Calsonic Holdings, a major auto parts company, has entered into adjustments in the direction of seeking financial support from trading banks due to the difficult business situation.
Our policy is to utilize the national system called "Turnaround ADR" and aim for reconstruction while continuing the business.
Headquartered in Saitama City, Calsonic is a major automobile parts manufacturer that handles a wide range of parts, including engine-related parts.
According to the people concerned, the sales of Calsonic decreased due to the spread of the new coronavirus infection, and as of the end of December last year, there is a risk that the debt will exceed the assets.
For this reason, it is necessary to drastically rebuild the management, and we have entered into coordination with the trading banks to utilize the national system called "Turnaround ADR" that supports the reconstruction of companies.
The total amount of debt is estimated to be about 1 trillion yen, and the company plans to request banks to defer repayment of debt and also request financial support such as exemption of debt.
Marelli is currently under the umbrella of the American investment fund "KKR", but its predecessor company is a subsidiary of Nissan Motor Co., Ltd., which still has transactions with major automobile manufacturers including Nissan, and continues its business by utilizing the national system. At the same time, our policy is to find a sponsor company and aim to rebuild our management.
What is "Marelli"?
Calsonic is a major automobile parts manufacturer that handles a wide range of electronic parts such as air conditioning systems and inverters, as well as engine-related parts and mufflers.
Its predecessor was Nissan Motor's subsidiary Calsonic Kansei, and in 2017, the American investment fund KKR acquired all the shares and became a subsidiary of it.
In 2019, we merged with Magneti Marelli, which was the parts division of Fiat Chrysler acquired by KKR, and changed the company name to Marelli.
The Group as a whole has sales of more than 1.2 trillion yen in the fiscal year ending December 2020, making it one of the largest automobile parts manufacturers in the world.
In Japan, there are factories in Honjo City, Saitama Prefecture and Ora Town, Gunma Prefecture.
However, in recent years, orders from automobile manufacturers have decreased due to the spread of infection with the new coronavirus and the shortage of semiconductors, resulting in worsening business performance.
For this reason, we have been promoting cost reduction efforts such as selling the head office and consolidating production bases.