First Brands’ bankruptcy may mean pricier repairs and longer waits for parts. Here’s why extended protection matters more than ever.
First Brands’ bankruptcy may mean pricier repairs and longer waits for parts. Here’s why extended protection matters more than ever.
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Most people have never heard of First Brands Group, but they’ve almost certainly bought something made by it. The company sits quietly behind some of the best-known names in auto care, from FRAM oil filters to TRICO wipers and Raybestos brakes. So when First Brands filed for bankruptcy in late 2025, it sent shockwaves through an already strained auto repair industry.
What happens next could shape how much Americans pay to fix their cars, and how long they have to wait when something breaks.
If you’ve ever walked into an auto parts store, you’ve seen First Brands’ reach. The company owns more than two dozen brands that cover nearly every corner of vehicle maintenance. These include Autolite spark plugs, Cardone remanufactured parts, Carter fuel systems, Philips Automotive Lighting, Anco, and Luber-finer.
That wide footprint made First Brands one of the most important players in the global aftermarket industry. Its parts filled the shelves of local stores, stocked the repair bays of national chains, and kept millions of older vehicles running when factory warranties had long expired.
By 2025, however, years of rapid growth and aggressive borrowing had caught up with the company.
In September 2025, First Brands filed for Chapter 11 bankruptcy protection in a Texas court, revealing more than ten billion dollars in total liabilities. The case is now one of the largest automotive bankruptcies in years.
Court filings and lender statements show that the company expanded too quickly, acquiring smaller manufacturers faster than it could manage them. To finance those deals, it relied on billions in loans and a complex web of invoice factoring. That system eventually collapsed when creditors noticed gaps in the company’s books.
Investigations by Reuters and The Financial Times uncovered a 2.3 billion dollar shortfall in unpaid supplier invoices and possibly duplicated receivables. Multiple lenders appear to have pledged some of those invoices, leading to confusion over debt ownership.
Tariffs were also a factor. First Brands said that between April and August 2025, they lost $219 million in extra costs because of new import fees on parts made overseas. The company's cash flow dried up because of slower supply chains and high interest rates (Reuters).
To avoid immediate shutdown, lenders stepped in with 1.1 billion dollars in emergency financing. Lawyer Scott Greenberg described it as a “rescue loan negotiated under extreme pressure.” (Bloomberg). That money allowed factories to keep running and workers to stay on the job while the company restructures.
The First Brands bankruptcy matters because of the sheer number of products it touches. These aren’t niche luxury components. They’re everyday parts that keep ordinary cars on the road.
If the supply of these products slows, prices will rise. Shops may turn to smaller brands or even OEM suppliers, both of which often cost more. That extra cost almost always ends up in the final repair bill.
Repair shops have been dealing with supply chain slowdowns for years, and the First Brands Group bankruptcy has only added to the strain.
When a supplier this large cuts production or reorganizes, distributors tend to hold off on big orders until they know shipments will stay consistent. That pause trickles down to garages and dealerships, where even a short delay in getting a part can throw off a full day’s schedule.
For drivers, those small disruptions can quickly become bigger problems:
Even if your local mechanic locates the necessary parts, the cost might exceed your initial expectations.
Drivers with older vehicles will probably feel it first since those models rely most on aftermarket components. What used to be an easy, cheap fix could now take a lot longer and cost a lot more.
The First Brands bankruptcy in 2025 highlights a larger issue within the automotive supply chain. Over the past decade, consolidation has turned many independent parts makers into subsidiaries of a few big groups. That concentration makes the system efficient but also fragile.
Collin Shaw, president of MEMA Original Equipment Suppliers, told CarBuzz that companies have been “working hard to stay profitable” but warned that the pressure has limits. When one link in the chain breaks, everyone downstream feels it.
The auto-parts market has struggled with rising material costs, shipping delays, and shifting trade policies for years. This bankruptcy may not be the last if those trends continue.
First Brands Group is still in business while the court watches over its restructuring. Plants can stay open, workers can stay on the payroll, and products can keep moving through the distribution network thanks to the emergency funding. Behind the scenes, auditors and newly appointed directors are combing through the company’s finances to trace where the missing money went and how deep the accounting issues really are.
Industry insiders expect the process to take time. Certain brands under the First Brands umbrella could eventually be sold to competitors or private investors looking to pick up valuable product lines, while others may stay under new management if the restructuring holds together. Nothing about this bankruptcy will happen quickly.
Two of the biggest lenders, Jefferies and UBS, have already acknowledged large exposures, both tied to supply-chain loans and private credit funds connected to the company. Analysts believe the results of this bankruptcy could shape how financial institutions handle similar lending arrangements across the auto-parts sector in the future.
For now, stability across the aftermarket industry depends on whether production continues without disruption and whether distributors can still get the stock they need. If the restructuring plan works, most drivers may not notice much change. If it doesn’t, shortages and price hikes could stretch well into next year.
Drivers can’t control global supply chains, but they can take steps to limit the financial fallout of rising repair costs.
The goal is not to panic, but to prepare. Auto repair costs were already trending upward before this bankruptcy. The next year could bring even greater volatility.
When a big supplier like First Brands has problems, it affects a lot more than just its factories. Prices shift, shipments slow, and repair costs creep upward for drivers everywhere. No one really knows what the parts market will look like a few months from now, which is why more car owners are choosing extended protection to keep their budgets steady.
A good protection plan makes repairs less stressful when costs climb or parts take longer to arrive. Instead of waiting to resolve a problem or draining savings on a big repair, the coverage helps pay for the work and keeps your car on the road. It makes a situation that’s hard to predict into something you can handle.
Chaiz makes it easy to compare protection plans. Drivers can see the options next to each other, know exactly what each one covers, and choose coverage that fits their budget and their car. Your protection option plans range from essential powertrain protection to comprehensive coverage that includes benefits like roadside assistance, rental car reimbursement, and diagnostics.
At its core, vehicle protection is about being ready for the unexpected. It shields drivers from sudden costs, delays, and shortages that are beyond their control. Having that safety net means you can keep driving with confidence, even when the repair industry is going through changes.
The First Brands Group Chapter 11 filing isn’t just about a single company. It’s a sign of how easily the repair industry can feel the strain when one big supplier stumbles. What happens in those boardrooms affects local shops, mechanics, and drivers who just need their cars fixed.
For drivers, the lesson is simple. Try to stay ahead of the changes. Keep up with maintenance, handle small issues early, and have a plan that protects you when repair costs climb. It’s not about expecting the worst. It’s about being ready so you can keep moving even when things get unpredictable.
Chaiz helps with that part. The site lets you compare coverage options from trusted providers, see the prices clearly, and choose what works best for your car. Setting it up takes only a few minutes, and it gives you real peace of mind when repair costs or delays start to rise.
Cars break down. Markets shift. But being prepared means you’re not caught off guard. That’s what makes the difference between a quick repair and a long, expensive wait.
