Years after the joint venture was terminated, GAC FCA has been declared bankrupt
- GAC Fiat Chrysler Automobiles has been declared bankrupt by a Chinese court.
- The joint venture was focused on building Jeeps in the country, but the partnership fizzled.
- The venture effectively died in 2022 and this is the final nail in the coffin.
China is home to over one hundred automakers and there’s been rampant speculation that only a handful will survive. We can now cross one off that list as GAC Fiat Chrysler Automobiles has officially been declared bankrupt.
In a message to creditors posted on social media, the administrator of GAC Fiat Chrysler Automobiles said they petitioned the Changsha Intermediate People’s Court to declare the company bankrupt. This came after some creditors voiced the opinion that the firm had “no possibility of reorganization.”
More: Stellantis Terminates Joint Venture With GAC In China, Will Start Importing Jeeps Instead
The court agreed and also approved a bankruptcy property distribution plan. The latter was prepared by the administrator and approved by creditors.
The administrator went on to thank creditors for their understanding and support. The administrator also said they’ll “speed up the finishing work of this case, safeguard the legitimate rights and interests of the majority of creditors , and strive to complete the distribution of bankruptcy property … as soon as possible.”
The case has been ongoing for years and the administrator received nearly 600 claims against the company. These had a declared amount of $1.4 (¥10) billion, although later reviews and audits lowered that number significantly.
Needless to say, this isn’t how things were supposed to turn out when the joint-venture was established in 2009. Originally known as GAC Fiat, the company was established to make vehicles – particularly Jeeps – in China. However, the partnership eventually broke down and Stellantis decided to import Jeeps instead.
H/T to Bamboo Works
#FCAs #Ghosts #Bit #Dust
