Neta CEO denies resignation amid company struggles

Rumors surrounding Neta Auto CEO Zhang Yong’s resignation stirred speculation earlier today. A social media claimed Zhang had joined Neomor, a Chinese electric logistic vehicle maker. However, Zhang refuted the claims within hours, calling them “complete nonsense.” Neta Auto echoed this, affirming, “Zhang Yong is still CEO, and operations remain normal.”

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Speculation about Zhang Yong’s departure has persisted in recent weeks, with some attributing it to the Nanning State-Owned Assets Supervision and Administration Commission’s plans to take control of Neta Auto. On December 2, Neta Auto also denied these rumors, stating, “(Zhang Yong) is still with the company.” Despite the company’s assurances, these developments continue to fuel uncertainty amid its ongoing challenges.

Neta Auto is navigating multiple challenges, including layoffs, salary cuts, and missed sales targets. Reports in late October highlighted salary reductions for R&D staff, while mid-November brought news of corporate restructuring to improve efficiency and cut costs. Founder Fang Yunzhou recently admitted to financial struggles, revealing instances of unpaid senior management in 2016.

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Compounding its woes, Neta’s production facilities have faced interruptions. The Tongxiang plant in Zhejiang halted operations for half a month in November following a March shutdown of its Nanning facility. Employee numbers have fallen sharply from 8,000 to 5,000, while high-earning staff have seen salary reductions of up to 30%. Payment delays have further strained morale.

Sales figures paint a grim picture. From January to September 2024, Neta sold only 53,853 vehicles domestically, achieving less than 30% of its annual target. October sales reportedly dropped to around 4,500 units, marking a 40% decline from the previous month. Supply chain issues have delayed the delivery of key models like the Neta S wagon, eroding consumer confidence.

Neta is exploring international markets to offset domestic challenges. Production is underway in Thailand and Indonesia, and the company plans to expand into Central Asia, Southeast Asia, and Latin America. However, new EU tariffs may hamper ambitions in Europe.