Key Facts
End of an Era for Well-Known Brands
Fans of Autolite spark plugs will likely have to say goodbye to this product. The company has become another casualty of the First Brands group’s bankruptcy, dealing a serious blow to the automotive parts supply chain.
Although the bankruptcy process began last September, First Brands has only now announced the start of liquidating certain parts of its North American business. This affects not only Autolite but also the Cardone and Brake Parts Inc. companies.
What the Market Loses
Although Autolite is probably the most famous of the trio, Cardone offered a wide range of components: from braking systems to power steering systems. Parts for suspension, fuel injection systems, and emissions control technologies were also produced under this brand.
Brake Parts Inc., for its part, stood behind brands such as Aimco, BrakePro, Vortex, and Raybestos. The latter brand has existed for over a hundred years, making its potential disappearance particularly sad for the industry.
Official Management Position
First Brands Group CEO Charles Moore stated: “We have explored all available options to secure financing and advance the sale process for the Brake Parts Inc., Cardone, and Autolite businesses. Unfortunately, these efforts ultimately did not lead to a viable solution that would allow us to preserve these operations.”
History of Problems
First Brands Group was founded in 2013 under the name Crowne Group and began actively acquiring suppliers. Among its acquisitions were several major names, including Fram, Trico, and Draw-tite. Along this path, the company accumulated enormous debts and was eventually forced to file for Chapter 11 bankruptcy.
Creditors’ Claims
The holding’s other brands are safe for now, but the company faces hundreds of lawsuits. A key one among them is a lawsuit from Marelli, demanding $200 million. FedEx is also making claims against Brake Parts Inc. for over $5.4 million, and the U.S. Internal Revenue Service is demanding nearly $4.7 million from Cardone. The list goes on, and there is little doubt that both creditors and end consumers will suffer losses as a result of the bankruptcy.
This situation vividly illustrates the fragility of large conglomerates in the automotive industry, especially in conditions of economic instability. The disappearance of such deeply rooted market brands as Raybestos could create a vacuum for workshops and car owners who have relied on their products for decades. The future of warranty obligations, parts availability in warehouses, and service for millions of vehicles remains in question, which could trigger a wave of problems across the entire aftermarket parts sector.