Core Viewpoint - GAC Group and Huawei have launched a city channel recruitment plan for their joint venture, Huawang Automotive, which aims to penetrate the high-end smart new energy vehicle market using a "1+N" channel model [2][3] Group 1: Company Overview - Huawang Automotive was established with an investment of 1.5 billion yuan by GAC Group and is a key part of the strategic cooperation between GAC and Huawei [2] - The company plans to offer two models, a sedan and an SUV, targeting the 300,000 yuan market segment, with expected launch next year [2] - The recruitment plan for channels has been initiated even before the first model's details are fully disclosed, raising questions about the urgency to sell cars [2][8] Group 2: Channel Strategy - The channel recruitment focuses on five major regions in China, including key cities like Beijing, Shanghai, Guangzhou, and Shenzhen, adhering to a "few dealers, many stores" principle [3][4] - Huawang Automotive has set specific criteria for potential dealers, including experience with luxury or mainstream new energy brands and sufficient professional staff [4] - The strategy emphasizes leveraging existing resources within GAC's dealer network to support initial channel development, minimizing external recruitment needs [6][5] Group 3: Market Context - GAC's current market performance shows a declining trend in sales, with projections indicating a drop from 886,500 units in 2023 to 789,500 units in 2024 [8] - The new energy segment, particularly the Aion brand, is also facing challenges, with expected sales declines [8] - The urgency of the collaboration with Huawei is seen as a potential lifeline for GAC, but the timing may be late given the competitive landscape [8][9] Group 4: Challenges and Concerns - The rapid channel recruitment before product launch reflects GAC's anxiety about transformation and market entry [9] - Existing dealers may be hesitant to invest in new resources due to their own operational pressures, complicating the recruitment process [9] - The lack of a recognizable naming strategy for Huawang could hinder brand awareness and market penetration [9]