First Brands Begins Wind-Down of Autolite, Cardone and Brake Parts in North America

Overview

• First Brands said the wind-down affects its Autolite, Cardone and Brake Parts Inc. units, while other North American operations and international businesses continue as it seeks buyers.
• The supplier launched a formal marketing-and-sale process earlier in January to exit Chapter 11, which it entered in September 2025 after heavy acquisition-driven debt.
• A bankruptcy judge ordered a $7 million independent investigation into allegations that First Brands misused third-party financing tied to customer invoices.
• The Financial Times reported Ford and GM are in talks on potential rescue financing via advance payments, a report that remains unverified as the companies declined to comment.
• Reports point to significant creditor claims, including Marelli at about $200 million and specific claims against Brake Parts Inc. and Cardone, highlighting broader strain across auto suppliers and specialty finance.