The recent announcement of a postponement of staff bonuses by Neta, a brand under Hozon Auto, has sparked widespread discussion on Chinese social media. With last week’s closure of HiPhi for six months, concerns are growing that Neta Auto could be the next company to face challenges in the industry.
Over the last few days, Chinese netizens have expressed concern about postponing Neta Auto’s year-end bonuses. The issue came to light when an employee on social media claimed that the CEO and Chairman had previously promised to distribute the bonuses in the first week after the Chinese New Year. However, the Human Resources Manager later informed employees that the bonus distribution process was still underway and would be completed by March. This delay, coupled with the lack of a specific distribution date, has led to comparisons with the recent issues faced by HiPhi, leaving the market questioning the implications and raising concerns about customer confidence.
On February 24, Neta Auto’s CEO, Zhang Yong, responded to the situation on social media. Zhang explained that the year-end bonuses for 2023 were tied to performance evaluations, and the final assessment and distribution process would be completed in March. He also addressed the delay in provident fund payments, attributing it to the extended collection period due to the Chinese New Year.
Zhang emphasized that since 2016, Neta Auto has never delayed the payment of salaries, bonuses, or social security benefits. Stating ” there have been no salary cuts or layoffs” while highlighting the challenges of entrepreneurship. He also cautioned employees not accustomed to facing difficult times, reminding them of the need to share the burden collectively.
While the postponement of year-end bonuses may not be a significant issue for a company, its timing during the period following HiPhi’s closure has fueled speculation. Keen observers will not that on the one hand, Neta Auto has targeted the European market and cooperated with European banks; it also has recently announced ambitions for its new Neta SS estate to enter the European market. On the other hand, Neta Auto’s recent sluggish sales have garnered significant attention from netizens and the media. The company faces challenges, as it was the only mainstream Chinese new energy vehicle manufacturer to experience a decline in sales in 2023.
Neta Auto recently announced price reductions on several vehicle models to boost its market performance during the ongoing price war. Furthermore, the upcoming launch of their new mid-to-large-sized SUV, Neta L, in March, featuring both pure electric and extended-range hybrid versions, holds potential.
While the postponement of staff bonuses by Neta Auto has generated concerns amidst HiPhi’s closure, it is pertinent to consider the company’s commitment to its employees over the years. The challenges Neta Auto and other Chinese automakers face, and the industry’s perception of the situation underscore the need for transparency and careful due diligence. As the automotive landscape evolves, the market awaits Neta Auto’s future endeavors.
Source: PC Auto
“The company faces challenges, as it was the only mainstream Chinese new energy vehicle manufacturer to experience a decline in sales in 2023.”
This loss of traction seems to reinforce CNC’s report early last year of:
“….numerous quality problems have begun to appear, such as the inability to charge, connectivity failures, and electrical failures…”
So far I have not heard of such quality problems over at endangered HiPhi.