6 hours ago
On November 27, 2024, Wipro announced the extension of its relationship with Marelli for an additional four years.
By CNBCTV18.com June 16, 2025, 12:51:49 PM IST (Published)
Marelli Holdings Co., a key global supplier of automotive components to companies including Nissan Motor Co, has filed for Chapter 11 bankruptcy protection in the United States.
The company, which is a major client of Indian IT giant Wipro, cited tariff pressures as the primary reason behind its renewed debt-reduction efforts, marking another chapter in its prolonged financial struggle, according to a report by Bloomberg.
The bankruptcy filing is supported by Marelli’s senior lenders, who have signed a restructuring deal aimed at significantly reducing the company’s debt and transitioning it to new ownership, the report added.
Chapter 11 bankruptcy is a legal process in the United States that allows a company (or sometimes a person) to reorganise its debts while still running its business.
Marelli, which is headquartered in Japan, employs over 50,000 people and operates approximately 170 facilities worldwide. The company manufactures and supplies a range of automotive components, including lighting systems, air conditioning units, electric motors and suspension systems.
Despite multiple restructuring efforts over recent years, the company was unable to achieve long-term financial stability due to declining customer orders.
The bankruptcy move is expected to provide Marelli with a more sustainable capital structure going forward.
Marelli has been a prominent overseas client of IT services provider Wipro. On November 27, 2024, Wipro announced the extension of its relationship with Marelli for an additional four years. Under this deal, Wipro is responsible for migrating Marelli’s data centres to the cloud.
According to the reports, the contract value stood at approximately $100 million. CNBCTV18 has not independently verified this.
"Over the years we have worked with them, the Wipro team has developed an in-depth understanding of our business, which combined with their technical expertise, will help us further develop and grow our IT infrastructure," Marelli Chief Digital Officer Vittorio Rossetti had stated at the time of the deal.
Marelli was originally established in Italy and continues to operate as a significant player in the global auto parts industry, despite the current financial challenges.
Shares of Wipro were trading 0.4% higher at ₹261.25 apiece at 12:48 pm.
