Baidu decided to settle for the co-founder of Mobike to head the company’s Chinese electric vehicle developer called Geely. Sources have it that Geely will start manufacturing its electric cars as a subsidiary of Baidu. The Chinese utility started as an idea in 2018 before the company implemented it with proper authorization. Baidu and Geely reached this agreement and will be developing an electric vehicle company to manufacture electric cars that they desire to place in the market. Baidu has the majority shares in the company and will be calling the shots. However, Geely will be running the management and operational activities.
The chief executive of Baidu, Robin Li, stated in the fourth-quarter earnings call in Asia that the company had selected the company to oversee this program. However, the executive was adamant about divulging details of the selected company citing a conflict of interest that would make the deal not go through and proceed to maturation. Nevertheless, the company has decided that one of the founders of Mobike, Xia Yiping, will be the new chief of the program once it kickstarts. The informant who provided these details could not divulge more details requesting that the name remain anonymous. Baidu defected from making comments to CNBC.
On the other hand, Geely also restrained from making remarks concerning the selection of Xia as the chief executive of the new entity. Reuters confirmed these remarks as narrated by their investigative reporter. Xia was initially an employee at Fiat Chrysler and Ford before switching to Mobike. Xia’s LinkedIn profile gave a conclusive meaning to this remark. Mobike was a member of the Chinese boom that resulted in bike start-ups. However, Mobike entered an acquisition deal with China’s food delivery company called Meituan, in 2018.
Li explained that Baidu’s electric car company would initiate operations with its first electric model in three years via the earnings call. Li also confirmed that the brand name had been agreed upon, although he wished that the name remain anonymous until they have finalized the project. Baidu’s decision to venture into electric vehicles is a move that they intend to utilize to diversify its operations above advertising. Baidu explained that their 2020 earnings surpassed the target that they set amid the market fluctuations. The departments that recorded vast growth for the company are advertising, cloud computing, and the research and development sector for automation. The company is looking forward to the development of the other departments.https://breakout.live/