A major shock has hit the American auto industry. One of the country’s largest and most influential auto giants has filed for bankruptcy, catching workers, suppliers, and experts off guard. This comes after a series of steep new tariffs that have disrupted the cost and flow of car manufacturing and parts supply, putting even top companies at risk.

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The company in question is Marelli, a global auto parts supplier to Stellantis, Nissan, and Tesla. Its bankruptcy is one of the first major losses under the new tariffs.

Marelli has filed for Chapter 11 bankruptcy in the U.S. and aims to restructure over $700 million in debt. To stay afloat during this difficult time, it relies on $1.1 billion in emergency funding to maintain its operations.

If Tesla is one of Marelli’s major customers, perhaps this should not be much of a surprise. As Tesla declines, Marelli should follow to some extent. It’s not just the tariffs.

https://www.msn.com/en-us/money/news/tariffs-claim-first-major-victim-as-american-auto-giant-files-for-bankruptcy/ss-AA1GNXMk