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Stellantis declares bankruptcy in China, with $1B in debts


It's the official end of an ambitious project launched nearly fifteen years ago: the court of Changsha, in Hunan province, has declared bankruptcy.

This joint venture, created in 2011 at the instigation of Sergio Marchionne, was to enable Fiat Chrysler to conquer the world's largest automobile market alongside Chinese giant GAC Group. This failure also symbolizes the inability of Stellantis, like other Western manufacturers, to adapt to China's electric revolution, led by ultra-competitive local brands. After the FCA-PSA merger, Carlos Tavares had tried to regain control of the joint venture, but GAC had opposed him, denouncing what it considered unsuitable governance and a regulatory climate unfavorable to foreign groups.

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