AutoBeta(AutoBeta.net)10/23 Report--

On October 22nd, the manager of GAC Fick issued a notice on the asset disposal of the bankruptcy liquidation of GAC Fiat Chrysler Automobile Co., Ltd. (hereinafter referred to as "GAC Fick") on its official Wechat account. According to the announcement, the manager of Guangzhou Auto Fick held the fourth online auction on October 22, 2024. The starting price of this auction is about 1.103 billion yuan, or 90 percent of the last failed auction price, with a deposit of 100 million yuan. The auction will start at 10:00 on November 6, 2024 and end at 10:00 on November 7, 2024.

This is the fourth net auction. Prior to this, GAC Feike Changsha factory and its affiliated buildings, machinery and equipment and other core assets have been auctioned three times, but unfortunately, the three auctions ended in a failed auction because no one signed up.

The first auction at the Guangzhou Auto Fick Changsha factory began at 10:00 on July 21, with a starting price of 1.915 billion yuan. Then, the second auction was held at 10:00 on August 5, and 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 there was also no one to pick up the offer. Since then, GAC Fick manager suspended the third auction, and once again actively docked with the local government investment departments and a small number of intended investment enterprises, there were no definite investment enterprises at that time. Since September 18, Guangzhou Auto Fick held its third auction, with a price of 1.225 billion yuan, which was 690 million yuan lower than the starting price of the first auction and 307 million yuan lower than the starting price of the second auction, but still no one was interested.

When there is a failed auction, the seller will lower the reserve price as appropriate, so as to attract potential buyers. GAC Fick also adopts this strategy. Judging from the starting price of 1.103 billion yuan in the fourth auction, compared with the initial bidding price of 1.915 billion yuan, it has been reduced by 812 million yuan, almost halving. Compared with 1.225 billion yuan for the third time, it also decreased by 122 million yuan.

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. As a Sino-foreign joint venture car company, the early GAC Fick performed well in the car market, and the product was updated very fast, but it was a pity that it could not achieve Changhong. Data show that GAC Fick sold 222300 vehicles in 2017, becoming the fastest joint venture SUV brand with cumulative sales of more than 400000 vehicles, but then began to decline, sales declined year after year, and in addition to the decline in sales, what is even more bleak is that Guangzhou Auto Fick faces high debts. According to the financial report, as of September 30, 2022, the total assets of Guangzhou Auto Fick (unaudited) was 7.322 billion yuan, and the total liability was 8.113 billion yuan. The asset-liability ratio reached 110.80%, which became the last straw to crush Guangzhou Auto Fick, and finally filed for bankruptcy with the court because it was unable to pay off its debts.

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

Nowadays, with the trend of electric transformation of the global automobile industry, the market share of fuel vehicles has shrunk sharply. in this context, car companies are facing overcapacity, so many car companies will not expand production blindly and reduce the demand for factories. People in the industry believe that although the GAC Fick plant has high construction standards and advanced equipment, the fuel vehicle production line no longer has a competitive advantage in the rapid rise of new energy vehicles. It is still not clear whether anyone has photographed the GAC Fick Changsha plant, and "Automotive Industry concern" will also continue to pay attention.

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