Huawei Assures Resolution of Chery’s Luxeed S7 Delays by April
Huawei has addressed concerns regarding delays in the production and delivery of its Luxeed S7 sedan, citing a shortage of semiconductors and factory relocation issues as the primary causes. According to local media outlet Cailianshe, Huawei’s managing director and chairman of its smart car solutions, Richard Yu, assured that these issues should be resolved by next month.
The delays were discussed at an annual forum organized by the EV100 think tank, where Yu addressed the challenges faced by Chery’s Luxeed S7 sedan, a flagship model affected by production issues with a computing unit manufactured by Huawei. Both Chery and another Huawei partner, Changan Auto, had reported delays in deliveries of their respective flagship models due to these production issues.
The Luxeed S7 sedan, which marks the debut model for Chery’s Luxeed EV brand, garnered significant attention with approximately 20,000 orders as of November 28th. To address the delays, Luxeed offered reimbursement of up to 10,000 yuan for customers unable to receive their cars as promised. The sedan is priced from 249,800 yuan.
Huawei had high hopes for its smart car unit, aiming to emulate German automotive supplier Bosch in the intelligent electric vehicle (EV) era by supplying software and components to partners. Despite the hype surrounding the Luxeed S7, Huawei’s automotive unit has been struggling financially, with losses reported in the past year. However, Yu expressed optimism at the EV100 forum, stating that the autos business unit is expected to turn a profit from April onwards, buoyed by strong sales of mid to high-end models produced by its partners.
The smart car unit, launched in 2019, has faced challenges, being the only money-losing unit among Huawei’s main six divisions. In the first half of 2023, it generated only one billion yuan in revenue, significantly lower compared to the company’s total revenue of 310.9 billion yuan. Despite these setbacks, Huawei remains committed to its automotive ambitions and aims to overcome challenges to establish itself in the competitive EV market.
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