Changan, Dongfeng and FAW invest $35.3B into Huawei’s new car business

The newborn automotive division of Chinese IT giant Huawei Technologies is set to receive funding in the amount of $35.3 billion for the development of software and hardware, Reuters reports. Major Chinese automakers will own between 40 and 50 percent of the shares.

Earlier this week, Changan Auto and Huawei agreed to establish a joint enterprise. Reports came in that the former company was willing to buy a share of up to 40% in this new enterprise. The company would be based on the existing Intelligent Automotive Solution (IAS) division and would receive the necessary technological and material assistance from Changan’s other automotive subsidiaries.

A correction came later that Changan was looking to buy a share of only 35% in this new, still-unnamed joint company. Another 5% will go to its parent company – the state-owned China Ordnance Equipment Group (alternatively known as the China Southern Industries Group).

We are told that Dongfeng Motor Group and FAW Group are also looking to become minority investors in this deal. Both are allegedly interested in a 5% share and are currently in negotiations.

In the meantime, Huawei continues developing its existing partnerships with other Chinese automakers. For instance, the recently established car brand Luxeed and its all-electric sedan, the S7 pictured below, have already gone on sale in the country. The Luxeed badge was co-founded between Huawei and Chery.