AutoBeta(AutoBeta.net)11/07 Report--

After several failed auctions, GAC Fick lowered its starting price again to begin the fourth auction, but unfortunately, the fourth auction was still not as expected and ended in a failed auction again because no one signed up.

On November 7, the auction of assets in the bankruptcy liquidation case of Guangzhou Auto Fiat Chrysler Co., Ltd. (hereinafter referred to as "Guangzhou Auto Fick") ended. According to JD.com 's auction platform, the targets of the auction were the assets involved in the company's bankruptcy liquidation case, including GAC Fick's Changsha factory and its affiliated buildings, machinery and equipment, and other core assets. The auction price was 1.103 billion yuan, with a total of 115people setting up attention reminders and 9623 onlookers, but failed to attract the buyer ‌ to end in a failed auction.

Judging from the starting price of 1.103 billion yuan in the fourth auction, compared with the initial auction price of 1.915 billion yuan, it has been reduced by 812 million yuan, almost halving, but it is a pity that it has not been sold successfully.

Prior to this, the GAC Fick Changsha factory had held three auctions, the first of which began at 10:00 on July 21, with a starting price of 1.915 billion yuan, and then a second auction was held at 10:00 on August 5. the starting price of the second auction dropped from 1.915 billion yuan to 1.532 billion yuan, a decrease of 383 million yuan. 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 no one was interested.

As a joint venture car company, Guangzhou Auto Fick was jointly established by GAC GROUP and Stellantis Group in March 2010, with a total investment of about 17 billion yuan, 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 700000 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. However, GAC Fick pointed out in the bidding announcement that because the company has stopped production in 2022, some of the assets in the subject matter have been idle for a long time, and there may be loss or damage. In addition, due to the unsalable and suspended production of related vehicle products, maintenance and storage status is general.

In October 2022, Guangzhou Auto Fick formally filed for bankruptcy. Behind the bankruptcy of Guangzhou Auto Fick is that its successive decline in sales led to its insolvent situation and faced with high debts. Data show that as of September 30, 2022, Guangzhou Auto Fick (unaudited) had total assets of 7.322 billion yuan and total liabilities of 8.113 billion yuan, with an asset-liability ratio of 110.80%. The assets were insufficient to pay off all debts and obviously lacked solvency. As a Sino-foreign joint venture car company, the early performance of GAC Fick in the car market is commendable, especially in terms of product launch speed, but it is a pity that in the highly competitive Chinese market, GAC Fick's product competitiveness declined and failed to keep up with the pace. Finally embarked on the road of bankruptcy.

Guangzhou Auto Fick assets after four auctions and four average auctions is also a portrayal of the current development trend of the auto market. With the trend of electric transformation of the global automobile industry, the market share of fuel vehicles has shrunk sharply, and many traditional car companies are facing unprecedented challenges, including the problem of overcapacity faced by fuel vehicle factories, therefore, many car companies do not blindly take over fuel car factories. People in the industry believe that the GAC Fick plant has high construction standards and advanced equipment, but the fuel vehicle production line no longer has a competitive advantage in the rapid rise of new energy vehicles, and upgrading the fuel vehicle production line into a new energy production line will also face a large amount of cost, which is also one of the reasons why Guangzhou Auto Fick assets have been auctioned four times and sold evenly four times. So far, it is not clear how GAC Fick will dispose of its assets, and the follow-up "Automotive Industry concern" will continue to follow.

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