Neta Malaysia refutes principal company bankruptcy reports, says all local operations are unaffected
It’s been a rough few months for Neta, the struggling Chinese electric carmaker that’s been in the news plenty of times – and not for the right reasons. The bad publicity will not be welcome for its distributors in export markets that are still moving product, and the latest reports in Chinese media have caused enough consternation for Malaysian outlet Intro Synergy to step in.
The company has refuted claims of Neta’s parent company Hozon Auto entering bankruptcy, saying that one of its creditors, Yuxing Advertising, only applied for a bankruptcy order in court over a debt dispute, which it claimed is a “routine legal procedure.”
“Hozon Auto firmly denies any allegations of bankruptcy and will take all necessary steps to defend its position,” Intro Synergy, doing business as Neta Auto Malaysia, said in a statement.
The company stressed that all local operations in Malaysia, “including sales, vehicle deliveries and after-sales services, especially spare parts,” are unaffected and continue as normal, adding that
“we remain focused on providing quality products and reliable support to our customers.” It also said that it is proceeding with plans to expand its sales and service network “in line with our growth strategy.”
Routine or not, the most recent news only adds to the worrying picture of Neta’s struggles. Mounting debt caused production to grind to a halt in November, with the company also cutting salaries and letting its workers go – including its entire research and development division. Last month, the firm reportedly reached a debt-to-equity swap with 134 suppliers, although clearly some of its creditors remain unconvinced. Recent speculation of the company being bought over by Toyota was denied by the latter.
Still, Intro Synergy does believe that Neta will be able to beat the long odds of survival. “We have full trust in the long-term prospects and quality of the Neta brand and in the ability of Hozon Auto to address its challenges,” it said.
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