Baidu-Geely EV Brand Pledges to Maintain Deliveries as Backers’ Support Wavers

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A Ji Yue store in Nanjing is closed on Thursday. Photo: VCG

Baidu Inc. and Zhejiang Geely Holding Group Co. Ltd.’s electric vehicle (EV) brand has taken to social media with assurances that it will continue to deliver cars, even as Caixin has learned that Baidu has moved to withdraw its investment and Geely has stopped making the brand’s vehicles because of delayed payments.

The brand, Ji Yue, made the vow in the same post where it said it would make adjustments to its operations that include abandoning projects that do not improve its short-term finances and streamlining its internal workflow. Ji Yue also assured the public that it will continue to provide repair and maintenance services for its vehicles.

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Baidu and Geely's EV brand Ji Yue is facing financial challenges, with Baidu withdrawing its investment and Geely halting production due to payment delays.
Ji Yue plans operational adjustments to improve finances and assures continued vehicle delivery and service support.
Ji Yue's struggles are compounded by low sales in China's competitive EV market, selling only 14,000 cars this year.

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Who’s Who

Baidu Inc.: Baidu Inc. is a technology company that had partnered with Zhejiang Geely Holding Group Co. Ltd. to create the electric vehicle brand Ji Yue. Baidu initially held a 35% stake in the joint venture but has moved to withdraw its investment after identifying a 7 billion yuan budget shortfall during an October due diligence investigation. Baidu did not respond to requests for comment on this matter.

Zhejiang Geely Holding Group Co. Ltd.: Zhejiang Geely Holding Group Co. Ltd. is involved in a joint venture for the electric vehicle (EV) brand Ji Yue with Baidu Inc. Geely stopped manufacturing Ji Yue cars due to delayed payments. Initially involved in the joint venture Jidu Auto in March 2021, Geely controls 65% of Hangzhou Ji and Yue Automotive Technology Co. Ltd., the company behind Ji Yue, overseeing production and providing car manufacturing capabilities.

Ji Yue: Ji Yue, an EV brand by Baidu and Geely, is experiencing financial troubles due to Baidu's withdrawal of investment and Geely halting production over delayed payments. Despite selling only 14,000 cars in eleven months, Ji Yue assures continued vehicle delivery and services. The brand is implementing operational adjustments for short-term financial improvements, and some employees face compensation or suspended pay offers. The JV behind Ji Yue is 65% owned by Geely and 35% by Baidu.

Li Auto Inc.: Li Auto Inc. is a better-known electric vehicle maker mentioned in the context of Ji Yue's sales struggles. Ji Yue's sales numbers are well below the monthly sales figures of companies like Li Auto, indicating that Li Auto is performing relatively better in China's competitive EV market amid an ongoing price war.

Nio Inc.: The article mentions that Ji Yue's sales in the first eleven months are well below the monthly sales numbers of better-known EV-makers like Nio Inc., indicating Nio's stronger presence and performance in China's competitive electric vehicle market.

AI generated, for reference only

What Happened When

March 2021：: Baidu and Geely established a joint venture called Jidu Auto, which was 55% controlled by Baidu and 45% by Geely

August 2023：: Baidu and Geely launched the Ji Yue brand to replace Jidu, with Geely overseeing production and Baidu providing AI technologies, including autonomous driving