Chongqing Changan Automobile Co. signed a memorandum of cooperation with Huawei Technologies Co. to invest in a new company that would design and produce intelligent automotive systems and components, Changan Auto said in a statement to the Shenzhen Stock Exchange.

Huawei would set up the company, while Changan Auto would take a stake of up to 40% stake, the filing said.

Changan said that the venture will help it shift toward becoming a low-carbon, smart-transportation technology firm. The partnership plan will not significantly impact the company’s operating results this year, the statement said.