DRIVERS have been warned that a key auto brand has filed for bankruptcy.
Those who drive or own a Nissan or Jeep model may have a hard time securing essential auto parts.
A major supplier of Nissan and Jeep filed for Chapter 11 bankruptcy[/caption]
Marelli, the supplier, said it would repay 100% of its debt[/caption]
The manufacturing company has roughly 70 facilities and over 40,000 employees[/caption]
Marelli, an auto manufacturing company that supplies parts to Nissan and Jeep owner Stellantis, filed for bankruptcy protection, as per The Wall Street Journal.
Marelli develops and manufactures a wide range of components and systems for vehicles, including lighting, electronics, interior systems, propulsion, exhaust, thermal management, and chassis components, according to its website.
With roughly 70 manufacturing facilities and over 40,000 employees, the manufacturing company generated Japanese Yen (JPY) 1,380 billion, or roughly USD 12 billion in 2021.
The following year, their global plants were running at about 70% capacity due to factors like the “semiconductor crisis” and “supply chain disruptions,” according to a 2023 report.
On June 11, the supplier filed for Chapter 11 bankruptcy protection, meaning the company has the opportunity to reorganize its finances and attempt to repay its creditors over time, rather than liquidating assets.
Despite this, the supplier said it doesn’t anticipate any changes to its operations.
“Throughout this process and moving forward, Marelli does not expect any operational impact from the Chapter 11 process,” Marelli said in a statement.
The company said it would be able to pay off 100% of its debt, as reported by Reuters.
It stated that it anticipates carrying on with a contract with lenders and creditors that will finance its restructuring with over $1 billion.
Marelli owes about $4.9 billion in debt obligations, as per Reuters.
Marelli Chief Executive David Slump said the company has been struggling since the pandemic and went into serious trouble in March 2025.
After President Trump introduced the idea of tariffs on auto parts, many manufacturers were worried about production in other countries.
“Marelli was severely affected by tariffs due to its import/export-focused business and the imposition of tariffs specifically against automotive manufacturers and suppliers,” Slump said.
Suppliers like Marelli have invested in the transition to electric vehicles, although many consumers still prefer gasoline-powered cars.
New Nissan and Infiniti lineup
Nissan announced it will be introducing several new models:
- Nissan LEAF (third generation)
- Nissan Rogue (fourth generation)
- Nissan EV
- Nissan INFINITI FX
- Nissan INFINITI QX65
With the reduced interest in EVs, car companies like Ford and General Motors have changed their production plans to mirror consumer interest.
That means suppliers have received fewer orders from big auto companies.
The looming tariffs, coupled with the effects of the pandemic, forced Marelli to file for bankruptcy.
Nissan said it would continue to work with the supplier despite some uncertainty.
“We appreciate Marelli’s efforts to minimise operational disruption,” Nissan said in a statement to Reuters.
More than 80% of Marelli’s senior lenders have backed the company’s reorganization plan, which is anticipated to turn some of its debt into 100% of the newly restructured company’s common equity.
