The troubles reportedly surrounding Neta continue, with a news report from China indicating that the electric vehicle maker is reportedly set to commence bankruptcy reorganisation proceedings today, June 12, CarNewsChina reported, citing TMTPost.
Supposedly, this comes after a video began circulating online yesterday, showing employees confronting Neta chairman Fang Yunzhou about overdue wages at the company’s new Shanghai office. In the video, which was recorded by an employee, a Neta Auto staff member in the video confirmed that the company would enter bankruptcy reorganisation proceedings the following day.
It’s not known if things have developed as planned, but the latest incident continues to highlight the issues that have plagued Neta in recent years, including cash flow disruptions, executive departures, and pressure from suppliers.
The company has been subjected to multiple court action since 2024 due to broken capital chains and debt defaults. Elsewhere, employees have stated they have been owed wages since last November, when the automaker underwent a large-scale layoff of over 2,900 people, nearly half of its original workforce, across various departments.
Despite legal victories, former employees have been unable to collect their owed wages as the company reportedly has insufficient assets to seize. For instance, in March 2025, court orders froze less than 500 yuan (70 USD) combined in two of Neta Auto’s affiliated company bank accounts, the CNC report stated.
On May 13, Shanghai Yuxing Advertising filed for bankruptcy review against Hozon New Energy, alleging Neta Auto owed 5.31 million yuan (740,000 USD) for advertising services and failed to fully honor a repayment agreement. Neta responded by stating that this was a unilateral application by a supplier and that the company had not initiated bankruptcy proceedings.
Closer to home, Neta Auto Malaysia stated earlier this month that the company was restructuring its operations, with local distributor Intro Synergy set to re-align its workings and move to a direct-to-consumer sales model instead of the traditional dealership network.
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Normally with this type of news, local chapter will say it only happen in China and local company is not affected.
Good riddance.
In my taman at Gombak,I saw a blue Neta parked “elegantly” in some green space.
What comes to mind,is the issue of spare parts,which might be “extinct” once the manufacturer goes into insolvency,and protracted legal battles while waiting for a white knight.
Thats why…it is better to do some research b4 jumping into the EV bandwagon.
Remember,not every EV manufacturer has the resilience like Geely,BYD or Tesla.
My biggest concerns about BEV is the spares availability period for their battery.
Don’t want it to be a pakai-buang car.
There will be more China EV companies going into bankruptcy, acquisition, merger and consolidation.
Just wait and see who will live and who will get kick out, then only decide.
Similar to PC market, in the 90’s there are close to two dozens Taiwan motherboard manufacturers. Today only remains Asus Asrock Gigabyte MSI Biostar
The market determine who will survive.
So NETA and Nissan can be friends now.
Bradder Ben Yap..this Neta China company goes to the “koon choy” or coffin first..smaller debt also kena wound up.
Nissan is super big..Jepun wouldnt let it go under easily..they will get Honda or another Jepunis makan Nissan.
You should know Jepunis culture..die die..cannot let Nissan kaput,especially fall into Mat Salleh hands.
actually they doesnt want nissan to end up in chinese hands only, any sallehs are welcomed to own nissan, niggas also can.
Well what to do when Neta V got 0 Star NCAP safety and with our investment guy said APs can help ensure safety of EV cars sold in the country guess even AP cronies also cannot save the brand maybe can get the cronies to buy them out but funding……
Bungkus kau2, neta Malaysia distributor-go auto & careplus also same2, still sc4m to get public fund to do manufacturing factory. What’s the biggest joke and creditors come after them and litigation wound up company soonest.lets see the news conspiracy to defraud