The Chinese brand Ji Yue, owned by Geely and the artificial intelligence specialist Baidu, is said to be in great difficulty. Abandoned by its shareholders, the joint venture provoked the anger of its Chinese employees. Difficulties which could extend to some 130 small Chinese manufacturers, victims of the electric price war in the world’s largest market.
According to several Chinese media, employees of Chinese electric car (EV) manufacturer Ji Yue, a joint venture of Baidu and Geely, questioned their general director on Thursday after the manufacturer had just announced that it was seeking new financing and would reduce its projects.
A price war on the Chinese market
As a reminder, the Chinese market is facing a price war on electricity which is putting many manufacturers in difficulty, including Western manufacturers but also the Chinese. According to Reuters, pSeveral videos as well as live broadcasts from the automaker’s headquarters in Shanghai were broadcast online, showing dozens of people, some wearing employee badges, surrounding CEO Xia Yiping as they demanded to know when they would be paid . As a reminder, the Chinese giant Geely owns 65% of Ji Yue while Baidu owns the remaining 35%. They founded the company as Jidu Auto in early 2021 and renamed it Ji Yue last year. It produced two models: the Jiyue 01 EV and the Jiyue 07 EV, which had total sales of 9,767 units in September, according to the China Association of Automobile Manufacturers.
A movement to consolidate the electricity market
The difficulties encountered by the sector risk accelerating the disappearance of small brands which are marginalized in a market which has more than 130 active brands of electric and hybrid vehicles, estimates John Zeng, head of market forecasting for China at GlobalData. Consumers would increasingly turn to current market leaders, he added. This natural consolidation of the electrical sector also affects Western manufacturers operating in China.
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