Huawei invites Audi and Mercedes to invest in its smart car company

Huawei is approaching popular auto companies Mercedes and Audi, asking them to invest in its smart car software and relevant hardware firms. The tech giant is making this move to expand its partnership with foreign brands, rather than staying limited with Chinese manufacturers.

On the other hand, these new investors can also help in defending Huawei’s business from potential U.S. sanctions and geopolitical tensions. The tech maker already initiated talks with Mercedes-Benz and offered a 3-5% stake and negotiable valuation.

However, the German brand denied the offer. It is so because the automobile company wants to maintain control over its software and sustain the premium brand position in the market rather than distributing it with other suppliers.

Meanwhile, there are no details regarding Audi’s interest in this proposal. Although the information reveals that both Huawei and Audi are looking for a partnership to initiate autonomous driving technology. Thus we can expect a positive response in this matter.

Currently, both Mercedes and Audi have declined to make any comment or invest in Huawei smart car companies.

In April 2023, Huawei’s Chairman of the Intelligent Automotive Solution BU – Yu Chengdong said that it becomes difficult for foreign companies to pick Huawei as their primary supplier due to U.S. restrictions. Yet Huawei will continue to lead the technology research and development journey with better efforts and smart solutions.

(Source)