New York, Jan 27, 2026, 09:25 ET — Premarket
- Ford shares dipped roughly 0.8% pre-market following news of discussions related to supplier First Brands’ Chapter 11 filing
- The Financial Times reported that automakers are considering advance payments for parts to help suppliers stay afloat
- With the bankruptcy deadline closing in, investors are watching for statements from Ford, GM, and the supplier
Ford Motor shares slipped about 0.8% to $13.44 in early trading Tuesday, following a report that the automaker and General Motors are negotiating rescue financing with bankrupt parts supplier First Brands Group. Reuters couldn’t immediately confirm the story, and none of the companies—Ford, GM, or First Brands—commented outside regular hours. (Reuters)
This story is about parts, not sentiment. When a key supplier falters, assembly lines can grind to a halt fast, hitting production schedules and cash flow instead of making headlines.
The Financial Times reported that talks now include a wider range of automakers and focus on prepaying for parts they anticipate receiving. This setup would essentially offer short-term liquidity to maintain the flow of shipments. The paper noted the discussions are close to the “finish line,” but warned a deal could still collapse. Ford stands out as the most exposed among the manufacturers involved. (Financial Times)
First Brands announced Monday it’s shutting down parts of its North American operations, including Brake Parts, Cardone, and Autolite, while continuing to run other units as it hunts for buyers. Interim CEO Charles Moore said, “We explored all available options to secure funding and advance the sale process.” According to Reuters, the supplier borrowed $1.1 billion to file for Chapter 11 but now has roughly $190 million left—enough to keep going only until the end of January. The Wall Street Journal noted that top lenders have so far balked at a request for a second $700 million loan. (Reuters)
First Brands filed for Chapter 11 bankruptcy protection in late September, revealing liabilities estimated between $10 billion and $50 billion. Its assets were estimated at $1 billion to $10 billion. Chapter 11 allows a U.S. company to reorganize while keeping its operations running. (Reuters)
The supplier problem hits as investors reevaluate Detroit’s profit drivers and vulnerabilities. On Tuesday, GM boosted its 2026 profit forecast, citing robust U.S. demand for pickups and SUVs. The company also announced a hike in its quarterly dividend and a fresh share buyback program, but took a $6 billion charge related to its EV scale-back. (Reuters)
Ford holders face a straightforward immediate concern: will parts supply remain steady, and how might any prepayment deals impact working capital? Such an agreement could reduce short-term supply risks but might also push financing pressures back onto automakers right as they gear up for another earnings cycle.
Ford plans to release its fourth-quarter 2025 earnings on Feb. 10, the company’s investor relations page shows. (Ford Shareholder Services)
The downside scenario isn’t pretty. Should talks collapse and First Brands hasten shutdowns or face liquidation, automakers might scramble for new suppliers or pile up extra inventory. Both moves can drive up costs and throw off production, even if demand holds steady.
Investors are eyeing Feb. 10, when Ford will unveil quarterly results at 4:05 p.m. ET. The focus will be on management’s take on supplier risks and cash flow. A conference call follows at 5:00 p.m. ET, with CEO Jim Farley and CFO Sherry House leading the discussion. (Businesswire)
