On October 31, Stellantis' official website issued an announcement stating that shareholders of GAC Fick , GAC Group (11.560, 0.23, 2.03%) and Stellantis have approved a resolution authorizing GAC Fick to file for bankruptcy in the event of losses. Stellantis has fully impaired its investments in GAC Fick and other related assets in the first half of 2022. Stellantis said it will continue to provide services to existing and future Jeep brand customers in China.
On July 18 this year, the official website of GAC Group issued an announcement stating 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 matters related to the joint venture in accordance with the law and regulations. GAC Group's annual financial report last year confirmed the impairment of assets.
Stellantis Group also announced on the same day that due to the lack of progress in the previously announced plan of Stellantis to acquire a majority stake in GAC Fick, the joint venture with GAC, Stellantis will develop the Jeep brand in China in an asset-light manner and negotiate with GAC to terminate the local joint venture. Stellantis will focus on distributing Jeep brand imported cars in China in the future.
