AION Suspends Cooperation with Huawei on Development of Intelligent Car Project

On March 28, Huawei and AION, a Chinese electrical automobile marque of Guangzhou Automobile Corporation (GAC), responded to Chinese media concerning the AH8 venture’s cooperation change. For the venture, Huawei was modified to develop into an auto components provider for AION. Both firms acknowledged that AH8 is a vital automobile in AION’s unbiased high-end automobile planning. After full communication and complete judgment based mostly on precise circumstances, the cooperation has been adjusted and will likely be independently developed by AION.

In July 2022, GAC introduced its settlement for its subsidiary AION to implement the AH8 automobile venture with Huawei. This made AION the third vehicle firm confirmed to hold out the Huawei Inside mode after BAIC and Changan Automobile.

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According to their strategic cooperation settlement, each firms would collectively develop a sequence of clever vehicles based mostly on GAC’s GEP3.0 chassis platform and a brand new era clever automotive digital platform constructed by Huawei CCA (computing & communication structure). The vehicles would even be geared up with Huawei’s Full-stack Intelligent Car Solution.

However, on the night of March 27, GAC introduced that it could droop deep cooperation with Huawei because of adjusting cooperative strategies. The announcement confirmed that GAC-controlled subsidiary AION’s AH8 venture had modified from joint growth with Huawei into self-development. After this variation, Huawei will proceed collaborating in growth as an necessary provider. The complete funding on this venture has elevated from 925 million yuan ($134.5 million) to 1.233 billion yuan ($179.3 million), funded via self-raising funds.

According to a report by Chengdu Economic Daily, the primary motive for GAC’s strategic change is adjusting cooperative strategies. “GAC emphasizes shaping its own technological core competitiveness when building its own brand AION. To ensure independence, key technologies must be controllable. Our upcoming intelligent technology, electronic and electrical architecture are about to enter mass production. Therefore, launching another system with our partners is not feasible at this time. In the next stage, we will continue to focus on developing our own technology and products in order to build our brand.”

AION additionally emphasised: “Our cooperation with Huawei has not been terminated but changed from Huawei Inside mode to auto parts supplier mode. It does not mean that we do not recognize Huawei’s strength. There is no disagreement between AION and Huawei, and we are still deep cooperative partners.”

In addition, a Huawei worker informed Securities Times that “This event is an isolated incident and has no connection to any other car company’s collaborations.”

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