TOKYO -- Akebono Brake Industry's financial troubles that were revealed this week represent the immense cost cutting pressure auto suppliers are under, as carmakers try to allocate money to their costly pursuit of next-generation technologies.
The Japanese brake supplier announced Wednesday that it plans to revive struggling operations through an out-of-court process known as alternative dispute resolution, asking for a moratorium on debt repayments from lenders. After failing to secure orders for new SUV and pickup trucks from General Motors, its U.S. operations quickly deteriorated, taking a toll on its finances.
