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Rising Bankruptcies Put Automotive Supply Chains Under Pressure

By Laura C. Baucus, Danielle Rushing Behrends & Joseph DeHondt on September 24, 2026
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Earlier this summer, Dykema’s Danielle Behrends shared her perspective with Law360 on elevated financial distress across several industries and the importance of addressing liquidity, restructuring and operational challenges early.

Recent reporting highlights that pressure in the transportation sector: at least 16 trucking, delivery and transportation companies entered bankruptcy proceedings between late August and September 21.

The developments also echo themes identified in Dykema’s automotive research. In the 2026 Automotive Trends Report, 26% of respondents cited rising bankruptcy risks among the supply chain challenges expected to have the greatest impact on the industry. Dykema’s M&A Outlook Survey similarly pointed to supply chain resiliency as a key driver of automotive deal activity, including supplier consolidation and strategic partnerships.

For automotive companies and others dependent on complex supply chains, financial distress can extend well beyond the company experiencing it, creating potential disruption for customers, suppliers and other counterparties.

Read Danielle’s Law360 perspective and explore Dykema’s automotive research (Automotive Trends Report | M&A Outlook Survey) for more on the pressures affecting the automotive and transportation industries.

Photo of Laura C. Baucus Laura C. Baucus

Laura Baucus is a results-oriented litigator and business attorney with experience delivering consistent results to clients in the automotive, aerospace, manufacturing and financial services industries. Ms. Baucus has worked both as outside counsel and as seconded in-house counsel. She is the Director of…

Laura Baucus is a results-oriented litigator and business attorney with experience delivering consistent results to clients in the automotive, aerospace, manufacturing and financial services industries. Ms. Baucus has worked both as outside counsel and as seconded in-house counsel. She is the Director of Dykema’s 140+ attorney Automotive Industry Group, the immediate past Leader of the firm’s Financial Services Litigation Practice, a Leader in Dykema’s COVID-19 Task-Force, the originator of the firm’s Supply Chain Group, the Manager of a firm OEM client-service team, and the immediate past Manager of the firm’s largest Michigan office.

Ms. Baucus regularly counsels clients on force majeure and related contract performance options. Her litigation practice focuses on procurement and supply chain, recalls, warranty and cost recovery, contract termination, tooling recovery, Uniform Commercial Code issues, and financial services.  Her contract practice includes negotiating and drafting supply contracts and other commercial agreements for automotive and other manufacturing companies, including terms and conditions. Ms. Baucus also manages national portfolios of lawsuits for some of the nation’s largest residential mortgage servicers.

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Photo of Danielle Rushing Behrends Danielle Rushing Behrends

Clients rely on Danielle for her proactive, resourceful, creative, and effective restructuring and litigation advice. She looks for practical solutions and works to build a strategic plan that aligns with her client’s needs. Her experience includes local, national, and international businesses, particularly in…

Clients rely on Danielle for her proactive, resourceful, creative, and effective restructuring and litigation advice. She looks for practical solutions and works to build a strategic plan that aligns with her client’s needs. Her experience includes local, national, and international businesses, particularly in the aerospace, automotive, financial, food and beverage, oil and gas/energy, retail, national fitness chain, healthcare, real estate, and transportation industries, Chapter 11 Trustees, and a federal court-appointed receiver. In particular, she has complex litigation experience in state and federal courts involving numerous governmental agencies.

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Photo of Joseph DeHondt Joseph DeHondt

Joe counsels clients on transactional and corporate matters, including mergers and acquisitions, commercial agreements, equity offerings, venture capital financings, private placements, corporate governance, and other general corporate matters.

He also assists clients with technology-related transactions, including joint ventures and transactions involving the licensing…

Joe counsels clients on transactional and corporate matters, including mergers and acquisitions, commercial agreements, equity offerings, venture capital financings, private placements, corporate governance, and other general corporate matters.

He also assists clients with technology-related transactions, including joint ventures and transactions involving the licensing and transfer of software and technology.

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  • Posted in:
    Bankruptcy, Business and Commercial
  • Blog:
    The Open Road Automotive Law Blog
  • Organization:
    Dykema
  • Article: View Original Source

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