Geyue staff, up all night

“Are you just finding out today that social security will be discontinued? What if the November contributions can't be made up?”

On the morning of December 12, furious employees surrounded Geyue CEO Xia Yiping at the company's Shanghai office, peppering him with questions about social security issues.

One employee shouted loudly, demanding that Xia Yiping hand over his passport. They feared he might flee, akin to some auto industry tycoons who had previously faced financial crises. Despite Xia Yiping's repeated assurances that he would not "flee," employees remained skeptical.

The conflict swiftly escalated, necessitating the presence of multiple police cars to maintain order.

A few days prior, rumors of Geyue's bankruptcy circulated online, prompting the company to swiftly issue a denial. On December 11, Geyue Automobile released a statement on its official Weibo account titled "Explanation on Recent Developments at Geyue," stating that the company was undergoing "business adjustments," "entering the 2.0 entrepreneurial stage," and "actively promoting financing."

However, Geyue's actual situation appears less optimistic than this official statement suggests.

According to internal meeting minutes from December 11, shared by Geyue employees, the company failed to pay November's social security contributions for its staff and would be unable to do so in December. "If employees require social security contributions urgently (for school enrollment or home purchase), they must immediately resign (by December 16) and make their own contributions. Compensation of N+1 will be paid by February 15 (though there is no guarantee due to lack of funds)." "Those who stay will need to work normally but will not receive salaries or social security contributions." "Employees on business trips will be recalled, and vehicles will be shipped back to Shanghai."

Employees are deeply dissatisfied with the company's proposed solutions, joking that they have only two choices: "disband on the spot" or "work for love."

A Geyue employee told China News Weekly that on the night of December 12, Geyue staff were virtually up all night, with office lights staying on until early the next morning. The latest development is that Baidu and Geely are currently processing internal transfers to pay the overdue November social security contributions for employees. "The social security issue has been resolved," the source said.

However, a Geyue employee in Shanghai told China News Weekly that their social security contributions had not yet been received. "There are currently no more executable solutions, just talk." The source added, "Employee representatives are still negotiating with management." Regarding the current outcome, the employee's assessment is: "Unsatisfactory."

Geyue storefront at Hopson One (Photo/Liu Shanshan)

At 10:30 AM on December 13, the new energy vehicle marketplace on the 5th floor of Hopson One had already removed the barricades surrounding the Geyue exhibit stand. The display vehicles were still present, but the lights were off.

Extreme tug-of-war, live-streamed rights protection

'The microwave is still here.' On December 13, a Geyue employee confirmed to China News Weekly that the company's microwave had not been lost.

A day earlier, Geyue employees and the company were engaged in an intense tug-of-war.

Some employees confronted Xia Yiping, some live-streamed for the first time, and others attempted to remove company computers, microwaves, and other items. Geyue had to call out to employees, saying, 'Whoever took the microwave, please return it today. It belongs to the cleaning company.'

TikTok screenshot

A female Geyue live streamer learned during her broadcast that the company had gone bankrupt, adding a dramatic twist to the situation.

On that day, Geyue sales channels across the country were paralyzed. Some Geyue salespeople even called out during their live streams, asking if Ledao could provide job opportunities. Currently, multiple automakers' HR departments, including Ledao and XPeng, have extended job offers to Geyue employees. "I posted related content on Xiaohongshu, and many netizens helped me find new opportunities. It feels like the whole world is helping me find a job," a Geyue employee told China News Weekly.

During an internal meeting on the afternoon of December 12, Geyue CEO Xia Yiping clarified that the company had not shut down or gone bankrupt and was not disbanding as rumored.

Xia Yiping stated that the company's accounts had been frozen and that he was not the primary responsible person. However, he promised to resolve the social security issue for Beijing employees by 1 AM the next day (December 13) and for Shanghai employees by December 27.

During the communication, Xia Yiping promised that deposits would be refunded for undelivered vehicles, software versions would continue to be updated, and after-sales responsibilities would be clearly assigned to Geely, with future intelligent driving responsibilities assigned to Baidu.

The primary demands raised by Geyue employees included: back payment of social security, medical insurance, and provident fund; payment of December salaries, social security contributions, housing funds, and personal income taxes; N+1 compensation for departing employees; and completion of the employee settlement process. Multiple employees requested communication with Geyue's shareholders, hoping to receive support from Baidu's board of directors.

Until late into the night on December 12, some employees waiting for a solution in the conference room showed no sign of leaving. They even played cards, determined to see it through with the company for their own benefit.

Many Geyue employees pinned their hopes on Baidu. However, a source close to Baidu told China News Weekly that in this matter, Baidu was also a victim. According to Baidu's financial reports, Baidu has invested approximately 8.8 billion yuan in Jidu (renamed "Geyue" in August 2023): 4.1 billion yuan in 2022 and 4.7 billion yuan in 2023. Earlier this year, Baidu had also planned to inject an additional 3 billion yuan into Geyue. However, Baidu is now unwilling to make further investments. In October, Baidu sent a financial team to conduct a due diligence on Geyue in preparation for the subsequent 3 billion yuan investment but found that Geyue had a financial hole of up to 7 billion yuan and decided not to proceed with the investment.

However, Xia Yiping did not admit that Geyue had issues. He responded to employees during communication that Baidu had recently conducted a comprehensive audit of the company and found no problems.

On the evening of December 12, Geyue employee representatives, Geyue CEO Xia Yiping, and the two major shareholders, Geely and Baidu, held a closed-door meeting.

A Geyue employee revealed that the negotiations continued until after 4 AM on December 13.

How did Geyue come to this?

Backed by Baidu and Geely, Geyue could be described as "born with a silver spoon in its mouth" and had once set the goal of "taking on Tesla."

In terms of sales in 2024, Geyue's monthly sales volume increased from around 200 vehicles at the beginning of the year to around 2,500 in November. Consequently, most employees believed the company was on the right track and did not anticipate suddenly losing their jobs. It was not until after an all-hands meeting on the afternoon of December 11 that most employees suddenly realized the company was in crisis.

A Geyue employee told China News Weekly that she had been with the company for less than a year after leaving Huawei. "I thought I was jumping off a big ship and onto a speedboat, but I didn't expect the speedboat to capsize so quickly." It is understood that many Geyue employees are also Geyue car owners and have a passion for the company. However, some of them even have car loans that have not yet been repaid, and now the company is gone.

Geyue Automobile was previously known as Jidu Automobile, a brand jointly established by Baidu and Geely in January 2021 with the slogan of creating a high-end intelligent automotive robot brand. In August 2023, Jidu was renamed "Geyue." The introduction on the official Geyue website states: "Geyue is a new-generation automotive robot brand under the Geely Holding Group."

Before its name change, Geyue carried Baidu's dream of building cars. At that time, the shareholding ratio between Baidu and Geely was 55%:45%, with Baidu in the dominant position. However, due to new regulations regarding vehicle manufacturing qualifications issued by the Ministry of Industry and Information Technology, Baidu was unable to obtain a manufacturing license and had to hand over control to Geely.

According to business registration information, the main company of Geyue Automobile is Hangzhou Ji Yu Yue Automobile Technology Co., Ltd., currently owned 65% by Zhejiang Geely Industrial Investment Holding Co., Ltd. and 35% by Shanghai Mihang Automobile Co., Ltd. (formerly known as Jidu Automobile Co., Ltd.), belonging to the Geely and Baidu groups. Since its establishment, Geyue Automobile has not introduced external capital.

In terms of products, Geyue Automobile launched its first model, Geyue 01, in October 2023. In September of this year, it released its second model, Geyue 07. Li Yanhong attended the launch event but did not speak; Li Shufu, Chairman of the Geely Holding Group, delivered a video message. In an August media interview, Xia Yiping tearfully recounted, "It has been very difficult to go from three people to four or five thousand. We've been through a lot of hardships along the way." At the Guangzhou Auto Show in November this year, Geyue also unveiled its first supercar model, Geyue ROBO X.

In terms of market performance, Geyue's products have not made a significant impact. Data shows that from January to November, the cumulative delivery volume was 14,157 new vehicles. Such performance by Geyue is obviously not satisfactory to the shareholders. Currently, leading new energy vehicle companies have all achieved monthly sales of over 10,000 units.

Within Geely's overall new energy strategy, Geyue is not considered a "key player." Geely has multiple sub-brands. In September this year, Geely issued the "Taizhou Declaration," stating a commitment to "strategic focus and integration." In October, Geely officially merged the Geometry brand into the Geely Auto brand; in November, Geely Holding announced optimizations to the equity structures of Zeekr and Lynk & Co. Geyue Automobile has always seemed to be on the fringes.

On the other hand, Baidu's layout in the intelligent automobile field has extended to more areas. Baidu began its autonomous driving business in 2017, establishing the Intelligent Driving Business Group in March of that year and releasing the "Apollo Plan" at the Shanghai Auto Show, opening up the autonomous driving platform Apollo. Baidu also launched the autonomous driving travel service platform Luobo Kuaipao, which has been open for manned test operations in 11 cities nationwide. Especially this year, Luobo Kuaipao's launch in Wuhan attracted market attention and discussion.

The shuffling in the new energy vehicle industry continues to intensify. Whether it's the exit of former star automakers like HiPhi and WM Motor or the precarious survival situation of Geyue today, similar incidents do not seem surprising. As 2025 approaches, the automotive industry is set to face an even more brutal market elimination round.