Garrett Motion Inc. (NYSE: GTX) filed for bankruptcy on Sunday, September 20th. The auto-parts maker is one more company the ongoing pandemic has devastated.
COVID-19 has caused the worst decline in new automobile sales since the Great Depression. This has had an ongoing effect on the associated supply chain. Reduced driving has also led to fewer people servicing their vehicles, capping yet another avenue for sales.
Garrett Motion is not the first auto part supplier to file for bankruptcy since the pandemic-driven economic downturn. But its filing is complicated by an outstanding asbestos settlement inherited from former parent company Honeywell International, Inc. (NYSE: HON).
Disruption in Supply Chain and Decreased Demand
Projected declines in sales led to the closure of al...