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Industry study 23 of 24 · Manufacturing Research Companion: Companies, Strategic Moves, and Technical Studies

Manufacturing Failures, Bankruptcies and Busts

~7,000 words · 1 technical exhibit

Manufacturers fail in a small number of ways, and the production equation predicts most of them, because the factors multiply: a zero anywhere makes the whole product zero. Some cases in brief:

What the study covers

  1. 1Overview: a zero in any factor
  2. 2Measures of distress
  3. 3How manufacturers fail legally
  4. 4Legacy costs: Bethlehem Steel and the integrated mills (2001–03)
  5. 5GM, Chrysler and Delphi (2005–09)
  6. 6Takata (2008–18): when process capability goes to zero in the field
  7. 7The SPAC wave and hardware busts (2020–25)
  8. 8Capacity ahead of demand: Wolfspeed (2025)
  9. 9Products never made: SpaceJet, Dyson's car, the Tata Nano and Northvolt
  10. 10A plant that could not ramp: Stanley's Fort Worth (2019–23)
  11. 11Rescued, not failed: Spirit AeroSystems and the near-misses
  12. 12Who paid
  13. 13Warning signs
  14. 14How to read distress and failure claims
  15. 15Key numbers
  16. 16Landmark companies and cases
  17. 17Pitfalls
  18. 18How an expert thinks about it
  19. 19Glossary

Technical exhibits

Worked examples, checklists and case studies included with this study.

Bethlehem Steel and Lordstown Motors Case Studies

Two case studies scored against the production equation. Bethlehem Steel (1970s–2003): process lag, legacy costs, the 2001 filing, ISG and the PBGC. Lordstown Motors (2019–24): GM's plant, the SPAC, the pre-order claims, Foxconn, Chapter 11, the SEC settlement and Nu Ride

Companies in this study