You Probably Bought Auto Parts From The Company That Just Declared Bankruptcy

il y a 1 mois, 4 semaines - 6 Octobre 2025, Carbuzz

If you wander into an auto parts store, there are lots of aftermarket brands to choose from. These parts are often cheaper than those you'd get from an automaker, and if you have an older vehicle, going aftermarket might be the only option available. However, a lot of those brands are owned by large holding companies.

First Brands Group is one of those companies, and it has just filed for bankruptcy with over $10 billion (yes, billion) in total liabilities. To say it's a big conglomerate for aftermarket parts is an understatement –we count 24 brands under its umbrella, and even if you're not well-versed in car maintenance, you'll recognize at least a few names on the list.

How This Could Hurt
If First Brands Group goes away, and we'll get to why there's a slim chance it won't, it's going to reduce choice and drive up prices on alternatives as the market narrows. That's because the firm has products covering everything from windshield wipers and spark plugs to brakes, water pumps, even common trailer hitch components.

Companies In The First Brands Group:

Anco
Autolite
Bargman
Bulldog
Cardone
Carlson
Carter
Centric
Draw-Tite
Fram
Fulton
Hopkins
International Brake Industries
Luberfiner
Michelin*
PetroClear
Philips
Raybestos
Reese
StrongArm
Tekonsha
Trico
Wesbar
Westfalia

*Michelin is used only as a license for windshield wiper blades. The tire manufacturer is not part of First Brands.

The Current Situation
First Brands Group filed for bankruptcy after revealing the extent of its debt, mostly picked up through a rapid-fire run of acquisitions. A broad coalition of the company's existing lenders are investigating the extent of the trouble, which includes what Reuters describes as "an unpaid $2.3 billion hole on its balance sheet." In short, the company fell behind on paying its suppliers – way behind – and couldn't catch up.

According to Scott Greenberg, an attorney for the lenders, they have put up the rescue financing, which currently sits $500 million despite fears of "lending good money after bad." In First Brands Group's estimation, tariffs have cost the company $219 million from April 2025 to August 2025. However, that likely sped up an already dire situation. The company had high debts before President Trump's tariffs raised the price for overseas auto parts.

It's entirely possible this will be the first loss of auto parts suppliers of this new era. We already know the automotive supply chain is under strain, having still not recovered fully from the COVID epidemic. Many parts, both from OEM and aftermarket companies, come from overseas and now have tariffs applied. Parts coming from Canada and Mexico are currently not suffering from tariffs, but the whole situation has been unpredictable from the start. There have been job losses and delayed investment.

"Companies have been working to mitigate things and make sure they continue to be profitable. People are doing that right now, but you can only do that for so long."

– Collin Shaw, president of MEMA Original Equipment Suppliers.

For the supply chain, which also serves the aftermarket companies, stability and affordability are key – just like for any business and industry. A chain is made up of many parts, and each part affects the parts before and after it. In this case, the chain ends with the customer. But we shouldn't forget the issue of companies buying up as many brands as possible, gathering as many eggs into one basket as possible. While the current financial climate has influenced the downfall of First Brands Group, so has greed in trying to dominate the market.

At this point, it's unclear what may happen to the companies in the First Brands group if things fall apart. At the very least, expect even higher prices the next time you get windshield wipers or an oil change.