Global automotive parts giant Marelli Corp. slammed the brakes on business as usual Wednesday, filing for Chapter 11 bankruptcy protection with a towering $4.9 billion in funded debt and laying blame squarely on punishing U.S. tariffs that choked its international trade.
In court documents filed in the U.S. Bankruptcy Court for the District of Delaware, Marelli—alongside 75 affiliated entities—outlined a comprehensive restructuring plan already backed by 80% of its senior secured lenders. The plan is buoyed by a $1.1 billion debtor-in-possession financing package, giving the struggling manufacturer a financial runway to stabilize.
A Trade War Casualty in the Global Supply Chain
The Japan-based supplier, whose client roster reads like a who’s who of the auto industry—Nissan, BMW, Volkswagen, and Mercedes Benz—has long relied on an import/export-heavy business model. But, according to CEO David Slump, the very DNA of that strategy became its downfall when tariffs hit the sector like a wrecking ball.
“Marelli was severely affected by tariffs due to its import/export-focused business and the imposition of tariffs specifically against automotive manufacturers and suppliers,” Slump stated in a sworn declaration.
The firm, which had been operating across global trade routes like a seasoned driver on cruise control, suddenly found itself slammed into reverse as tariffs raised costs, muddied logistics, and hammered demand.
