(Bloomberg) -- The administrator for Fiat Chrysler’s bankrupt Chinese venture failed to sell a jointly run auto factory in Southern China for a third time at auction, despite slashing the price by more than a third, indicating the lack of demand for internal combustion engines in the world’s largest car market.
The equipment, buildings and other assets at the Changsha-based plant previously operated by Fiat Chrysler, now part of Stellantis NV., and partner Guangzhou Automobile Group Co. went under the gavel online starting on Tuesday, priced at 1.23 billion yuan ($174 million). No bids were received by the end of the auction on Wednesday, according to the listing for the factory on Chinese auction platform JD.com.
China’s rapid transition to electric vehicles has caught many foreign automakers flatfooted. Some of them, including Mitsubishi Motors Corp. and Fiat Chrysler, decided to halt manufacturing in the country all together while others, such as Volkswagen AG. and General Motors Co., are considering a strategy reset for the market.
The joint venture, which sold Jeep and Fiat models, filed for bankruptcy in 2022 after years of slumping sales. Stellantis CEO Carlos Tavares said at the time the company was taking a light-asset approach to protect against deteriorating relationship between China and foreign companies.
The Changsha facility, shuttered since 2022, had already failed to attract any buyers at previous auctions in June and July. The price was slashed by more than 35% for the latest sale, the administrator managing the bankruptcy proceedings said in a filing on Sept. 2 to the National Enterprise Bankruptcy Information Disclosure Platform.
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