Huawei's founder Ren Zhengfei, who has always been low-key, did not show up. However, on October 17th, Huawei officially formed an alliance with Dongfeng Motor, but it was the intention of Ren Zhengfei.
Ren Zhengfei’s contract with Wuhan was Yu Chengdong, Huawei’s senior vice president. Yu told the media on the same day: “Huawei is going to do a good job in car information and smart car service in the era of big data cloud service.†This position is Ren Zhengfei’s In an internal Huawei speech in the first half of this year, he asked senior executives: “You have to put data cards into various vehicles and Internet of Things. This space is very large.â€
Huawei started the transition to non-strategic small products this year, and the Internet of Things has been identified as the key direction of new business. Zhu Fushou, general manager of Dongfeng Motor Co., Ltd., realized that the two parties have joined forces. The automobile development trend is the transition from a vehicle to a smart car. However, in this process, traditional auto companies need to connect with information and communications technology companies, and it is possible to obtain enough. Technical Support.
Like Huawei's confusion, the self-owned brand cars are in a downturn, and the pattern of rising channels is still being explored. Zhu Fushou believes that intelligence is the new catch-up trend of China’s auto industry following new energy: “Although there is only a small signing ceremony, perhaps 10 or 20 years later, it may be remembered today. This is the last of the Chinese auto industry. The period of opportunity is also the last critical period for transformation."
Internet thinking focuses on the customer experience. The vehicle provided by Huawei is already on the Dongfeng Aeolus model. Yu Chengdong has specifically ordered one as an experience vehicle. In the future, the cooperation between Huawei and Dongfeng may extend to multiple brands owned by Dongfeng.
Cars and IT crowded into the same boat
Intelligence is an important aspect of the future car, and many car companies and IT companies are aware of this trend. Apple has released Carplay and has teamed up with dozens of car companies. Google has also established alliances with GM, Honda, etc. while it continues to test its own research and development of driverless cars.
Smart cars are getting closer and closer to consumers in technology maturity. Ren Zhengfei realized that in terms of doing traditional terminal platforms, Huawei cannot do Samsung and cannot find anything about Huawei.
In an internal speech during the first half of this year, Ren Zhengfei focused on Huawei's transformation. “There is no need to do a small product that does not have a strategic position. The first thing to do is to use the Internet of Things chip (communication module and data card) to make data cards available in various vehicles and Internet of Things. The space is very large. ."
Soon Huawei announced that it will continue to invest 600 million U.S. dollars in the next five years to increase research and development of 5G technologies, provide solutions to dangerous car networking delay problems at a faster rate, and revealed that Toyota may use Huawei's car networking module in 2015.
On October 9, when Ren Zhengfei met with German Deputy Prime Minister Gabriel, he once again mentioned the BMW project that has entered the stage of substantial cooperation. Huawei will deepen its cooperation with BMW in 5G and the Internet of Things to promote the application of “full-coupled driving†in the automotive industry in the future.
Dongfeng is Huawei's first cooperative car company in China. According to the strategic agreement, the two parties will cooperate in the field of automotive electronics, smart cars, and IT/ICT informatization. Dongfeng focuses on product integration and application. Huawei focuses on product development and production. The cooperation between the two parties in the automotive field includes related products such as on-board electronic products, vehicle networking, and intelligent vehicles, as well as on-board communication equipment products and solutions that represent future directions.
However, based on the current situation, whether it is the technical level of Huawei and Dongfeng Motor itself, or the degree of market acceptance, the application of vehicle and vehicle is the main aspect of cooperation. Huawei has developed windLink products and services for Dongfeng, which are currently on the Dongfeng Fengshen AX7.
According to the strategic agreement, the direction of future cooperation between the two parties will be: planning vehicle networking products, realizing the interconnection between vehicles and vehicles, vehicles, vehicles, and vehicles, and realizing the intelligentization of vehicle interconnection; the future can be foreseen, both parties will Jointly develop smart cars, and finally realize an emotionally self-driving car.
In Yu Chengdong's view, the car itself is an intelligent terminal, with communication and entertainment modules. Behind the car is cloud big data. To achieve a connection without delay, a faster communication network is needed. "The Internet of Vehicles is a long-term strategy for Huawei's consumer business, and the investment is very large. In the future, it hopes to expand to the intelligent transformation of the entire Dongfeng Motor.
Turn from strategic defense to strategic counterattack
The 12-month market share of self-owned brand cars dropped steadily. The core reason behind this is that brand power has stagnated and cannot support higher-priced consumer groups, while low-priced consumption is shrinking. On the other hand, the improvement of brand power requires comprehensive strength support and time cost including technology.
Zhu Fushou believes that the current automotive industry in China is facing the last opportunity period and the last critical period for transformation. The new technology spans more extensively, and the entire chain technology of the information and communication industry is incorporated into automobiles and vehicles. The giants of traditional car companies must have a cross-border open mind.
Zhu's logic is based on Dongfeng Motor's own brand reality. Dongfeng Fengshen, Dongfeng Auto's own brand, is also facing a transition period. Five years after its development, Fengshen's annual sales reached nearly 90,000 units, but the competition in the market segment where the main vehicle is located is very cruel.
Aeolus can only win by its price, such as the AX7, which has already announced its price yet to be listed, and its price is 30% lower than that of the Hyundai ix35, which has a lower configuration. “This is a survival strategy,†said Liu Yuchun, deputy general manager of Dongfeng Fengshen, who clearly understands the negative impact of price changes on the brand.
However, the yardstick for measuring the future is still sales. Fengshen plans to launch at least two new models each year from next year until 2017, to hit the market. “Aeolus currently only accounts for 2% of Dongfeng’s sales, and it will become a main force in the next three years.
Aeolus has a very clear understanding of its own stages: Fengshen is still at the "strategic defense" stage for quite a long time. "If there is no special policy support, this phase will take 4-8 years to be able to hold on with the joint venture. Gradually accumulate after the stalemate, and finally a strategic counterattack can be achieved."
Dongfeng Fengshen general manager Li Chunrong believes that a series of self-contained short boards are concentrated on brand strength. Before the introduction of new products, Dongfeng Fengshen had to do a product competitiveness analysis and compare it with a configuration of a competing vehicle. However, they were all based on the assumption that “brand factors should not be consideredâ€.
The trend of “the number of successful players is high and the price is low†continues. Under the premise that the traditional vehicle strength cannot surpass the joint venture, the way out for the self-owned brand is to change the space for the time and catch up with the trend of the future car: at the same time, it will accumulate strength in both new energy vehicles and smart cars.
After the product quality reaches a certain level, new technology is the most powerful bargaining power for brand power. Although the cooperation between Dongfeng and Huawei was started two years ago, the 9-inch touch screen on the Dongfeng Fengshen AX7 can realize the dual-screen interconnection of the mobile phone by wired and wireless methods.
However, the alliance between the two sides is still relatively loose. In the strategic agreement, the two parties stipulated that they share their latest product R&D dynamics and technological achievements, and jointly develop a project development plan for Dongfeng development projects and formulate personnel for project management. Zhu Fushou said: "I look forward to the signing of a deepening cooperation agreement in the near future."
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