NETA Auto issued a statement refuting recent online rumors claiming that the company has dissolved its R&D team. The company clarified that these claims are false and stated that it is optimizing its organizational structure and processes to improve cost efficiency. NETA Auto also reserved the right to take legal action against the spread of false information that harms its reputation.
Meanwhile, NETA Auto held a supplier conference on March 19, where it discussed a debt-to-equity swap plan with its suppliers. The proposal reportedly received support from the majority of suppliers. According to sources, NETA Auto plans to convert 70% of its outstanding debt into equity under its parent company, Hozon Auto, while the remaining 30% will be repaid in cash through interest-free installments.
On the same day, reports surfaced that NETA Auto’s Shanghai headquarters had been surrounded by suppliers demanding payment. The company has not yet responded to these claims. Regarding its ongoing Series E funding round, NETA Auto stated that it could not disclose further details at this time.
