It’s been a rough few months for Neta, the struggling Chinese electric carmaker that’s been in the news plenty of times – and not for the right reasons. The bad publicity will not be welcome for its distributors in export markets that are still moving product, and the latest reports in Chinese media have caused enough consternation for Malaysian outlet Intro Synergy to step in.
The company has refuted claims of Neta’s parent company Hozon Auto entering bankruptcy, saying that one of its creditors, Yuxing Advertising, only applied for a bankruptcy order in court over a debt dispute, which it claimed is a “routine legal procedure.”
“Hozon Auto firmly denies any allegations of bankruptcy and will take all necessary steps to defend its position,” Intro Synergy, doing business as Neta Auto Malaysia, said in a statement.
The company stressed that all local operations in Malaysia, “including sales, vehicle deliveries and after-sales services, especially spare parts,” are unaffected and continue as normal, adding that
“we remain focused on providing quality products and reliable support to our customers.” It also said that it is proceeding with plans to expand its sales and service network “in line with our growth strategy.”
Routine or not, the most recent news only adds to the worrying picture of Neta’s struggles. Mounting debt caused production to grind to a halt in November, with the company also cutting salaries and letting its workers go – including its entire research and development division. Last month, the firm reportedly reached a debt-to-equity swap with 134 suppliers, although clearly some of its creditors remain unconvinced. Recent speculation of the company being bought over by Toyota was denied by the latter.
Still, Intro Synergy does believe that Neta will be able to beat the long odds of survival. “We have full trust in the long-term prospects and quality of the Neta brand and in the ability of Hozon Auto to address its challenges,” it said.
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Hello..if I am intending to buy an EV,would I buy this Neta at this moment?
Unless the whole world only sell Neta,then of course I still give it a thought.But why get stuck in problematic after sales service for parts when Neta is finally insolvent? There are Emas 7,BYD and now MG,plenty of good alternatives.
Remember,a car has few thousand parts..big and small.
Same scenario also will happen to Neta Auto Malaysia. You have courtcase material litigation against You and will Bankrupt soon. So many car brand choices out there now a day.
NETA cars are using outdated battery pack especially their old models. Very hard to compete with all the other big chinese brands. NETA will go bust for sure. Their lifetime warranty will mean nothing when they close shop
Local operations are unaffected.
Exactly, more Malaysians should buy this 0-bintang asia ncap toy car so that more families can die on the road therefore reducing Malaysia’s population ye
Can’t wait for them to continue their loan repayment after the company went bankrupt
Ah cat ah dog also can simply build junk cars nowadays
Better to buy proton lah like what his CEO said. China company can touch n go immediately but consumer has to tie with the car for 9 years.
Thats because they are still holding stocks on hand and cannot return for refund. Once these are all gone, they will fast change their tune when want to claim warranty.
If the brand name not busuk yet, toyota bought over slap a toyota logo sell as cross ev surely got many people buy.
Hmm a car that received 0 Star NCAP Safety while can you reveal who is the AP Cronies who brought in the car since our investment guy says with AP it can ensure EV cars being brought in safe … well yeah.
Neta and Nissan CEO can have coffee session together and discuss who’s boat will sink first.
OK then. Let’s talk about your safety rating. Specifically your zero rating.