PSA is ready to review its agreement with Huawei to facilitate its merger project with Fiat-Chrysler

Between Huawei and Fiat-Chrysler Automobiles (FCA), does PSA prefer FCA? The French automaker announced that it will be ready to review its partnership with Huawei if ever the American authorities request it.

If the American authorities request it, PSA is ready to adjust its 2017 partnership with Huawei , the Chinese telecoms equipment supplier at the heart of a controversy with the United States . The French automaker hopes to get a green light in exchange for the proposed merger with the Italian-American group Fiat-Chrysler Automobiles (FCA).

PSA and Huawei signed an agreement at the end of 2017 to equip the vehicles of the French group with the OceanConnect IoT platform of the Chinese group, in Europe via the Orange cloud. But since then, PSA and FCA have entered into discussions to merge, and the partnership with Huawei could constitute a pitfall when the project is approved by the United States.

“We have a partnership with Huawei, which is linked to another partnership with the French telecom operator Orange, we are not in direct contact with them, but we will of course listen to the American authorities on this subject and will follow all their instructions,” PSA chairman Carlos Tavares said on Tuesday (March 3rd) during a press conference call.

“We do not consider this a major subject, because it is a limited and indirect partnership, but if there is any question or instruction from the American authorities, we will make sure to follow them,” he added.

The first PSA car connected to Huawei, the DS7 Crossback – model used by Emmanuel Macron during his election – was unveiled in 2018.

Today, six million vehicles of the French manufacturer thus equipped are in circulation in Europe and China.

Huawei technology drives services like connected navigation and voice recognition, as well as infotainment, software updates, and remote vehicle diagnostics. It also makes it possible to offer specific services to managers of rental or car-sharing fleets.

The United States accuses Huawei of spying activities on behalf of the Chinese government, which the world’s largest telecom equipment supplier denies. This controversy is swelling against the backdrop of the deployment of 5G, an international geopolitical issue because this fifth generation of mobile technology must make it possible to connect cars and a number of other systems, and to create new services in health and industry.

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