China’s Geely and Baidu announced on Friday their commitment to assist their joint electric vehicle (EV) venture, Ji Yue Auto, in resolving disputes with employees over unpaid wages, social welfare, and severance payments. The statement, issued on both companies’ Weibo accounts, followed viral videos showing Ji Yue Auto CEO Xia Yiping being confronted at the company’s Shanghai headquarters by employees demanding overdue compensation.
The turmoil at Ji Yue Auto underscores the difficulties faced by smaller EV startups in China’s competitive automotive market, which is experiencing intense price wars. Earlier this week, Ji Yue Auto revealed plans to seek fresh funding and implement operational adjustments to address these challenges. The company has not commented on the incidents at its headquarters or the payment delays.
Founded in 2021, Ji Yue Auto was established by Geely and Baidu to integrate Baidu’s autonomous driving technology with Geely’s vehicle hardware expertise. In their joint statement, Geely and Baidu assured customers of continued support for vehicle use, after-sales, and maintenance services, while committing to resolve other issues in a fair and legal manner.
