- GAC will set up a subsidiary code-named “GH” with a registered capital of RMB 1.5 billion ($200 million) to cooperate with Huawei.
- GAC and Huawei will jointly launch a new automotive brand, the first product of which will be an EV model priced in the RMB 300,000 range.
GAC Group plans to set up a dedicated subsidiary for working with Huawei in building cars.
The auto giant's board of directors agreed on January 10 to set up the company, code-named “GH,” with a registered capital of RMB 1.5 billion yuan ($200 million), according to a stock exchange announcement released Friday.
GAC plans to use GH as a vehicle to jointly define and design vehicles with Huawei, and to collaborate in areas including product development, marketing strategy and ecological services.
The two companies will create a new automotive brand based on a new architecture and technologies, and launch a series of intelligent new vehicle models, according to the announcement.
Teams from GAC and Huawei have begun working together to work on a series of intelligent new products, according to another announcement from the carmaker posted on WeChat.
The new brand's first product is slated to be a RMB 300,000-class premium smart new energy vehicle (NEV) model, which will bring consumers a more forward-thinking intelligent mobility experience, GAC said.
It's worth noting that GAC had hoped to jointly develop cars with Huawei about four years ago, but the plan was later abandoned.
In May 2021, GAC announced that it would partner with Huawei to co-develop an L4 self-driving car, with plans for production in 2024, the company said.
GAC's electric vehicle (EV) subsidiary Aion announced in May 2021 that it planned to partner with Huawei to create a luxury premium brand, with the first model of the partnership, an SUV (sport utility vehicle) codenamed AH8, to be launched in 2023.
However, on March 27, 2023, GAC said in an announcement that the AH8 was changed to be developed by Aion itself instead of jointly with Huawei.
Last year, GAC restarted its partnership with Huawei, signing a deepening cooperation agreement with the tech giant on November 30 in order to create a new brand of premium smart NEVs in addition to Trumpchi, Aion and Hyptec.
Huawei has three ways of working with car companies, with the model of launching a new brand with a car company to build a vehicle being the one it is most deeply involved in. Initially known as Zhixuan, the model was upgraded in November 2023 to HIMA (Harmony Intelligent Mobility Alliance).
In the model where Huawei is least involved, the tech giant only provides components and the HarmonyOS system.
In the middle of the spectrum is the “Huawei Inside” model, where Huawei provides full-stack smart car solutions, including smart cockpits and smart driving, to automakers.
Under the HIMA business, Huawei and local automakers have jointly created four new brands -- Seres Group's Aito, Chery's Luxeed, BAIC Group's Stelato, and Anhui Jianghuai Automobile Group's (JAC) Maextro.
The business currently has six models on sale -- Aito M5, Aito M7, Aito M9, Luxeed S7, Luxeed R7, Stelato S9.
($1 = RMB 7.3314)
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