Baidu and Geely’s carmaking joint venture, Ji Yue said on Wednesday that it would seek to raise new money and carry out some operational adjustments to cope with fierce market competition.
The electric car maker said 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.
Ji Yue‘s announcement highlights how big consumer preference shifts and a price war in China, the world’s largest auto market, are squeezing smaller players and many foreign automakers as rivals such as BYD grow their market share.
Car deliveries would proceed as normal although some buyers could face delays in receiving their cars due to the business adjustments, it 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 Ji Yue 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 units, according to China Association of Automobile Manufacturers.
The cars sought to use Baidu’s technology and are manufactured by Geely. Currently, Geely holds a 65% stake in the company while Baidu holds the remaining 35%.
Reuters
