TMD Friction has been forced to file its German operating and holding companies for insolvency, due to, it said, "the sharp deterioration of conditions in the global automotive industry."

Derek Whitworth, CEO of TMD Friction, said: “I am deeply saddened that we have not been able to reach an agreement with our lenders and shareholders to avoid this action. Although the operative business of TMD Friction is healthy, the rapid slowdown in the automotive industry has led to a very high level of pressure on our cash flow. Additionally, our working capital requirements have significantly increased following the withdrawal of credit insurance from the entire automotive supply chain.” 

The company has also reported that potential investors have shown interest in acquiring the company.
In the UK, TMD Friction has been keen to stress that it is business as usual.

Commercial Vehicle marketing manager Bryan Knott was quoted in the ADF ebulletin: “We have no reason to expect any interruption in supplies, so UK aftermarket operators can still buy with confidence."

For the latest information regarding TMD Friction's insolvency, please visit the UAN website www.unitedaftermarket.net