According to individuals with knowledge of the matter, as automotive parts supplier Marelli Holdings navigates bankruptcy restructuring, two major global automakers, Stellantis NV (STLA.US) and Nissan Motor Co., Ltd. (NSANY.US), are in separate discussions to acquire certain core assets. This move is intended to assist the financially troubled parts giant in advancing its restructuring process.

The sources indicate that Stellantis is negotiating with Marelli regarding its suspension systems business, with plans to acquire related assets in Italy and several other countries. Nissan, on the other hand, is interested in acquiring Marelli's smart cockpit business assets located in Japan. However, the individuals emphasized that these talks are still ongoing and the finalization of any deal remains uncertain.

In response to inquiries, both Stellantis and Marelli declined to comment, while Nissan did not immediately respond to a request for comment.

Marelli was established in 2019 through the merger by KKR of the Italian automotive components manufacturer Magneti Marelli with the Japanese parts firm Calsonic Kansei, which KKR previously held. KKR had acquired Magneti Marelli from Fiat Chrysler Automobiles (the predecessor to Stellantis) for approximately €6.2 billion and subsequently integrated it with Calsonic Kansei to form the present-day Marelli.

As a well-known global automotive parts supplier, Marelli primarily manufactures products such as automotive interiors, air conditioning systems, automotive electronics, lighting systems, and electric motors. It operates over 150 production facilities worldwide with a total workforce exceeding 40,000 employees, serving customers including Stellantis, Nissan, and BMW among other global automakers.

However, in recent years, the company has faced sustained operational pressure due to a slowdown in global automotive market demand. Last year, Marelli filed for Chapter 11 bankruptcy protection in the United States to proceed with debt restructuring.

According to court documents, the company stated that declining sales of its major clients like Stellantis and Nissan in core markets, combined with the impact of tariff policies and ongoing supply chain issues since the COVID-19 pandemic, collectively led to the deterioration of its business condition.

Under Chapter 11 of the U.S. Bankruptcy Code, a company can continue normal operations during restructuring while receiving court protection from creditor claims, thereby buying time to complete its debt reorganization. Due to the relatively mature and efficient nature of this process, many multinational corporations with U.S. assets opt to pursue restructuring through Chapter 11.

The individuals familiar with the situation noted that these asset sale negotiations are part of Marelli's overall restructuring plan. The assets under consideration by Stellantis for acquisition include operations not only in Italy but also in countries such as Poland, Brazil, and Mexico.

Given that both Stellantis and Nissan have maintained long-term partnerships with Marelli and are among its largest unsecured creditors, they are deeply involved in the current restructuring negotiations.

Court filings show that Marelli has already secured emergency financing support from a group of senior lenders and plans to complete its bankruptcy restructuring this year. Upon completion, control of the company is expected to transfer to its main creditors.

This creditor consortium includes institutions such as Strategic Value Partners, MBK Partners, Fortress Investment Group, and Polus Capital Management.

The sources revealed that beyond the potential asset sales, whether Stellantis and Nissan continue to provide future orders to Marelli will also be a critical factor in the company's ability to successfully complete its Chapter 11 restructuring. It is understood that Marelli currently produces certain components at some Stellantis factories.

Analysts suggest that in recent years, with intensified global automotive competition, automakers' ongoing cost-control efforts, and supply chain realignment, traditional automotive parts companies generally face challenges such as reduced orders and profit pressure.

Particularly during the cost-cutting and efficiency drive led by former Stellantis CEO Carlos Tavares, the company shifted some production to lower-cost regions and allocated more procurement orders to countries like Morocco, which further weakened Marelli's operational position.

In April of this year, Marelli appointed Frederick Henderson as interim Chief Executive Officer to oversee the company's subsequent restructuring efforts.

Market observers believe that if Stellantis and Nissan ultimately complete the acquisition of the relevant assets, it would not only help Marelli accelerate its debt restructuring process but also further drive consolidation within the global automotive parts supply chain.