July 8, 2025 – BEIJING The Changsha plant-a 170,000㎡ facility that once churned out 220,000 Jeeps annually—has been auctioned five times since 2022, its price slashed from 137M with zero bids. GAC-FCA’s July 8 bankruptcy declaration marks the collapse of China’s “market for tech” auto JV model, where foreign brands traded technology for access.
Three Fatal Blows:
- ICE Factory Trap
Retrofitting the fuel-dependent plant for EV production required $420M+—an absurd cost when BYD builds smart factories for 30% less. Auctioned equipment (welding robots, paint lines) fetched <25% of original value. - Shareholder Warfare
Stellantis’ 2022 power grab (demanding 75% control) triggered public feuds. Decision paralysis followed:
- 3-year delays for Jeep Cherokee facelifts
- Zero native EV platforms; only gas-guzzler conversions
- Rejected partnerships with Huawei/BYD
- From Boom to Bust
- 2017: Sold 220K units (“Not all SUVs are Jeeps” peak)
- 2022: 20K sales– utsold by ONE BYD model in a week
- $8BN debt hole with 110.8% debt ratio
Editor’s Note: GAC-FCA isn’t an anomaly – it’s the first domino in China’s Great Automotive Reset. Brands clinging to 20th-century JV logic will join Jeep in the graveyard. “This isn’t just about one failed JV – it’s an extinction event for automakers who treat China as their grandfather’s emerging market.”, said the managing director of consulting company Automotive Foresight.
