Geely and Baidu, two Chinese automotive and technology heavyweights, announce a major restructuring at their joint venture Jiyue, specializing in electric vehicles. This choice, justified by a disrupted competitive context, reflects the growing tensions in this sector in China, despite the domination of its national market.
Layoffs in a market under pressure
The Jiyue joint venture, the result of collaboration between Geely and Baidu, is experiencing turbulence. The two giants have announced significant staff cuts within this entity dedicated to electric vehicles, causing turmoil among employees. In a joint press release published on social networks, the two companies mention “ huge changes » in the competitive landscape to explain their decision: “ The business plan could not be executed and operations encountered obstacles ».
Local media report that some departments in Jiyue will be dismantled. However, the exact number of employees affected remains unknown. Geely and Baidu have committed to quickly resolving financial matters arising from these layoffs.
These announcements come as China maintains its position as a world leader in the electric vehicle market. However, Chinese manufacturers face growing challenges, including trade tensions with the United States and Europe, making international expansion more complex.
A wake-up call for the Chinese auto industry
Independent analyst Lei Xing said Jiyue's difficulties could be a harbinger of a broader malaise within China's electric vehicle industry. He describes the situation as “ debacle » and highlights that it reflects the obstacles that even dominant players like Geely and Baidu struggle to overcome. « This shows how difficult it is to compete in today's environment “, he believes.
The pressure could increase by 2025. “ Other brands could also face similar difficulties », Warns the analyst.
As domestic demand for electric vehicles continues to grow, Chinese automakers' international ambitions may falter in the face of trade barriers and an increasingly tense global competitive environment.
The situation at Jiyue thus illustrates a paradox: if China dominates the electric vehicle market, its companies must today demonstrate agility to respond to local and international pressures. For Geely and Baidu, this restructuring could mark a turning point in their long-term strategy, as competition continues to intensify.
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