Ford and GM Seek to Rescue Bankrupt Supplier First Brands Group
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Financial Rescue Talks: Ford and GM are reportedly negotiating to provide financial assistance to the bankrupt First Brands Group by making advance payments for upcoming product deliveries, which would inject much-needed cash to help the company maintain operations amid nearly $12 billion in debt.
- Critical Component Supply: First Brands produces essential components for Ford and GM, including windshield wiper parts for the Ford F-150 pickup truck, and failure to secure this rescue could disrupt production lines for both automakers.
- Bankruptcy Impact: First Brands filed for bankruptcy in September 2025, disclosing almost $12 billion in debt and facing at least $2.3 billion in liabilities due to fraud allegations against its founder, highlighting the deep-seated crises within the auto industry.
- Industry Ripple Effects: Noted short-seller Jim Chanos warned that the bankruptcy of First Brands could trigger a broader wave of corporate failures, reflecting the industry's challenges from the shift to electric vehicles, policy changes, and supply chain disruptions.
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Analyst Views on F
Wall Street analysts forecast F stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for F is 13.65 USD with a low forecast of 11.00 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 13.820
Low
11.00
Averages
13.65
High
16.00
Current: 13.820
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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