Huawei CEO, Yu Chengdong, has expressed his hope for China FAW Group to join in their new equity stake in a new company. This news has caused a surge in FAW Jiefang’s stock price, reaching the limit in late trading.
Huawei has already sent out equity opening invitations to Cyrus, Chery, and BAIC, and is now extending the invitation to FAW Group. Yu Chengdong outlined three models to help companies build and sell good cars, including the parts supply model, solution model, and the Hongmeng Zhixing model. This announcement has caused a positive reaction in the stock market.
The cooperation between Huawei and Changan Automobile also plays a significant role in this development. On November 25, 2023, the two companies reached a cooperation agreement to establish a company engaged in research and development, design, production, sales, and service of automotive intelligent systems and component solutions.
Thalys has also responded to the invitation, expressing their interest in jointly investing in target companies and participating in the creation of an electrified and intelligent open platform.
This news comes in the wake of an investor’s question to SAIC Group Chairman, Chen Hong, in 2021 about potential cooperation with third-party companies like Huawei in autonomous driving. At that time, Chen Hong had expressed hesitation about Huawei providing overall solutions to SAIC, citing concerns about a company losing its soul and becoming a foundry.
Now, as Huawei has made significant advancements in partnering with various car companies and launching new projects, the spotlight is once again on FAW Group and how they will respond to this invitation.
However, the financial community warns that the stock market is risky and advises caution when making investment decisions. This news has certainly stirred up the automotive and tech industries and will continue to be a topic of interest in the coming days.