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U.S. Auto Sector Faces Debt Crisis Amid Rising Bankruptcies

9/24/2025

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Summary

Story summary

Debt concerns in U.S. auto sector rise after July bankruptcies—the highest since 2020—driven by higher rates.
Parts supplier First Brands faces a $6 billion debt crisis with off-balance sheet liabilities.
Deloitte is reviewing First Brands’ accounting practices.
A dealership serving subprime buyers filed for Chapter 11 bankruptcy.
The Justice Department is investigating financial irregularities, while some analysts warn against panic.

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Story summary

Debt concerns in U.S. auto sector rise after July bankruptcies—the highest since 2020—driven by higher rates.
Parts supplier First Brands faces a $6 billion debt crisis with off-balance sheet liabilities.
Deloitte is reviewing First Brands’ accounting practices.
A dealership serving subprime buyers filed for Chapter 11 bankruptcy.
The Justice Department is investigating financial irregularities, while some analysts warn against panic.