Author: Zhu Xiaoyu
Editor: Xing Yun
Yu Chengdong took on the position of Chairman of Huawei's Terminal BG, which was "custom-made" for him by Huawei. On the surface, it seems like a promotion, but internal information from Huawei suggests it may not be that simple.
Recently, Huawei officially announced the adjustment of Yu Chengdong's position from CEO of Terminal BG to Chairman of Terminal BG. Not only did Huawei's official website update this information, but Yu Chengdong's Weibo account also reflected the change.
Previously, Yu Chengdong was very active on Weibo, frequently posting updates with a peak of nearly 10 posts in a day, actively promoting various Huawei businesses. However, before and after this position adjustment, Yu Chengdong remained silent for 11 days before briefly posting two updates on Weibo (over two days).
According to sources close to Huawei, stepping down as CEO may not have been Yu Chengdong's choice. While he remains at the top of the department, the sudden addition of a Chairman position and the appointment of He Gang as CEO may indicate that the higher-ups want to extend the decision-making chain of Terminal BG.
The source emphasized, "This also indicates that the higher-ups want Yu Chengdong to step back and make way for the younger generation."
The timing of Yu Chengdong's position adjustment coincides with the recent Wanjie M7 Yuncheng traffic accident that Huawei has experienced. Many speculations have pointed to a connection between the two events.
On April 26, a Wanjie M7 rear-ended a maintenance vehicle on the Houpingshan Highway in Yuncheng, Shanxi, causing a fire that resulted in three deaths, raising doubts about the safety of Wanjie vehicles, which are products of a collaboration between Huawei and Seres.
Four days later, Huawei made new personnel appointments internally, with Yu Chengdong appointed as Chairman of Terminal BG. In Huawei's organizational structure, the position of Chairman of Terminal BG did not exist before. It was as if a position was "custom-made" for Yu Chengdong. Huawei has not yet publicly disclosed specific details about Yu Chengdong's future focus.
On May 10, Huawei updated its management information on its official website and announced the changes publicly. As of now, Yu Chengdong holds the positions of Executive Director of Huawei, Chairman of Terminal BG, Chairman of Intelligent Car Solutions BU, and Director of Intelligent Terminals and Intelligent Car Components IRB.
Externally, there are speculations about Yu Chengdong's position adjustment, with some suggesting a promotion and others hinting at a hidden demotion.
The personnel changes occurred amidst the negative public opinion following the Wanjie M7 traffic accident, leading to doubts, accusations, and even criticisms extending to the entire Huawei brand. Some speculate whether Yu Chengdong will bid farewell to the smart car business and if his power will be diminished.
Reports quoting insiders suggest that this is a normal management appointment. Yu Chengdong's promotion to Chairman may facilitate his exit from the smartphone business to focus entirely on car manufacturing, allowing him to dedicate more energy to creating quality products for consumers.
However, whether it's the Smart Selection Car business promoted by Yu Chengdong or the smartphone business he has nurtured, both fall under Huawei's Terminal BG system. He Gang, former Chief Operating Officer of Huawei Terminal BG, has taken over as CEO, indicating that he will have to oversee both the smartphone and car businesses.
At Huawei's recent events, important products like smartphones are often presented by He Gang, while new car models are introduced by Yu Chengdong.
Following Huawei's past practices, He Gang may step into the spotlight in the future, possibly becoming the main presenter at Smart Selection Car business events, while Yu Chengdong, who was previously the top executive, may transition into a behind-the-scenes role.
During the Huawei Intelligent Car Solutions event on April 24, Yu Chengdong, who had stepped down as CEO of Huawei Car BU in September 2023 and was promoted to Chairman, did not make an appearance. Jin Yuzhi, who took over as CEO of the Car BU, assumed the role of the main speaker for the entire event, unveiling Huawei's new intelligent driving solution brand, "Qiankun." Industry insiders have dubbed Jin Yuzhi's appearance as the official start of the Jin Yuzhi era for the Car BU.
Yu Chengdong has become a prominent figure and a key driver of Huawei's car business in recent years. However, with Huawei's internal car manufacturing strategies taking multiple paths, Yu Chengdong's focus on the Smart Selection Car model, which emphasizes empowering car manufacturers rather than directly engaging in car manufacturing, has led to friction and conflicts with the company's direction. This has resulted in incidents like Yu Chengdong's comments on the Minds community, "In a few years, everyone will understand," and the "HUAWEI Wanjie" logo incident.
According to sources close to Huawei, the Smart Selection Car model has always faced hidden risks associated with consumer-end responsibilities. Yu Chengdong's car manufacturing strategy focuses on empowering car companies rather than directly manufacturing cars. However, to compete for market share, he ends up shouldering multiple responsibilities, acting as a supplier while facing various risks in the end-user market.
"This incident directly exposed Huawei to risks it should not have borne, sparking dissatisfaction among the higher-ups. The move to reassign Yu Chengdong aims to address the operational risks of the Smart Selection Car model, with He Gang's previous position as Chief Operating Officer of Huawei Terminal BG conveniently mitigating the risks of the Smart Selection Car operation."
In fact, Yu Chengdong did intend to stay out of the public eye, as there were signs of this change before it happened.
During the bustling Beijing Auto Show two weeks ago, where industry leaders who understand that traffic is key actively engaged with consumers, Yu Chengdong, who is usually vocal and active, appeared notably silent at the show. He even deliberately avoided the first two days of the Beijing Auto Show, the hottest period, choosing to appear at a different time from other industry leaders.
Not long ago, the media reported that Ren Zhengfei had ordered a ban on mentioning "leading from afar" internally, with a fine of ten thousand yuan for each mention. A tech blogger once said that in the consumer electronics field, a device can simply be restarted if it crashes, without serious consequences. Therefore, exaggerating products in the smartphone sector may not lead to major accidents, but in the automotive sector, there could be fatal consequences. Perhaps based on this, Ren Zhengfei, who seeks stability and pragmatism, repeatedly recites the "tightening spell" to Huawei's aggressive accelerator in the field of car manufacturing, Yu Chengdong.
As the helmsman of the company, Ren Zhengfei values stability and conservatism, focusing more on Huawei's overall development and brand image. On the other hand, Yu Chengdong, as a professional manager, approaches things more from a business development perspective, aiming to push the responsible business into the fast lane as much as possible.
While Yu Chengdong's aggressiveness in the smartphone arena has offended many competitors during the "all in" phase, his drive to lead in Huawei's dual-track automotive business line may stir up more internal opposition.
Especially since the Car Business Unit (BU) and Intelligent Connected Vehicles (ICV) business line involve numerous car manufacturers and a complex automotive industry chain, the ability to swiftly adjust and make decisions becomes crucial and urgent when facing any potential issues.
The changes involving Yu Chengdong are essentially a redistribution of power within Huawei's internal structure.
Within Huawei, there have always been two factions regarding car manufacturing: the conservative faction led by Xu Zhijun, advocating "Huawei does not make cars" and supporting the HI (Huawei Inside) model; and the aggressive faction led by Yu Chengdong, pushing for car manufacturing and endorsing the ICV model.
In Huawei's organizational structure, although Yu Chengdong serves as the chairman of the Car BU, the highest authority in the Car BU is Huawei's rotating chairman, Xu Zhijun, who is also a major supporter of the Car BU business. The HI model under the Car BU is essentially the most straightforward representation of "Huawei does not make cars."
In other words, although Yu Chengdong is the chairman of the Car BU, he lacks real power and is not directly responsible for the specific affairs of that business line. Now, with Yu Chengdong once again appointed as the chairman of the Consumer Business Group (BG), he may face a similar situation.
According to informed sources, this adjustment in business lines may indicate that Yu Chengdong is gradually stepping back from frontline business within Huawei's internal power struggles, focusing on behind-the-scenes work to oversee the big picture and safeguard the interests of various sub-brands. In the future, Yu Chengdong's strategic focus may shift towards enhancing product performance, product innovation, and improving consumer experiences, rather than solely relying on marketing.
For Yu Chengdong, perhaps handing over the two major businesses he painstakingly nurtured to his protégé, He Gang, might not be a bad thing. However, at Huawei's press conferences, the phrase "far ahead" has become a thing of the past.
