Why Ford, Stellantis Are Propping Up This Bankrupt Supplier

Ohio-based Toledo Mold & Die – a manufacturer of automotive trim and other plastic parts – has become unavoidably ensnared in the unraveling of parent company First Brands.And while it may look like one small component of a big conglomerate, for Ford and Stellantis, it’s a lifeline.When massive auto industry supplier First Brands filed for bankruptcy, the ensuing fallout created gaps in the supply chains of some of the nation’s largest OEMs.Two of those were Ford and Stellantis. As first reported by Plastic News, after unsuccessfully seeking a buyer for the components maker, First Brands said in April that it would begin laying off Toledo Mold & Die’s 600 employees.That is, until a Hail Mary was thrown.At the 11th hour, First Brands revealed that it had found a suitable buyer – TNJ Ohio LLC – but, said Ford Authority, they “needed to keep the lights on long enough to close that deal.”In swooped Ford and Stellantis, who are said to be writing weekly checks to keep the company afloat and retain its workers.But, of course, these automakers aren’t just providing “incremental funding support on a week-to-week basis” out of the goodness of their hearts. These actions speak to how critical some suppliers can be in an automotive supply chain, and why these carmakers can’t afford to just watch from a distance as the lights go out.First Brands is continuing to sell off its assets – the second act in a protracted wind-down process that included closing 17 facilities and laying off 4,000 workers. For its part, Ford is said to have been “paying for parts in advance, in cash, and also funding certain administrative expenses.”#Manufacturing #Automotive #Ford #Stellantis #SupplyChain #AutoIndustry #FactoryNews #IndustrialNews #ManufacturingNow #FirstBrands #OhioManufacturing #Bankruptcy #AutoParts #OEM #SupplyChainCrisis #FactoryWorkers #IndustrialManufacturing #BusinessNews #AutomotiveNews #ManufacturingIndustry