AutoBeta(AutoBeta.net)12/29 Report--

Recently, Ningde Times New Energy Technology Co., Ltd. (hereinafter referred to as "Ningde Times"), Guangzhou Auto Fiat Chrysler Automobile Co., Ltd. (hereinafter referred to as "Guangzhou Auto Fick") and other non-actionable property preservation review rulings were made public. According to the documents, the applicant Ningde requested that the applicant GAC Fiat Chrysler Co., Ltd. should freeze its bank deposit of 12.5 million yuan, or seal up or seize other property of the same value. The court examined and found that the applicant's application was in line with the provisions of the law and ruled that it would be enforced.

It is understood that since GAC Fick filed for bankruptcy liquidation, a number of enterprises applied for property preservation and obtained a court ruling. On November 4, the applicant Hunan Jingchen Mechanical and Electrical equipment Co., Ltd. requested to freeze 560000 yuan in bank deposits of GAC Fiat Chrysler Automobile Co., Ltd. or to seal up or seize other property of the same value. On October 27th, the applicant Shanghai Autolive Automotive Safety system Co., Ltd. requested to freeze the bank deposit of 5.1374 million yuan or seize or seize other property of the same value.

Shareholders of Guangzhou Auto Fick, GAC GROUP and Stellantis have approved a resolution authorizing Stellantis to file for bankruptcy at a loss, according to a notice on its website on October 31, 2022. This means that the joint venture, established in 2012, will officially end its development in the Chinese market.

Guangzhou Auto Fiat Automobile Co., Ltd. was jointly invested and built by GAC GROUP and Stellantis Group with a share ratio of 50:50 on March 9, 2010. the first one is the Fiat brand, and the domestic models include Feixiang, Zhiyue, Feiyue and so on. In 2014, Fiat merged with Chrysler, and the Jeep brand began to be localized in 2015, with domestic models such as Free Light, Liberty Man, Compass and Big Commander, and became popular with the slogan "not all SUV is called Jepp". According to the data, Guangzhou Auto Fick sold 146400 vehicles in 2016, up 270.84% from the same period last year to 205200 in 2017, an increase of 40.11% over the same period last year, which is the peak sales since the establishment of Guangzhou Auto Fick.

However, the Fiat brand announced its withdrawal from China in 2018 because of poor sales, leaving only the Jeep brand to develop independently. In the same year, the Jeep brand was named by the "315th Party" because of the problem of "burning engine oil". Since then, Guangzhou Auto Fick began to decline, with sales falling for four consecutive years. From 2018 to 2021, Guangzhou Auto Fick sales were 125200 (- 38.99%), 73900 (- 40.96%), 40500 (- 45.18%) and 20100 (- 50.33%), respectively. After entering 2022, GAC Fick has been shut down, multi-month production and sales directly for "0" or'- ".

According to GAC GROUP's announcement, the annual revenue in 2021 was 3.861 billion yuan, with a net loss of 3.169 billion yuan, while Guangzhou Auto Fick's operating income in the first half of 2022 was 588 million yuan, with a net loss of 649 million yuan. As of September 30, 2022, Guangzhou Auto Fick (unaudited) has total assets of 7.322 billion yuan and total liabilities of 8.113 billion yuan, with an asset-liability ratio of 110.80%, which means that Guangzhou Auto Fick is insolvent.

"not all SUV are called Jeep", this once popular slogan has lost its voice in the market. However, in the future, the Jeep brand will be sold domestically as an import. This also means that Chinese consumers can still buy purer Jeep models, but superimposed tariffs, transportation and other problems indicate that Jeep-branded models will be very expensive, destined to be niche brands and difficult to achieve.

The failure of Guangzhou Auto Fick has something to do with the general environment of the Chinese market. A few years ago, it was considered whimsical for domestic brands to hit the high-end market, but with the beginning of the new energy era, not only a number of new forces such as "Wei Xiaoli" have emerged, but traditional car companies such as BYD, Geely and Changan have also launched their own high-end brands. and the market reaction is good. In this context, more and more joint venture brands have withdrawn from the Chinese market, including Dongfeng Renault, Guangzhou Auto Acura and so on. In the increasingly fierce market environment, compared with the past, if foreign investors and joint venture brands want to gain a firm foothold in the Chinese market, they need to have a healthier business philosophy and come up with more sincere products. The era of relying solely on brands to dominate the world is over. Today, there is only one chicken feather left for Guangzhou Auto Fick.

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