Huawei does not build cars but focuses on ICT technology, to be the Intel of the automotive industry

Can Huawei build cars? Huawei’s official answer is that it will not build a car for the time being.

On November 25, Huawei’s internal community disclosed Huawei’s “Resolution on the Management of Smart Auto Parts Business”. This document reiterated that Huawei does not build complete vehicles, but focuses on ICT technology to help car companies build good cars and become an intelligent network. Incremental parts provider for automobiles.

However, this document signed by Huawei founder Ren Zhengfei on October 26, 2020 shows that Huawei has adjusted the organizational structure of the automotive business, which has been divided into Huawei’s consumer business from a separate automotive business department, and the person in charge is also rotating from Huawei. Chairman Xu Zhijun became Yu Chengdong, CEO of Huawei’s consumer business.

This adjustment gives the outside world more room for imagination, because Huawei’s consumer business is mainly responsible for smart terminals such as mobile phones. If smart cars are smart terminals for walking, this organizational adjustment seems to be more logical.

According to surging news reporters, Huawei made the decision to sell the BU (business unit) of the car to the consumer BG. Although the two events are not related, the consumer BG (business group) business entity after the sale of the Glory was made. In addition, the smart car business was originally involved in the consumer business. After the car BU is fully integrated into the consumer business, it will be better coordinated, without cross-department coordination, and the efficiency will be improved. a little higher.

A Huawei insider said that the company does not have a car-building plan at present, and may want to become a role like Bosch or Intel of smart cars, but the company has not made it clear either.

Smart car business classified as consumer business

This document shows that Huawei’s smart car solution BU (business unit) is merged into Huawei’s consumer business, and the restructured Huawei’s consumer business will cover smart terminals and smart car solutions, still led by Yu Chengdong. With the re-division of the business, the investment decision and portfolio management of the smart auto parts business has been adjusted from the ICT (information communication technology) business IRB (Product Investment Review Board) to the smart terminal and smart auto parts IRB. Yu Chengdong was appointed as the director of IRB for intelligent terminals and intelligent auto parts.

This resolution reiterates that Huawei does not build complete vehicles, but focuses on ICT technology to help car companies build good cars and become an incremental component provider for intelligent connected vehicles. “Who will make any suggestion to build a car in the future, interfere with the company, be able to leave the post, and look for another post.” This resolution document clearly opposes the idea of ​​​​Huawei’s internal artificial car, and emphasizes the smart terminal and smart auto parts committee and consumer business management. The committee must adhere to Huawei’s strategy of not making cars, and has no right to change this strategy. The document is valid for three years.

Huawei has three BGs (business groups) and two BUs. Among them, the three major BGs refer to the operator business BG, the enterprise business BG and the consumer business BG. One of the two BUs is the Huawei Cloud BU and the Smart Car BU.

However, although Huawei reiterated that it would not build cars, assigning the car business to Yu Chengdong’s leadership still gave the outside world a lot of room for imagination. Yu Chengdong worked hard to make Huawei’s mobile phone business a global leader. If Huawei is ready to enter the vehicle field one day, experienced, Yu Chengdong, who is good at developing new markets, is very likely to lead.

Huawei Intelligent Vehicle Business (HI)

On October 30 this year, at the domestic launch of the Huawei Mate 40 series, Huawei’s smart car business, which had just been assigned to Huawei’s consumer business, appeared together a few days ago.

Wang Jun, President of Huawei Smart Car Solutions BU, announced at the press conference that Huawei has launched a new brand of smart car solutions “HI”. HI provides powerful computing power and operating systems, including three major computing platforms (intelligent driving computing platform, intelligent cockpit computing platform and intelligent vehicle control computing platform), as well as three major operating systems AOS (intelligent driving operating system), HOS (intelligent cockpit) Operating System) and VOS (Intelligent Vehicle Control Operating System).

Wang Jun said at the press conference: “Huawei does not build cars, but helps car companies to build good cars. Huawei provides technical advantages, and car companies provide advantages in the whole vehicle, and the strong alliance.” He also said that he believes that the new model will definitely be developed. of smart electric vehicles.

A rumor circulated on the Internet a few days ago that Huawei made a car, saying that Huawei is positioned as “Bosch”, and its level of autonomous driving is second only to Tesla. At present, there will be 10,000 to 20,000 R&D personnel responsible for the integration of Huawei’s consumer business and automotive business. Automotive research and development.

In this regard, a relevant person from Huawei said that there are many untrue and exaggerated rumors.

However, Bosch or Intel in the smart car industry are indeed the roles that Huawei hopes to become. Huawei’s HI (HUAWEI Intelligent) is also similar to Intel inside. We hope that future smart cars can use Huawei’s solutions.

Bosch is the leading global component supplier, while Intel is the main supplier of PC chips and server chips.

Even though Huawei has repeatedly stated that it does not build cars, the outside world is still full of vigilance against Huawei. Because in the era of smart cars, industry barriers are not as good as traditional cars, and car companies may not share data to maintain their competitiveness. Huawei’s business model of providing solutions for car companies may not work. In the end, Huawei may have to build its own cars. .

Evolution of Huawei’s Automotive Business

In April 2019, Huawei participated in the Shanghai Auto Show for the first time. Xu Zhijun, Huawei’s rotating chairman, said at the Shanghai Auto Show that Huawei is committed to becoming an incremental component supplier for intelligent connected vehicles.

Xu Zhijun said that the auto industry is positioning ICT technology as the new dominant auto technology. With the deep integration of the automotive industry and the ICT industry, intelligent and connected electric vehicles are becoming a new revolutionary development engine for human society, and its impact goes far beyond the two industries themselves.

In May 2019, Ren Zhengfei approved the establishment of a smart car solutions business unit, which is directly under the management committee of Huawei ICT (Information and Communication Committee), which is equivalent to the status of the three traditional business groups (BGs). Wang Jun became the president of Auto BU.

In October 2019, Xu Zhijun was asked about Huawei’s automotive technical capabilities. “What Tesla can do now, we can do,” he said.

On August 13, 2020, Huawei’s industrial and commercial information changed, and the business scope added research and development, production, sales and services of auto parts and intelligent systems.

On August 14, 2020, Wang Jun announced the Hongmeng in-vehicle OS system at the 2020 China Auto Forum, including the Hongmeng cockpit operating system HOS, the intelligent driving operating system AOS and the intelligent vehicle control operating system VOS.

On September 8, 2020, Huawei Electric Technology Co., Ltd. was established with a registered capital of 250 million yuan and its legal representative is Wang Jun. The company is 100% controlled by Huawei Technologies Co., Ltd., and its industry is research and experimental development. Its business scope includes engineering and technical research and experimental development; sales of intelligent vehicle equipment; intelligent vehicle equipment manufacturing; intelligent vehicle equipment sales.

On October 26, 2020, Huawei’s smart car business was assigned to the consumer business, and Yu Chengdong came to lead the car business.

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