by Marelli Declares Bankruptcy
Automotive supplier Marelli has filed for Chapter 11 bankruptcy in the United States. Among the main reasons are the consequences of the COVID-19 pandemic and restrictions introduced during the Trump administration. The company noted that this decision will allow it to restructure its long-term obligations and strengthen its financial position.
Approximately 80% of creditors have supported the restructuring, and they are likely to gain control of the company. Marelli assures that this will not affect its operational activities, as it continues to cooperate with suppliers and has received $1.1 billion in financing to support the business during the process.
Industry-wide market pressures have created a gap in working capital that must be addressed.
Consequences for the Industry
Marelli is a key supplier for Nissan and Stellantis, producing a variety of components—from lighting to electronics. The company has over 40 thousand employees worldwide. CEO David Slump noted that tariff restrictions have significantly impacted the business due to its focus on import and export.
Despite the difficult situation, Marelli plans to continue operating as usual. The restructuring process may take a long time, but the company’s management is confident that it will allow them to stabilize and continue operating in the market. Financial obligations are likely to be converted into shares, which will simplify the debt burden.
The situation with Marelli highlights the challenging conditions faced by automakers and their suppliers after the pandemic. Global supply chains remain vulnerable, and political decisions can have a long-term impact on companies’ business models.
