Chinese automaker Neta appears to be facing mounting challenges. According to a report by Car China News, the company is set to start bankruptcy reorganisation proceedings. This development follows the circulation of a video on social media showing employees confronting Neta’s chairman, Fang Yunzhou, over overdue wages at the company’s new Shanghai office.
These financial troubles are not new for Neta, as the company has faced multiple legal actions since 2024 due to broken capital chains and debt defaults. Reportedly, the automaker has been delaying employee wage payments since November last year, despite having laid off over 2,900 employees. Although the company has had victories over its legal proceedings, Neta has been unable to pay off its employees’ wages.
These problems also seemingly affected the operations locally, but Neta Auto Malaysia issued a statement addressing social media allegations regarding the bankruptcy of its parent company, Hozon Auto. The controversy arose after Shanghai Yuxing Advertising Co., Ltd filed for a bankruptcy review against Hozon Auto on 13 May, claiming the automaker owed them CNY 5.31 million (~RM3.14 million) for advertising services. The company further alleged that Hozon Auto failed to fully comply with a repayment agreement.
Then, earlier this month, Intro Synergy Sdn Bhd, the exclusive distributor of Neta electric vehicles in Malaysia, has announced a restructuring of its local operations. This decision comes in response to organisational and financial restructuring efforts at Hozon New Energy Automobile Co. Ltd, the Chinese manufacturer behind the Neta brand.
(Source: Car News China)
