Marelli Files Bankruptcy Citing Trump Tariffs Impacting Global Auto Supply

Marelli Holdings, a major Japanese-based auto parts supplier to Nissan and Stellantis, has filed for Chapter 11 bankruptcy protection, citing President Donald Trump's tariffs as a critical factor worsening its financial struggles. The company, which employs around 40,000 to 50,000 workers worldwide, had already been contending with supply-chain disruptions and labor shortages following the Covid-19 pandemic. CEO David Slump stated that the 25% tariffs on imported cars and vehicle parts imposed in March severely impacted Marelli's import/export-focused business, pushing its finances to a tipping point despite a temporary tariff reduction in April. Marelli has secured $1.1 billion in financing and has the support of approximately 80% of its creditors to restructure and eliminate secured debt, allowing it to maintain operations and customer orders. The bankruptcy signals how sudden changes in trade policy can destabilize even large suppliers and raises concerns for major clients such as Nissan and Stellantis, who are owed substantial unsecured debts. Despite the filing, Marelli emphasizes that business will continue as usual with no changes to customer relationships or order fulfillment.