- A major builder of aftermarket car parts has filed for bankruptcy
- The move could make repair parts harder to come by
You may have never heard of First Brands Group. But if you own a car, you’re likely a customer.
The company builds so-called “original equipment (OE) aftermarket parts.” These are car parts built to the same specifications and standards as those originally used to create your car, but built by another company.
Ford, Honda, and other automakers share specifications with OE aftermarket parts builders so they can build them under license. Those parts are then sold to repair shops and everyday car owners through auto parts stores.
You may even know some of their names: Fram oil filters, Michelin windshield wipers, and Raybestos brakes. These are all First Brands Group names, just like Oreo and Triscuit are Nabisco brands.
First Brands Group filed for bankruptcy. The Wall Street Journal reports that lenders and board members “are now probing whether First Brands made misrepresentations in its financial reporting.”
Related: A Big Auto Lender Just Went Bankrupt. Here’s What it Means.
Reuters notes, “experts said automaker supply chains are not likely to be affected broadly since First Brands is primarily an aftermarket parts provider.”
However, MotorTrend cautions that the collapse of First Brands could make it harder for independent repair shops and auto parts stores to find the parts they depend on.
Investors have raised questions about possible improprieties at First Brands, but even above-board partsmakers are struggling with the cost of heavy industry tariffs.
Related: Cars Keep Getting More Expensive to Repair
“If things don’t become stable and affordable, we expect more OE aftermarket parts manufacturers to announce their own bankruptcies soon and bring us back to supply-chain crisis issues not seen since 2020,” MotorTrend warns.
