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Ford, General Motors in talks with First Brands over rescue financing: Reports

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Ford and General Motors (GM) are in negotiations with bankrupt car parts supplier First Brands Group ​over a potential financing package to keep the company operating ‌during its Chapter 11 proceedings, the Financial Times (FT) reported on Monday

The reports are citing several people familiar with the matter. Reuters could not immediately verify the report. Ford, GM and First Brands did not immediately respond ‌to requests for comment outside regular business hours.

The companies are part ​of a broader group of automakers discussing an arrangement that would involve paying in advance for parts they expect to receive, ‍FT reported. It added that talks were nearing the “finish line,” though a deal could still fall apart. While multiple manufacturers are involved in the negotiations, Ford is “probably the ⁠most exposed and the one that’s got the most at risk here,” ‍the report said.

The Ohio-based supplier makes key components for Ford and GM, including windscreen ‌wiper ‌parts for Ford’s F-150 pickup, the newspaper added. First Brands on Monday said it has begun winding down parts of its North American operations, including its Brake Parts, Cardone and Autolite units, while keeping ⁠other businesses running ⁠as it seeks ​buyers for the assets.

–Reuters–