These Car Manufacturers Are About to Shut Their Doors Due to Bankruptcy
While you may think that most car manufacturers are rolling in cash, many of them are actually struggling behind closed doors. Even some of the most well-known and iconic brands are dealing with severe financial struggles. Let’s take a closer look at car manufacturers about to go bankrupt.
Jaguar
Over the years, Jaguar has been on a steady downward spiral in terms of its financial situation. It is only a matter of time until their reserves run dry. As of 2025, the company announced that it would only be making EVs in an attempt to boost its profits.
Mazda
The Japanese market is likely to experience a rapid decrease in sales, and many experts believe that Mazda will be the first to go. In 2020, the company needed a $4.2 billion bailout just to prevent bankruptcy, but they have yet to release a successful model since.
Chrysler
In 2009, Chrysler initially filed for bankruptcy, and since then, they have been trying desperately to stay relevant. They only have 2 cars under production - a sedan and a minivan. However, neither model is particularly popular, exacerbating their financial struggles further.
Cadillac
While Cadillac was once the epitome of American luxury, it has since fallen from grace. In fact, the company only narrowly missed filing for bankruptcy in 2009. Since then, they have tried to reignite their relevance, but with no success. They are currently manufacturing EVs in an attempt to rebrand.
McLaren
Even though McLaren is known for creating luxurious supercars, the company has actually been under major financial strain. This mostly comes down to the fact that they only cater to the significantly wealthy - a relatively small target audience.
Mitsubishi Motors
While you may still see new Mitsubishi models on the road, its manufacturer, Mitsubishi Motors, is likely to crumble in the coming years. In fact, its best-selling model, the Outlander, only sold 33,000 models last year, leading to a massive financial loss.
Volvo
EVs seem to be the future. However, Volvo is showing signs of struggling to keep up with this reality, as it recently cut off funding for Polestar, an EV-only brand. Their sales numbers are also low, with their top-selling car being a gasoline model.
Polestar
Polestar is a Swedish car company that is barely hanging on by a thread. In 2024, Volvo cut funding to the brand, which only made their financial situation that much worse. They have raised nearly $1 billion in debt financing.
Buick
Buick is likely nearing the end of its life, as its sales numbers have consistently declined over the past couple of years. They currently have only a handful of models available and plan to transition to a completely electric lineup in the near future—a shift that many are not yet prepared for.
Lucid
Lucid is likely to file for bankruptcy in the next few years. This EV company hasn’t quite made a lasting impact on the industry, especially when compared to giants such as Tesla. Of the 8500 vehicles produced by Lucid last year, only 6000 were actually sold.
Lotus
Lotus is currently navigating murky waters, as they are likely to experience major financial cuts in the next few years. The company has been steadily declining financially, and with no new models hitting the market, its situation isn’t expected to improve.
Canoo
Canoo is known for its futuristic designs and EVs. However, they are facing some problems, mainly due to bad management within the company. While many think that Canoo will be revived, others believe that filing for bankruptcy is more likely.
Toyota
This one may come as a bit of a surprise, but Toyota has actually been struggling financially in recent years. This comes as a result of a struggling automotive industry in the US.
Nikola
Nikola, known for its version of the hydrogen fuel cell and electric trucks, is currently facing some severe financial issues. Their total income deficit currently sits at around $1 billion. Even though they had some great ideas in the past, it has become evident that their products simply don’t have what it takes to thrive in the automotive industry.
Aptera
Aptera is yet another brand that is struggling to stay afloat. In recent years, they have encountered some severe financial challenges, including a complete liquidation in 2011.
Infiniti
Infiniti stands as the premium product branch of Nissan. However, they have a rather bleak outlook for the future, with growing concerns that the company could close down entirely within the coming years.
Nissan
Even though Nissan is an iconic automotive brand, they have failed to release anything innovative or groundbreaking in the past decade. As a result, people have started speculating their downfall - especially if newer, more creative models aren’t added to their lineup.
Ford
While Ford is safe for the time being, there are growing concerns that the automotive giant could experience significant financial struggles in the near future. This mostly comes as a result of a proposal set forth by the UAW, which includes significant wage increases, shorter work weeks and improved pension benefits.
Fisker
Fisker is an EV startup. However, they are facing significant financial difficulties - so much so that many believe they are on their way to filing for bankruptcy. Their troubles became evident after they failed to make an $8.4 million loan payment, even after an extended grace period.
Rivian
Rivian is currently struggling to keep up with the ever-evolving EV market. Simply put, they haven’t released any innovative or creative designs, leading to a low demand and sales numbers.
Alfa Romeo
Alfa Romeo is a luxury car manufacturer, known for its world-class designs - in the past, that is. Nowadays, however, they have a weak presence in the US and poor brand recognition. As a result, they have failed to meet the necessary sales numbers, leading to some rather significant financial losses.
