Contents
BANKRUPTCY
German auto suppliers face insolvency wave
First Brands files Chapter 11 bankruptcy
Wolfspeed exits Chapter 11, cuts debt
CHANGE IN MANAGEMENT
Stellantis CFO Doug Oosterman resigns
CYBER SECURITY
Cyberattack cripples JLR suppliers’ survival
DISASTER
Typhoon disrupts Vietnam supply chains
EARNINGS
Q3 2025 Automaker Results
HUMAN CAPITAL
Ford cuts 474 jobs in South Africa
ZF to cut 7.6k jobs by 2030
Toyota Brazil plant damage prompts layoffs
INDUSTRY DIRECTIONS
Automakers delay EVs, suppliers pressured
MERGERS, VENTURES, ACQUISITIONS
Sinochem may sell Pirelli stake
OPENING
Isuzu begins building US truck plant
NextStar Energy EV battery plant opens
RAW MATERIAL COSTS
US takes stake in lithium project
SHUTDOWN
Stellantis halts Mulhouse plant production
Bankruptcy
German auto suppliers are facing a rising wave of bankruptcies, with 30% more expected in 2025, as weak demand, high costs, and Chinese competition strain the sector.
Between January and August, 36 firms with more than $21.6M in revenue went insolvent, many of which were tied to combustion engine parts, seen as having “little chance of survival.”
Analysts warn that heavy cost-cutting is eroding innovation, while higher labor and energy costs leave German suppliers at a disadvantage, signaling a structural shakeout that could threaten automaker stability.
First Brands, a Rochester, Michigan company that supplies brakes, wipers, and spark plugs, filed for Chapter 11 on September 29. The company won court approval for $500M in financing, the first part of a $1.1B package, to stabilize operations during its restructuring. The company carries $11.6B in debt, compounded by an estimated $219M in added costs from tariffs.
It also faces scrutiny over suspected accounting irregularities. A key issue is invoice factoring. First Brands used this tool to raise cash from unpaid invoices, but much of the related debt was kept off the balance sheet.
Despite focusing mainly on the aftermarket, First Brands’ bankruptcy is significant. It is one of the largest corporate collapses of 2025, highlighting how debt-fueled growth and off-balance-sheet financing can mask real financial risks. The case raises broader concerns about financial transparency and stability in the auto supply chain.
Wolfspeed cut its debt by 70% and exited Chapter 11 this week, securing enough liquidity to keep supplying silicon carbide chips for EVs. The restructuring reduces supply chain risk for automakers.
Change In Management
Stellantis CFO Doug Oosterman resigned after less than a year, replaced by Joao Laranjo, North America CFO. Oosterman had overseen operations during a turbulent period, while Stellantis’ new CEO, Antonio Filosa, works to steer the company through a turnaround.
Cyber Security
After a cyberattack shut down Jaguar Land Rover (JLR) production for over a month, UK government support has been limited to a $1.8B loan guarantee for JLR rather than direct aid to suppliers.
Smaller parts makers warn they may not survive because funds will flow first to JLR and tier-one suppliers, leaving lower-tier firms waiting up to 60 days for payment.
Some banks have required personal guarantees, including those for homes, from small business owners seeking emergency loans.
“There is little prospect of second-tier and lower-tier suppliers receiving any funding in the short term,” said Steve Morley, president of the Confederation of British Metalforming.
Disaster
Typhoon Bualoi caused at least $303M in damage across central and northern Vietnam, disrupting power, transport, and logistics. While no major factory damage has been reported, the storm struck regions that host manufacturers such as Foxconn, Luxshare, Formosa Plastics, and VinFast.
The disruption highlights the supply chain risks facing Vietnam’s growing role as a hub for automotive and electronics production, where recurring typhoons can delay shipments even without direct plant damage.
Earnings
↓ BYD Auto: Q3 NEV sales 1.1M (–8.2% YoY); Sept NEV 393k with BEV up, PHEV down. First YoY quarterly dip since 2020. ⧉
↑ Ford Motor Company: Q3 US sales up ~8% YoY; strength in trucks/SUVs and electrified lineup. ⧉
↑ General Motors: Q3 US sales up ~7.7% YoY; record EV volumes. ⧉
↑ Hyundai Motor Company: Record September and record Q3 US sales; continued EV/crossover momentum. ⧉
↔ Li Auto: Q3 deliveries 93k; September rebound (33k) but still down YoY overall. ⧉
↑ NIO Inc.: Record September; Q3 deliveries 87k (+~41% YoY) with broad lineup momentum. ⧉
↔ Nissan Group (U.S.): Published Q3 U.S. sales release; SUVs strong while Ariya under pressure. ⧉
↑ Rivian Automotive: Q3 deliveries 13k (+~32% YoY); narrowed full-year guidance but liquidity intact. ⧉
↑ Stellantis N.V. (US): Q3 US sales up ~6%, marking a return to quarterly growth. ⧉
↓ Subaru Corporation (US): September US sales softer YoY; YTD modestly lower. ⧉
↑ Tesla, Inc.: Record Q3 global deliveries (~497k), boosted by pull-forward ahead of US EV credit expiry. ⧉
↑ Toyota Motor Corporation: September and Q3 US sales up; electrified mix elevated (regional plants rebounding). ⧉
Human Capital
ZF plans to cut its Electrified Drive Technologies division workforce by 7.6k jobs by 2030. The company will cease developing specific electric vehicle components, including on-board chargers and inverters, and will instead focus on its core hybrid and thermal systems. The restructuring comes in response to pressure from weak demand for EVs and an oversupply in the market.
Toyota’s Porto Feliz engine plant in São Paulo was severely damaged by storms on September 22, halting output there and at the Sorocaba assembly plant. Repairs are expected to take several months, and workers have approved temporary layoffs starting October 21, with protections in place for lower-wage staff.
Toyota is turning to overseas engine supplies to restart production in Sorocaba and Indaiatuba, as the incident underscores how weather-related shocks can disrupt regional supply chains even for global automakers.
Ford will cut 474 jobs at its Silverton and Struandale plants in South Africa due to weaker demand for the Ranger pickup in Europe. UK tax changes reclassified double-cab pickups as passenger cars, resulting in higher costs and reduced orders.
Additionally, plug-in hybrid Ranger exports have struggled due to high prices and insufficient EU local content requirements for duty-free access. The plants have a capacity of 140k units, but are currently producing only 100k.
Industry Directions
Automakers are delaying or canceling EV programs and extending the life cycles of gasoline-powered vehicles, leaving suppliers split between winners and losers.
Larger, publicly traded suppliers have passed on tariff costs and secured new contracts.
At the same time, smaller firms face “intense financial pressure” and, in many cases, a “high risk” of struggling to pay loan interest, according to Plante Moran.
Operating margins have also declined across the supply base, and older ICE contracts signed before inflation and tariffs result in slimmer returns.
“The past several years have been painful,” said Joe McCabe, CEO, AutoForecast Solutions.
Suppliers that invested heavily in EVs or lack the capital to absorb tariffs face mounting financial stress, raising the risk of bankruptcies and supply chain instability.
Mergers, Ventures, Acquisitions
Sinochem may sell its 37% stake in Pirelli as part of efforts to resolve a governance clash with Italian shareholder Camfin.
The dispute has slowed Pirelli’s US expansion and comes amid American concerns over Chinese ownership of automotive technology.
A change in ownership could alter the control of the tire maker and its access to North American growth opportunities.
Opening
Isuzu has broken ground on its first independent US factory in Piedmont, South Carolina, with truck production set to begin in 2027. The plant is projected to produce 50k vehicles (including EVs) annually by 2030.
NextStar Energy, the $3.65B joint venture between LG Energy Solution and Stellantis, has received its occupancy permit for Canada’s first large-scale EV battery plant in Windsor, Ontario.
The 4.23M ft² facility is transitioning from test materials to validation, with mass production targeted for year-end and a capacity of up to 49.5 GWh annually.
The plant, which includes electrode, cell, and module assembly, has hired 950 workers and expects to create 2.5k jobs.
Raw Materials
The US government is taking a 5% stake in Lithium Americas’ Thacker Pass project, the country’s largest lithium deposit, and providing a $2.23B loan to build a plant producing 40k tons of lithium carbonate per year.
Partnering with GM, the project will also open supply to other buyers. This investment aims to strengthen America’s control over critical minerals, reducing reliance on imports and stabilizing the EV battery supply chain.
Shutdown
Stellantis will suspend production at its Mulhouse, France, plant for one week in late October, citing weak European demand and the need for inventory control. The stoppage adds to recent production pauses at other Stellantis sites in France and Italy.
