Flash: JIYUE in Talks with 3–4 Parties to Avert Bankruptcy

This afternoon, Xu Jiye, former public relations head of JIYUE, revealed on WeChat:

JIYUE is very likely not to go bankrupt. The JIDU Board of Directors has agreed to the restructuring, and JIDU is currently in communication with 3-4 restructuring parties.

JIYUE Automotive, formerly known as JIDU Automotive, was established as a joint venture between Baidu and Geely in 2021. Initially positioned as an “automotive robot” brand, it aimed to leverage Baidu’s AI technology and Geely’s vehicle manufacturing experience to create high-end intelligent electric vehicles.

In 2023, due to production qualification issues, JIDU was renamed “JIYUE,” with the equity adjusted to Geely holding 65% and Baidu 35%. Geely took the lead in production, while Baidu provided intelligent technology support.

JIYUE introduced two models, the JIYUE 01 and JIYUE 07, but sales remained sluggish, with cumulative deliveries of only 14,000 units in the first 11 months of 2024, averaging less than 1,300 units per month.

Poor market reception and long-term reliance on external financing pushed JIYUE Automotive to the brink of collapse. In the second half of 2024, the planned RMB 3 billion financing fell through due to Baidu’s sudden withdrawal of investment, causing a complete breakdown of the capital chain.

Meanwhile, Baidu’s audit identified financial loopholes (such as a RMB 7 billion funding gap) and supplier corruption issues, prompting it to cut losses promptly.

On December 11, 2024, JIYUE Automotive officially announced that it would enter the JiYue Entrepreneurship 2.0 phase, optimize its organizational structure, and integrate resources.

Starting from January 17, 2025, JIYUE Automotive will initiate full refunds of intention deposit and deposit, with after-sales issues handled by Lynk & Co Customer Service under Geely. Regarding employees, shareholders Geely and Baidu will establish a joint account to cover unpaid salaries and social security issues.