AutoBeta(AutoBeta.net)08/07 Report--

A few days ago, JD.com auction platform showed that Guangzhou Auto Fiat Chrysler Co., Ltd. (hereinafter referred to as "Guangzhou Auto Fick") bankruptcy liquidation assets are being auctioned. Among them, the GAC Feike Changsha plant and its affiliated buildings, machinery and equipment, and other core assets began the second auction at 10:00 on August 5. the starting price of the second auction was reduced by 383.0577 million yuan to 1.5322308 billion yuan, but there was still no bid after the price reduction. According to the auction platform, a total of 76 people set up reminders and 2567 onlookers watched the auction, but no one signed up, which ended on Aug. 6 and ended in a failed auction again.

The first auction of Guangzhou Auto Fick Changsha factory began at 10:00 on July 21, with a starting price of 1.9152885 billion yuan, but because there was no bid, the first auction ended in failure, while the starting price of the second auction dropped by 38305.77 million yuan from 1.9152885 billion yuan to 1.5322308 billion yuan. but there's still no one to pick up.

It is understood that in the bankruptcy liquidation case, the number of asset auctions is limited to three. If all three attempts fail, the assets will be returned to the person subject to execution.

According to Article 28 of the provisions of the Supreme people's Court on the auction and Sale of property by the people's Court in Civil execution, for the immovable property or other property rights that are still unauctioned at the second auction, the people's court may, in accordance with the provisions of Article 19 of these provisions, submit the price to the applicant for execution or other enforcement creditors to pay off the debt. If the applicant for execution or other enforcement creditors refuse to accept or are unable to pay off their debts according to law, the third auction shall be held within 60 days. If the third auction fails and the executor or other execution creditor refuses to accept the immovable property or other property rights to repay the debts according to law, the people's court shall issue a sale notice within seven days from the date of the end of the third auction. If no buyer is willing to buy the property at the reserve price of the third auction within 60 days from the date of the announcement, and the executor or other execution creditors still do not indicate acceptance of the property for debt repayment, the seal up or freeze shall be lifted and the property shall be returned to the person subject to execution, except where other enforcement measures may be taken with respect to the property.

In other words, GAC Fick Changsha plant can also hold a third auction. According to reports, generally there is a failed auction, ‌ auction will be appropriate to reduce the reserve price, in order to attract potential buyers. This also means that if the GAC Fick Changsha plant carries out the third auction, the auction starting price may be reduced again. However, as of press time, it is not clear whether Guangzhou Auto Fick will hold a third auction.

Guangzhou Auto Fick filed for bankruptcy in October 2022, when the court held that Guangzhou Auto Fick's actual assets had been unable to pay off all its debts and had basically stopped operating, obviously lacking solvency, in line with the bankruptcy reasons stipulated in the Enterprise bankruptcy Law. In November 2022, GAC Fick officially entered bankruptcy proceedings.

Data show that GAC Fick has two major production bases: Changsha factory and Guangzhou factory. In September 2021, due to spare capacity, Stellantis announced the closure of Guangzhou Auto Fick plant, which was taken over by GAC Ean and used to produce pure electric models. As for the Guangqi Fick Changsha factory, the factory is located at No. 18 Yingxia Road, Changsha County, Changsha City, Hunan Province, with a land use area of 700112.8 square meters and a total of 19 buildings with property certificates, in addition to the auction of land and building plants, it also includes all kinds of machinery and equipment produced by GAC Fick and so on.

As a Sino-foreign joint venture car company, it is not too late for GAC Fick to lay out in China. Unfortunately, its influence in the Chinese market is not high, and then fell after a short highlight. As for the reasons for the fall of Guangzhou Auto Fick, GAC GROUP previously said in the announcement that due to the decline in product competitiveness and other factors, Guangzhou Auto Fick's production and operation gradually fell into difficulties, although Dongfang took positive measures and increased capital many times, but the operating effect failed to improve, resulting in its production and operation stagnated in an all-round way. At that time, data showed that as of September 30, 2022, Guangzhou Auto Fick's (unaudited) total assets were 7.322 billion yuan, the total liabilities were 8.113 billion yuan, and the asset-liability ratio was 110.80%. The assets were no longer sufficient to pay off all debts and obviously lacked solvency.

People in the industry believe that the fall of GAC Fick is actually related to the development environment of the auto market. With the rapid rise of domestic independent brands and the intensification of market stock competition, car companies that lack hematopoietic capacity and do not have enough bright spots of their products have faded out of public view one after another, including Southeast Mitsubishi, Changan Suzuki, Dongfeng Renault, Guangzhou Auto Acura and so on.

Reviewing the development process of Guangzhou Auto Fick, Guangzhou Auto Fick has a good performance in the car market when it just started, and the product update speed is very fast. It has laid out four SUV models in less than 3 years, so it has achieved good sales performance. Unfortunately, the market is constantly changing, and GAC Fick has failed to keep pace with the development of the mainstream market.

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