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According to several media reports, GAC GROUP has agreed with Stellantis to transfer his 20 per cent stake in Guangzhou Auto Fick and is in the process. As part of the plan, GAC Fick Guangzhou plant is about to stop production, in the future GAC Fick models will all be produced by Changsha factory, the future of Guangzhou plant is still uncertain.

Data show that Guangzhou Auto Fick was established on March 9, 2010. it was jointly established by Guangzhou Automobile Group Co., Ltd., Fiat Group Automotive Co., Ltd., and Chrysler Asia-Pacific Investment Co., Ltd., with a share ratio of 50:10:40. The company's headquarters is located in Changsha Economic Development District, Hunan Province. At present, it has two major vehicle production bases, Changsha factory and Guangzhou factory, with an overall design capacity of 328000 vehicles. It is understood that Changsha factory mainly produces Jeep free light, big commander and big commander PHEV, Guangzhou factory mainly produces Jeep free man and guide.

In response to media reports, GAC GROUP responded to the media that due to the consideration of the utilization rate of enterprise resources, the shareholders of GAC Fick decided to implement the transfer of Guangzhou factory production line. According to the plan, the Guangzhou plant will complete the transfer of the main production line equipment to the Changsha plant and the classified disposal of other assets within 2021, and cancel the Guangzhou Branch of Guangzhou Automobile Fick by March 2022. For Guangzhou Fick Guangzhou plant will be how to deal with the relocation, GAC GROUP said, "will actively explore the activation of Guangzhou plant Guangzhou resources." As for the transfer of 20 per cent of GAC Fick's shares, GAC GROUP said: "with regard to the reported share transfers, there is no such information at present, please refer to the official information." As we all know, GAC GROUP owns four joint venture brands: Guangzhou Automobile Toyota, Guangzhou Automobile Honda, Guangzhou Automobile Fick and Guangzhou Automobile Mitsubishi. Guangzhou Automobile Toyota and Guangzhou Automobile Honda are the profit support of GAC GROUP. Guangzhou Auto Fick and Guangzhou Automobile Mitsubishi do not have a strong sense of existence in the market. Guangzhou Auto Fick, in particular, has even become a "burden" for GAC GROUP. According to the 2020 annual performance report, GAC Fick's cumulative sales in 2020 was 40500 vehicles, down 40.38% year on year and 57.78% year on year, and the capacity utilization rate was only 11.77%. The production and sales of Guangzhou Auto Fick in the first half of 2021 were 7719 and 11760 respectively, down 51.5% and 33.09% respectively from the same period last year. From the perspective of assets, GAC Fick has become insolvent. At the end of 2020, the net assets of GAC Fick were-331 million yuan, and at the end of the first half of the year, the net assets were-338 million yuan. No matter in terms of sales volume or assets, GAC Fick is not only not a high-quality asset of GAC GROUP, but has even become a "liability".

With sales plummeting and insolvent, will GAC Fick become the next Dongfeng Renault? On January 16, 2021, the FCA Group and the PSA Group merged to form the STELLANTIS Group with a share ratio of 50:50. According to the official website, the group owns 15 car brands, and joint ventures in China include DPCA and Guangzhou Auto Fick. At present, whether it is Guangzhou Auto Fick or Dragon Motor, the development of these two companies in China is not optimistic, but it is not likely to withdraw from the Chinese market. Will Guangzhou Auto Fick withdraw from China? From the market level, the Chinese market is the world's largest automobile market and the largest new energy vehicle market, the future development will be stable, even if the current development in the market is not optimistic, but still not to the point of direct withdrawal. Will STELLANTIS Group set up a new joint venture brand to replace Guangzhou Auto Fick? Although the current development of Guangzhou Auto Fick is not optimistic, but it has been developed for at least more than a decade, the Jeep brand still has a certain sense of existence in the market. If a new joint venture brand is re-established, no matter in brand construction or product research and development, it will do more harm than good for STELLANTIS Group. Moreover, STELLANTIS Group has issued a statement denying the possibility of becoming a new joint venture brand in China.

Ren Wanfu, an auto analyst, said that some adjustments to the GAC Fick joint venture share ratio may bring some hope to the company. Guangzhou Auto Fick's losses have been expanding in recent years, which has brought greater pressure to GAC GROUP; for the Stellantis Group, it is also possible to let go of control. According to reports, Stellantis Group had hoped to form an absolutely controlling joint venture in China, so it is expected to focus on support after it takes a controlling stake in Guangzhou Auto Fick. Judging from the available information, GAC Fick Guangzhou plant closure is basically confirmed, as for equity changes, still need to wait for the latest official announcement. As for GAC Fick in Guangzhou after the closure of the plant, its products and follow-up development will make adjustments, we will continue to pay attention to.

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