Yu Chengdong parachuted into GAC Group and led the Huawei team to visit Feng Xingya to receive him in person. GAC's sales were declining and it urgently needed technology and cooperation to help t

There is a big news in the automotive industry recently. Huawei’s boss Yu Chengdong personally took his team to visit Guangzhou Automobile Group.

As for Guangzhou Automobile, they were also led by their Feng Xingya and brought a large group of senior executives to personally receive him. The scene was quite grand.

Everyone knows that Yu Chengdong and Huawei are now very popular in the automobile industry. If anyone can cooperate with them in depth, this car company will probably have a chance to make a big turnaround.

Guangzhou Automobile Group is currently facing the dilemma of plummeting sales. For them, embracing Huawei is undoubtedly to find a strong backer to help them tide over the difficulties.

In fact, there are many stories behind the successful cooperation between GAC and Huawei this time. It was not easy for GAC to cooperate with Huawei before. I heard that there were some old members within GAC who always blocked the matter, which made Huawei not very willing to deal with it.

It was not until later that the leaders of Guangdong Province personally intervened, and a new group of people were in power within the GAC Group. Those old guys who had been in the way and only cared about their own interests were gradually removed. At this time, the obstacles to cooperation were cleared.

It can be said that without the personal intervention of provincial leaders and the overhaul of GAC’s management, Huawei would never have cooperated well with them. This also shows that when Yu Chengdong came to the door in person this time, he was really rushing to help GAC.

Looking back at GAC Group's recent performance, it does make people feel a little worried for them. Looking at the first 11 months of last year alone, GAC Group's total sales volume was just over 1.53 million vehicles, a drop of more than 10% compared with the same period last year. If you look at the sales volume in the first three quarters, it was only more than 1.18 million vehicles, which was a drop of more than 10% year-on-year.

Specific to its brands, such as Honda, Trumpchi, and Aon, sales have all declined by double digits. Only Toyota has been able to hold on, with a slight increase of less than 5%. It can be said that GAC has significantly regressed as a whole, and only a few business sectors can still find some bright spots.

Not only is sales sluggish, GAC's financial data is also worrying. Revenue in the first three quarters totaled more than 66.9 billion, which was a drop of more than 10% compared with the same period last year. What's more serious is that the net profit directly lost more than 4.3 billion. This number plummeted by more than 3,600 times compared with the same period last year. It can be said that this is the worst report card handed over by GAC in the 13 years since its listing.

The main reason is that the price war in the domestic automobile market is too fierce, the electric transformation requires a large investment, and the profits of the joint venture brands have also declined. These factors combined have made GAC's life particularly difficult.

Although GAC's sales and revenue rebounded slightly in the third quarter from the previous quarter, and its new energy vehicle and export business did grow somewhat, the entire company is still in the "pain" of the transformation period. They are now actively promoting internal structural reforms, hoping to find an opportunity to completely reverse the situation through in-depth cooperation with Huawei.

Everyone is now staring at what new technologies and solutions Huawei can bring to GAC to help them restart their business.

After all, GAC has been in the automotive industry for decades and is considered a veteran "master". Now we have to cooperate with Huawei, a new force that has suddenly emerged in the field of smart cars. It can even be said that it is a bit like an old man trying to learn new things from a young man. He will definitely feel a little uncomfortable and may even lose his dignity.

However, facing this precarious decline, GAC can no longer care so much and must rely on Huawei's power to save it.

Therefore, it can be seen from this cooperation that this is not just a simple docking of technologies. It is likely that the two companies will conduct deeper integration from product R&D and design, to production and manufacturing, to final sales channels. This means that in the future we may see more GAC Motors supported by Huawei technology, and we may also see the two companies cooperate in the market. Everyone is now looking forward to seeing whether GAC can truly counterattack and return to the leading position in the industry with the help of Huawei's shareholder style.

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