| 4:33 PM EST

Akebono Brake May Close Two U.S. Factories

Japanese supplier Akebono Brake Industry Co. could close two of its four brake component factories in the U.S. to offset a slump in orders, The Nikkei says.
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Japanese supplier Akebono Brake Industry Co. could close two of its four brake component factories in the U.S. to offset a slump in orders, The Nikkei says.

The company, which filed in January for an out-of-court turnaround plan, expects to report a net loss of 19.2 billion yen ($173 million) for the fiscal year ended March 31.

Akebono’s woes in the U.S. are a result of sharp swings in orders from General Motors Co. over the past eight years as the carmaker restructured operations in the wake of the Great Recession. The supplier also failed to secure any orders from GM for the carmaker’s latest models.

Akebono and its creditors are scheduled to meet on Monday to discuss a turnaround plan. The scheme will include capacity reductions and the possible closure of three plants in the U.S. and Europe.

The supplier also plans to begin selling off much of its stakes in Japanese companies, including several carmakers. In addition, the company is seeking at least 20 billion yen ($179 million) from turnaround investors in a bidding process expected to result in a selection at the end of May.

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