In November 2023, the highly anticipated Zhijie S7, a collaborative product between Chery Automobile and Huawei, was officially launchedUtilizing Huawei’s advanced technology and extensive market reach, the vehicle saw its order numbers surpass 20,000 units in a remarkably short time frame.

However, just three months later, the vehicle faced significant delays in delivery, sparking rumors online about internal friction between Chery and HuaweiThis unrest allegedly led to the resignation of Han Biwen, Chery's Deputy General Manager and Head of Manufacturing.

On January 31, a spokesperson from Chery, Jin Yibo, publicly stated that the rumors circulating online were unfounded, asserting that the collaboration between the two companies continued smoothly and that the recent executive departure was unrelated to the partnership.

Yet the question remains: what is truly happening behind the scenes?

The Zhijie brand emerged in 2023 as a prominent name in the realm of connected vehicles, following the success of the AITO Wenjie M series developed by Huawei and SeresIt represents the second joint car brand created by Huawei in collaboration with an automotive enterprise.

Zhijie and Wenjie are part of Huawei's HarmonyOS intelligent vehicle business model, where Huawei takes a leading role in product definition, research and development, and design, while manufacturing is handled by partnering automotive companies.

The Zhijie S7, officially launched in November 2023, is positioned as a mid-to-large electric coupe and comes in four different versions, priced between 249,800 and 349,800 yuanThe vehicle is equipped with cutting-edge Huawei technologies such as the ADS 2.0 advanced driving system, the new HUAWEI DriveONE powertrain platform, and the Huawei Tuling intelligent chassisIt also features the debut of Huawei’s parking valet function, boasting a high degree of technological sophistication.

Yu Chengdong, Huawei's executive director and CEO of the terminal BG, personally endorsed the Zhijie S7, highlighting its superior specifications compared to competitors like the Tesla Model S and Mercedes EQE, while maintaining a price level similar to that of the Tesla Model 3.

Chery Chairman Yin Tongyue emphasized that the partnership with Huawei transcends mere technology collaboration, extending into product development, supply chain management, and market expansion

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Both companies aim to leverage their strengths to explore new business models and value-added services.

The success of the Zhijie S7 as Huawei’s first sedan offering could potentially address Chery's weaknesses in the new energy sector.

With Huawei’s backing ramping up the order numbers past 20,000, hopes soared for Chery's electric vehicle prospectsHowever, impending delivery issues soon cast a shadow over the promising vehicle.

Owners took to social media to voice their frustrations regarding frequent delivery issues with the Zhijie S7. Reports surfaced of delays where vehicles could not be delivered within the promised timeframe, complicating the order fulfillment process, which became increasingly chaoticSome customers shared that they were informed by sales staff of a wait time of 4 to 6 weeks, only to be left waiting over 6 weeks without any updates from the delivery department.

Media outlets confirmed that the Zhijie S7 indeed encountered significant delivery challengesA report from Yicai highlighted multiple sales personnel in Huawei stores mentioning that while there were orders in the pipeline, they were unable to deliver the vehiclesTo avoid customer complaints, staff refrained from accepting new orders, citing that Chery's manufacturing quality couldn't meet Huawei’s high standards.

In response to the delivery delays, the Harmony Intelligent Travel team announced a compensation plan for affected customers; for specific models pending delivery beyond 6 weeks, users would receive daily compensation of 200 yuan, up to a maximum of 10,000 yuan.

Harmony Intelligent Travel reassured the public, stating, “We appreciate our customers' support and patience; the factory is working diligently to ensure high-quality deliveries.”

So, why were delivery difficulties being reported?

Previously, some media outlets suggested that Chery’s reluctance to foster cooperation on the production of the Zhijie S7 stemmed from a need to balance its internal competition between models, specifically the Star Epoch

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This hesitation reportedly resulted in an output of only a few dozen units daily, causing a bottleneck in fulfilling the massive orders generated.

Anonymous sources claimed that Huawei's strong stance in the partnership was problematic, as they were reluctant to share the fundamental software update versions, which prevented assembly line workers from doing their jobs effectivelyThis contributed to the delivery delays and coincided with the resignation of Han Biwen.

In essence, there are accusations from one side pointing fingers at Huawei for not releasing critical software information, and the other asserting that Chery’s lack of prompt production is an effort to manage competition intelligently.

In response to the recent swirling rumors regarding difficulties in their collaborative project, Jin Yibo reiterated on January 31 that the claims were baseless, insisting that the partnership was progressing smoothly and the departure of the executive was unrelated to the work they were doing together.

Jin added that to provide the best products and services for customers, Chery and Huawei are committing more resources to enhance the production and delivery of the Zhijie S7 and will continue to deepen their cooperation.

In October 2023, during the Chery Technology Day, a seasoned automotive leader and CEO Yin Tongyue expressed his sentiments, stating, “Chery made a promising start in the new energy sector but arrived late; moving forward, we intend to catch up to our competitors.”

He asserted that Chery would carve a place within the top tier of the national automotive landscape without resorting to price wars at the cost of profitabilityChery aims to become a formidable contender in the electric vehicle space.

To support this ambition, the company plans to invest 20 billion yuan annually into research and development, with total R&D spending expected to exceed 100 billion yuan within the next five years, aiming to establish the Yaoguang laboratory to recruit over 25,000 R&D personnel.

Per previous plans, Chery envisions a portfolio guided by four main brands — Chery, Exeed, Jietu, and iCAR — integrating various technological strategies, including hybrid, extended-range, fully electric, and hydrogen energy to push their new energy agenda forward.

Starting in the second half of 2023, Chery's new energy division kicked into high gear

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