Nissan, Stellantis Supplier Marelli Reportedly Filing for Bankruptcy

KKR, parent owners of auto parts supply giant Marelli (Marelli Corp.), are reportedly filing for Chapter 11 in the US. (Image: Nikkei Asia)

Here’s an interesting development in the global auto parts supply sector. It seems American-owned Japanese auto parts mega supplier Marelli (Marelli Corp.) is reportedly considering filing for Chapter 11 bankruptcy protection in the US.

This was initially reported by Automotive News Europe citing Kyodo News Agency earlier this month citing unnamed sources. More accurately, Marelli’s American owners KKR that's reportedly seeking to file Chapter 11.

The firm is considering which as an option to ensure its business operations aren’t halted, even if restructuring discussions with creditors fall through, adds Kyodo News Agency further.

Presently, Marelli supplies a substantial amount of parts to both embattled Japanese automaker Nissan and multi-national automaking giant Stellantis. 

Presently, Marelli is a major supplier to multi-national automaking giant Stellantis and embattled Japanese automaker Nissan. Naturally, when probed by newswire Reuters, Marelli responded with a refusal to comment on “market rumours or speculation.”

Further reports online however indicate that Marelli is deep in discussions with lenders to secure additional loans. The firm intends to operate regularly as said talks take place. At the same time, the firm is also weighing out the option of a buyout by Motherson Group.

The latter firm is India’s single largest auto supplier, and an acquisition of Marelli could in turn catapult the firm into the top ten ranking of international auto parts suppliers. For now, this plan has reportedly divided the opinions of Marelli’s debt-holders.

Concurrently, Marelli is also mulling a possible buyout by India-rooted global auto parts-making giants Motherson Group, but this notion has divided the opinions of debt-holders at Marelli.

Historically, KKR engineered the birth of Marelli by merging two struggling auto suppliers – Calsonic Kansei, a supplier formerly owned by Nissan, and Magneti Marelli, which was previously owned by Stellantis predecessors Fiat Chrysler Automobiles (FCA).

Since 2022, the combined supplier has been actively seeking for a new lifeline as it struggles to get its finances and sales back on track following both the COVID-19 pandemic and Nissan’s decline.