previous tender document..

After the project is completed, it can produce B to D+ class vehicles, including Sedan, SUV, MPV, Crossover and Sporty models, with an annual capacity of 300,000 units, according to the document.

In the automotive industry, Huawei's most important current partner is Seres Group, which was previously known as Chongqing Sokon.

Huawei officially announced on April 20, 2021 that it will start selling cars in its flagship stores, with the first model being the Seres SF5 SUV, which uses extended-range technology similar to that used in the models.

On December 2, 2021, Seres and Huawei jointly launched a premium new energy vehicle (NEV) brand called AITO, followed by the M5 EREV (extended-range electric vehicle), M5 BEV (battery electric vehicle) and M7 EREV.

On November 7 last year, a Huawei executive said the company aims to make AITO a global premium smart electric vehicle brand within three years.

On February 25, Seres and Huawei signed an agreement to deepen their joint business, and the two will jointly launch a new vehicle platform, the first flagship model of which is scheduled for release in 2023.

Seres unveiled aggressive plans at the time, saying the joint business aims to see annual production and sales of both NEVs reach 1 million units by 2026.

(1 $= RMB 6.8482)

Seres, Huawei sign deal on joint business, aim to sell 1 million NEVs by 2026

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