Huawei Will Integrate Its Auto And Consumer Businesses, Reiterating That It Will Not Build Cars Again

Huawei has responded to the recent uproar of Huawei's "car making" and Huawei's "integration" incidents.

On November 25, Huawei released a resolution on the business management of smart car parts in Xinsheng community, which explained the adjustment of auto business and whether to build a car.

Is it a car?

In the latest disclosed document, Huawei said at the beginning that Huawei had already made a decision not to build cars. The resolution of Huawei's standing committee of directors [2018] No. 139 "resolution on relevant strategies for coping with macro risks" clearly states: "Huawei does not build cars, but we focus on ICT Technology to help car companies build good cars. The more difficult it is for Huawei to shoulder its mission in the past two years, the more difficult it is for Huawei to shoulder its mission in the past two years

Therefore, Huawei once again reiterated: "Huawei does not build complete vehicles, but focuses on ICT technology to help car companies build good cars and become an incremental component provider of intelligent networked vehicles."

So, what does Huawei want to do to enter the auto industry?

According to Huawei's statement last year, it did not focus on OS system, but on Huawei's Internet of vehicles. The overall positioning is on the infrastructure of the Internet of vehicles platform. It mainly provides ICT technology for automobile enterprises, including 3G / 4G (future 5g) network, communication module, Internet of vehicles platform, cloud data center, etc.

However, from this year's mate40 mobile phone conference, after the first participation of the automobile business and the introduction of the new brand concept, we can see that Huawei not only needs to provide the core computing power and connecting parts for the automobile, but also make the automobile brain, which has not only the software such as the operating system, but also the support of chips, MDC, laser radar and other hardware.

According to Huawei's latest hi intelligent vehicle solution, it includes a new computing and communication architecture and five intelligent systems, namely intelligent driving, intelligent cockpit, intelligent electric, intelligent network connection and intelligent car cloud, as well as a complete set of intelligent components such as lidar and ar-hud.

Hi provides powerful computing power and operating system, including three computing platforms, intelligent driving computing platform, intelligent cockpit computing platform and intelligent vehicle control computing platform, as well as three major operating systems AOS (intelligent driving operating system), HOS (Intelligent cockpit operating system) and Vos (intelligent vehicle control operating system).

For Huawei, the current industry is mainly network connected pipeline business and terminal business, and automobile is a new track opened by Huawei in recent years. In the current international environment and fierce competition, the communication business is facing great challenges. The mobile phone business is stuck and glory has been sold. At present, the core business is facing uncertainty. The automobile can be regarded as a new growth point for Huawei. Moreover, in terms of automobile technology, no country is in a monopoly position. The United States, Europe, Japan and other regions have their own strengths. In the long run, Huawei's layout of automobiles has few restrictions, and there are also opportunities for independent research and development.

On the other hand, the car, a large mobile terminal, contains great opportunities for change. Although the growth rate of automobile sales slowed down, the incremental market of automotive electronic parts was expanding, especially the development of new energy vehicles and automatic driving, which led to the reshuffle of suppliers.

How to adjust automobile business?

On the one hand, some of Huawei's auto business lines will not be integrated. On the other hand, some of Huawei's auto business lines will be adjusted based on the fact that some of the auto business lines will overlap.

Huawei said that in order to enhance the interaction of technology and resources between the intelligent car parts business and the intelligent terminal business, it has made three decisions on the management of the intelligent car parts business with the approval of the company's president.

Firstly, the business jurisdiction of intelligent vehicle solution bu (IAS BU) is adjusted from ICT business management committee to consumer business management committee, and Wang Tao is appointed as a member of consumer business management committee.

This means that the automotive Bu has shifted to another sector in Huawei's architecture, moving from ICT to consumer business and integrating with it.

Looking back on the previous situation, Huawei officially established the intelligent vehicle solution Bu in 2019 to implement the strategy for intelligent connected vehicles. The automobile business which has been deployed for many years has finally upgraded to the first level department status. At present, it is juxtaposed with the four BGS. BG businesses are operator BG, enterprise BG and consumer BG, cloud & AI BG (cloud business).

In enterprises, bu originally refers to product line, BG is business group, and BG level is higher. However, at that time, Huawei moved the auto Bu to the group, which was subordinate to ICT organization and ranked in the same position as BG. The importance of automobile business can be seen. Now, the automobile is separated from the ICT business facing the B end and transferred to the consumer business segment serving the C end.

Huawei enters the automotive industry as a software and hardware supplier. Strictly speaking, it belongs to b-end business. However, in order to develop smart cars, vehicle machine interconnection is indispensable. Whether from the connection level, operating system level or hardware products, Huawei's mobile phone and automobile business need cooperation before. The car scene is also part of the IOT strategy and multi screen strategy of Huawei's consumer business. This year, the consumer business also released the first on-board smart screen for car machine scenarios.

Therefore, it is not difficult to understand that Huawei's second adjustment to the automotive business is to restructure the consumer BG IRB (institutional review board) into the intelligent terminal and intelligent car parts IRB, and adjust the investment decision-making and portfolio management of the intelligent car parts business from ICT IRB to intelligent terminal and intelligent car parts IRB. Yu Chengdong was appointed director of IRB of intelligent terminal and intelligent vehicle parts.

As mentioned above, Huawei's automotive business will be integrated with mobile phone and other terminal services to a certain extent. While the survival space of mobile phone is squeezed, Huawei proposes "multi product collaborative development" in its external statement. In other words, it is Huawei's strategic shift and supplement to push more product lines to the front line and dig deep into the scene. In addition to the car track, Huawei seems to be running in the direction of integrated hardware companies.

However, it should be pointed out that the logic of the terminal products of automobiles and Huawei is not the same. Huawei's production of TVs, tablets, watches, glasses, speakers, etc. is actually a horizontal migration of mobile phone manufacturing capacity, but the field of vehicle and machine is completely different. This is a completely different runway. The supply chain, sales channels, brand building, etc. are separated from the original industries, and Huawei needs to rebuild Ability, how to integrate next is also the point.

Finally, Huawei once again stressed not to build cars, as the third resolution: "who will propose to build cars in the future and interfere with the company can be transferred from their posts and look for other posts. Intelligent terminal and intelligent car parts IRB and consumer business management committee should adhere to Huawei's strategy of not making cars, and have no right to change this strategy. "

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