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After two consecutive failures, the auction of GAC Fiat Chrysler Changsha factory was temporarily suspended.

On August 22, the administrator of GAC Fiat Chrysler Automobiles issued an announcement stating that in order to maximize the value of core assets and protect the legitimate rights and interests of creditors, the third online auction of core assets has been suspended. The administrator has once again contacted the local government investment promotion department and a few potential investment companies. Subsequently, the administrator will determine the relevant matters regarding the continued disposal of core assets as soon as possible depending on the contact situation.

The GAC Fiat Chrysler Changsha plant was auctioned twice on a public platform on July 20 and August 5 this year. The first starting price was about 1.915 billion yuan, but it failed to be sold because no one signed up. The second starting price was 80% of the first failed price, about 1.532 billion yuan, but it also failed to be sold because no one signed up. After the two failed auctions, the GAC Fiat Chrysler Changsha plant was temporarily suspended from auction.

Public information shows that GAC Fiat Chrysler was jointly established by GAC Group and Fiat Group in March 2010, with its registered address in Changsha Economic and Technological Development Zone, Hunan Province. The Changsha factory covers an area of ​​over 700,000 square meters. The factory has four complete workshops for automobile production, namely "stamping, welding, spraying, and assembly", with a total investment of 10 billion yuan.

Compared with the GAC Fiat Chrysler Changsha plant, which has never been taken over, GAC Aion, a new energy independent brand under GAC Group, has taken over the GAC Fiat Chrysler Guangzhou plant in 2022, and the production line has been transformed to produce pure electric vehicles. Although it did not take over the GAC Fiat Chrysler Changsha plant, GAC Aion took over the GAC Mitsubishi Changsha plant and transformed it into a new energy vehicle plant with an annual output of 200,000 vehicles. Feng Xingya, general manager of GAC Group, said that GAC Group will fully support the operation and development of the GAC Aion Changsha plant.

However, the two major shareholders have different ideas about the development of GAC Fiat Chrysler. On January 27, 2022, GAC Group’s official website issued a statement stating that the company learned from the official website of Stellantis that it plans to increase its stake in the joint venture GAC Fiat Chrysler from 50% to 75%. This release has not been approved by us, and GAC Group deeply regrets this. Regarding foreign joint ventures and cooperation, GAC Group will strictly abide by national policies and regulations and advance on the principles of mutual trust and win-win. On the same day, GAC Group announced in the evening that due to the great operational difficulties of GAC Fiat Chrysler in recent years, the shareholders of the joint venture have conducted in-depth communication and consultation on their joint venture and cooperative operations and the revitalization plan of GAC Fiat Chrysler. The two parties have not yet signed a formal agreement on the equity adjustment of GAC Fiat Chrysler.

On July 18, 2022, Stellantis Group, another shareholder of GAC Fiat Chrysler Automobiles, announced that due to the lack of progress in its previous plan to acquire a majority stake in GAC Fiat Chrysler Automobiles, the company will adopt a light-asset approach to develop the Jeep brand in China and negotiate with GAC Group to terminate the local joint venture. Subsequently, GAC Group issued a statement saying that GAC Fiat Chrysler Automobiles has continued to lose money in recent years and has been unable to resume normal production and operations since February of that year. GAC Group and Stellantis are negotiating to terminate the joint venture in an orderly manner and will properly handle the relevant matters of the joint venture in accordance with laws and regulations. GAC Fiat Chrysler Automobiles has entered bankruptcy proceedings.