Guangzhou Automobile Group (GAC) has already felt the buzz generated by its collaboration with Huawei, with each new milestone in their project attracting significant attention.

Recently, the 78th meeting of GAC's 6th Board of Directors reviewed and approved the "GH Project Proposal," outlining the specific operational framework for their partnership. This initiative not only aims to create a new brand but also to establish a dedicated company. Furthermore, Feng Xingya, GAC's general manager, disclosed on social media for the first time that the two parties have commenced joint office operations and that their inaugural product will be positioned as a premium smart electric vehicle priced at the 300,000 yuan mark.

Huawei has collaborated with various automakers at different levels, and the unique approach GAC and Huawei will adopt has been a subject of widespread discussion. Based on the information released by GAC, coupled with its structural adjustments and product planning, the details of their cooperation method and the positioning of the first model are now coming into focus.

Learning from Past Experiences to Establish a New Company

The collaboration between GAC and Huawei has stirred controversy primarily because it began in 2021, roughly concurrent with Huawei's partnership with Thalys, yet the outcomes have been vastly different. Thalys and Huawei's AITO have been highly successful, while GAC's initial collaboration with Huawei was abandoned midway.

This discrepancy stems from Thalys allowing Huawei to take the lead, a feature hard to replicate in GAC's partnership. In fact, besides Thalys, Huawei's collaborations with automakers have generally faced setbacks due to dominance issues. BAIC and Chery have also encountered similar challenges.

As Huawei's brand influence and impact on consumer purchasing decisions grow, it has altered the dynamics between OEMs and Huawei during collaborations. OEMs are no longer entangled in leadership disputes. GAC and Huawei's renewed collaboration is built on this understanding.

Drawing lessons from their previous unsuccessful attempt, GAC's most significant change this time is the establishment of a dedicated GH project company with a capital injection of 1.5 billion yuan. The official name of this new company has yet to be announced, and the registration process is still underway. Analysts suggest that this new venture is unlikely to be a joint venture between GAC and Huawei, as Huawei has clearly stated its non-participation in automaker equity. Therefore, this collaboration with GAC is also unlikely to be an exception to Huawei's automotive industry strategy.

GAC's insistence on establishing a new company, besides demonstrating a firm commitment to cooperation, aims to grant the new brand more autonomy. This is akin to providing Huawei with greater operational leeway in project leadership, similar to AITO but with a broader scope of involvement.

The parties will collaborate across multiple domains, including product development, marketing strategies, and ecological services, through joint definition and design. Besides launching a new high-end electric vehicle brand, they will also establish new sales channels to offer users a novel experience and image.

It is evident that the collaboration between GAC and Huawei is already closely aligned with Huawei's Smart Selection model, with GAC hoping for Huawei's involvement from R&D to sales. However, due to various reasons, Huawei will not handle all aspects like AITO. Nevertheless, the depth of GAC and Huawei's collaboration surpasses that of Huawei's other automaker partners, except AITO. Hence, it is no exaggeration to say that GAC and Huawei have forged a groundbreaking cooperation model.

Is the New Brand Built on Trumpchi + Huawei?

Given GAC's operating data in 2024, which hit a 20-year low, it's understandable why GAC places such importance and urgency on its partnership with Huawei. Prior to this, GAC had already initiated an internal reform and released an organizational restructuring plan.

Effective January 1, 2025, GAC integrated its independent brand marketing operations, establishing the Independent Brand Marketing Headquarters, encompassing the Trumpchi, AION, and Hyperion Marketing Headquarters. These headquarters operate in tandem with the Product, Procurement, and Finance Headquarters, with the Marketing Headquarters focusing on new media, user service, and marketing.

Under this new structure, GAC has refined the operations of its three independent brands and clarified their positioning. Recently, GAC held a dealer conference for its brands, outlining Hyperion's focus on the high-end market, Trumpchi's commitment to quality, and AION's trend-setting role.

This year, Trumpchi will launch the "Trumpchi Yearning" series, while AION will introduce the strategic model UT, continuing to drive sales with its affordable positioning. Hyperion, meanwhile, will release the new Hyperion HL in the first quarter, a mid-to-large luxury SUV originally planned for joint creation with Huawei but later adjusted to independent development by GAC. However, the new brand model by GAC and Huawei will not wait that long.

To swiftly launch the new brand, GAC, through the newly established GH project company, will integrate previous in-depth collaborations between Trumpchi and Huawei under this new brand. This deep co-creation encompasses the joint establishment of a quality management team, the deep integration of Huawei's intelligent driving and GAC's REV system, the fusion of Huawei's intelligent driving with Trumpchi's chassis, and the collaboration between Trumpchi's ultra-fast charging technology and Huawei's supercharging stations.

According to the plan, the new brand will introduce three flagship models in 2025: a large luxury MPV, a large luxury SUV, and a large luxury sedan. These models will feature Huawei's new-generation HarmonyOS cabin, Kunlun Intelligent Driving ADS 3.0, and an extended-range system, with the first model expected to debut in the first quarter.

The design of the new brand's inaugural model draws inspiration from the 1 Concept car. With a length of 5128mm, a width exceeding 2000mm, and a wheelbase of 3000mm, it boasts a 1.5T range extender system offering a comprehensive range of over 1,000 kilometers and is priced in the 300,000 yuan range. There are few successful precedents for electric vehicles at this price point, making it uncertain how effective GAC's new brand's debut will be!