On October 31, Stellantis' official website announced that shareholders of GAC Fick , GAC Group and Stellantis have approved a resolution authorizing GAC Fick to file for bankruptcy in the event of losses.
Stellantis also stated that it has fully impaired its investment and other related assets in GAC Fick in its financial results in the first half of 2022, "it will continue to provide services to China's existing and future Jeep brand customers."
public information shows that GAC Fick was established on March 9, 2010 and was jointly invested and built by GAC Group and Stellantis Group with a share ratio of 50:50. It owns four major brands: Fiat , Jeep, Chrysler , and Dodge . Among them, both Fiat and Jeep brands have domestic models.
On July 18, 2022, Stellantis Group officially issued a notice stating that due to the lack of progress in the previously announced plan of Stellantis to acquire a joint venture with GAC Group and GAC Fic Majority Co., Ltd., Stellantis will use a light asset method to develop its Jeep brand in China and negotiate with GAC Group to terminate the local joint venture. The Jeep brand may only retain imported cars in China in the future and provide more electrified models.
Shortly afterwards, GAC Group responded that GAC Fick has been in losses in recent years and has been unable to resume normal production and operation since February this year. GAC Group and Stellantis are negotiating and orderly termination of the joint venture, and will properly handle the relevant matters of the joint venture in accordance with the law and regulations. The impairment of assets has been confirmed in GAC Group's annual financial report last year. In terms of
business, sales data disclosed by GAC Group showed that in the first half of 2022, GAC Fick's cumulative production and sales were 822 and 1,861 respectively, down 89.35% and 84.18% year-on-year respectively. (Text | "Financial World" Weekly Tang Guo)
