The electric vehicle industry has been growing rapidly, promising to change the way we think about transportation.
However, not every venture finds success in this competitive field. Volvo’s sister brand, Jiyue, is now facing one of the industry's harshest realities, according to Boosted.
Financial troubles, management issues, and disappearing funds have left the company in a precarious position.
Jiyue, created as a joint venture between Geely and Chinese tech giant Baidu, launched with bold ambitions.
The brand aimed to challenge Tesla in the Chinese market. Early on, there were reasons for optimism.
One of Jiyue’s models even won the prestigious Red Dot Design Award. Despite these achievements, the company struggled to attract buyers.
This year, Jiyue has sold only 13,834 cars, a number far below expectations. Both Geely, which owns 65% of the company, and Baidu, which owns the rest, have shown little interest in investing further money.
Reports from Chinese media claim that a gap of 952 million dollars has been discovered in the company's finances. Baidu reportedly found this shortfall during a financial review in October.
The crisis has led to layoffs, sparking protests at Jiyue’s headquarters in China. Angry employees have removed office equipment in frustration, demanding answers about severance pay and health insurance.
Both Geely and Baidu were forced to step in and guarantee wages for the dismissed workers.
Compounding the issues, Jiyue’s Chief Financial Officer has allegedly fled to Singapore. The company owes billions to Geely for parts and has failed to pay several media companies for advertising campaigns.
Efforts are underway to develop a restructuring plan to save the brand. However, the outlook is bleak.
The company’s deep financial troubles and lack of investor confidence raise serious doubts about its future.
Jiyue’s story is a stark reminder of the challenges faced by newcomers in the electric vehicle market.
Innovation and ambition are not enough without careful financial management and strong market demand. Whether Jiyue can overcome these obstacles remains to be seen.
