Huawei on Tuesday set up a wholly-owned subsidiary in Shenzhen with a registered capital of RMB 1 billion ($138.9 million). The new subsidiary will absorb its automotive business unit, which is set to be spun off into a separate company in the hopes of inducing more collaborations with automakers. The new entity’s corporate information was released publicly on Chinese business intelligence platform Tianyancha. People close to the company told Caixin that Huawei and its partners are still discussing the details of investment into the new venture as they pursue a diversified ownership. Changan chairman Zhu Huarong said on Tuesday at a company event that the new firm could be named “Newcool” and will be open to other car manufacturers for collaboration.