Huawei, the Chinese tech giant known worldwide for its innovations in telecommunications and technology, is taking an important strategic step into the automotive industry. According to internal sources, Huawei has initiated talks with auto giants Mercedes and AUDI to acquire a minority stake in its automotive division.
That includes a small stake in the company, which focuses on software and auto parts businesses, according to three people familiar with the process. The purpose of this initiative is to establish partnerships with foreign companies to prepare against geopolitical unrest.
Huawei, which has been facing sanctions from the US since 2019, thus strengthens its position in an ever-evolving sector. Last month, the tech group announced plans to spin off its auto division, valued at between $28 billion and $35 billion.
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In the negotiations with Mercedes, a share of three to five percent was discussed. However, an insider noted that Mercedes is not interested because the company independently develops the software for its vehicles. AUDI's interest, on the other hand, initially remained unclear.
However, two of the sources indicated that Huawei and AUDI plan to collaborate on the development of self-driving technology for AUDI cars for the Chinese market, which will be launched from 2025 as part of the cooperation with FAW.
Mercedes declined to comment on these "speculations," and AUDI's parent company, Volkswagen, along with Huawei, did not immediately respond to requests for comment. This strategic move by Huawei underscores the company's ambition to diversify and expand its footprint into new industries despite geopolitical challenges.
Through these potential partnerships, Huawei aims to strengthen its presence in the automotive sector, integrating its technological expertise in a field full of expansion and innovation.
