Fiat Chrysler's Closed China Plant Fails to Sell at Auction Again

Fiat Chrysler's closed assembly plant in China failed to sell at auction for the third time, underscoring ongoing difficulties in finding a buyer. The plant has been inactive since production ceased, and repeated attempts to auction it have not attracted successful bids, reflecting challenges within China's auto industry and the broader economic landscape for international manufacturers.

The Changsha plant, which produced Jeep and Fiat vehicles before closing in 2022, has already failed to attract buyers in earlier auctions held in June and July.

Fiat Chrysler’s bankrupt Chinese joint venture failed to sell its auto factory in Southern China for the third time, even after cutting the price by over a third, reflecting the declining demand for internal combustion engine vehicles in the world’s largest car market. 

The Changsha-based plant, once jointly operated by Fiat Chrysler (now part of Stellantis NV) and Guangzhou Automobile Group, was listed for auction on JD.com on Sept. 17 for 1.23 billion yuan ($174 million), but no bids were received by the close on Sept. 18.

China’s swift shift towards electric vehicles has left many foreign automakers, including Mitsubishi Motors and Fiat Chrysler, struggling to adapt. Some have exited the market, while others, like Volkswagen and General Motors, are reassessing their strategies. 

The joint venture, which sold Jeep and Fiat models, went bankrupt in 2022 following years of declining sales. Stellantis CEO Carlos Tavares had emphasized a “light-asset” approach to manage the growing tensions between China and foreign companies. Despite the price being reduced by more than 35% for this latest auction, the Changsha facility, closed since 2022, still failed to attract any buyers, following similar outcomes in auctions held in June and July.

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Source: autonews‍