The accounts have apparently disappeared, as has the head of Volvo's sister brand Jiyue. A good 6.8 billion kroner is missing.
Volvo's sister brand, Jiyue, is on the verge of bankruptcy. Billions are missing from its accounts, and the future of Geely's partly owned electric car brand is uncertain.
Jiyue, a collaboration between Geely and Chinese technology giant Baidu, was launched with ambitions to challenge Tesla in the Chinese market.
Carscoops writes this based on articles from Chinese media.
Despite one of Jiyue's first models winning the prestigious Red Dot Award, the brand has struggled to achieve profitability. Sales have been low, and now articles in Chinese media and from Carscoops suggest that the company is in deep crisis.
Jiyue has sold just 13,834 cars this year. And both Geely, which owns 65 percent, and Baidu, which owns the rest, are reluctant to invest further funds.
The situation is further complicated by a gap of approximately 6.8 billion Danish kroner in the accounts, which Baidu reportedly uncovered during a due diligence in October.
The crisis has led to layoffs and angry employees have besieged Jiyue's headquarters in China. According to reports, employees have removed office equipment in protest over a lack of information about severance pay and health insurance. Geely and Baidu have reportedly had to guarantee salaries for the laid-off employees.
Further reports suggest that Jiyue's CFO has fled to Singapore after the revelation of possible irregularities. The company also owes billions to Geely for auto parts, and several media companies have not received payment for advertising campaigns.
A restructuring plan is being prepared, but it is uncertain whether Jiyue can be saved from bankruptcy.
