Chinese search engine Baidu and Her PS Partnerauto giant Geely on Dec. 13 assured the public that their electric vehicle joint venture Jiyue will take action to pay social security contributions for its employees and offer those that it lays off severance packages. The two companies added that all owners of Jiyue cars would continue to receive regular over-the-air software updates and experience normal service with any repairs and maintenance, according to a joint statement posted on Chinese microblogging platform Weibo. However, the companies gave no sign of investing further into Jiyue, their joint effort that was initially established with the aim of challenging the leadership of Tesla in smart EVs. Multiple Chinese media outlets reported over the weekend that both firms will stop funding the JV, which is facing serious financial problems due to reported mismanagement. Shanghai-based Jiyue on Dec. 11 announced layoffs and the possible delay of debt payments and vehicle deliveries, TechNode reported, while videos went viral the next day showing chief executive Xia Yiping surrounded by dozens of people demanding payment, Reuters reported. [TechNode reporting, Reuters, Baidu’s Weibo statement, in Chinese]
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