Neta Auto Malaysia has posted an official announcement on its Facebook page stating that the company is restructuring. Three weeks ago, it refuted reports of its parent company Hozon Auto entering bankruptcy.
“Intro Synergy Bhd, the exclusive distributor of Neta vehicles in Malaysia, acknowledges the recent reports concerning our principal, Hozon New Energy Automobile, the parent company of the Neta brand. We understand that Neta HQ is currently undergoing a financial restructuring process and organisational realignment to strengthen its long-term sustainability and growth,” the company wrote in its statement.
Intro Synergy will also be “re-aligning” its operations in Malaysia, and move to a direct-to-consumer sales model instead of the traditional dealership network, it said.
The distributor assures its customers that its service centres across Malaysia will continue to operate as usual, and aftersales service continues to be its utmost priority, and that Neta customers will continue to receive full support and care during this transition, the company added.
The company adds that all warranties will continue to apply, and stated that it has the capability to ensure the sufficient availability of spare parts during the lifecycle of its vehicles. “We are able to undertake to repurchase any of the vehicles in the event spare parts are not available under normal terms and conditions in sales,” it wrote in its statement.
The Chinese carmaker has been struggling, having reportedly dismantled its research and development operations in March this year. In April, Neta reportedly reached a debt-to-equity swap agreement with 134 core suppliers worth over RMB2 billion (RM1.2 billion) in order to sustain production. While rumours surfaced that Toyota was considering a purchase of Neta, this was denied by the Japanese manufacturer.
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