BEIJING, Dec 11 (Reuters) - Baidu ( BIDU ) and Geely's

carmaking joint venture, Ji Yue said on Wednesday that

it would seek to raise new money and carry out some operational

adjustments to cope with fierce market competition.

The electric car maker said on its social media account that

it was looking to merge departments and positions that had

duplicate functions, cut projects that would not contribute

financially in the short term and was actively seeking fresh

funds.

Ji Yue's announcement highlights how big consumer preference

shifts and a price war in China, the world's largest auto

market, are squeezing smaller players and many foreign

automakers as rivals such as BYD grow their market

share.

Car deliveries would proceed as normal although some buyers

could face delays in receiving their cars due to the business

adjustments, it said. It also asked suppliers for their

"understanding and support" saying it would arrange payments in

an orderly manner.

Baidu ( BIDU ) and Geely founded the company as Jidu Auto in early

2021 and later rebranded it as Ji Yue last year. It has two

models, the Jiyue 01 EV and Jiyue 07 EV, which together as of

September accumulated total sales of 9,767 units, according to

China Association of Automobile Manufacturers.

The cars sought to use Baidu's ( BIDU ) technology and are

manufactured by Geely. Currently, Geely holds a 65% stake in the

company while Baidu ( BIDU ) holds the remaining 35%.