In an official statement shared through social media, the court-appointed administrator overseeing GAC Fiat Chrysler Automobiles (GAC FCA) announced that they had submitted a request to the Changsha Intermediate People’s Court to formally declare the company bankrupt. This move came after certain creditors expressed their belief that the company had “no possibility of reorganization,” effectively ending any hopes of financial recovery or restructuring.
Following the petition, the court accepted the bankruptcy request and also gave its approval to a bankruptcy property distribution plan. This plan, which had been drafted by the administrator and subsequently reviewed and endorsed by the involved creditors, outlines how the remaining assets of the company will be allocated among those owed money. In the same message, the administrator expressed gratitude toward the creditors for their understanding and cooperation throughout the long and complex proceedings. They also pledged to accelerate the final stages of the case, ensuring the legal rights and interests of the majority of creditors are protected. Furthermore, they promised to expedite the distribution of the company’s remaining assets to creditors “as soon as possible.”
This bankruptcy concludes a lengthy and turbulent chapter in GAC FCA’s history. The case has been active for several years, during which the administrator reportedly received nearly 600 claims from various creditors. These claims collectively amounted to approximately ¥10 billion (roughly $1.4 billion USD). However, after detailed audits and reviews, the actual amount eligible for distribution was substantially reduced, suggesting that not all claims were deemed valid or fully recoverable.
The announcement marks a dramatic fall from the joint venture’s original ambitions. Founded in 2009 under the name GAC Fiat, the company was initially formed as a strategic collaboration to manufacture vehicles in China, particularly under the Jeep brand, which has strong global recognition. The venture aimed to capitalize on the rapidly growing Chinese automotive market by producing popular models locally, reducing costs and increasing accessibility.
However, over time, the partnership between GAC and what eventually became Stellantis deteriorated. Strategic differences and market challenges led to a breakdown in cooperation. Stellantis ultimately chose to cease local production and opted instead to import Jeeps directly into China, signaling the effective end of the joint venture’s operations.
Now, with the court’s ruling and creditor-backed distribution plan in place, GAC FCA will officially close its doors, bringing to an end what began as a promising collaboration in one of the world’s largest car markets.