Recently, the plight of Jiyue Automobile (formerly Jidu Automobile) has escalated again, becoming the focus of attention inside and outside the automobile industry. This electric vehicle startup, which is jointly owned by Baidu and Geely, is facing multiple dilemmas such as sluggish sales, tight capital chain, chaotic internal management and intensified market competition pressure. In this context, from the perspective of legal compliance, Fa Lizheng will deeply analyze the challenges faced by Extreme Yue Automobile and explore its possible road to rebirth.
1. Overview and latest trends of the predicament of Extreme Yue Automobile.
Since its establishment in 2021, Extreme Yue Automobile has carried the expectations of Baidu and Geely for the electric vehicle market. However, the reality is not as smooth as expected. The market performance of the first model is far from the expectation, the sales volume is low, and the mistakes in product positioning and marketing strategy make Extreme Yue Automobile at a disadvantage in the market competition.
The latest news shows that the ultra-Vietnamese car is facing more severe challenges. On the one hand, due to poor sales and financial pressure, the production plan of Extreme Yue Automobile was forced to be adjusted, and the production and delivery of some models were postponed. On the other hand, Chaoyue Automobile is also facing difficulties in financing channels. The major shareholders Baidu and Geely have different support, which leads to the tight capital chain of the company. In addition, the company is facing multiple problems such as supplier arrears and consumer complaints, and the company’s survival and development are facing unprecedented challenges.
Second, the dilemma analysis from the perspective of legal compliance
Compliance of Contract and Labor Law
In the internal management, employees’ wages and social security can not be paid on time, which directly touches the relevant provisions of the labor law. This not only violates laws and regulations, but also damages the legitimate rights and interests of employees, which may lead employees to file labor arbitration or litigation.
In addition, in the contracts signed with suppliers and partners, there may also be compliance risks, such as unclear contract terms and unclear liability for breach of contract, which may lead to contract disputes and legal risks.
Protection of consumer rights and interests
In the process of marketing and operation, there may be illegal acts such as false propaganda and misleading consumers. For example, there may be cases of exaggerating publicity or concealing the truth in vehicle pricing, configuration and performance, which violates the relevant provisions of the Consumer Protection Law of People’s Republic of China (PRC). Therefore, consumers may suffer economic losses or mental damage, and may have a negative impact on the brand image and market reputation of Extreme Yue Automobile.
Corporate Governance and Financing Compliance
There may be unstable factors in the corporate governance structure of Jiyue Automobile. There are differences in support between Baidu and Geely, which may lead to the imbalance of corporate governance structure and low decision-making efficiency.
Third, the legal service suggestions and the road to rebirth of the law.
In view of the predicament faced by Extreme Yue Automobile, Fa Lizheng is a professional one-stop legal service platform. In this regard, we believe that Extreme Yue Automobile should do the following if it wants to get out of the predicament and achieve rebirth:
Strengthen contract management and labor law compliance
Jiyue Automobile shall establish and improve the contract management system to ensure that the contracts signed with employees and suppliers are legal and compliant. At the same time, strengthen the compliance management of labor law, pay employees’ wages and social insurance premiums in full and on time, and safeguard the legitimate rights and interests of employees. In addition, communication and cooperation with suppliers should be strengthened to ensure the stability and compliance of the supply chain.
Improve the consumer rights protection mechanism.
Jiyue Automobile should establish and improve the protection mechanism of consumers’ rights and interests to ensure that the legitimate rights and interests of consumers are not harmed in the marketing and operation process. We should follow the requirements of relevant laws and regulations in product pricing and publicity to avoid false publicity and misleading consumers. At the same time, we should also strengthen the construction of after-sales service system to improve customer satisfaction and loyalty.
Optimize the corporate governance structure
The company should optimize its corporate governance structure and strengthen its internal control and risk management. Clarify the rights and obligations of major shareholders and minority shareholders, establish and improve governance institutions such as shareholders’ meeting, board of directors and board of supervisors, and ensure the scientific and compliance of enterprise decision-making.
Seek professional legal support
Extreme Yue Automobile can seek the support of professional legal service providers and get professional legal advice and services in contract review, labor law compliance, consumer rights protection, corporate governance and so on. This will help the company to better meet the challenges of legal compliance and enhance its competitiveness and risk resistance.
Explore innovative business models
In the face of difficulties, Jiyue Automobile should also actively explore innovative business models, such as developing customized services and expanding overseas markets, so as to broaden income sources and enhance market competitiveness. At the same time, we should also strengthen cooperation with upstream and downstream enterprises in the industrial chain to jointly promote the coordinated development of the electric vehicle industry.
The ultra-Vietnam automobile is facing unprecedented challenges and difficulties. However, by strengthening contract management and labor law compliance, improving consumer rights protection mechanism, optimizing corporate governance structure and seeking professional legal support, the company is expected to get out of the predicament and realize the rebirth of the company. As a professional legal service provider, Falizheng will always be committed to helping enterprises build a perfect compliance system, prevent legal risks and jointly promote the healthy and sustainable development of enterprises. In the future, we look forward to working hand in hand with Jiyue Automobile to meet new challenges and opportunities.
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