by Bankruptcy of GAC Fiat Chrysler Automobiles in China
A Chinese court has officially declared the joint venture GAC Fiat Chrysler Automobiles bankrupt. The company, which specialized in manufacturing Jeep vehicles in China, ceased its operations back in 2022 and has now received a final decision on liquidation.
The company’s administrator filed a lawsuit with the court in Changsha after creditors stated that the enterprise’s reorganization was impossible. The court satisfied the requirement and approved the plan for the distribution of the bankrupt’s property. A notice to creditors states:
We will accelerate the final stages of the case, protect the legal rights of creditors, and strive to complete the distribution of property as quickly as possible.
The court process lasted for years, and during this time, about 600 lawsuits were received, totaling over one billion dollars. However, after verification, this amount was significantly reduced.
Failed Chinese Project
The GAC Fiat joint venture was established back in 2009 to manufacture vehicles in China, but over time the partnership fell apart. As a result, Stellantis (the successor to Fiat Chrysler) decided to import Jeeps to China rather than produce them locally.
This situation highlights the complexity of doing business in the Chinese market, where competition among automakers is extremely high. Despite attempts to adapt to local conditions, many international companies face difficulties due to regulatory barriers and changes in demand. Over recent years, several automakers have already left the Chinese market or significantly reduced their presence.
