Under-pressure Huawei auto business suspends COO

导语：Under-pressure Huawei auto business suspends COO

By ZHOU Shuqi

Huawei has suspended the COO of its car business WANG Jun. CEO YU Chengdong has taken over.

The suspension decision was made by the board, including Yu Chengdong, and was “not the result of internal strife,” sources told Jiemian News.

Wang was suspended in January but Huawei kept tight-lipped about the move. There was a widespread assumption that Wang was pushed out over the stagnant performance of his driving system, but sources said he is still at Huawei.

The suspension of Wang will not jeopardize R&D for Huawei Inside (HI), the company’s automated-driving tech. Two EVs, the Arcfox Alpha S and the Avatr 11, have already been mounted with the HI system.

HI is not only driving but batteries and a smart cockpit. But the market doesn’t seem ready to buy it. First delivered in July last year, only about 10,000 Arcfox Alpha S have been sold. The delivery of the Avatr 11 is not looking good either. Only 2,000 have been delivered so far.

Meanwhile, HI’s internal rival, the Huawei Zhixuan (HZ) system led by new boss Yu Chengdong, is doing well.

Seres, the only EV maker working with HZ, has launched four models. Huawei was involved in the design and manufacture of these EVs, and they are displayed and sold in Huawei stores. Last year, more than 75,000 Seres AITO M5, its first model, were sold.

Other automakers including Chery Auto and JAC Motors are also seeking to work with HZ.

Internal competition aside, the auto business is the only unit of Huawei that is not turning a profit. It poured US$1.5 billion (10 billion yuan) into R&D last year. Yu said the auto business unit must turn a profit by 2025.

Since entering the EV business, Huawei has placed itself as merely a supplier and solution provider. In October 2020, Huawei said it would not consider manufacturing EVs itself in the next three years.