Major Nissan Supplier Files for Chapter 11 Bankruptcy

Major Nissan Supplier Files for Chapter 11 Bankruptcy originally appeared on Autoblog.
In a move that emphasizes the financial pressures faced by major global auto suppliers, one of the largest tier-one suppliers in the world has recently filed for Chapter 11 bankruptcy protection in the United States.
Marelli supplies lighting systems, electronics, and other critical components to automakers like Nissan, Jeep, Dodge, and Ram. Its parent company, Stellantis, said in its court filings on June 11 that it faced a perfect storm of pandemic-related disruptions, global tariffs, and industry-wide shifts toward electrification prior to its decision to file.
For an industry used to navigating cyclical turbulence, Marelli's story reflects just how volatile the landscape has become after the COVID-19 pandemic in 2020. In court documents, Marelli CEO David Slump pointed to long-running disruptions that occurred during the pandemic, including labor shortages and difficulty sourcing raw materials. As if that wasn't a huge problem already, Marelli also got caught up in the global semiconductor shortage, which limited production and halted factories of major automakers and their suppliers.
However, Slump says that the final nail in Marelli's coffin was the impact of wide-reaching auto industry tariffs that were imposed earlier this year. Back in March, the Trump Administration announced a new round of levies on imported vehicles and auto parts. For a company like Marelli—formed from the 2019 merger of Fiat Chrysler's parts division, Magneti Marelli, and Calsonic Kansein, a Japanese supplier owned by American private equity firm KKR, and heavily reliant on international trade—the tariffs killed any potential to recover financially.
'Marelli was severely affected by tariffs due to its import/export-focused business,' Slump said in the filing. 'Macroeconomic headwinds associated with the imposition of tariffs in countries around the world' worsened the company's liquidity at a critical time.
As automakers shifted resources toward electric vehicles, suppliers like Marelli became involved in a capital-intensive rat race to retool and adapt to a fast-changing marketplace. Billions were spent across the industry to create and support groundbreaking new EV platforms, but suppliers like Marelli were left with fewer orders and the financial burden when EV demand slowed and automakers adjusted or delayed their EV timelines to react to the market.
Marelli's Chapter 11 filing is a warning of what's ahead for others in the space. The supplier landscape is changing amid uncertainty and shifting trends in powertrain electrification, and suppliers operate on tight margins. Companies like Marelli feel financial pressure without consistent production volumes or stable regulatory environments.
But while Marelli is going through bankruptcy filings, it should be noted that it isn't a liquidation (liquidations occur in a Chapter 7 bankruptcy) but rather a strategic restructuring. Marelli says it intends to continue operating throughout the Chapter 11 process thanks to over $1 billion in debtor-in-possession financing from its lenders.
Marelli has backing from more than 80% of its senior lenders, and its plan is to convert a large portion of the company's roughly $5 billion in debt into equity, essentially giving control of the business to its creditors. Currently, the company has some unfinished business with customers. According to Automotive News, Stellantis and Nissan are the two largest unsecured creditors listed in the bankruptcy filing. Marelli said it owes Stellantis $454 million and $313 million to Nissan.
'For Nissan, securing a stable supply chain is essential. We are committed to support Marelli to maintain its revenue generation and will coordinate with Marelli's other customers while actively monitoring the supply chain to prevent disruptions,' Nissan told AutoNews in an emailed statement.
For now, Marelli insists that operations will continue, but its situation is an example of how interconnected and fragile the modern automotive ecosystem is. Tariffs, pandemics, supply shortages, and technology transitions aren't just speed bumps for automakers; they could mean life or death for the companies that keep the car industry running behind the scenes. Marelli may be the first, but it probably won't be the last.
Major Nissan Supplier Files for Chapter 11 Bankruptcy first appeared on Autoblog on Jun 13, 2025
This story was originally reported by Autoblog on Jun 13, 2025, where it first appeared.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Yahoo

19 minutes ago

• Yahoo

Save Your Batteries, This Solar-Powered Security Camera Is 50% off Right Now

Are you looking to outfit your home with a new smart security camera? While sales events like Prime Day in July are a great time to buy, you can get this excellent Eufy wireless solar-powered 2K security camera today for only $65. The Eufy Solocam S220 is a capable outdoor security camera like any other, only it has a few fancy tricks up its sleeve. You won't have to run a bunch of long power wires or deal with constantly replacing or recharging batteries, something most security cameras struggle with. That's because this outdoor security camera is solar-powered and only needs about three hours of sunlight to keep tabs on your home daily. Eufy's Solocam S220's MSRP is $130, although it is often discounted to under $100. Lucky for you, Amazon just slashed the price by 50%, making this stellar camera only $64.99. So, what does this camera offer, and what can you expect for your money? Well, quite a bit, thankfully. It's easy to mount just about anywhere, although you'll want a spot with plenty of sunshine. Then, pair it with the Eufy app, and you'll get crystal-clear 2K resolution video of all the happenings around your home. While the battery inside is charged by the solar cell, you shouldn't have to deal with it at all. The Eufy Solocam S220 offers night vision thanks to an Infrared LED and movement detection. It also uses AI to detect familiar faces, animals, and more to know when a notification is worth sending. That way, you won't get alerts for a branch blowing in the wind. This outdoor solar-powered security camera only takes about five minutes to install. It has a durable IP67 rating to handle any outdoor conditions, 2-way audio, and custom security zones you can customize in the app, to name a few. More importantly, there's no monthly fee with Eufy, so you buy once and enjoy peace of mind for years to come. If there's a downside, the unit only has 8GB of storage, so storage space is somewhat limited. Either way, this solid camera makes home security a breeze. Grab yours before it sells out.

Yahoo

20 minutes ago

• Yahoo

Lightroom is working on a solution to my most-hated part of photo editing – and I couldn't be more excited

When you buy through links on our articles, Future and its syndication partners may earn a commission. Between taking photos and editing photos sits one of my least favorite parts of photography: culling, or the process of choosing which photos to edit. As a wedding photographer, culling a gallery of several thousand images takes hours of clicking through to find the best shots. But Adobe Lightroom is working on a new tool that could help speed up the culling process. In a teaser on social media, Adobe shared that developers are working on AI filters, a tool that works to recognize throw-away shots, like shots that are out of focus and blinking portraits. The AI filters, like many of the Lightroom tools, use a slider, allowing photographers to control how strictly to apply these auto-selection filters. A clean-up slider will also help remove accidental shutter triggers, as well as shots that are over- or underexposed. The AI will also be able to auto-group similar shots together, like those taken with burst mode. AI culling tools aren't new – but the tools that exist are third-party platforms and plug-ins that add to the growing number of subscriptions. While I hate culling, my growing subscription aversion has prevented me from buying AI culling software. The idea of getting faster culling without another subscription is one that I can get on board with (albeit one that has recently increased in price). I'm a Lightroom Classic user, and many of the latest AI-based tools have saved me a lot of time. If AI can do to culling what subject selection did to masking, then such a tool would save me hours of sifting through photographs. Sometimes, accidental photos end up as happy surprises – an out-of-focus shot that still captures the emotion of the moment, for example. That's why I'm excited by AI-supportive culling that adds speed yet still leaves the photographer in the driver's seat. But where I think AI culling can save the most time is picking the best shot out of several similar images. I spent a lot of time looking at similar photos to find the one that's the sharpest and discarding the close-eye shots. When I chatted with Adobe during the B&H Bild Expo in New York, Adobe indicated the AI filtering would be coming later this year to both Lightroom Classic and Lightroom Desktop. AI-based subject detection has saved me hours on tasks like whitening teeth, without even using generative AI. I have high hopes that the upcoming Lightroom AI Filters tool brings more of the same time-saving shortcuts to culling. Tired of culling too? Browse the best photo culling software. Or, take a look at the best photo editing software.

Yahoo

34 minutes ago

• Yahoo

Tesla vs. Waymo: What is the difference between the vehicles?

Tesla's robotaxis are set to hit the streets of Austin, Texas. When it comes to self-driving vehicles, the EV giant faces stiff competition from the Alphabet-backed Waymo (GOOG, GOOGL), which already has vehicles on the roads in several cities, one of which may soon be New York City. Stifel NextGen Transport analyst Stephen Gengaro has ridden in both vehicles. He shares his key takeaways from his experiences and why, ultimately, Tesla (TSLA) may have a leg up on the rival. To watch more expert insights and analysis on the latest market action, check out more Market Domination here.