AutoBeta(AutoBeta.net)09/18 Report--

On September 18, the auction of assets in the bankruptcy liquidation case of Guangzhou Auto Fiat Chrysler Co., Ltd. (hereinafter referred to as "Guangzhou Auto Fick") failed to auction again. According to JD.com 's auction platform, the GAC Feike Changsha factory and its affiliated buildings, machinery and equipment, and other core assets, failed to sell again because there was no bid. This was its third auction, with a price of 1.225 billion yuan. A total of 94 people set up attention reminders and 4835 onlookers at the auction, but no one signed up. It ended at 10:00 on September 18, and ended in a failed auction again.

Prior to this, the GAC Fick Changsha factory had held two auctions. the first auction began at 10:00 on July 21, with a starting price of 1.915 billion yuan, but due to a failed bid, the second auction began at 10:00 on August 5. the starting price of the second auction dropped by 383 million yuan from the original 1.915 billion yuan to 1.532 billion yuan, but in the end there was no answer.

On Sept. 2, the GAC Fick manager issued a notice on its official Wechat account that GAC Fick's land, buildings, machinery and equipment and other assets were auctioned twice through the online platform of "JD.com auction". Since then, the GAC Fick manager suspended the third auction and once again actively docked with the local government investment promotion part and a small number of interested investment enterprises, but there is no definite investment enterprise for the time being.

At present, it is a pity that the third auction ended in a failed auction. Under normal circumstances, when there is a failed auction, the seller will lower the reserve price as appropriate to attract potential buyers. GAC Fick has also adopted this strategy, but no one is interested in two price cuts. 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.

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. It is headquartered in Changsha, Hunan, and has two major production bases: Changsha factory and Guangzhou factory. Among them, due to idle capacity, the Guangzhou plant was closed in September 2021 and was taken over by GAC Ean for the production of pure electric models, while the aforementioned Guangzhou Auto Fick Changsha plant is located at No. 18 Yingxia Road, Changsha County, Changsha City, Hunan Province. the land use area is 700112.8 square meters, a total of 19 buildings with property certificates, auction in addition to land and building plants, but also includes Guangzhou Auto Fick production of a variety of machinery and equipment, and so on.

As a Sino-foreign joint venture car company, reviewing the development process of Guangzhou Auto Fick, its initial performance in the car market is quite good, and the product update speed is extremely fast. It has laid out four SUV models in less than 3 years, thus achieving good sales performance. It is a pity that GAC Fick failed to follow the development of the mainstream market and eventually filed for bankruptcy in October 2022 because it was unable to pay off all its debts and now basically ceased operation and obviously lacked solvency. However, the fall of Guangzhou Auto 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.

With the trend of electric transformation of the global automobile industry, the market share of fuel vehicles has shrunk rapidly. in this context, many car companies with fuel vehicles as the main sales force are facing the problems of declining sales and overcapacity. To this end, we also had to start measures such as "selling factories to reduce weight, shutting down production lines" and so on. Before that, Beijing Hyundai also sold a factory due to the suspension of production of a number of models, and the transfer reserve price was 3.684 billion yuan, but the sale was not smooth. Finally, it was sold at a transaction price of 1.62 billion yuan, which was 2.064 billion yuan lower than the initial transfer reserve price.

It should be noted that, unlike the Hyundai plant in Beijing, GAC Fick officially entered bankruptcy proceedings in November 2022. It is understood that there are three auction opportunities for bankrupt assets, and all three failed auctions, and the court will sell the assets or repay the debts with property if the creditors are willing to accept it. As of press time, it is not clear how GAC Fick assets will be disposed of next, and the follow-up "Automotive Industry concern" will also continue to pay attention.

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