Three major auto parts brands are being killed off amid bankruptcy, as mounting lawsuits and failed sales mark the collapse of a supplier empire. If you’re a fan of Autolite spark plugs, you might want to pour one out for your dearly departed friend. The company is the latest casualty of the First Brands Group bankruptcy, which has thrown a wrench into the automotive supply chain.
While the bankruptcy process got underway last September, First Brands has just announced they’ve started winding down certain parts of their North American business. This includes killing Autolite as well as Cardone and Brake Parts Inc. Autolite is probably the best known of the three, offering an assortment of components ranging from brakes to power steering systems.
They also offered suspension components, fuel injection systems, and emissions control technologies. On the other hand, Brake Parts Inc was behind Aimco, BrakePro, Vortex, and Raybestos. The latter brand has been around for over a century, so its apparent death is saddening.
, Cardone, and Autolite businesses. ” First Brands Group was originally founded in 2013 as the Crowne Group and began gobbling up suppliers. This includes several big names including Fram, Trico, and Draw-tite – among others.
Along the way, the company racked up huge debts and eventually had to declare Chapter 11 bankruptcy. While the other brands are safe, for now, the supplier has hundreds of claims against them. Key among them is Marelli, which is seeking $200 million.
89 from Cardone. The list goes on and on, but there’s little doubt creditors and consumers will end up losing in the bankruptcy.
This bankruptcy is a stark reminder of the complexities and risks involved in the automotive supply chain. As suppliers struggle to stay afloat, it highlights the need for more sustainable business models and better risk management practices.
