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ECARX and smart Form Joint Venture to Drive Development of Intelligent Automotive Products

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ECARX Holdings Inc. (Nasdaq: ECX) has announced the establishment of a joint venture with smart, a new-premium intelligent all-electric auto brand, through their respective subsidiaries. The joint venture, smart (Zhejiang) Software Technology Co., Ltd., aims to drive the development of industry-leading intelligent experiences within smart vehicles. This partnership will leverage each company’s respective brand resources and product development capabilities to build upon smartOS by expanding the research and development ecosystem, streamlining procurement and supply chain processes, and integrating teams of highly-skilled technical talent to drive vehicle development. ECARX and smart plan to integrate ECARX’s high-performance Makalu computing platform into smart series models, improving customer satisfaction, enhancing brand loyalty, and expedite the deployment of the ECARX Makalu computing platform across smart’s range of models.
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The establishment of a joint venture between ECARX Holdings Inc. and smart signifies a strategic move in the automotive industry, particularly in the realm of electric vehicles (EVs) and intelligent mobility solutions. The collaboration is poised to enhance the competitive positioning of both companies in the burgeoning smart vehicle market. By pooling resources and expertise, the joint venture, smart Software Technology, is expected to accelerate innovation and streamline operations, which could result in cost efficiencies and a faster time-to-market for new technologies.

From a market perspective, the integration of ECARX's Makalu computing platform into smart's vehicle lineup is a significant development. The platform's reliance on AMD Ryzen embedded processors and Radeon GPUs indicates a commitment to high-performance computing in vehicles, which is increasingly important as consumer expectations for in-car technology grow. The focus on immersive cockpit experiences and potential exploration into 3A games and artificial intelligence suggests that the companies are looking to capitalize on the trend towards more interactive and personalized in-car experiences.

For stakeholders, the potential benefits include a stronger product offering and possibly increased market share. However, the success of the joint venture will depend on the effective integration of the two companies' technologies and the market's response to the enhanced capabilities of smart vehicles.

The strategic partnership between ECARX and smart is likely to have financial implications for both entities. By combining their strengths, the companies aim to improve operational efficiency and reduce costs through shared R&D and integrated supply chains. This could lead to improved margins and profitability in the long term. The joint venture's focus on developing industry-leading intelligent experiences within vehicles may also drive revenue growth by differentiating smart's product offerings and potentially commanding premium pricing.

Investors will be monitoring the impact of this joint venture on ECARX's financial performance, particularly in terms of R&D expenditures and the effect on the company's balance sheet. The partnership's success in leveraging ECARX's technical capabilities and expanding the deployment of the Makalu computing platform could be a catalyst for growth, enhancing the company's valuation.

However, investors should also consider the risks associated with joint ventures, such as potential integration challenges and the need to continuously innovate in a highly competitive market. The automotive technology sector is fast-paced and the ability to maintain a technological edge will be crucial for the joint venture's success.

The joint venture between ECARX and smart represents a noteworthy development in the automotive industry's shift towards software-defined vehicles. This collaboration underlines the importance of intelligent systems in modern vehicles, a trend that is reshaping the industry. By focusing on software and high-performance computing platforms, the companies are positioning themselves at the forefront of EV and intelligent mobility innovation.

The emphasis on the smartOS operating system and the integration of ECARX's Makalu platform indicate that both companies are prioritizing the user experience, which is becoming a key differentiator in the automotive market. The mention of enhancing customer satisfaction and brand loyalty reflects a customer-centric approach that is essential in the competitive landscape of premium electric vehicles.

The potential exploration of new possibilities for immersive cockpit experiences and the incubation of brand IP highlight the joint venture's ambition to not only participate in the market but to lead in innovation. This could set new industry standards for intelligent vehicle experiences, influencing consumer expectations and the direction of future automotive technology developments.

SHANGHAI, China, Dec. 28, 2023 (GLOBE NEWSWIRE) -- ECARX Holdings Inc. (Nasdaq: ECX) ("ECARX"), a global mobility technology provider, today announced that pursuant to a shareholders’ agreement dated November 16, 2023, a joint venture has been established between ECARX and smart, the new-premium intelligent all-electric auto brand, through their respective subsidiaries. The joint venture, smart (Zhejiang) Software Technology Co., Ltd. (“smart Software Technology”), aims to drive the development of industry-leading intelligent experiences within smart vehicles. Through this new partnership, ECARX and smart will work together to drive technological advances, expand the research and development ecosystem through talent exchanges and joint innovation, and accelerate their global expansion efforts.

ECARX and smart previously collaborated on the smart #1 and smart #3 models, for which they jointly developed smartOS, a highly acclaimed operating system with a unique HMI design. Smart Software Technology marks the next step in a deepening relationship, which will leverage each company’s respective brand resources and product development capabilities to build upon smartOS by expanding the research and development ecosystem, streamlining procurement and supply chain processes, and integrating teams of highly-skilled technical talent to drive vehicle development.

Leveraging ECARX’s extensive technical and product capabilities, the companies plan to integrate ECARX’s high-performance Makalu computing platform, powered by AMD Ryzen embedded V2000 processors and Radeon RX 6000 series GPUs, into smart series models. Together, they will improve customer satisfaction, enhance brand loyalty, and expedite the deployment of the ECARX Makalu computing platform across smart’s range of models. Furthermore, ECARX and smart will jointly explore new possibilities for immersive cockpit experiences in areas including 3A games, artificial intelligence, brand IP incubation, and ecosystem development. The companies will also explore opportunities to deepen their cooperation in other areas.

Tong Xiangbei, Global CEO of smart Automobile, said, “The era of software-defined cars has arrived, and smart considers its 'future tech’ orientation as a core brand value. By partnering with ECARX to establish a joint venture, we will build an outstanding team of talent, integrate shared resources, invest in innovative research and development, and jointly empower smart to continue leading in the field of intelligent technology and in bringing high quality, new-premium intelligent mobility experiences to users.”

Ziyu Shen, co-founder, Chairman and CEO of ECARX, said, “ECARX and smart have a strong track record of cooperation, having jointly developed the highly acclaimed smartOS. Through this joint venture, we will continue iterating to create a refreshing and industry-leading intelligent experience by expanding our talent exchanges, R&D efforts, and supply chain network. Together, ECARX and smart will work to bring our intelligent technology ecosystem to vehicle owners around the world."

About ECARX

ECARX (Nasdaq: ECX) is a global automotive technology provider with the capabilities to deliver turnkey solutions for next-generation smart vehicles, from the system on a chip (SoC), to central computing platforms, and software. As automakers develop new electric vehicle architectures from the ground up, ECARX is developing full-stack solutions to enhance the user experience, while reducing complexity and cost.

Founded in 2017 and listed on the Nasdaq in 2022, ECARX now has over 2,000 employees based in 11 major locations in China, UK, USA, Sweden, Germany and Malaysia. The co-founders are two automotive entrepreneurs, Chairman and CEO Ziyu Shen, and Eric Li (Li Shufu), who is also the founder and chairman of Zhejiang Geely Holding Group — with ownership interests in global brands including Lotus, Lynk & Co, Polestar, Smart, and Volvo Cars. ECARX also works with other well-known automakers, including FAW and Dongfeng Peugeot-Citroën. To date, ECARX products can be found in over 5.6 million vehicles worldwide.

About smart Automobile

Since the birth of the brand in the 90s, smart has always maintained the vision of exploring the best solutions for future urban mobility. In 2019, smart Automobile Co., Ltd. was officially established. With a forward-looking "China-Europe dual-home" global development strategy, smart is committed to developing into a world-leading, premium, all-electric automobile and technology brand.

smart has recently completed a comprehensive renewal of its brand, products, and business model. New generation all-electric product development is led by the smart R&D team, with the Mercedes-Benz global design team responsible for vehicle design, and the product portfolio now expanded into more market segments. The renewed brand’s first all-new all-electric SUV, the smart #1, which premiered worldwide in April 2022, is now on sale in China, with official deliveries from September. To further enhance its global operations, smart has established marketing and sales centres across China and Europe.

Forward-Looking Statements

This release contains statements that are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.These statements are based on management’s beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, amongst other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of words “expects”, “intends”, “anticipates”, “estimates”, “predicts”, “believes”, “should”, “potential”, “may”, “preliminary”, “forecast”, “objective”, “plan”, or “target”, and other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including, but not limited to statements regarding our intentions, beliefs or current expectations concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance, and the markets in which we operate.
For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statement, see ECARX’s filings with the U.S. Securities and Exchange Commission. ECARX undertakes no obligation to update or revise and forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law.

Investor Contacts:
ir@ecarxgroup.com
Media Contacts:
ecarx@blueshirtgroup.com


FAQ

What is the latest announcement from ECARX Holdings Inc. (Nasdaq: ECX)?

ECARX Holdings Inc. (Nasdaq: ECX) has announced the establishment of a joint venture with smart, a new-premium intelligent all-electric auto brand, through their respective subsidiaries. The joint venture, smart (Zhejiang) Software Technology Co., Ltd., aims to drive the development of industry-leading intelligent experiences within smart vehicles.

What is the purpose of the joint venture between ECARX and smart?

The joint venture, smart (Zhejiang) Software Technology Co., Ltd., aims to drive the development of industry-leading intelligent experiences within smart vehicles. This partnership will leverage each company’s respective brand resources and product development capabilities to build upon smartOS by expanding the research and development ecosystem, streamlining procurement and supply chain processes, and integrating teams of highly-skilled technical talent to drive vehicle development.

How will ECARX and smart collaborate in this joint venture?

ECARX and smart plan to integrate ECARX’s high-performance Makalu computing platform, powered by AMD Ryzen embedded V2000 processors and Radeon RX 6000 series GPUs, into smart series models. Together, they will improve customer satisfaction, enhance brand loyalty, and expedite the deployment of the ECARX Makalu computing platform across smart’s range of models.

What are the goals of the joint venture between ECARX and smart?

The goals of the joint venture include expanding the research and development ecosystem, streamlining procurement and supply chain processes, and integrating teams of highly-skilled technical talent to drive vehicle development. Additionally, they aim to explore new possibilities for immersive cockpit experiences in areas including 3A games, artificial intelligence, brand IP incubation, and ecosystem development.

What are the future plans for ECARX and smart in this joint venture?

ECARX and smart will work to bring their intelligent technology ecosystem to vehicle owners around the world. They also plan to jointly explore new possibilities for immersive cockpit experiences in areas including 3A games, artificial intelligence, brand IP incubation, and ecosystem development.

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