- China’s Huawei has approached a number of car companies, inviting them to invest.
- Huawei is considering developing autonomous driving technology for Audi and is expected to launch it in the Chinese market by 2025.
Mercedes-benz has been to several automakers olive branch
China’s Huawei Technologies Co LTD has held talks with Mercedes Benz (MBGn.DE) and Volkswagen AG’s Audi unit about an interest in buying a minority stake in the smart software and auto parts company, according to three people familiar with the matter. They hope to expand international partnerships beyond Chinese brands through this approach.
Huawei HWT.UL, which has been the target of U.S. sanctions since 2019, also hopes the presence of foreign investors will help protect the business from potential further geopolitical tensions, according to a person familiar with the matter.
According to two sources, huawei in recent weeks with Mercedes has carried on the preliminary discussions.The German car marque is taking a 3 to 5 percent stake at a valuation to be negotiated, one of the sources said.
Also read: Huawei approaches Audi, Mercedes about investing in its smart car firm
Vague reply from the other company
Despite Huawei’s near-perfect massing and blueprint, the source added that Mercedes is not that interested as it wants to remain in charge of its software to maintain its premium brand positioning, rather than outsource it to suppliers.Mercedes, for their part, was not so eager to be a part of the project.
Meanwhile, Audi’s level of interest in Huawei’s offer could not be immediately determined.However, two sources said Audi and Huawei are planning to work together to develop autonomous driving technology for Audi.The technologies will be used in vehicles for the Chinese market from 2025, which will be produced by the German automaker’s joint venture with FAW Group.
The joint action of multiple enterprises
Earlier reports said the unit would be valued at between $28 billion and $35 billion.
Huawei said in November that it had invited Seres, CHERY Automobile Co LTD (CHERY.UL), Jianghuai Automobile Group Co LTD (600418.SS) and Beijing Automotive Co LTD (1958.HK) to invest in the smart car company, and hoped FAW Group Co LTD (SASACJ.UL) to invest in the smart car company as well.Dongfeng Motor (0489.HK) is another potential investor in the company, the sources said.
