Huawei on Engsub ArchivesTuesday set up a wholly-owned subsidiary in Shenzhen with a registered capital of RMB 1 billion ($138.9 million). The new subsidiary will absorb its automotive business unit, which is set to be spun off into a separate company in the hopes of inducing more collaborations with automakers. The new entity’s corporate information was released publicly on Chinese business intelligence platform Tianyancha. People close to the company told Caixin that Huawei and its partners are still discussing the details of investment into the new venture as they pursue a diversified ownership. The move comes after the Chinese technology giant last November revealed plans to form a joint venture with state-owned carmaker Changan Auto that will include the core technologies and resources from its Intelligent Automotive Solution (IAS) business unit. Changan chairman Zhu Huarong said on Tuesday at a company event that the new firm could be named “Newcool” and will be open to other car manufacturers for collaboration. [Tianyancha, Caixin, in Chinese]
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