(Yicai) Sept. 12 -- After Neta car owners reported losing access to vehicle telematics, the court-appointed administrators of parent company Hozon New Energy Automobile said the third-party data provider had shut off services without warning and pledged to keep negotiating for a solution.

Lenovo Connect unilaterally ended its vehicle connectivity services deal with Neta, the administrators announced yesterday, adding that it will hold more talks with the smart Internet of Things services provider, while reserving the right to pursue legal action.

Neta cars lost internet connection in the past few days, Yicai learned. Hozon Auto notified owners yesterday that they should purchase data plans on Lenovo Connect's WeChat account if their vehicles have no internet. Without a data plan, they will not be able to use the Neta app, which enables remote vehicle controls.

Formed in 2014, Shanghai-based Hozon Auto entered bankruptcy restructuring in June and has an administration team that was set up by Zhejiang Haihao Law Firm, Zhejiang Zicheng Law Firm, and Shanghai Junyue Law Firm.

Lenovo Connect claimed that Hozon Auto's operational issues and months of failed payment negotiations created huge cost pressure and posed a major risk to service guarantees for vehicle owners. The administration team said it has been fulfilling the agreement with Lenovo Connect since taking over Neta's operations.

This is not the first time Neta vehicles have lost connectivity. In April, many owners told Yicai they could not unlock their cars or adjust the air conditioner remotely using the app. Service was restored only after several days.

Neta sold 152,000 cars in 2022, leading other electric vehicle startups by sales volume. But since last October, it has struggled with unpaid wages and mass layoffs.

Editor: Futura Costaglione