Auto-Parts Companies’ Bankruptcies Rattle Credit Markets—What to Know

The U.S. economy has remained resilient in recent months, but auto-parts companies have not. The increasing number of bankruptcies in the auto parts industry is unsettling the high-yield credit markets.

This upheaval is making it increasingly difficult for low-income consumers to purchase cars, and is also compelling banks and financial institutions to write off loans to these failed companies.