AutoBeta(AutoBeta.net)09/04 Report--

On Sept. 2, the manager of GAC Fick announced on its official Wechat account that the third online auction of the GAC Fick plant in Changsha will be held on the 2nd. The starting price will be about 1.225 billion yuan, with a deposit of 100 million yuan. The auction will start at 10:00 on September 17, 2024 and end at 10:00 on September 18, 2024. Prior to this, GAC Fick Changsha plant had held two auctions, but both ended in a failed auction because there was no bid.

According to reports, generally there is a failed auction, ‌ auction will be appropriate to reduce the reserve price, in order to attract potential buyers. The starting price of the third auction is 1.225 billion yuan, which is 690 million yuan lower than that of the first auction and 307 million yuan lower than that of the second auction.

It should be noted that, according to regulations, in the bankruptcy liquidation case, the number of asset auctions is limited to three, and if all three attempts fail, the assets will be returned to the person subject to execution. In other words, if the third auction of Guangzhou Auto Fick ends in a failed auction, the assets will be returned to the person subject to execution. As to whether the auction can be successful after two price cuts, there will be an answer soon.

Due to the fact that the actual assets have been unable to pay off all the debts, and now the operation has basically ceased, and there is an obvious lack of solvency, GAC Fick has filed for bankruptcy in October 2022 and then entered the bankruptcy liquidation process on November 28th. this incident has also become one of the iconic events in the automobile industry in 2022.

The first auction at GAC's Fick Changsha plant began at 10:00 on July 21, with a starting price of 1.9152885 billion yuan, but ended in a failed auction because there was no bid. Since then, the second auction began at 10:00 on August 5, and the starting price of the second auction dropped by 383.0577 million yuan from 1.9152885 billion yuan to 1.5322308 billion yuan, but in the end there was no one to pick up the offer. After two failed auctions, the GAC Fick manager issued a moratorium on the third auction and once again actively docked with the local government investment departments and a small number of intended investment enterprises, but there were no definite investment enterprises for the time being, so the third round of online auction was carried out. GAC Fick manager said that at present, the main work in this case, such as asset management, non-core asset disposal, claim declaration and review, automobile after-sales service, and so on, has entered a later stage.

As a Sino-foreign joint venture, Guangzhou Auto Fick was established in March 2010. it is a joint venture between GAC GROUP and Fiat Chrysler, with a total investment of about 17 billion yuan and headquartered in Changsha, Hunan Province. it has two major production bases: Changsha factory and Guangzhou factory.

From the time of its establishment, it is not too late for GAC Fick to lay out in China, but it is a pity that it failed to open the Chinese market in the end. People in the industry believe that the failure of GAC Fick is related to the decline in the competitiveness of its products. GAC Fick has almost not launched any new models since 2018, and the quality problems of the products have exposed, resulting in serious damage to the brand influence. in this context, GAC Fick's sales volume has plummeted, a large amount of production capacity has been idle, and production and operation has also been directly in trouble, resulting in Guangzhou Auto Fick having to file for bankruptcy.

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 mentioned above, 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 land and building factories, it also includes all kinds of machinery and equipment produced by GAC Fick and so on.

"Automotive Industry concern" believes that the fall of GAC Fick is also related to the development of the general environment of the auto market, and the market is constantly changing, while GAC Fick has failed to follow the pace of development of the mainstream market. Of course, the fall of GAC Fick is not alone. In the Chinese auto market, which is already full of competition, including Southeast Mitsubishi, FAW Mazda, Changan Suzuki, Dongfeng Renault, Guangzhou Auto Acura and so on, they have all withdrawn from the market one after another.

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