First Brands bankruptcy impacts nine subsidiary companies in Mexico

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The bankruptcy of the US company First Brands Group is impacting 15 auto parts assembly plants belonging to nine subsidiary companies in Mexico, employing more than 5,000 workers in three border cities, according to local official sources.

Faced with uncertainty about the future of these workplaces, workers have staged strikes and protests to demand clarity and payment of their wages, severance pay, and other benefits, such as savings funds.

A review of the information repository of the Federal Center for Conciliation and Labor Registration (CFCRL) revealed no collective bargaining agreements for 14 of the plants in Ciudad Juárez, Chihuahua; Matamoros, Tamaulipas; and Mexicali, Baja California.

Only one agreement was found at Tridonex-Cardone, held by the National Independent Union of Workers in Industries and Services Movement 20/32, headed by labor lawyer Susana Prieto Terrazas. This complex remanufactures brakes for Ford and General Motors vehicles.

In response to this situation, the Ministry of Labor and Social Welfare reported that the federal government has activated a support and assistance mechanism to “safeguard the labor rights” of the workers.

In coordination with the Federal Labor Defense Attorney’s Office, the Federal Conciliation and Arbitration Commission (CFCRL) and state authorities are monitoring the situation, and cases will be addressed “according to the industry’s jurisdiction,” the Ministry stated.

The actions focus on providing free legal counsel and, where necessary, activating conciliation mechanisms to guarantee the payment of wages, benefits, severance pay, and social security.

Yesterday, La Jornada reported that since Monday, approximately 1,400 workers at Tridonex in Matamoros, Tamaulipas, have lost their jobs.

At least five maquiladoras have closed in Juárez

In Ciudad Juárez, Chihuahua, as of yesterday, the maquiladoras that closed following the bankruptcy of First Brands are Hopkins, Centric Parts, JCC Plant 3, a Brake Parts Inc. (BPI) factory, and JST Stop Tech. Meanwhile, Subensambles Internacionales and the Brake Parts JPP plant, which employ 2,100 workers, are at risk of suspending operations.

At the two Hopkins plants, an electronics equipment manufacturer, and the Centric Parts plant, a brake replacement supplier, approximately 1,000 employees were affected.

Another maquiladora linked to the First Brands corporation is the brake systems manufacturer BPI, which has four factories in Chihuahua employing 1,400 people. The Autonomous Federation of Independent Unionism in Mexico (FASIM), which holds the certificate of representativeness, reported that it has called for a strike to guarantee workers’ rights through “precautionary seizures.”

Meanwhile, at the three Juárez Packaging Plant facilities, as well as the companies Friction One, Stop Tech, and Hopkins Manufacturing Ring, it is estimated that more than 1,100 workers will be affected, according to union sources.

In Mexicali, Baja California, another group of 400 workers at Autolite have also expressed their discontent due to the economic repercussions of this subsidiary of the U.S. group, which filed for Chapter 11 bankruptcy protection in September 2025 to reorganize its operations.

According to local media reports, including The Wall Street Journal, the bankruptcy was a consequence of financial mismanagement by the company’s executive leadership.

Companies Ordered to Submit Compensation Proposal

The five maquiladoras that have already closed in Chihuahua received notification from the state’s Labor Conciliation Center, ordering them to submit a compensation proposal for their workers no later than February 4. “These companies must reach an agreement with the labor authority by that date; otherwise, a class-action lawsuit will be filed,” stated attorney Susana Prieto.

The State Secretariat of Labor and Social Welfare, along with the labor conciliation center, sought communication with representatives of First Brands and with labor attachés from the U.S. Embassy. “Together with the State Employment Service, they were outside the Centric Parts maquiladora to help workers find new jobs. It’s very good to work in a coordinated manner because lawsuits for wrongful termination take a very long time,” she noted.

At the Subensambles Internacionales and Brake Parts JPP plants, where strike notices were announced, Ana García García, coordinator of Fasim, stated that both are still operating, but “we shouldn’t be complacent.”

Ex trabajadores de la fábrica Tridonex, algunos con hasta 25 años de antigüedad, mantienen guardia afuera de la planta en Matamoros, Tamaulipas.

Source: jornada