2024-02-01 12:45:56
Production issues with Huawei’s computing module have led to some Chinese automakers having to delay deliveries of key models, according to… To report New from Reuters.
According to Reuters, Changan and Chery have filed complaints and are in talks to resolve the issue. Ceres, a small automaker, was also affected.
Changan and Chery entered into a partnership with Huawei to develop their distinct electric vehicle brands.
The computing unit, called the MDC 810, powers advanced driver assistance systems, and is key to Huawei’s ambitions to become the dominant supplier of smart electric vehicle software and components.
The production issue is related to a shortage of a component found in the MDC 810.
The problems come as Huawei seeks to secure more investors for its four-year-old Intelligent Automotive Solutions (IAS) business unit, which it plans to spin off into a new, independent company.
Changan said it plans to own up to 40 percent of the new company.
According to Reuters, the companies launched the three affected models in the fourth quarter of 2023. Changan last week cited challenges in key component supplies as a factor in an average delivery delay of two weeks, without naming Huawei.
Changan said it had received more than 20,000 orders for the Avatr 12 sedan, whose price starts at $41,880. Changan plans to compensate buyers $2,100 for late deliveries.
While Chery said it had received more than 20,000 orders for the Luxeed S7 sedan, whose price starts at $35,150. Chery plans to compensate buyers $1,400 for late deliveries.
Huawei promoted the Luxeed brand, and CEO Richard Yu said that the Luxeed S7 outperforms the Tesla S from Tesla in performance, in addition to its superiority over the Model 3 in price.
Seres was expected to deliver the first batch of 2,000 Aito M9 vehicles by January 26 to buyers, although it failed to meet that target.
Arcfox’s Alpha S uses the Huawei MDC 810 computing unit, and supply shortages of the MDC 810 have affected Alpha S production in the past.
Huawei’s MDC 810 computing unit allows automakers to offer so-called smart driving features that include self-driving on highways and helping drivers navigate traffic jams, similar to what Tesla’s Autopilot feature provides in North America.
These advantages have become a major selling point in China, and are a major reason why automakers are seeking to partner with Huawei.
China is considered the largest car market in the world, and hundreds of electric and hybrid fuel-powered cars are competing to attract the attention of the Chinese consumer.
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