The joint venture between Stellantis and Chinese manufacturer Guangzhou Automobile Group has officially declared bankruptcy. The news was confirmed through a social media post, accompanied by the bankruptcy ruling issued by a court in China’s Hunan province.
GAC Fiat Chrysler declares bankruptcy: the joint venture between Stellantis and Chinese group GAC ends
This definitively closes the experience of GAC Fiat Chrysler Automobiles (GAC FCA), a partnership born in 2010 with the goal of strengthening the presence of Jeep, Fiat and Chrysler brands in the Chinese market. After over a decade of activity, the project failed to transform initial ambitions into solid and lasting results.
The collaboration between FCA (now part of Stellantis) and GAC had led to the opening of production facilities in Changsha and Guangzhou, particularly focused on producing Jeep SUVs adapted to local market preferences. Between 2016 and 2018, sales had shown steady growth, raising hopes for positive development of the joint venture.
However, the market context began to change rapidly. Competition from Chinese manufacturers, particularly those specialized in electric vehicles, became increasingly strong, while interest in Jeep models progressively declined. Added to this were tensions between the two partners, which exploded especially when Stellantis sought to take control of the joint venture, a proposal that was rejected by GAC. In 2022, Stellantis had announced its intention to abandon the agreement. Three years later, in 2025, came the bankruptcy ruling, which officially puts an end to the project.
