Neta Auto Responded to Rumors of Employee Salary Delays
On October 15th, self-claimed employees of Chinese EV maker Neta Auto revealed on social media that the company did not pay the salaries for September on time. One person claiming to be a verified Neta Auto employee stated that Neta Auto owes suppliers a significant amount of money and advised caution when buying Neta Auto cars.
On October 16th, in response to the rumors, Neta Auto stated that frontline and factory employees’ salaries are currently being paid on time. The company’s middle and senior management are currently adjusting the salary structure, with only a few delays in salary payments. Employees from Neta Auto’s direct-operated stores also disclosed to media that salaries are being paid as usual with no arrears.
This is not the first time Neta Auto has faced salary payment controversies. In February of this year, several employees disclosed that the promised year-end bonuses for the first week of work after the Chinese New Year were not paid out as expected and were delayed until March. Neta Auto’s CEO, Zhang Yong, responded to this by stating that the year-end bonuses were still under final review. He further wrote on Weibo that, “Last year was tough, and we never considered pay cuts or layoffs. Perhaps some employees are not used to tough times. It seems necessary to spread the coldness to everyone.”
In June of this year, Neta Auto’s parent company, Hezhong New Energy Automobile Co., Ltd., submitted a prospectus to the Hong Kong Stock Exchange, but as of now, there have been no clear progresses. In early September, Neta Auto’s CFO, Chen Rui, resigned, and was replaced by former Managing Director of Goldman Sachs (Asia), Pan Deng. Neta Auto stated that this adjustment was a normal change and “is expected to further promote the Neta Auto IPO process.”
In the past two years, Neta Auto has also started to focus on overseas markets to seek new growth opportunities. They have established factories and subsidiaries in Thailand, Indonesia, and Malaysia. Neta Auto ranked first among new energy vehicle brands in the Thai market from January to May 2024, with sales of 36,000 units, making them the second overall, following only BYD.
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