(Yicai Global) Oct. 26 -- Chinese auto giant Geely Holding Group denied a report that said Meizu Technology, its recently acquired smartphone unit, plans to start making cars, adding that Meizu will only provide services to auto manufacturers.

“This is a misunderstanding,” Geely Senior Vice President Yang Xueliang said in a Weibo post today. “Meizu is not a carmaker and only provides its services to other car firms.”

The denial came after The Paper reported yesterday that Meizu recently posted job vacancies for a number of auto-related positions on a recruitment website, including for new energy vehicle sales consultants, smart cockpit engineers, in-vehicle system product managers, and mechanical structural engineers, with some roles requiring experience in finished vehicle production.

Xingji Shidai Technology, a venture controlled by Geely founder and chairman Li Shufu, bought about 79 percent of Zhuhai-based Meizu in July, with Li saying at the time that the consumer electronics and auto industries will become deeply integrated to create a unified, immersive experience for users.

Meizu Chief Executive Huang Zhipan said Geely and the phone vendor would run independently, covering two different consumer fields, adding that Meizu would continue efforts to develop its own operating system, Flyme.

After being acquired, Meizu applied for several auto-related patents, including for automated car body cleaning, facial recognition trunk opening, and vehicle cameras for video communication.

Formed in 2003, Meizu unveiled China’s first domestically made smartphone in 2009. But after a few years, its sales slumped amid increasing competition from rivals such as Huawei Technologies and Xiaomi. Last year, Meizu’s shipments dropped to around 1.5 million units, down from about 20 million a year between 2015 and 2017.

Editor: Martin Kadiev