New York, Jan 28, 2026, 10:50 (EST) — Regular session
- Ford shares dipped roughly 0.8% after a report highlighted ongoing talks to sustain bankrupt parts supplier First Brands under Chapter 11 protection.
- First Brands has begun scaling back operations in certain North American units and issued a warning that cash flow is tight, increasing supply-chain risks for automakers.
- Investors are closely monitoring for signs of production hiccups and gearing up for Ford’s Feb. 10 earnings and guidance.
Ford Motor shares slipped in early trading Wednesday following reports that the automaker is negotiating to support a crucial parts supplier, highlighting how fast a bankruptcy can ripple through production lines.
The issue is pressing as First Brands Group has started scaling back segments of its North American operations and is facing cash shortages, recent reports indicate. This increases the risk of delays in shipping components that can’t be easily replaced at short notice.
Automakers have less wiggle room than they’d care to admit. Even a minor supply hiccup can cascade into production delays, overtime expenses, and rising costs—right as investors gear up for the next round of earnings, hunting for clear guidance.
Ford shares slipped 0.8% to $13.82, moving in a range from $13.78 to $13.94. General Motors shares dropped roughly 1.7%, settling at $84.87.
Ford and GM are in talks with bankrupt parts supplier First Brands about a possible financing deal to keep the company afloat during its Chapter 11 proceedings, the Financial Times reported via Reuters. The discussions reportedly involve the automakers paying upfront for parts they anticipate receiving. According to the report, a deal is near but still not guaranteed, with Ford likely carrying the most risk. https://www.reuters.com/business/autos-tra…
First Brands provides parts to both Detroit automakers, including windscreen wiper components for Ford’s F-150 pickup, the report said. A GM spokesperson told Reuters the company is keeping a close watch on developments and preparing contingency plans, noting that operations remain unaffected at this point.
First Brands is shutting down parts of its North American operations, including its Brake Parts, Cardone, and Autolite divisions, while keeping other units active as it searches for buyers. “Over the past several months, we explored all available options to secure funding and advance the sale process,” interim CEO Charles Moore said. https://www.reuters.com/legal/litigation/f…
The supplier sought Chapter 11 protection in September, revealing liabilities topping $10 billion; this U.S. court-supervised bankruptcy procedure allows firms to restructure without shutting down. According to Reuters, a company attorney told the court that First Brands holds roughly $190 million in cash—enough to fund operations only through January’s end.
Traders are also keeping an eye on whether any agreed supplier support leads to increased near-term working-capital demands for Ford — meaning cash flowing out sooner to secure parts arriving down the line.
But talks alone won’t solve the issue. Should lenders press for liquidation or if negotiations break down, automakers may still grapple with production delays or higher sourcing costs—even if the disruption proves short-lived.
Ford is set to release its fourth-quarter and full-year 2025 results on Tuesday, Feb. 10, at 4:05 p.m. ET. The earnings call, featuring CEO Jim Farley and CFO Sherry House, will follow at 5:00 p.m. ET. Investors will be focused on any updates regarding supplier risks, production strategies, and cost pressures. https://s205.q4cdn.com/882619693/files/doc…
