Baidu, Geely Offer Limited Help to Stalled EV Brand
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
Baidu Inc. and Zhejiang Geely Holding Group Co. Ltd. announced that they will assist their embattled electric vehicle (EV) brand Ji Yue in making key payments, but stopped short of pledging more funding, casting a shadow over the future of the troubled venture.
In a joint statement on Friday, Baidu and Geely said they would help Ji Yue’s management pay employees’ social security contributions, compensate laid-off workers, and ensure after-sales service for existing customers.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- Baidu and Geely offered support for Ji Yue to meet financial obligations but did not promise additional funding, raising concerns about its future.
- Ji Yue faces operational challenges and financial troubles, including unpaid social security and advertising fees, with debts totaling around 10 billion yuan owed to Geely.
- Sales are poor in China's competitive EV market, and Baidu halted further investment after discovering a budget shortfall, leaving future financing uncertain.
AI generated, for reference only
Who’s Who
- Baidu Inc.
- Baidu Inc. is a Chinese technology company that co-founded Ji Yue, an electric vehicle brand, with Geely. Baidu was responsible for providing AI technologies, including autonomous driving, in the Ji Yue venture. Baidu had invested approximately 5 billion yuan in the brand before halting further investments due to a budget shortfall identified in an October audit. Baidu and Geely are assisting Ji Yue with key payments but have not pledged additional funding.
- Zhejiang Geely Holding Group Co. Ltd.
- Zhejiang Geely Holding Group Co. Ltd. is a Chinese automotive company collaborating with Baidu Inc. on the Ji Yue EV brand. They have been involved with the venture since 2021, originally through Jidu Auto Inc., with Geely overseeing car production. Currently, they are assisting Ji Yue with key payments amid financial struggles but have stopped short of committing additional funding. Geely is owed around 10 billion yuan by Ji Yue, leading to a halt in the production of Ji Yue cars.
- Ji Yue
- Ji Yue, an EV brand by Baidu and Geely, faces financial troubles with mounting debts, unpaid social security contributions, and legal disputes with advertising and PR firms. Despite a plan to raise 3 billion yuan, Baidu halted investments after a budget shortfall was discovered. Ji Yue sold 14,000 cars this year, lagging behind competitors, and is at risk of losing software updates and connectivity services due to unpaid fees, complicating its future operations.
- Li Auto Inc.
- Li Auto Inc. is mentioned as a better-known EV maker whose monthly sales numbers surpass Ji Yue's entire sales for the first eleven months of the year. This highlights the competitiveness of China's EV market and Ji Yue's struggles in comparison to more successful brands like Li Auto.
- Nio Inc.
- Nio Inc. is mentioned as a better-known EV maker in China's crowded market. The article notes that, in comparison, Ji Yue's sales numbers are significantly lower. In the first eleven months of the year, Ji Yue sold 14,000 cars, while companies like Nio Inc. likely reported higher monthly sales figures during the same period.
- Jidu Auto Inc.
- Jidu Auto Inc. was a joint venture established in March 2021 by Baidu Inc. and Zhejiang Geely Holding Group Co. Ltd., with Baidu controlling 55% and Geely 45%. It was rebranded as the Ji Yue brand in August 2023. Under the new arrangement, Geely was responsible for production, while Baidu provided AI technologies, including autonomous driving features.
- Zhejiang Xingtang Media
- Zhejiang Xingtang Media publicly accused Ji Yue of delaying payment on advertising costs amounting to 37 million yuan.
- China Mobile Ltd.
- China Mobile Ltd. is owed fees by Ji Yue for connectivity services, which may lead to disruptions in software updates and connected car services for Ji Yue vehicles. A leaked video suggests that a lack of network access might render advanced driver-assistance features inoperable, highlighting China Mobile's role in providing crucial connectivity for Ji Yue's cars.
AI generated, for reference only
What Happened When
- March 2021：
- Baidu and Geely established a joint venture called Jidu Auto Inc.
- August 2023：
- Baidu and Geely launched the Ji Yue brand to replace Jidu.
- October 2024：
- Baidu conducted an audit that found the EV brand Ji Yue had a budget shortfall of 7 billion yuan.
- By November 2024：
- Ji Yue had planned to raise 3 billion yuan in new financing.
AI generated, for reference only
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新