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On October 31, the official website of Stellantis Group released the latest announcement that the shareholders of GAC FCA, GAC Group and Stellantis have approved a resolution to allow GAC FCA to apply to the court for bankruptcy at a loss. Stellantis Group said that its investment in GAC FCA and other related assets will be fully impaired in its financial results for the first half of 2022, and that it will continue to serve existing and future Jeep brand customers in China in the future. RoHS Approved Manufacturer of bronze accessories
On the same day, GAC Group issued an announcement, and after voting by the participating directors, the “Proposal on Approving the Bankruptcy Application of GAC FCA” was reviewed and approved. According to the application of the joint venture GAC Fiat Chrysler Automobiles Co., Ltd. (hereinafter referred to as “GAC Fick”), it was agreed that it would apply for bankruptcy in the court in accordance with the relevant provisions of the current laws and regulations due to its insolvency.
The announcement shows that as of September 30, 2022, GAC FCA (unaudited) had total assets of 7.322 billion yuan, total liabilities of 8.113 billion yuan, and an asset-liability ratio of 110.80%. . To this end, GAC FCA intends to file a bankruptcy application with the court in accordance with current laws and regulations such as the Bankruptcy Law. GAC Group emphasized that as of September 30, 2022, the company (including the companies within the scope of consolidation) had formed a total of about 1.035 billion yuan in claims against GAC FCA due to the provision of entrusted loans and various business transactions (accrued and deducted). 292 million yuan worth of preparations; there is still no more than 200 million yuan earmarked for its staff placement costs, which is expected to be paid first in the event of bankruptcy and liquidation); GAC FCA’s bankruptcy application will not have a significant impact on the company’s continuing operations . RoHS Approved Manufacturer of bronze accessories
On July 18, Stellantis Group announced on its official website that it will adopt an asset-light approach to operating the Jeep brand in China in the future. In the future, the company will only retain the import business of the Jeep brand in China, and will enhance its new energy product lineup. On the same day, GAC Group officially issued an official document that in view of the fact that the joint venture GAC Fick established with Stellantis Group has been in a state of loss and has been unable to resume normal production and operation since February this year, the two parties jointly decided to terminate the joint venture.
In July 2009, GAC Group and Fiat Group signed a basic agreement to establish a 50:50 joint venture in Rome, Italy. In March 2010, GAC Fiat Automobile Co., Ltd. was formally established with a total investment of about 17 billion yuan. Subsequently, the Fiat brand was introduced into China, and Fiat brand models such as Feixiang and Zhiyue were made in succession. RoHS Approved Manufacturer of bronze accessories
In January 2014, Fiat Group acquired Chrysler Group and changed its name to Fiat Chrysler Group. A year later, in January 2015, GAC Fiat changed its name to GAC Fiat Chrysler, and introduced the localization of the Jeep brand. The first model, the Liberty Light, was priced at 229,800 yuan to 315,800 yuan, and it was widely popular after its listing. Since then, the Jeep brand has successively produced models such as Freeman, Compass, and Commander. The localization of the Jeep brand has brought GAC FCA a brief moment of brilliance. The data shows that in 2016, GAC Fick sold 179,900 units, a year-on-year increase of 23.57% to 222,300 units in 2017, which is the peak of GAC Fick’s sales since its establishment.
The good times did not last long. After 2017, GAC FCA’s sales fell off a cliff. In 2018, GAC Fick’s Fiat brand announced its withdrawal from the Chinese market due to dismal sales, leaving GAC Fick with only the Jeep brand to develop independently. In the same year, the Jeep brand was named by the “315 Party” due to the problem of “burning oil” in its products, and GAC Fick also began to decline. The data shows that in 2018 and 2019, the sales volume of GAC Fick was 125,200 and 73,900 respectively.
In this context, GAC FCA also tried to “rescue itself” by means of capital increase, coaching change and new strategies. In August 2020 and July 2021, Fick Group and GAC Group jointly invested in GAC Fick with a total amount of 4 billion yuan; on May 10, 2021, Fiat Chrysler Group announced that GAC Fick appointed Zhu Hengli served as the deputy general manager of GAC FCA and a member of the company’s executive committee. On July 31 of the same year, Mu Anze was appointed as the president of GAC FCA after being nominated by Fiat Chrysler Group and approved by the board of directors of GAC FCA. China’s operation and management; in addition, in 2021, GAC FCA also publicly announced that it will launch a new strategy of One Jeep in China, combining Jeep products from the previous import channel and Jeep products from the domestic channel into one, unifying the Jeep products in the Chinese market. image. RoHS Approved Manufacturer of bronze accessories
However, after a series of measures, it was still unable to bring substantial growth to GAC FCA. In 2020 and 2021, the sales volume of GAC FCA will be 40,500 and 20,100 respectively, of which the sales in 2021 will drop by 50.33% year-on-year, making GAC Group the fastest declining car company in GAC Group.
After entering 2022, GAC FCA is almost at a standstill. “Auto Industry Concern” combed the GAC Group’s production and sales reports in the first half of the year and found that GAC Fick has been on the verge of suspending production since February. In February, GAC Fick produced and sold 35 and 134 vehicles, and both in March and May. Production and sales in April and June were both 0. That is to say, in the first half of this year, Jeep has stopped production for April in a row.
At the same time, GAC FCA’s operations are also facing problems. In 2017, GAC Fick’s net assets were 4.422 billion yuan, but by 2020, the net assets will be -331 million yuan, and the accumulated losses in three years will reach nearly 5 billion yuan, which once became the largest “negative assets” of GAC Group. The latest data shows that in the first half of 2022, GAC FCA’s operating income was 588 million yuan, and the full year of 2021 was 3.861 billion yuan; the net loss was 649 million yuan, and the net loss in 2021 was 3.169 billion yuan. As of June 30, 2022, GAC FCA had total assets of 7.657 billion yuan, total liabilities of 8.186 billion yuan, and an asset-liability ratio of 107%. In short, GAC FCA was seriously insolvent in the first half of the year. RoHS Approved Manufacturer of bronze accessories
It is not an accident that GAC Fick will file for bankruptcy. GAC Group stated in the announcement that in recent years, affected by factors such as the decline in product competitiveness, GAC Fick’s production and operation have gradually fallen into difficulties. Although shareholders have taken active measures and increased capital many times, However, the operation effect has not been improved, and its production and operation have been completely stagnant at present. At present, GAC FCA owns two factories in China, Guangzhou Panyu and Hunan Changsha. Among them, the Guangzhou Panyu factory has been shut down on September 8, 2021 and was taken over by GAC Aian New Energy to produce new energy models. As for the Hunan Changsha factory, there were It is reported that Leapmotor, BYD, etc. are discussing the possibility of transfer with GAC, but there is no official confirmation of this news. Statistics show that the total investment of GAC FCA Changsha plant is 5 billion yuan, covering an area of more than 700,000 square meters, with a designed annual production capacity of 250,000 to 300,000 vehicles. It has four complete processes of stamping, welding, painting and final assembly.
“Not all SUVs are called Jeep.” Today, this once deeply rooted advertising slogan has gradually lost its voice in the market. For Stellantis Group, this is not the first time that its subordinate brands have been defeated in China. From the early Nanjing Fiat, Beijing Chrysler, to Changan DS, and then to today’s GAC Fick, many brands are unsustainable in the Chinese market. And brands such as Dongfeng Peugeot and Dongfeng Citroen have also gone from household names to bleak operations today. Today, Shenlong Automobile has become the only joint venture company of Stellantis in China. If GAC Fick’s bankruptcy application is approved, Shenlong Automobile will become the only seedling. RoHS Approved Manufacturer of bronze accessories