Ford, GM in Talks to Rescue Bankrupt Auto Supplier First Brands

Ford (F) and General Motors (GM) are in active discussions to help rescue First Brands Group, a major auto‑parts supplier that recently filed for bankruptcy, the Financial Times reported. The move comes as both automakers race to prevent disruptions across their supply chains.

According to people familiar with the matter, the automakers are considering an unusual arrangement in which they would prepay for parts they expect to receive. This would give First Brands the immediate cash it needs to keep operating during its Chapter 11 process.

The urgency reflects how critical First Brands is to their supply chains. Importantly, the company supplies key parts, such as windshield wiper components used in Ford’s best-selling and most profitable vehicle line, the F-150. This would expose Ford to potential production delays.

First Brands’ Cash Crisis Deepens

First Brands filed for Chapter 11 in September 2025 with roughly $12 billion in debt and has since burned through cash at a rapid pace, with court filings showing it could run out of money by early February.

The company has already begun winding down parts of its U.S. operations, including its Brake Parts and Autolite units, as it races to sell assets and secure new financing.

At the same time, the auto‑parts industry is also under pressure, as U.S. tariffs, growing competition from China, and weaker-than-expected EV demand has made it harder for suppliers to stay profitable.

Which Stock Is Better, F or GM?

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