Chinese tech giant Huawei, which has long been interested in cars, has now focused on partnerships and collaborations with Chinese manufacturers. Huawei has also recently confirmed its interest in cars by unveiling its first electric vehicles.
But Huawei’s business will obviously revolve entirely around automotive technology. Recently, Huawei started negotiations with Audi and Mercedesprecisely around the deployment of new technologies.
Strategic organization for Huawei
As a reminder, Huawei has been under US sanctions since 2019, which significantly limits its expansion on a global scale. But by intensifying relations with Western structures and searching for foreign investors, Huawei hopes to overcome these obstacles.
That’s why Huawei decided to split its Intelligent Automotive Solution (IAS) software division to make it easier to start partnerships with foreign countries. IAS, already valued at between 25 billion and 32 billion euros, will spin off from Huawei in a bid to become a major software provider for “smart” electric cars. Mercedes and Audi will be the first to win.
A saving grace for Audi?
The two German manufacturers are currently working to transition from traditional carmakers to future mobility players, and both are facing major challenges in terms of connectivity and autonomous driving. Audi, which is struggling with software problems and delays, is trying to speed up the development of new models with the help of external companies.
For its part, Mercedes would discuss with Huawei an estimate of the purchase of the IAS stake between 3% and 5%. This solution will allow access to more advanced software than what is currently used by the brand. However, Mercedes is looking for the best compromise, since the manufacturer does not want to somehow “lose” control over certain elements directly related to its production.
Audi, for its part, will consider the possibility of cooperation with Huawei access your autonomous driving technologies. It is expected that these technologies will first debut on models for China created in cooperation with FAW (from 2025), and may then be extended to other cars of the brand.
Read also:
Audi Activesphere: crossover coupe concept revealed
Audi: A major recall of some models is underway
How Audi organizes its 100% electric future
Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.