Xiaomi Imposes $149,000 Penalty on Supplier for Leaking Car Design Drafts

Xiaomi has penalized a supplier with a fine of 1 million yuan ($149,000) for leaking early designs of an upcoming car model. The Beijing-based molding technology company violated a confidentiality agreement by publicly revealing images of the front and rear bumpers of the vehicle on January 22.

The smartphone-turned-car maker has instructed the supplier to enhance information security and upgrade confidentiality measures. The leaked designs of the electric vehicle spread on social media over the Chinese New Year and marked the first confirmed images of Xiaomi’s long-anticipated automobile.

However, the designs were part of a bidding process and not final renderings, according to the General Manager of Xiaomi’s public relations department.

Xiaomi aims to produce up to 300,000 vehicles at its new factory set to launch this year. Although the full production capacity is expected to be reached in 2024, the company is dependent on suppliers to achieve this goal.

A breakdown in the contract with BAIC due to leaked images would be a major setback and finding a new supplier could delay the schedule by months. To fast-track the launch of its first electric car, the MS11, Xiaomi has outsourced several components, but this approach increases the risk of leaks.

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