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.
Looking to sell your car? Sell it with Carro.