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In a dramatic turn of events, reports are circulating that employees of Neta Auto, a Chinese electric vehicle startup, confronted Chairman and CEO Fang Yunzhou in his office, reportedly demanding overdue wages. The news, captured in social media videos, highlights mounting financial pressures the company is facing.
The situation comes as the company, which had earlier announced plans to relocate its Shanghai headquarters from Putuo District to the Hongqiao Business District, and had its Shanghai headquarters logo removed in May, intensifies its strategic shift. These moves, however, appear to be met with employee unrest even as construction of the new headquarters was underway.
Adding to the company’s woes, legal filings reveal a recent addition to Neta Auto’s associated entities, Hezhong New Energy Automobile Co., Ltd., as an entity facing execution orders. The execution target amounts to over 17.5 million yuan, with the execution court being the Tongxiang People’s Court.
Furthermore, public records indicate that the company currently has over 100 outstanding execution cases, with total execution amounts exceeding 150 million yuan. These also highlight multiple restrictions, including consumer restrictions and the freezing of equity. This paints a grim picture of the company’s financial health.
Once a rising star in the burgeoning Chinese EV market, Neta Auto saw impressive growth in 2022, with sales surging 136.76% to 152,000 vehicles, securing its position as the best-selling new EV brand for that year.
However, the landscape shifted in 2023 as competition intensified across the Chinese EV market. The company’s initial strategy of competitive pricing lost its appeal, leading to a sales slump that has since accelerated dramatically into 2024.
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Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/2280.html
