Nissan Supplier Marelli Files for Chapter 11 Bankruptcy, Secures $1.1 Billion Financing

Major auto supplier Marelli, known for supplying components to Nissan and other automotive giants, filed for Chapter 11 bankruptcy protection in the United States on Tuesday. The Japan-based company also announced that it has secured $1.1 billion in new financing to support its restructuring, according to a statement and court filings.

Marelli Files for Chapter 11 Amid Persistent Industry Headwinds

Marelli Holdings, whose origins trace back to a merger between Italy’s Magneti Marelli and Japan’s Calsonic Kansei, made the bankruptcy filing in the U.S. Bankruptcy Court for the Southern District of Texas. The company cited ongoing financial pressures exacerbated by a slow automotive market recovery, supply chain disruptions, and persistent inflation, all of which have battered margins across the industry.

“Today's filing strengthens our ability to serve customers and protects jobs,” said David Slump, Marelli’s CEO. “With firm support from our lenders, we are well positioned to complete our transformation,” he added in a statement.

Why Marelli Filed for Bankruptcy

The auto parts maker, which boasts a workforce of more than 50,000 and operations in over 170 facilities worldwide, has faced mounting challenges in the past several years. After Japanese private equity firm KKR bought Calsonic Kansei and merged it with Magneti Marelli in 2018, Marelli struggled to integrate costs and invest in new technologies to keep pace with rapid changes in automotive design and electrification trends.

According to court documents, Marelli reported over $11 billion in liabilities, with debts owed to major banks, raw material suppliers, and logistics providers. The company stressed the Chapter 11 process will not disrupt day-to-day operations, and that it plans to fulfill customer orders throughout its restructuring.

Securing $1.1 Billion to Fund Operations and Restructuring

Crucial to Marelli’s restructuring is the $1.1 billion in new financing it obtained from existing lenders. The debtor-in-possession (DIP) funding will ensure Marelli has enough liquidity to weather operational demands—such as payroll and supplier payments—and allow management to expedite restructuring without selling off core assets.

“This capital injection demonstrates lender confidence in our proposed path forward,” CEO Slump said, emphasizing Marelli’s intention to emerge from bankruptcy as a leaner, more competitive company.

Impact on Nissan and Other Automotive Partners

Nissan, Marelli’s key customer and former parent due to its Calsonic Kansei roots, said it was “monitoring the situation closely” but expected “no immediate disruption to supply chain operations.” Automotive industry experts note that large parts suppliers like Marelli play an essential role in just-in-time production systems, where even short disruptions can ripple across global car manufacturing.

“Marelli’s bankruptcy underscores how fragile the automotive supply chain remains in the face of economic volatility and persistent cost pressures,” said Kristin Dziczek, a transportation analyst at the Center for Automotive Research.

Industry and Market Implications

The bankruptcy signals further consolidation and restructuring in a sector hit hard by the COVID-19 pandemic, semiconductor shortages, and a capital-intensive shift to electric vehicles. Other leading suppliers, from Germany’s Bosch to U.S.-based BorgWarner, have trimmed forecasts or announced layoffs as carmakers and suppliers alike rethink operations.

In April 2024, Marelli completed a previous debt restructuring approved by Japanese creditors, but continued losses, especially in North America and Europe, prompted Tuesday’s Chapter 11 filing.

“Suppliers are increasingly pressured to digitize, decarbonize, and electrify at breakneck speed,” noted automotive finance adviser Mark Wakefield of AlixPartners. “Not all can keep pace with such costly transitions,” he added.

Next Steps and Outlook

Under the Chapter 11 process, Marelli intends to negotiate with creditors to reduce debt and strengthen its balance sheet. The company’s management said it aims to complete the process by the first half of 2026 and emerge as a “global leader in next-generation mobility solutions.”

As Marelli proceeds through bankruptcy, industry observers stress the need for close monitoring of customer, supplier, and workforce impacts—especially with global automakers already contending with tight part inventories.

Sources Used in Research:

Reuters: Nissan supplier Marelli files for Chapter 11, secures $1.1 billion in new financing

Marelli official press release (if available)

Nissan official statement (if available)

Center for Automotive Research (expert commentary)

AlixPartners (industry analysis)

Additional reputable automotive trade press