A joint venture between Chinese tech giants Geely and Baidu has dramatically collapsed, leaving customers stranded and nearly $1 billion unaccounted for.
A Promising Start Gone Wrong
The electric vehicle startup launched with impressive backing:
- Notable Partners: Created through a partnership between automotive giant Geely and tech leader Baidu
- Initial Products: Launched two models – the Jiyue 01 SUV and Jiyue 07 sedan
- Target Market: Aimed to compete in China’s growing electric vehicle segment
- Investment Scale: Nearly $1 billion in backing disappeared during operations
The Rapid Collapse
The company’s downfall came swiftly and dramatically:
- Sales Struggles: Both models failed to achieve significant market penetration
- Financial Crisis: Reports emerged of severe financial mismanagement
- Supply Chain Impact: Suppliers left unpaid as company operations ceased
- Employee Impact: Workers suddenly found themselves without jobs
Consumer Impact
The collapse has severe implications for Jiyue owners:
- Vehicle Value: New cars worth approximately $31,000 have experienced dramatic depreciation
- Service Concerns: Owners face uncertainty about future maintenance and support
- Industry Advice: Former HiPhi executive recommended owners sell their vehicles quickly
Lessons for the EV Industry
This situation highlights several important considerations for the electric vehicle market:
- Due Diligence: Importance of thorough research before purchasing from new manufacturers
- Financial Stability: Need for transparency in company operations and financials
- Market Challenges: Demonstrates the difficulties of succeeding in the competitive EV space
Industry Implications
The Jiyue collapse serves as a warning for both consumers and investors:
- Consumer Trust: Impact on confidence in new EV brands
- Investment Risk: Highlights the volatility in the EV startup sector
- Market Evolution: Shows the challenges of surviving in a rapidly changing industry
What are your thoughts on the Jiyue collapse? How do you think this will affect consumer confidence in new EV brands? Share your perspectives in the comments below!
