Neta, the brand notorious for its zero-star rated vehicle at the ASEAN NCAP, is already dismantling its entire R&D team in China as its financial troubles worsen. According to Car News China, around 200 of its 1,700 R&D staff have already begun leaving.

Before this, Neta has already implemented significant salary reductions in order to stay afloat, with employees facing a 75 percent cut from their pre-October 2023 salary levels. Some departing staff are receiving Shanghai’s minimum wage. Reports also suggest that promised compensation for those who left in November 2023 has not been paid.

Making matters worse, unpaid suppliers have reportedly been gathering at Neta’s Shanghai HQ, with some even sleeping on the floor to demand payment.

Its debt could be as high as 10 billion yuan (USD 1.4 billion), raising concerns about the company’s recovery despite ongoing financing talks with a foreign sovereign wealth fund.

Neta’s poor financial position was primarily due to its former CEO’s strategy and dwindling sales. Its founder, Fang Yunzhou, has now returned as Neta’s CEO and has outlined reforms focusing on overseas markets and profitable products. That said, its January year-on-year sales has dropped 98 percent, while in February, it’s managed less than 400 cars. In Thailand, where they operate an assembly plant, Neta has considered cutting 400 jobs due to slowing sales.