Nezha Auto Crisis: Employees Protest Unpaid Wages Amid Company's Financial Turmoil

The company's financial troubles are extensive, with over 100 enforcement orders against it, totaling more than 150 million yuan. Recently, the Tongxiang City Court added Nezha Auto to its enforcement list for 17.5 million yuan, and the company has faced multiple consumption restriction orders and frozen equity notices. Despite plans to relocate its Shanghai headquarters from Putuo district to Hongqiao Business District in May 2025, the company's new headquarters barely started operations before the wage dispute erupted. In response, the company has announced work-from-home arrangements and suspended building access.

This incident has significant implications for China's electric vehicle (EV) industry, particularly as Nezha Auto was once considered a rising star in the new energy vehicle sector. The confrontation between employees and the CEO has drawn attention to the broader issues of financial stability in the EV startup sector. The company's cumulative losses exceed 18 billion yuan, with debts nearing 10 billion yuan, reflecting the risks of blind expansion in the industry. The incident also highlights the vulnerabilities of the entire industry chain, with suppliers owed large amounts and employees facing unpaid wages.

The public has reacted with widespread sympathy for the affected employees, criticizing CEO Fang Yunzhou's handling of the situation. His response to the employee protests was viewed negatively, and he has been compared unfavorably to other entrepreneurs, such as Luo Yonghao, who has taken responsibility for his debt and is working to pay it back. The incident has sparked speculation about the sustainability of China's numerous EV startups and concerns about the broader implications for the industry.

Fang Yunzhou, the Chairman and CEO of Nezha Auto, has become the target of employee protests over unpaid wages. He founded Hozon Auto, which manufactures Nezha cars, and has been at the helm of the company since its inception. The company's former CEO, Zhang Yong, now serves as an advisor and has a background in marketing and R&D. As the situation continues to unfold, it remains to be seen how Nezha Auto will address its financial troubles and the concerns of its employees.

The incident has also raised questions about corporate governance and responsibility, with the company's response being seen as evasive. The public is calling for greater transparency and accountability, and the incident may serve as a catalyst for changes in the industry. As the EV sector continues to evolve, it is likely that companies will face increasing scrutiny over their financial management and treatment of employees. The Nezha Auto incident serves as a reminder of the importance of responsible business practices and the need for companies to prioritize the welfare of their employees.