Ford and GM Near Financing Deal to Support First Brands Group During Bankruptcy

Ford Motor Company and General Motors are reportedly in advanced negotiations with bankrupt auto parts supplier First Brands Group over a potential financing package aimed at keeping the company operational during its Chapter 11 bankruptcy process. According to a Financial Times report citing sources familiar with the matter, the talks involve a broader group of automakers and are said to be approaching the “finish line,” though a final agreement has not yet been secured.

The proposed arrangement would reportedly involve automakers paying in advance for car parts they expect to receive, providing First Brands Group with much-needed liquidity as it restructures. While multiple manufacturers are participating in the discussions, Ford is believed to be the most exposed, given its reliance on First Brands for key components. The Ohio-based supplier produces essential parts for Ford and GM, including windscreen wiper components used in Ford’s popular F-150 pickup truck.

Reuters has not independently verified the report, and Ford, General Motors, and First Brands Group did not immediately respond to requests for comment outside regular business hours. However, the situation underscores the broader impact that supplier financial distress can have on major automakers and the automotive supply chain.

On Monday, First Brands Group announced it has begun winding down portions of its North American operations, including its Brake Parts, Cardone, and Autolite units. Other business segments will continue operating as the company seeks buyers for its assets. The auto parts maker filed for Chapter 11 bankruptcy protection in late September after disclosing liabilities exceeding $10 billion. In its bankruptcy petition, First Brands estimated liabilities between $10 billion and $50 billion, while assets were estimated in the range of $1 billion to $10 billion.

Earlier this month, the company launched a formal process to market and sell itself, either in whole or in parts, as part of its strategy to exit Chapter 11. The outcome of the financing talks with Ford, GM, and other automakers could prove critical in determining whether First Brands Group can maintain operations, protect jobs, and stabilize supply chains while navigating bankruptcy proceedings.