The news that Japan\u2019s Marelli Holdings, a key supplier of auto parts to giants such as Nissan and Stellantis, has filed for Chapter 11 protection in the US is causing global concern, marking another dramatic episode in the turmoil sweeping the global auto industry. With debts that once exceeded $7.6 billion, Marelli is now attempting a radical restructuring and change of ownership, with 80% of its creditors supporting the deal.<\/p>\n\n\n\n
With the $1.1 billion bridge financing secured by its lenders, 80% of which have already supported the restructuring, Marelli aims to deleverage and strengthen its liquidity. The company said the process is not expected to disrupt current operations.<\/p>\n\n\n\n
The End for KKR<\/strong><\/p>\n\n\n\n Victor Khosla\u2019s Strategic Value Partners is expected to take control, while KKR, which created Marelli in 2019, will hand over its shares. Despite assurances that the process will not affect its operations, Marelli\u2019s bankruptcy sends a strong message about the pressures on suppliers in the era of electrification and low demand.<\/p>\n\n\n\n Causes of the crisis<\/strong><\/p>\n\n\n\n Marelli was created after the merger of Magneti Marelli and Calsonic Kansei in 2019 with significant bank borrowing for the acquisition by KKR. Despite restructuring efforts, reduced demand from large automotive customers (e.g. Nissan, Stellantis) has exacerbated the company\u2019s financial pressure, mainly with the automotive industry\u2019s shift towards electrification and automation.<\/p>\n\n\n\n Global Concern<\/strong><\/p>\n\n\n\n With more than 50,000 employees and a presence in 170 locations worldwide, the group\u2019s collapse is causing global concern in the industry. The Saitama, Japan-based manufacturer has about 170 facilities worldwide that supply lighting, air conditioning, electric motors, suspensions and other components to automakers.<\/p>\n\n\n\n In addition to SVP, Marelli\u2019s creditors include Deutsche Bank, Mizuho Financial Group and other lenders. The consortium also includes Seoul-based MBK Partners Ltd. and Fortress Investment Group LLC of New York.<\/p>\n","protected":false},"excerpt":{"rendered":" The news that Japan\u2019s Marelli Holdings, a key supplier of auto parts to giants such as Nissan and Stellantis, has filed for Chapter 11…<\/p>\n","protected":false},"author":1,"featured_media":24680,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[620,946,2956],"tags":[2058,7035,2434,7034,6804,7033],"class_list":["post-24679","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-companies","category-industries","tag-business","tag-car-parts","tag-industry","tag-marelli","tag-nissan","tag-stellantis"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/24679","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24679"}],"version-history":[{"count":1,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/24679\/revisions"}],"predecessor-version":[{"id":24681,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/24679\/revisions\/24681"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/media\/24680"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}