The recent bankruptcy filing of First Brands Group has sent shockwaves through the automotive aftermarket parts industry. Known for its recognizable brands such as Fram filters, Autolite spark plugs, Trico wipers, and Raybestos brake pads, First Brands’ financial struggles may significantly impact parts availability for independent mechanics and auto repair shops.
Major Supplier Bankruptcy and Aftermarket Parts Access
First Brands specializes in OE aftermarket parts. These components are designed as direct replacements for original equipment, offering a cost-effective alternative to parts from vehicle manufacturers. However, the consolidation of such brands under First Brands means that their bankruptcy could lead to reduced selections on the retail shelves.
Implications of Bankruptcy Filing
The company filed for Chapter 11 bankruptcy, which allows it to continue operations while restructuring its finances. This legal protection provides a temporary relief from debt, but it raises concerns about long-term availability of affordable aftermarket options.
- First Brands has faced financial struggles since last year.
- Over 40% of its bills were overdue by more than 90 days by the end of 2024.
- This delinquency rate increased to 57% in February 2025.
- By June 2025, the company managed to lower the past due bills to between 47% and 49%.
The Broader Economic Context
While First Brands’ challenges do not directly stem from tariffs imposed by the Trump Administration, external economic factors certainly exacerbated its financial woes. The tariffs increased the import costs for many parts, as a significant portion of their inventory is produced overseas.
Future of Aftermarket Parts
If First Brands cannot successfully emerge from bankruptcy, the fallout may extend beyond its brands. A reduction in the variety of auto parts available could lead to higher prices and increased dependence on dealership parts. However, it is noteworthy that First Brands does not supply parts to vehicle manufacturers, securing a portion of the automotive supply chain.
The outcome of First Brands’ restructuring efforts will be closely watched, as its bankruptcy could signify larger issues within the aftermarket parts sector. With the economy’s interconnectedness, the challenges faced by First Brands are indicative of ripple effects that might impact various suppliers in the industry.
