自動車じどうしゃ部品ぶひん大手おおてマレリ 連邦れんぽう破産はさん法ほう適用てきようを米べい裁判所さいばんしょに申請しんせい

Major auto parts manufacturer Marelli Holdings, facing financial difficulties due to the deteriorating performance of clients such as Nissan Motor, and with negotiations for debt relief with financial institutions also stalling, filed for Chapter 11 bankruptcy protection—the U.S. equivalent of Japan’s Civil Rehabilitation Act—at an American court on the 11th.

They aim to continue their business while restructuring their debts and working towards rebuilding.

Major auto parts supplier Marelli Holdings applied for civil rehabilitation in 2022 and has been working toward business reconstruction. However, due to poor performance by its clients, such as Nissan Motor and overseas automakers like Stellantis, parts sales have stagnated. Since December last year, the company has faced severe cash flow problems, including having to ask financial institutions to defer loan repayments.

In this situation, Marelli presented a restructuring plan to financial institutions that involved having a major Indian peer as a sponsor and having the financial institutions forgive some of its debts. However, negotiations with the financial institutions and others became difficult and no agreement was reached, so on the 11th, Marelli filed for Chapter 11 bankruptcy protection, which is equivalent to Japans Civil Rehabilitation Act, with a U.S. court.

According to the company, the total amount of debt is approximately 4.9 billion dollars, which is a little over 700 billion yen.

The company aims to continue its business operations while restructuring its debts and working toward reconstruction. To secure immediate funding, it has arranged a credit line of $1.1 billion, which is approximately 160 billion yen. In addition, it plans to reduce its debts by measures such as debt-to-equity swaps, which involve converting loans and other debts from financial institutions into shares.

We will also maintain the employment of our employees.

Marelli is a company formed by the merger of the former Calsonic Kansei, which was once a subsidiary of Nissan Motor, and an overseas parts manufacturer, with Stellantis and Nissan as its main clients.

Of these, Nissan posted a massive net loss of 670.8 billion yen in its financial results for the fiscal year ending March this year, and is considering large-scale streamlining measures, including factory reductions. Amid concerns about the impact of these measures, a key issue is whether Marelli can pave the way for rebuilding its management foundation through partnerships with other companies and other means.

Marelli Holdings Facing Difficult Business Conditions Again Marelli Holdings is a major automotive parts manufacturer that handles a wide range of components such as headlights, meters, and transmission-related parts. The company has more than 150 bases in Europe, America, Asia, and other regions, employing 45,000 people worldwide.

The predecessor was Calsonic Kansei, a subsidiary of Nissan Motor, and in 2017, an American investment fund acquired all of its shares, bringing it under its umbrella.

In 2019, the investment fund merged with the European parts manufacturer Magneti Marelli, which it had acquired, and changed its name to the current one.

However, due to the impact of the COVID-19 pandemic and the resulting semiconductor shortage, orders from automobile manufacturers decreased, leading to a decline in business performance. As a result, we filed for civil rehabilitation three years ago.

The company aimed to rebuild its management while continuing its business operations, and its sales recovered to 1.6065 trillion yen the year before last.

However, the major clients, the automakers Stellantis and Nissan, experienced poor sales, and last year, parts sales were sluggish.

For this reason, since last December, our cash flow has worsened, including temporarily deferring loan repayments to financial institutions.