BAIDU and Zhejiang geely Holding announced that they will assist their embattled electric vehicle (EV) brand Ji Yue in making key payments, but stopped short of pledging more funding, reports Caixin.
Casting doubt over the future of the troubled venture, Baidu and Geely said they would help Ji Yue's management pay employees' social security contributions, compensate laid-off workers, and ensure after-sales service for existing customers.
'Due to significant changes in the competitive landscape in the industry, [the company's] original business plans could not be carried out, leading to operational challenges,' according to the statement released on Baidu's Weibo account.
It was rumoured that the two shareholders would also introduce a new investor to Ji Yue, two company insiders told Caixin, but that was not mentioned in the announcement.
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Casting doubt over the future of the troubled venture, Baidu and Geely said they would help Ji Yue's management pay employees' social security contributions, compensate laid-off workers, and ensure after-sales service for existing customers.
'Due to significant changes in the competitive landscape in the industry, [the company's] original business plans could not be carried out, leading to operational challenges,' according to the statement released on Baidu's Weibo account.
It was rumoured that the two shareholders would also introduce a new investor to Ji Yue, two company insiders told Caixin, but that was not mentioned in the announcement.
SeaNews Turkey