On July 8, 2025, the administrator of GAC Fiat Chrysler Automobiles Co., Ltd. (GAC Fiat Chrysler Automobiles) issued an announcement that the Changsha Intermediate People's Court of China has officially ruled to declare the company bankrupt. The "Bankruptcy Property Distribution Plan" voted by the creditors' meeting was approved by the court on June 27, marking that the joint venture automaker, which once sold 220,000 vehicles a year, has officially entered the final stage of bankruptcy liquidation.
Insolvency: As of September 2022, audit data showed that GAC Fiat Chrysler's total liabilities were 8.113 billion yuan, with an asset-liability ratio of over 110%. Its core assets have been auctioned off five times but no one has taken over;
Procedural nodes: In October 2022, the GAC Group Board of Directors approved the bankruptcy application; in November of the same year, the Changsha Intermediate Court accepted the application; non-core assets were continuously disposed of from 2024; the property distribution plan was voted on in June 2025;
Shareholder attitude: GAC Group announced that it had made provisions for impairment of claims, and bankruptcy would not affect its continued operation;
Product strategy errors: The main brand Jeep has long only equipped the four-wheel drive system on top-end models, which deviates from the "off-road" positioning;
Quality crisis: The "burning oil" incident in 2018 was reported by China Central Television After the 315 exposure, the negative attitude of handling led to the collapse of reputation;
Electrification lags behind: no competitive products were launched in the wave of new energy transformation, and monthly sales in 2022 were once zero;
Core assets: The land and equipment of the Changsha factory have been auctioned five times, and the starting price has dropped from RMB 1.915 billion to RMB 1.103 billion, but it still failed to be sold;
Special work: The draft of the after-sales service system cooperation has been drafted and is awaiting a vote at the creditors' meeting; non-core assets such as molds are disposed of through JD's bankruptcy and forced liquidation platform;
GAC Fiat Chrysler is the last disintegration of the Stellantis Group's joint venture system in China (following the withdrawal of Fiat and Chrysler brands). This case reflects the survival dilemma of the traditional joint venture model in the era of smart electric vehicles. The administrator's notice shows that as of July 2025, some accounts receivable collection and material disposal work are still to be completed.
