Neta Auto, as soon as a rising star in China’s electrical automobile market, is reportedly set to start chapter reorganization proceedings in the present day, June 12, 2025. This improvement follows a dramatic video circulating on-line on June 11, exhibiting staff confronting Neta Auto Chairman Fang Yunzhou on the firm’s new Shanghai workplace, demanding overdue wages.
In accordance with an worker current on the scene, over 100 people gathered, and the end result was merely a directive to await chapter liquidation. A Neta Auto workers member within the video confirmed that the corporate would enter chapter reorganization proceedings the next day, a element additionally corroborated by the worker.
This newest incident is a stark reflection of the collection of crises which have plagued Neta Auto lately, together with money move disruptions, government departures, and strain from suppliers.
Neta Auto has been topic to a number of courtroom enforcements since 2024 attributable to damaged capital chains and debt defaults. Staff declare they’ve been owed wages since November of final yr, a interval when Neta Auto underwent a large-scale layoff of over 2,900 folks, almost half of its authentic workforce, throughout numerous departments. Regardless of authorized victories, former staff have been unable to gather their owed wages, as the corporate reportedly has inadequate property to grab. As an illustration, in March 2025, courtroom orders froze lower than 500 yuan (70 USD) mixed in two of Neta Auto’s affiliated firm financial institution accounts.
On Might 13, Shanghai Yuxing Promoting Co., Ltd. filed for chapter overview in opposition to Hozon New Power, alleging Neta Auto owed 5.31 million yuan (740,000 USD) for promoting companies and failed to completely honor a reimbursement settlement. Neta Auto, nevertheless, responded that this was a unilateral software by a provider and that the corporate had not initiated chapter proceedings, with inside operations persevering with.
As soon as a pacesetter amongst rising EV producers, Neta Auto’s gross sales plummeted from 152,000 items in 2022 to 127,500 in 2023, and additional to 64,500 in 2024. In January 2025, home deliveries dropped to a mere 110 items, successfully pushing the corporate out of the mainstream.
Supply: TMTpost
