News Analysis
GAC Fiat Chrysler Automobiles, once a flagship joint venture between China’s Guangzhou Automobile Group (GAC) and the multinational Stellantis, has officially been declared bankrupt by a court in Changsha, China, after years of financial struggles and unsuccessful attempts at restructuring.
GAC Fiat Chrysler publicly disclosed the Changsha Intermediate People’s Court’s bankruptcy ruling on July 8.
The court found that the company was insolvent and lacked the conditions necessary for reorganization or settlement. The ruling stated that GAC Fiat Chrysler is unable to pay off its debts, its assets are insufficient to cover liabilities, and it does not meet the criteria for restructuring or reconciliation. It therefore meets the statutory conditions for bankruptcy….
China’s GAC-Fiat Chrysler Joint Venture Declared Bankrupt Amid Mounting Debts
