Private equity company KKR created a global auto supply giant when it combined Italy-based Magneti Marelli with Japan's Calsonic Kansei.
As the newly named Marelli, the company was expected to see $16.4 billion in annual sales, including exterior injection molded fascia, lighting and under-the-hood plastic parts. It could potentially combine those elements into a complete package for autonomous cars.
Unfortunately, the timing for the creation of Marelli wasn't great. It came into being in mid-2019. The onset of the COVID-19 pandemic combined with microchip shortages that impacted vehicle production worldwide meant the firm had less income than expected.
Now KKR has been selected in a debt restructuring process focused on reducing Marelli's debt load by more than $3 billion to give it more financial breathing room.
"[We] will continue to support Marelli as it works to position itself as an automotive leader for the future, notwithstanding the current challenges the industry is facing globally," KKR said in a statement to Bloomberg.