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Auto Parts Firms Boost Debt Amid Tariff Concerns

9/20/2025

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Summary

Story summary

Three auto-parts manufacturers are increasing debt issuance in the car sector by 6% this year through the junk-bond market.
American Axle & Manufacturing Inc. plans to raise $2.3 billion to acquire UK-based Dowlais.
ZF Friedrichshafen AG has doubled its junk-debt sale to $1.5 billion, while Forvia raised $500 million.
Investors view these deals favorably despite rising global tariffs, which may impact profits.
The lower end of the high-yield market remains cautious about the auto sector.

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Story summary

Three auto-parts manufacturers are increasing debt issuance in the car sector by 6% this year through the junk-bond market.
American Axle & Manufacturing Inc. plans to raise $2.3 billion to acquire UK-based Dowlais.
ZF Friedrichshafen AG has doubled its junk-debt sale to $1.5 billion, while Forvia raised $500 million.
Investors view these deals favorably despite rising global tariffs, which may impact profits.
The lower end of the high-yield market remains cautious about the auto sector.