As the Covid-19 pandemic began to settle down in 2020, both new and used car dealers had an increase in business from customers using their government stimulus checks as down payments on vehicles.
With more people seeking to buy vehicles, new car lots began to have shortages of vehicles as automobile manufacturers faced limited production from supply chain challenges and temporary shortages of auto parts. Those challenges reduced both inventory and sales through 2021.
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The shortages of new cars led consumers to instead buy pre-owned vehicles, which then led to shortages of pre-owned inventory.
Related: Another major healthcare company files Chapter 11 bankruptcy
New and used car shortages and price increases, caused by higher demand, led consumers to rely on the more inexpensive option of car repairs to keep their cars running until inventories grew and prices would become more reasonable.
Auto parts manufacturers and dealers benefited from vehicle inventory shortages and rising car prices as the demand for auto parts for repairs increased.  Â
When interest rates spiked after the Covid-19 pandemic, 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 dealers file for bankruptcy
Wheel Pros, which operates as auto parts distributor and retailer Hoonigan, 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.
Northvolt AB, which makes electric vehicle batteries for several carmakers, including BMW, Audi, Porsche, Volvo, Polestar, and Swedish truckmaker Scania, filed for Chapter 11 bankruptcy protection on Nov. 21, 2024, seeking a going-concern recapitalization or sale of its assets as it faced an acute liquidity crisis.
Northvolt’s restructuring and reorganization plans failed, and there was reportedly little hope for the battery manufacturer to recover.Â
The Stockholm-based debtor obtained a bankruptcy court order to dismiss its Chapter 11 case after it filed for bankruptcy liquidation in Sweden in March 2025.
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.
Auto parts retail company files for bankruptcy.
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Techno Toy Tuning files for bankruptcy
Finally, Techno Toy Tuning LLC, a provider of auto parts for classic and discontinued automobile models, filed for Chapter 11 bankruptcy, seeking to reorganize its business.
Related: Another huge auto parts brand files for Chapter 11 bankruptcy
The Shingle Springs, Calif.-based auto parts dealer filed its Subchapter V petition on May 10Â in the U.S. Bankruptcy Court for the Eastern District of California, listing $100,000 to $500,000 in assets and $1 million to $10 million in liabilities.
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The debtor’s largest creditors include the U.S. Small Business Administration, owed about $2 million; Web Bank, owed about $103,000; and U.S. Bank NA, owed about $58,000. Funds will be available to distribute to unsecured creditors after paying administrative fees, according to the petition.
Techno Toy Tuning, which has operated for over 25 years, produces high-quality, durable, and aesthetically pleasing performance auto parts that are rigorously tested and have been successfully used in various motorsports, including Sports Car Club of America, National Auto Sport Association, and Formula Drift, according to its website.
The auto parts dealer provides parts for classic and discontinued vehicles such as the Datsun/Nissan 240Z, 260Z, and 280Z; Toyota Celica and Supra;Â Lotus Elise and Exige; Chevrolet C5 Corvette; Ford Capri;Â Mazda RX2, RX3, RX4, and RX5; and various other models.
The company can sometimes modify an existing auto parts design to meet a customer’s needs if the part is no longer in production, according to its website.
The company distributes products through dealers in California and Texas, and ships auto parts worldwide using FedEx and the U.S. Postal Service, through its website, Technotoytuning.com.
Related: Popular vodka and gin brand files for Chapter 11 bankruptcy
