The Financial Dilemma of Yuejie Automobile： Hidden Trouble and Enlightenment of Automobile Industry

Recently, online transmissionThe first car brand with Apollo system jointly built by Baidu and Geely-Jiyue Automobile.The capital chain is broken, or will face the risk of dissolution..

Xia Yiping, CEO of Jiyue Automobile, revealed in response to employees’ demands in an online meeting that the company is currently facing serious financial difficulties. He said that since September this year, the company has not received new capital injection, and there will be no new financing opportunities in the future. "The company is now in a state of life and death."

This car company, which used to be the target car company, seems to have encountered no small difficulties.

In 2023, Geely Automobile and Baidu established a joint venture company "Jiyue Automobile", in which Geely holds 55% and Baidu holds 45%. In August 2023, "Extreme Yue Automobile" released its model-"Extreme Yue 01", and the new car launched a total of four configuration models in pure electric version and extended range version.

In the third quarter of 2023, Geely Automobile announced that it would acquire the shares of Extreme Yue Automobile held by Baidu. After the acquisition is completed, Baidu will become a minority shareholder of Extreme Yue Automobile.

However, since 2023, Extreme Yue Automobile has been in a serious business dilemma. In addition to the arrears of employees’ wages and social security, the company also faces the prosecution of suppliers and court seizure.

In fact, this is not the first new energy automobile company to get into trouble due to financial problems.

In addition to the ultra-Vietnamese car, there are many new energy car companies that have also heard similar difficulties. For example, Sky Auto and Bojun Auto have all fallen into a serious financial crisis.

With the continuous progress of technology and the changing needs of consumers, the competition in the new energy vehicle market is becoming more and more fierce.

Many enterprises have to attract consumers by reducing prices, which further reduces their profit margins.

In addition, the new energy automobile industry is generally highly dependent on financing. However, under the unstable market environment, it is difficult for many enterprises to obtain enough funds to maintain their operations.

Although Extreme Vietnam quickly occupied the market with its unique product design and technology in the early stage, with the rapid follow-up of competitors and the changes in market demand, it is difficult for a single innovation point to maintain the competitive advantage of enterprises for a long time.

Undoubtedly, the present situation of the ultra-Vietnam automobile has brought a profound warning to the whole automobile industry. As a new automobile manufacturing enterprise, Extreme Yue Automobile has experienced a transformation from glory to predicament in just a few years, which not only reflects the cruelty of market competition, but also exposes the shortcomings of enterprises in financial management and risk control.

In the deep water area of new energy industry, battery technology and intelligent level have become the decisive factors of product competitiveness. At the same time, due to the long industrial chain of automobile manufacturing, it involves parts supply, vehicle manufacturing, sales and other links. This requires enterprises to have strong industrial chain management capabilities to ensure the smooth operation of all links.

In short, only by strengthening technology research and development, optimizing industrial chain management and improving product quality and service level can we be in an invincible position in the fierce market competition.