In accordance with Chinese language media outlet Leiphone, electrical car maker Neta Auto is reportedly dismantling its total analysis and growth group because of escalating monetary issues. This transfer entails N+1 severance packages for workers who signal termination papers this week. Sources point out roughly 200 workers have already begun leaving, out of a complete workforce of round 1,700.
From a gross sales perspective, Neta has been in hassle this 12 months. In accordance with China EV DataTracker, its January gross sales decreased by 98% year-on-year, and in February, it offered fewer than 400 automobiles.
The corporate has carried out vital wage reductions, with remaining staff dealing with a 75% lower from their pre-October 2023 ranges. Some departing workers are receiving solely Shanghai’s minimal wage. Studies additionally recommend that promised compensation for individuals who left in November 2023 has not been paid.
Neta Auto’s Shanghai headquarters has develop into a focus for protesting suppliers demanding overdue funds. Media experiences point out that suppliers have been gathering at Neta Auto’s Shanghai headquarters to demand fee, with some even sleeping on the ground of the constructing.
Insiders attribute the disaster partly to the previous CEO’s technique, which closely favored B2B channels and uncared for different areas. Founder Fang Yunzhou, who has now returned as CEO, has outlined reforms specializing in abroad markets and worthwhile merchandise. Nonetheless, sources recommend Neta’s debt might be as excessive as 10 billion yuan (1.4 billion USD), elevating considerations concerning the firm’s restoration regardless of ongoing financing talks with a international sovereign wealth fund.
Neta Auto, launched as a mainstream NEV model by Hozon Auto in 2018, shares its identify with the protagonist of this 12 months’s well-liked Chinese language animated movie “Nezha 2,” although the corporate’s fortunes have confirmed far much less favorable than the movie’s success.
Final November, there have been rumors that Neta Auto was on the verge of chapter. The troubled Chinese language automotive maker Neta reportedly obtained 6 billion yuan (818.8 million USD) in investments, however plainly this didn’t assist sufficient.
