Huawei-backed automotive brand AITO released an internal letter saying it had agreed to establish a joint working group with automaker Seres to develop AITO’s marketing, sales, delivery, service, and channel management. The two companies created EV brand AITO in December 2021. A source said that Huawei plans to seek dealers for AITO from both existing Huawei terminal distributors and external investors with a franchise agent model. Another source from one of Huawei’s cooperating automakers said that this model follows neither the traditional 4S dealership franchise model nor the direct sales model adopted by Tesla. Huawei does not need to invest heavily in building off-line stores but will have a strong say in channel management. An executive at Huawei said that the working group would not be a decision-making authority, but rather would exist to enhance customer services and improve channel management. [Caixin, in Chinese]