Yu Chengdong explains why Huawei sold AITO trademarks to SERES

Huawei Smart Automotive Solution Business Chairman Yu Chengdong has cleared the mist on the ‘AITO trademarks transfer to SERES’ deal. The executive explained why the company sell its patents and AITO-related trademark to the car’s manufacturer.

Yu described that Huawei transferred AITO trademarks to SERES to comply with Chinese regulations. As per laws, the brand manufacturer and the owner should belong to the same company. It also requires the producer to own the particular brand.

Following these rules, Huawei decided to hand over the AITO brand as well as its patents to SERES. Not only AITO, but Huawei has also given out some more brands’ trademarks to their respective companies. Chery and BAIC are also on this list.

The executive further reveals that Huawei has spent a lot (more than 10 billion yuan) on its AITO trademark. But the company is selling it at a low price for a beneficial deal.

“Huawei sold AITO to SERES at a very low price because of requirements from national laws and regulations that auto brands need to be owned by the manufacturers.” – said Yu Chengdong.

Yu Chengdong explains why Huawei sold AITO trademarks to SERES (Image Credits: Weibo)

Earlier, SERES said that the new trademark-selling deal won’t affect the relationship between the two companies. In fact, it’s a new start that will strengthen the bond between Huawei and SERES Automotive technology for future-coming car models.

A SERES spokesperson also mentioned that Huawei will also benefit from this deal. The Chinese tech will get a certain amount with every AITO car sold in the market. Although this amount is unknown due to core business secret. Read More…