Huawei warns managers against push to build connected vehicles

Huawei Technologies, a major global supplier of communications equipment and smart phones, admonished managers this week who are pressing the company to build connected vehicles rather than only supply technology. 

The warning was included in a notice, signed off by Huawei’s founder and CEO, Ren Zhengfei, and posted in a section of the company’s website created for managers and employees.

Huawei reaffirmed its core business and position as a supplier of information and communications technology infrastructure and smart devices. 

“Despite the constant changes in the external environment in the past two years, we must be clear that building ICT infrastructure is the historical mission of Huawei,” the notice said.

The letter also directly addresses the company’s role and ties to the auto industry: “Huawei will not build complete cars, but will focus on ICT technology to help automakers build good cars and become a provider of incremental components for intelligent connected cars.” 

“Next time, whoever proposes building cars and interferes with [the strategic direction of] the company will be transferred from his post,” the notice warned. 

Citing national security concerns, the U.S, U.K. and Sweden have barred Huawei from participating in the construction of local 5G communication networks. The Trump administration has also blocked Huawei from obtaining chips developed with technologies originated in the U.S.

Huawei remains a clear leader in China as a 5G equipment supplier and smart-phone maker. 

In recent years, the company has signed agreements to help major Chinese automakers FAW Group Corp., Dongfeng Motor Corp., GAC Motor Co., Changan Automobile Co. and others develop intelligent and connected vehicles.