(Yicai) Jan. 16 -- Tech giant Huawei Technologies and Chongqing Changan Automobile have chosen the tentative name of ‘Newcool’ for their new smart auto systems and components joint venture, the chairman of the Chinese vehicle manufacturers said today.

Newcool, in which Changan Auto and related parties own around 40 percent equity, will serve as a public resource platform for the whole automotive industry, Zhu Huarong said at an event today.

Changan Auto and Huawei will first roll out new products and increase market share, before they open them up to other industry players and the public, Zhu said. Huawei will not enter into direct competition with the new business, he added.

The two parties had also discussed the future development of Shenzhen-based Huawei’s car business, Zhu said, without going into further detail.

The new company will research, develop, produce, sell and service intelligent auto systems and components, including driving solutions, cockpits, digital platforms and cloud platforms, AR-HUD and smart lighting, Changan Auto said in November, citing the memorandum of investment cooperation signed with Huawei Intelligent Automotive Solutions Business Unit.

Some of Huawei’s auto tie-ups are moving towards independent operations as more investment is being introduced, Yu Chengdong, chief executive officer of Huawei Terminal Business Group and chairman of Intelligent Automotive Solutions Business Unit, said in November at the launch of the firm's first smart car with Chery Automobile, the Luxeed S7.

“Changan Auto is the first collaborator, and Huawei has also reached out to several other partners such as Seres Group, Chery Automobile, Baic Motor and Anhui Jianghuai Automobile Group,” he added.

Editor: Kim Taylor