Trucking industry parts company closes; no bankruptcy revealed

The Covid-19 pandemic had a huge impact on the automotive industry as manufacturing plants stopped making vehicles in March 2020 and slowly resumed operations in May 2020 under strict social distancing and sanitation requirements..

With a lack of inventory coming into automobile dealer showrooms, after two months of shuttered manufacturing plants, prices on the existing new vehicles increased dramatically as the supply of cars and trucks began to shrink.

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Consumers turned to the pre-owned market, at first to purchase more reasonably priced automobiles, then out of necessity from the lack of new vehicles, until the used car market began to be impacted by high demand as well.

The next option for consumers was to hang on to their vehicles, repair them, and keep them running.

Auto parts manufacturers and retailers were able to take advantage of vehicle inventory shortages and rising car prices as the demand for auto parts for repairs increased.

When interest rates spiked after the Covid 19 pandemic, however, several auto parts suppliers with huge debt obligations suffered from rising interest rates and inflation and faced financial problems. Some were forced to file for bankruptcy.

Auto parts companies file for bankruptcy

Among the automotive aftermarket suppliers to file for bankruptcy was Wheel Pros, which operates as an auto parts distributor and retailer Hoonigan. The company filed for a prepackaged Chapter 11 bankruptcy on Sept. 9, 2024, to eliminate $1.2 billion in debt and provide about $570 million in new capital through an exit facility.

Accuride Corp., another leading manufacturer of wheels and wheel-end products for commercial trucks and trailers, filed for Chapter 11 bankruptcy protection on Oct. 9, 2024, seeking a consensual restructuring of its debt to continue operating as a going concern.

Motor vehicle parts manufacturer, Hypertech Inc., and two affiliates filed for Chapter 11 bankruptcy protection on April 11, 2025, to reorganize their businesses.

The Memphis, Tenn.-based manufacturer of automotive performance electronics and components filed its petition in the U.S. Bankruptcy Court for the Middle District of Tennessee, listing $1 million to $10 million in assets and liabilities.

Another huge automotive parts maker is shutting down permanently but has not filed for bankruptcy.

TransAxle will shut down operations permanently.

Image source: Shutterstock

TransAxle closes down operations

Iconic heavy-duty truck parts remanufacturer and distributor TransAxle LLC will close all operations after 46 years in business, after failing to find a buyer for the company.

The Cinnaminson, N.J.-based remanufacturer of truck drivetrain components, such as transmissions, axles, differentials, and hydraulics, will shut down its 13 locations by the end of August and lay off 209 workers, according to Worker Adjustment and Retraining Notification notices filed in several states.

More closings:

The company serves both light- and heavy-duty vehicles across all makes and models in the On Highway and Off Highway sectors.

TransAxle's New Jersey WARN notice effective date period is Aug. 25, 2025, through Aug. 29, 2025, affecting 129 employees.

TransAxle, at one point, was one of the largest East Coast remanufacturers and distributors of truck drivetrain components for the medium- and heavy-duty truck markets, FreightWaves reported.

TransAxle was established in 1979 as a single, family-owned shop, which expanded to a nationwide, privately-owned remanufacturer with multiple locations, according to its website.

The company currently operates 13 facilities in nine states, including Connecticut, Georgia, Maine, Maryland, New Jersey, New York, North Carolina, Pennsylvania, and Virginia.