founder steps up as CEO amid challenges
In a turn of events, hours after Zhang Yong denied his resignation as CEO of Neta Auto, the company announced a significant leadership change. Former CEO Zhang Yong will step down and transition to an advisory role. Fang Yunzhou, Neta Auto‘s founder and chairman, will assume the CEO position, marking a strategic shift amid ongoing financial and operational challenges.
- 广告
The transition was confirmed late on December 6, with Fang addressing employees directly and taking responsibility for the company’s difficulties. While Neta Auto cited a “strategic move” as the reason, the decision follows weeks of speculation about Zhang’s status. During his tenure, Zhang played a pivotal role in Neta Auto’s rise, including leading the company to a sales peak of over 150,000 units in 2022. However, 2023 saw a sharp 15% decline in deliveries, alongside escalating financial pressures and internal restructuring.
Zhang, who joined Neta Auto in 2018, brought years of experience from Chery New Energy and Beijing Electric Vehicle Co (now known as BIAC Bluepark). Under his leadership, Neta Auto emerged as a notable player in China’s EV market, yet the company still needs to improve its profitability. Despite challenges, Zhang was among the top earners at Neta, with 2023 compensation exceeding 30 million yuan (4.23 million USD), driven mainly by share-based payments tied to sales performance.
- 广告
Fang now faces the task of steering the company through turbulent times. In a company-wide letter, he outlined a six-point reform plan focusing on IPO readiness, international expansion, and cost optimization. The plan aims for a balanced sales ratio between domestic and overseas markets by 2025 and profitability by 2026.
Amid leadership changes, Neta Auto has sought financial support to stabilize operations. Strategic investments from state-backed entities like Nanning Industrial Investment Group and subsidies from the Hong Kong government have provided temporary relief. However, the company has faced mounting legal disputes over unpaid debts, highlighting its precarious position.
Looking ahead, Fang emphasized that Neta Auto has ” overcome its most dangerous period” and aims to rebuild with a focus on high-margin products and global market competitiveness. Whether these reforms will restore the company’s trajectory remains to be seen, but the leadership shakeup signals a critical juncture in its journey.
- 广告
