Home / Business and Economy / Bankrupt EV Maker Neta Auto Set for Acquisition
Bankrupt EV Maker Neta Auto Set for Acquisition
16 Sep
Summary
- New investor Taiyi Shanglian will invest $447 million.
- Acquisition aims to restructure Neta Auto and restart production.
- Focus will shift to SUV models, phasing out sedans.
Hozon, the bankrupt parent company of Neta Auto, is on the verge of being acquired by Zhejiang Taiyi Shanglian Enterprise Management Partnership. This development follows a creditors' meeting where a draft reorganization plan was released.
Taiyi Shanglian plans to invest CNY 3 billion (US$ 447 million) for a 70.6% stake. A significant portion of this fund will address legacy debts and restructuring costs, with the remainder injected as working capital to revive operations.
The recovery plan prioritizes Neta X SUV production, targeting 10,000 vehicles in the first year. Manufacturing equipment for Neta L and Neta X will be retained, while sedan production assets may be disposed of.
Future stages include scaling operations to 300,000 annual vehicles, developing models for emerging markets, and eventually launching new global intelligent EV models with an IPO goal.
Neta Auto's strategy will focus on SUV production, with plans to rebuild supply chains and reactivate after-sales networks to support its existing 400,000 owners.
