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Chairman Cyrus sent an internal letter: continue to strengthen cooperation with Huawei

2024-09-17 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)04/09 Report--

Recently, Huawei reiterated that it will not build cars and attracted online attention. At the same time, the cooperation between Cyrus and Huawei has also been pushed into the focus of the industry. This time, in addition to reiterating that it does not build cars, Huawei has also put forward strict requirements for the exposure of Huawei logo in car design, stressing that Huawei / HUAWEI cannot be used in vehicle promotion and appearance. After the decision was released, all the stores in the border area also dismantled the publicity materials with the words "Huawei".

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In response to this, Yu Chengdong, BU CEO of Huawei's smart car solution, said: "some of our leaders have different opinions, so we issued a document to cancel 'HUAWEI', but the essence has not changed." Huawei's original intention is to help car companies build good cars, hoping to be an ecological brand of HUAWEI, to combine brands and make full use of the production capacity of car factories. And Cyrus also said: Huawei has announced not to build cars to the outside world many times, this announcement is only to continue to confirm this strategic choice to the outside world. Huawei does not build cars, helps car companies build good cars, and gives car companies such as Selis a greater opportunity to grow. As a responsible and responsible enterprise, Cyrus will continue to invest in high-intensity R & D, serve users wholeheartedly, always be responsible to users, and continue to launch more and better new energy vehicle products.

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After the incident, Selis founder Zhang Xinghai issued an internal letter to all employees, in which he pointed out that he would insist on defining cars in terms of software and would continue to strengthen cooperation with Huawei. In the era of software-defined cars, professional people do professional things, it says. The support behind the software is data, which needs to be generated in R & D, supply and marketing services, so this cooperation must be the cooperation of the whole industry chain, covering the whole process from product demonstration, definition to user service. Only good at software and hardware companies cross-border cooperation, deep integration, give play to the long board effect, can we really create high-quality automotive products to meet the needs of users. Huawei is an important integrator of software products in the Selis automotive industry chain. As long as the two sides continue to define cars in terms of software, the two sides must be each other's most important partners. At the same time, Zhang Xinghai also drew a blueprint for the future, saying: in the first 20 years, Cyrus has achieved 5 million cars in the market and more than 5 million users. In the next 10 years, Cyrus is sure to recreate 5 million of the market holdings. The figure also means that Selis will have to double its annual sales of 267200 vehicles in 2022 to reach that goal.

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It is worth noting that with regard to cooperation with Huawei, Selis Chairman Zhang Xinghai has always been very optimistic, he once said in an interview with the media: "if BMW comes to talk to me about joint venture car construction at this time, I will not do it. I will unswervingly cooperate with Huawei across the border. Relevant data show that the two sides reached a cooperation relationship in 2021, signed a memorandum of cooperation in the field of new energy vehicles, and launched the first cooperation model, Cyrus Huawei Smart SF5, with a price range of 21.68 yuan to 246800 yuan, which will be sold on Huawei's official website and enter Huawei stores and flagship stores at the same time. However, Huawei Zhixuan SF5, the first model of the partnership, did not sell well, with Cyrus SF5 selling only 8169 cars in 2021. In order to reverse sales, Xiaokang shares cooperated with Huawei again to launch the new energy brand AITO, and three models of MJ / M5 EV and M7 were launched one after another in 2022. In July 2022, "Chongqing Xiaokang Industrial Group Co., Ltd." changed its name to "Cyrus Group".

With the launch of the three models, the sales of Selis new energy vehicles have also increased rapidly. According to relevant data, a total of 75000 new cars were delivered in 2022, accounting for more than half of Selis's sales in 2022. However, sales growth still can not get rid of the loss situation. According to the results forecast issued earlier by Cyrus, the net profit attributed to the owner of the parent company is expected to be-3.95 billion yuan to-3.5 billion yuan in 2022, and the net loss after deducting non-recurrent profit and loss is 3.85 billion yuan to 4.3 billion yuan. For the increase in losses, Cyrus said: due to the sharp rise in the price of chips, power batteries and other raw materials, resulting in higher production costs. In addition, the previous investment in fixed assets is larger, depreciation and amortization expenses are higher, resulting in increased losses.

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At present, there are three models on sale: M5, M7 and M5 EV. Although Huawei's cooperation with the world of inquiry has further deepened since 2023, its sales have been declining. Relevant data show that sales in January 2023 were 4475, down 55.88% from the previous month; sales in February were 3505, down 21.7% from the previous month, and sales have been declining for two months in a row. Sales in March were 3679, up just 5 per cent from February. The industry believes that Huawei's reaffirmation of not building cars and the current "price war" of car companies will bring new tests to the question world to a certain extent.

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There are different opinions on whether the cooperation between Cyrus and Huawei is good or not. For example, Mei Songlin, chief data officer of Weimar, recently expressed his views on the cooperation between Huawei and auto companies. "if we do not make full use of Huawei's technology and human resources, this will be a major strategic mistake in the transformation of China's traditional automobile industry," it said. " Of course, there are also those who hold negative views. Chen Hong, chairman of SAIC Group, once said about the cooperation between Huawei and Selis: "SAIC cannot accept autopilot to cooperate with a third-party company like Huawei." In this way, it becomes the soul and SAIC becomes the body. SAIC wants to keep its soul in its own hands. "

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Recently, Huawei Yu Chengdong also summed up the cooperation between car companies and Huawei: "among domestic partners, new forces are unlikely to choose Huawei intelligently." Because they have their own pursuit, they will not choose Huawei for the sake of market capitalization and control points. And international giants will not choose because of sanctions, and traditional car companies will not choose if they are afraid of losing their soul, which makes Huawei face great challenges. "

Although there is no strict boundary between the body and soul of a car, from another point of view, who does the most technical and profitable part means the soul. Cyrus uses Huawei technology to achieve new energy high-end intelligent corner overtaking, almost all of the models sold are built by Huawei, whether it is Huawei Hongmeng cockpit or Huawei Drive ONE pure electric drive platform, or online and offline sales channels and core components, the success of the world can not be separated from the support of Huawei. If the AITO brand fades the aura of Huawei, Cyrus will immediately show its true colors. Cyrus may be aware of this, too. On March 30th, Cyrus unveiled a new new energy car brand, Blue Electric, and the first hybrid model, the Blue Electric E5, also went on sale on the same day, starting at 139900 yuan.

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