GAC Fiat Chrysler Automobiles Company, the joint venture between the Netherlands-headquartered automaker Stellantis NV and Chinese state-owned Guangzhou Automobile Group, has been officially declared bankrupt. The company recently disclosed documents confirming that a court in China's Hunan Province has officially declared the company bankrupt, according to local reports.
GAC Fiat Chrysler Automobiles was founded in 2010, with both partners holding 50% of the equity. The joint venture received investments of around CNY 17 billion (US$ 2.4 billion) and began producing Chrysler SUV models under the Jeep brand, including the Compass, Cherokee, and Renegade, from 2015. Local sales peaked at 220,000 units in 2017.
Sales plunged thereafter, with local media reporting mounting customer complaints related to excessive oil consumption, causing volumes to plunge to just over 20,000 in 2021. Following disagreements over how to move the joint venture forward, the two partners agreed to wind down the company in 2022.
Stellantis, which includes the Peugeot, Citroen, Fiat, Opel, Vauxhall and Chrysler brands, has struggled to gain a significant foothold in the Chinese market, unlike German brands such as Volkswagen, BMW and Mercedes-Benz, as well as General Motors and Ford.
