Ford and GM are reportedly in talks for a cash-up deal to rescue bankrupt First Brands Group – Ford Motor (NYSE:F), General Motors (NYSE:GM)

Ford Motor Co. (NYSE:F) And General Motors Co. (NYSE:GM are reportedly in talks to provide a financial lifeline to save the bankrupt auto parts supplier First brand group.

The potential deal involves the automakers making upfront payments for the products they will receive. This would provide First Brands with much-needed cash to continue operations.

The talks are reportedly in the final stages and the success of the deal is still uncertain. reported The Financial Times wrote this on Tuesday.

The Ohio-based supplier produces critical parts for Ford and GM, including windshield wiper parts used in Ford’s F-150 pickup.

Several automakers are in advanced talks about a deal that would require advance payments for expected parts deliveries, the publication said. Although discussions are close to the ‘finish line’, the deal could still fail, with Ford seen as the most exposed and at greatest risk among the participants.

Ford, GM and First Brands did not immediately respond to Benzinga’s requests for comment.

First Brand Collapse: A Timeline

The possible rescue of First Brands by Ford and GM comes after a series of events that have rocked the auto industry.

• September 2025: First Brands filed for bankruptcy and disclosed nearly $12 billion in debt and off-balance sheet financing.
• November 2025: The company has sued its founder, Patrick Jamesand several others, accusing them of fraud that reportedly saddled the company with at least $2.3 billion in debt. At the same time, the US Securities and Exchange Commission opened an investigation into Jefferies Financial Group Inc. (NYSE:JEF)examining whether the investment bank properly disclosed its exposure to First Brands during the collapse.
• January 26, 2026: First Brands has announced plans to scale back certain U.S. operations, including its Brake Parts and Autolite brands.
• Recent bankruptcy hearing: A corporate lawyer said First Brands has been in discussions with lenders to obtain new financing through a loan to support ongoing operations, FT reported.

The potential bailout of First Brands by Ford and GM highlights the ripple effects of the auto industry’s challenges, including the shift to electric vehicles, policy changes, tariffs and supply chain disruptions.

Jim Chanosa well-known Wall Street short seller known for exposing Enron’s fraud had warned that the bankruptcy of US-based First Brands Group could trigger a wider wave of corporate bankruptcies.

Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.

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