Automotive News Europe — 2024-12-11
Automotive Industry
Jiyue, an automotive joint venture between Baidu and Geely, is seeking to raise new money and carry out some operational changes to cope with fierce market competition.
The electric carmaker said on 11 December 2024 on its social media account that it was looking to merge departments and positions that had duplicate functions, cut projects that would not contribute financially in the short term and was actively seeking fresh funds.
Jiyue’s announcement highlights how big shifts in consumer preferences and a price war in China, the world’s largest auto market, are squeezing smaller and many foreign automakers as rivals such as BYD grow and gain market share.
Light-vehicle deliveries would proceed as normal although some buyers could face delays in receiving cars due to the business adjustments, Ji Yue said. It also asked suppliers for their “understanding and support” saying it would arrange payments in an orderly manner.
Baidu and Geely founded the company as Jidu Auto in early 2021 and later rebranded it as Jiyue last year. It has two models, the Jiyue 01 EV and Jiyue 07 EV, which together as of September accumulated total sales of 9,767, according to China Association of Automobile Manufacturers.
The cars use Baidu’s technology and are manufactured by Geely, which holds a 65% stake in the company, while Baidu holds the remaining 35%.