Xpeng

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BlackBerry makes China push as the OS for Xpeng smart cars

The once-pioneering BlackBerry is pretty much out of the smartphone manufacturing game, but the Canadian company has been busy transitioning to providing software for connected devices, including smart cars. Now it’s brought that section of its business to China.

This week, BlackBerry announced that it will be powering the Level 3 driving domain controller of Xpeng, one of the most-funded electric vehicle startups in China and Tesla’s local challenger. Baked in Xpeng’s intelligent cockpit is BlackBerry’s operating system called QNX, which competes with the likes of Android and Linux to enter automakers’ next-gen models.

Sitting between BlackBerry and Xpeng’s tie-up is middleman Desay SV, which specializes in automotive system integrators like Aptiv. Desay SV, founded in 1986, has an illustrious past as a previously Sino-German joint venture that involved Siemens. The Huizhou-based company today supplies to Tier 1 automotive brands and original equipment manufacturers (OEMs) in China and around the world.

The kernel of Xpeng’s domain controller is NVIDIA’s Xavier cockpit chip for automated cars, so a good amount of software and hardware in Xpeng’s new car is based on foreign technologies.

The mass-produced Xpeng model in the spotlight is an electric sports sedan numbered P7. It features a processing unit that can calculate “the vehicle’s driving status and provides 360-degree omnidirectional perception with real-time monitoring of the surrounding environment to make safe driving decisions,” according to the announcement.

“Desay SV Automotive has extensive experience in intelligent cockpits, smart driving and connected services. Augmented with the safety expertise of BlackBerry QNX, together we can address the diverse needs of an auto industry that is undergoing meaningful transformation,” said John Wall, senior vice president and co-head of BlackBerry Technology Solutions, in a statement.

“To that end, it’s a real privilege to have BlackBerry technology powering the intelligent driving system within Xpeng Motors innovative new P7 system.”

The partnership arrives as Alibaba and Xiaomi backed-Xpeng is looking to raise up to $1.1 billion from its initial public offering in New York. Its Chinese rivals Li Auto and NIO raised similar amounts from their U.S. IPOs.

Chinese EV startup Xpeng Motors raises $400 million, takes on Xiaomi as strategic investor

Xpeng Motors, the Chinese electric vehicle startup backed by Alibaba and Foxconn, has raised a fresh injection of $400 million in capital and has taken on Xiaomi as a strategic investor, the company announced.

The Series C includes an unidentified group of strategic and institutional investors. XPeng Motors Chairman and CEO He Xiaopeng, who also participated in the Series C, said the received strong support from many of its current shareholders. Xiaomi founder and CEO Lei Jun previously invested in the company.

“Xiaomi Corporation and Xpeng Motors have achieved significant progress through in-depth collaboration in developing technologies connecting smart phones and smart cars,” Xiaomi’s Jun said in a statement. “We believe that this strategic investment will further deepen our partnership with Xpeng in advancing innovation for intelligent hardware and the Internet of Things.”

The company didn’t disclose what its post-money valuation is now. However, a source familiar with the deal said it is “better” than the 25 billion yuan valuation it had in its last round in August 2018.

The announcement confirms an earlier report from Reuters that cited anonymous sources.

XPeng also said it has garnered “several billions” in Chinese yuan of unsecured credit lines from institutions such as China Merchants Bank, China CITIC Bank and HSBC. XPeng didn’t elaborate when asked what “several billions” means.

Brian Gu, Xpeng Motors Vice Chairman and President added that the company has been able to hit most of its business and financing targets despite economic headwinds, uncertainties in the global markets and government policy changes that have had direct impact on overall auto sales in China.

The round comes as XPeng prepares to launch its electric P7 sedan in spring 2020. Deliveries of the P7 are expected to begin in the second quarter of 2020.

Xpeng began deliveries of its first production model the G3 2019 SUV in December and shipped 10,000 models by mid-June. The company has since released an enhanced version of the G3 with a 520 km NEDC driving range.

The company plans to launch the P7 sedan in the spring 2020 and will start delivery in 2Q 2020.

XPeng has said it wants to IPO, but it’s unclear when the company might file to become a public company. No specific IPO timetable has been set and a spokesperson said the company is monitoring market conditions closely, but its current focus is on building core businesses.