Huawei Asks Mercedes, Audi to Collab on Software

Matthew Guy
by Matthew Guy

Chinese smartphone giant Huawei has apparently broached the topic of software collaboration with a pair of German automotive companies. According to reports, Huawei wants to bust out of the situation in which it finds itself partnered on such projects solely with brands in China.


Per Reuters, the company – notably the target of American sanctions for the last five years or so – has held preliminary talks with Merc in an effort to place them at the helm of somewhere between 3 and 5 percent of Huawei’s Intelligent Automotive Solution (IAS) business unit. Talking heads value the joint at around $30 billion, making even a five percent stake worth over a billion dollars. Ze Germans seemed to have rebuffed the offer, citing a desire to remain in charge of its own software destiny instead of sloughing it off to a supplier.


Audi’s involvement is less clear, though it is worth noting there are rumblings of them and Huawei planning a partnership to develop new autonomous driving aids. However, anything which springs forth from that joint venture will apparently be installed only on Audi models sold in the Chinese market, where the company is tangled up with the FAW Group home team. Remember, the latter is a state-owned automobile manufacturer in a market where outside companies must forge some sort of partnership with a local outfit in order to get off the ground – at least in terms of car. GM is partnered with a group called SAIC for the same reason. Audi currently makes 9 different models in China, ranging from the A3 and Q2L to the A6L and e-tron.


Predictably, everyone involved has clammed up and there are precisely no official statements from either Merc or Audi – or Huawei, for that matter – about this potential collab. What's you take? Should car companies shack up with tech giants in order to produce legible infotainment systems and the like? Or should they go it alone?


[Image: Huawei]


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Matthew Guy
Matthew Guy

Matthew buys, sells, fixes, & races cars. As a human index of auto & auction knowledge, he is fond of making money and offering loud opinions.

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  • IBx1 IBx1 on Dec 12, 2023

    Give me a DIN format radio I can rip out without affecting HVAC controls or the trip meter.

    • See 1 previous
    • Art_Vandelay Art_Vandelay on Dec 12, 2023

      You can complain all you want, but that ship has sailed. screens are the thing now. best you can hope for is a good UI


  • ToolGuy ToolGuy on Dec 12, 2023

    Speaking of software, why does the first reply to a comment get hidden a lot of the time? It makes it look like people are talking to themselves (which some of us are lol).

    The Truth About Comments 🙂

  • 28-Cars-Later So the company whose BEVs are without proven lifespan and mired in recalls wants to further cheapen materials and mfg costs of the very same thing they already cannot sell? I don't know if Ford is going to still exist in 2030 (assuming the nation still does of course).
  • Fred We want our manufacturing to pay good wages, provide healthcare, not pollute and provide a safe workplace. Many places around the world don't, so we put a tariff on them to force them. That's the way it should be, but I'm afraid this is just a political move by Biden to take away one of Trump's talking points.
  • Orange260z Modern Cadillac sedans look and drive great. Yeah, the interior materials aren't quite as good as the competition, but if they undercut them in price it can offset. IMHO, they need to step up in a big way on their warranty, service and customer service. H/K/G shows confidence in the quality of the product by offering long standard B2B warranties and low-cost exclusionary extensions. My Caddy became a money pit after the warranty with only 75K kms; yes, the Germans do that, but they have the established cachet that they get away with it. They need to make sure that their cars still look good after 10 years (i.e. no trim issues, no undercarriage rust issues, etc) - my CTS was all rusty underneath after two years, they told me that was acceptable and not under warranty. Cadillac needs to do more.In Canada, there are few (if any) standalone Cadillac dealerships; they are typically co-located with all the other (remaining) GM brands. However, this doesn't have to be a kiss of death - Lexus successfully built their rep despite co-location, by investing in dedicated Lexus sales areas, sales people, service advisors, technicians, lounge areas with private offices, perks (free coffee/treats, car wash and vacuum with any service, a large complimentary Lexus loaner fleet available for any service visit), etc. By contrast, for Cadillac service I would line up with the 20 other people waiting for one of 5-7 service writers that know nothing about my car because they service 10,000 different GM models, answering a question about maintenance requirements "How am I supposed to know?". During the first 4 years I had access to complimentary Enterprise rental cars as loaners, but I had to spend 20-30 mins going through a car rental process every time. The guy who would do complimentary service washes did so with a big scrub brush he just used to wash a work truck that was covered in mud. They can't sell a premium car with crappy service like that, they have to be better than their competition.If it weren't for these issues I would not have hesitated to buy a new CT5 V-sport (winter DD, want AWD). I bought a G70 instead, we'll see how that goes - but at least I have a long B2B warranty.
  • Jalop1991 Are tariffs the right answer? Ask China and Japan. They've imposed lots of protectionist tariffs over the years, but somehow our doing so is horrible or something like that.Let's do the Japanese inspection to the Chinese junk imports, and make the Chinese pay for them.BYD--now available at Walmart and Amazon.
  • Scott This seems very BOEING of FORD....
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