Neta Auto CEO Fang Yunzhou Reportedly to Be Replaced by Veteran International Automotive Executive

CNBC Exclusive: Sources indicate embattled electric vehicle maker Neta Auto is undergoing a significant restructuring, potentially involving a change in leadership. A recent internal memo, allegedly circulated among employees, outlines a court-supervised reorganization intended to address the company’s financial woes and secure its future.

The restructuring process, overseen by the Jiaxing Intermediate People’s Court in Zhejiang Province, China, is reportedly a government-backed initiative. The plan aims to resolve Neta’s debt issues, attract strategic investment, and streamline its management structure. Crucially, the memo highlights plans to prioritize the interests of creditors, employees, and vehicle owners. Addressing outstanding payments to suppliers and ensuring continued service for existing customers are also stated priorities.

Furthermore, the reorganization anticipates attracting investment from leading global industry players. The capital raised is earmarked for critical areas such as production resumption, technological advancements, and expansion into international markets.

A key element of the restructuring involves a shakeup of the existing management team. The memo suggests that the company is actively seeking a new CEO with extensive experience in multinational automotive companies. This move strongly implies a possible change at the top, further fueled by earlier reports that a proposed debt-for-equity swap, intended to secure fresh funding, was unsuccessful.

Adding fuel to the speculation, whispers within investment circles suggest that the continued backing of Neta hinges on a change of leadership. Reportedly, some investors are keen to keep the brand afloat, but with a condition: removing current Chairman and CEO, Fang Yunzhou.

If the restructuring plan proceeds as outlined, the appointment of a new CEO with international experience raises the distinct possibility that Mr. Fang has been removed from his leadership position.

This situation mirrors events from late 2024 when former Neta Auto CEO Zhang Yong stepped down. Fang Yunzhou, the company’s founder and Chairman then took over the CEO role. If confirmed, Fang’s reign at the helm sadly appears to be repeating its predecessor’s turbulent history.