Welcome to the Daily 5 report for Friday, July 11.
Longtime wheel supplier Superior Industries International Inc. traces its roots to 1957 and once stood out as one of the few Tier 1 auto suppliers to be based in California.
In 2015, former CEO Don Stebbins moved the company headquarters from Van Nuys, Calif., to the Detroit area to be closer to customers such as General Motors and Ford Motor Co. It didn't help.
The company has hemorrhaged $171 million over the last two years and another $13 million in the first quarter of 2025. This week, Superior's lenders had enough and moved to take control in a transaction that should relieve most of its debt and wipe out its public shareholders.
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The new owners led by Oaktree Capital Management face existential threats from heavy global competition along with tariff uncertainty. But in a statement announcing the lender takeover, Superior's leadership suggested tariffs and regionalization could help rebuild the business.
CEO Majdi Abulaban said: "More than ever, we are seeing unprecedented levels of RFQs as customers seek to de-risk long supply chains and respond to evolving tariff dynamics."
Said Robert LaRoche, managing director at Oaktree Capital Management: "The demand for high-quality, cost competitive, in-region manufacturing capacity is greater than ever, and we are excited to support the Superior leadership team in this next phase."
The ultimate question — for Superior and any other troubled supplier — is how much customers will be willing to help. GM generated 24 percent of Superior's business last year and Ford chipped in 16 percent, according to the company's annual report. Toyota and Volkswagen accounted for 12 percent each.
With financial problems growing throughout the supply chain, Superior's case could signal what happens to many others.
In other news today, there was a new round of speculation that Nissan Motor Co. could build trucks for Honda Motor Co. in the U.S. The idea first emerged during failed merger talks this year.
A person familiar with the matter told Automotive News that building vehicles for Honda at Nissan's Canton, Miss., plant is one of several options. A deal "is far from being done," the person said. "It's pie-in-the-sky at this stage."
If a deal happens, the person said, Nissan could manufacture a body-on-frame pickup for Honda similar to the Frontier. Honda would design the vehicle.
That's it for now. Have a great weekend. If you want to view this story in your browser, click here.
— Philip Nussel, online editor
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