A video posted online showed that Fang Yunzhou, the founder of Nezha Automobile, bowed and apologized when faced with questioning from suppliers and dealers, and said he would solve the problem as soon as possible. Fang Yunzhou said,The supply of spare parts will be completed before April 30, ensuring maintenance issues for more than 400,000 car owners. The dealer will find a solution within a week for vehicles that have not been shipped.We will continue to find investment entities and discuss additional investment with shareholders. In addition, Nezha Automobile has confirmed the bond agreement with the dealer the next day.
Previous reports showed that Nezha Auto dealer representatives recently gathered at the Tongxiang factory to collect debts from Nezha. The dealers reported that Nezha Auto had not delivered the car for half a year and had not refunded the car payment.
Some dealers said that Nezha Auto owes each of their dealers basically several million yuan. He has been selling Nezha Automobiles for two or three years. Since July last year, there has been no sales.
In addition, because many Nezha 4S stores across the country have withdrawn from the network, car owners do not have a suitable local store for repairs, and are forced to pay for repairs at their own expense and face the risk of losing their warranty. at the same time,Due to a shortage of spare parts, some Nezha car owners have had vehicle breakdowns that could not be repaired for a long time.
The sales system has been shut down, factories have been shut down, employees have been laid off, and suppliers have continued to collect debts. For Nezha Auto, it is now a matter of life and death.
However, Nezha Automobile has not given up on self-rescue. In March this year, Nezha Automobile presented a debt repayment plan at a supplier conference. Nezha Automobile planned to convert 70% of the supplier's debt into the equity of the parent company Hezhong Automobile, while 30% of the debt will be paid off in cash.
At the same time, Nezha led the E-round financing of 3 billion yuan. The payment was originally scheduled to be received in March, but was delayed to April due to risks, corresponding to half of the equity of Nezha Automobile’s parent company.
As a new force that once had the best sales, it is really disappointing that Nezha Automobile has reached this point. Now, with the entry of external investment, we hope that Nezha Automobile can get back on track.
