- Neta is restructuring its channel system and will gradually close directly-managed stores and retain dealer stores, according to local media.
- Neta customers in several cities have received messages of local directly-managed stores closing.
Neta Auto, which is facing operational difficulties, is restructuring its channel system and will gradually close down its directly-managed stores and retain dealer stores, a report in local media Sina Tech said today.
Neta customers in a number of cities have received messages of local directly-managed stores closing, including cities such as Suzhou and Chongqing, the report noted.
The reason provided by these stores was Neta's business strategy adjustment, according to the report.
In response to a request for comment, Neta said it is restructuring its directly operated stores, some of which will close and others will operate normally, according to Sina Tech.
A former employee of a Neta's directly-managed store said the brand's directly-managed stores in China will be phased out and only dealer stores will be retained to reduce channel operating costs, according to the report.
Neta's parent company, Hozon Auto, was founded in October 2014 and in April 2017 received licenses to produce cars.
In November last year, the company embarked on massive layoffs, as it suffered financial woes.
On November 14 last year, local media outlet Yicai reported that Guangxi's Nanning Industrial Investment Group had entered into a strategic partnership with Hozon Auto to provide supply chain financial support.
The group would help Neta organize the procurement of raw materials, production, logistics, and export of KD (knocked down) kits from its Nanning production base.
It would also help Neta with the production and delivery of its overseas models, as well as further expanding its international markets and ensuring the stability of its supply chain overseas, according to the report.
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