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After Neta’s electric vehicles experienced a severed internet connection, the restructuring administrator overseeing the parent company’s affairs pledged to negotiate with the network service provider to resolve the matter.
Lenovo Connect unilaterally ended its vehicle connectivity service agreement with Neta. The administrator clarified that discussions with the IoT service provider, which operates under China’s Lenovo Group, are ongoing, and legal action remains a possibility.
In recent days, Neta vehicle owners have reported losing internet access. Yesterday, Hozon Auto notified drivers that they should purchase data plans through Lenovo Connect’s WeChat account if their vehicles are without internet. Without a data plan, users cannot access the Neta app, which allows remote control of their vehicles.
Based in Shanghai, Hozon Auto is currently undergoing a bankruptcy restructuring led by a team appointed by law firms from Zhejiang and Shanghai.
Lenovo Connect stated that Hozon Auto’s operational difficulties and unsuccessful negotiations over payments over several months have led to increased costs and potential risks to service commitments for vehicle owners. However, the restructuring team asserted that they have been actively fulfilling their contractual obligations with Lenovo Connect since taking over Neta’s operations.
This isn’t the first time Neta vehicles have faced connectivity issues. In April, many owners reported problems accessing their cars through the Neta app or performing remote functions, though those issues were resolved within days.
Last year, Neta sold 152,000 vehicles, surpassing other EV startups in sales. Nevertheless, the company has been embroiled in controversies over unpaid wages and layoffs since October. On June 12, it officially entered bankruptcy restructuring proceedings.
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