Jiyue Disbands Suddenly Amid Financial Troubles
Rumors of financial difficulties at Jiyue, a joint venture between Geely and Baidu, have been confirmed as the company disbanded on the spot. The shockwave of this development raises concerns about the stability of other automotive companies going into 2025.
Originally known as Jidu Auto, the company struggled to obtain production licenses for its vehicles, leading to a restructuring into Jiyue Auto with majority ownership by Geely. Despite launching two models, the Jiyue 01 SUV and the 07 sedan, sales remained modest with only 13,834 units sold by the end of November this year.
Rumors of the disbandment surfaced on Weibo on December 10, and by December 12, CEO Xia Yiping announced the closure of the company due to financial difficulties. Employees were left uncertain about their future as compensation and social security payments became uncertain.
Further complications arose as CFO Liu Jining went missing along with the company’s financial records, raising suspicions of financial impropriety. Baidu’s investigation in October revealed a significant financial hole, leading to the decision not to invest further in Jiyue.
Suppliers and employees are left in the lurch as unpaid bills and salaries mount. Reports suggest that Jiyue owes substantial amounts to Geely for parts and OEM fees, leading to a halt in production by Geely in November.
Advice from industry insiders urges employees to seek new opportunities quickly and for car owners to sell their Jiyue vehicles promptly. Concerns about the future functionality of the intelligent driving system without network support have been raised.
As the fallout from Jiyue’s disbandment continues, the automotive industry braces for potential ripple effects on other companies in the sector. The big question going into 2025 is who will be next?
Sources: Fast Technology, 163.com, Fast Technology
