(Yicai Global) Nov. 3 -- Global auto giant Fiat Chrysler Automobiles denied media reporting that it had failed to make an agreed cash injection into Guangzhou Automobile Group Fiat Chrysler Automobiles, its joint venture with Chinese carmaker GAC Group, and had proposed pulling back just before its merger with French carmaker Groupe PSA.

“FCA strongly rejects the inaccurate speculation that a proposed divestment from GAC FCA is planned. FCA is fully committed to China and to the success of our joint venture GAC FCA,” the statement said.

“This was further illustrated through the recent [CNY]1 billion (USD149.5 million) capital injection from both shareholders into GAC FCA, coupled with the signing of a memorandum of understanding with GAC in August to further strengthen our cooperation,” FCA added.

FCA failed to pay CNY500 million (USD74.7 million) in entrusted loans to supplement the JV’s cash as the Chinese partner GAC had, a source close to the FCA told Yicai Global.

In 2014, London-based FCA and GAC formed the GAC FCA JV, which may go belly up this year, the insider added.

The USD38 billion merger of FCA and French carmaker Groupe PSA is set to get the greenlight from the EU and is expected to conclude in the first quarter.

Editor: Ben Armour