Chery Auto Denies Cooperation Frictions With Huawei
Wei Wen
DATE:  Feb 01 2024
/ SOURCE:  Yicai
Chery Auto Denies Cooperation Frictions With Huawei Chery Auto Denies Cooperation Frictions With Huawei

(Yicai) Feb. 1 -- Chery Automobile has denied a media report claiming the Chinese carmaker is experiencing some friction in its cooperation with Chinese telecoms giant Huawei Technologies.

Chery Auto and Huawei are collaborating smoothly and making every effort to promote the production and delivery of the Luxeed S7, Jin Yibo, spokesperson of the Wuhu-based automaker, told Yicai yesterday. The pair will continue to deepen cooperation in the future, he added.

There are some issues in the cooperation between Chery Auto and Huawei, automotive media outlet d1ev.Com recently reported, citing people familiar with the matter. To balance the competition between its own brand Exceed and Luxeed, Chery Auto is keeping the daily output of the Luxeed S7 at only a few dozen units, d1ev.Com noted.

Afterward, some alleged screenshots of Chery Auto’s internal WeChat group started circulating online. The images showed that Chery Auto’s employees claimed Huawei was reluctant to share the most basic software, leading to a delivery delay. For this reason, Chery Auto’s Deputy General Manager Han Binwei resigned.

Jin told Yicai that the rumors about Han leaving because of Huawei are untrue.

The Luxeed 7, which was built on the same platform as the Exceed models, was officially launched last November at a price of CNY249,800 to CNY349,800 (USD34,850 to USD48,800). Chery Auto announced that orders for the Luxeed 7 exceeded 10,000 units as of Jan. 16, and buyers who do not receive their car on time will get subsidies of between CNY200 and CNY10,000 (UD28 and USD1,400).

Several sales staffers told Yicai that Chery Auto and Huawei had trouble delivering the Luxeed 7 in time, so they stopped accepting new orders to avoid complaints. Some sources claimed the delay was because Chery Auto could not meet Huawei’s standards.

The equipment at Chery Auto’s factory making the Luxeed 7 is being debugged and is still in pilot production, while the capacity of the plant producing both the Luxeed 7 and other Chery Auto models is insufficient, according to a person familiar with the matter.

Jin did not comment on these claims.

Editor: Futura Costaglione

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