Chinese car brand Jidu closed down before it could enter the Russian market

Chinese automobile company Jiyue Auto, which was going to enter the Russian market with the Jidu brand, has announced the dissolution of its staff and its inability to pay them. This was reported on December 13 by CarNewsChina with reference to Chinese media.

According to them, on December 11, the general director of Jiyue Xia Yiping at a meeting with employees announced the financial problems of the company, the need to improve its efficiency and reduce projects that can not bring profit in the short term. The next day, all employees of the company were informed that the company was disbanded and laid-off workers would be left without severance pay.

About 70% of the parts for Jiyue cars were purchased from Geely. In February this year, it was reported that Jiyue owed Geely nearly 1.5 billion yuan for parts and car assembly. In addition, according to an employee, Geely stopped producing cars for Jiyue in November, the note said.

Jidu Auto started as a joint venture between Baidu and Geely, with stakes of 55% and 45% respectively. The company was later restructured into Jiyue Auto, where the majority of ownership (65%) went to Geely, leaving Baidu with 35%.

Borishof announced in late November that it plans to start selling Jidu electric cars in Russia. For demonstration in Moscow brought a crossover Jidu 01.

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