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BAIC BluePark New Energy Denies Rumors of Breakup with Huawei

BAIC BluePark New Energy Denies Rumors of Breakup with Huawei

Arcfox Automobile
(Source: Arcfox Automobile)

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Recently, it has been rumored that the cooperation relationship between automobile brand BAIC BluePark New Energy and tech giant Huawei is showing some fissures, indicating that the jointly developed model Huawei Hi ArcFox Alpha S may be delayed. The auto maker denied the rumor on the interactive platform of the Shanghai Stock Exchange on Friday.

BAIC said that Huawei is one of the important strategic partners of the company and it is working closely with Huawei to promote automobile research.

The Huawei Hi ArcFox Alpha S is the first model to be jointly launched by Huawei and Arcfox Automobile, a brand owned by BAIC BluePark New Energy. The vehicle will be equipped with a permanent magnet synchronous motor with a maximum torque of 655N·m, a maximum power of 473kW and an acceleration from 0 to 100km/h of only 3.5s. Arcfox’s official website shows that the model is priced between 388,900 and 429,900 yuan ($59,811 and $66117).

In April this year, as news emerged that the model could be reserved for purchase, the automatic assisted driving technology jointly developed with Huawei attracted much of the attention.

BAIC said on the interactive platform on Friday that in early May, the company will hold an event in Beijing and will invite reporters, investors, supply chain partners, distributors and some customers to try out the new vehicle first hand. Senior executives from BAIC BluePark New Energy and Huawei will also attend the event.

However, the sales volume of Arcfox has been less than satisfactory, reaching only 4,993 units in 2021, which was far from the target of 12,000 units previously set by Liu Yu, Chairman of BAIC BluePark New Energy.

BAIC BluePark New Energy, the parent company of Arcfox, is also under constant pressure. According to its latest financial report, from 2019 to 2021, its operating income was 23.589 billion yuan, 5.272 billion yuan and 8.697 billion yuan respectively, while net profits were 92 million yuan, -6.482 billion yuan and -5. 244 billion yuan respectively.

SEE ALSO: Huawei and BAIC Seal Cooperation on Co-Brand’s R&D

As for the reasons for the huge losses in 2021, BAIC said that it was due to the company’s sales falling short of expectations, continuous R&D investment and substantial marketing costs. According to latest report, BAIC produced 1,019 units and sold 5,735 units in March, far less than other electric vehicle startups.

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