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The Wall Street Journal is calling it the first
big casualty of the tariff war.
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Morelli, the auto parts giant and supplier to
big names like Stalantti and Nissan,
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Has filed for bankruptcy protection.
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Known for its electronics, powertrain, and
lighting-related products for the automotive
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industry, Morelli has reportedly been
struggling with heavy debt and supply chain
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challenges over the past few years.
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But when revealing its filing, the company
leaders identified something else.
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Morelli CEO David Slomp cited macroeconomic
headwinds associated with tariffs as the
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tipping point.
That caused the company’s situation to worsen.
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Slump said pandemic era supply chain issues
restricted the company’s access to both labor
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and parts, including semiconductors.
The company,
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which invested heavily in the EV transition,
was struggling with liquidity when fresh woes
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hit in 2025.
Slump said Morelli was severely affected by
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tariffs due to its import export focused
business and the position of tariffs
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specifically against automotive manufacturers
and suppliers.
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Morelli was formed in 2019 when a private
equity firm merged 100 year old Japanese parts
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business Magnetti Morelli with a Fiat Chrysler
auto parts business.
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The resulting tie-up has 40,000 employees and
150 plus locations in 23 countries,
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including the US.
Morelli says it plans to continue.
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After establishing a deal with its lenders and
creditors that will bring in more than $1
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billion to finance the company’s restructuring.
Meanwhile, the situation has led some observers
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to question whether Morelli is the canary in
the coal mine.
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Bloomberg, citing the analyst firm Alex
Partners, recently suggested that the
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automotive industry is the global sector most
vulnerable to financial distress this year.
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I’m Anna Wells, this is manufacturing now.