Wolfspeed filed for Chapter 11 bankruptcy protection in June and its restructuring could disrupt U.S. automotive production as early as next month, according to a report by news.dealershipguy.com. The company supplies silicon carbide power semiconductors used in EV drivetrains and other vehicle systems, and several major automakers depend on its output.

The report, citing industry analysts and supply chain experts, warns that a production halt or extended disruption at Wolfspeed's fabs could force automakers including General Motors and Mercedes-Benz to idle or slow assembly lines. Silicon carbide chips are critical for EV inverters and power electronics, and few alternative suppliers can match Wolfspeed's capacity in the near term.

Wolfspeed, which operates fabrication plants in New York and is building a major facility in North Carolina, has faced mounting financial pressure due to slowing EV demand and heavy capital spending on new capacity. The company filed for Chapter 11 in June as part of a restructuring agreement with creditors, aiming to reduce debt by roughly 70 percent while continuing operations.

Analysts quoted in the report said the immediate risk centers on contract renegotiations and production scheduling during the bankruptcy process. If Wolfspeed's output slips, automakers could face chip shortages reminiscent of the 2021-2022 supply crisis, though the impact would likely be narrower and concentrated in EV production.

General Motors, which uses Wolfspeed silicon carbide chips in its Ultium EV platform, is among the most exposed. Mercedes-Benz also sources power semiconductors from the company. Both automakers have declined to comment on specific contingency plans.

The report suggests automakers and suppliers should watch Wolfspeed's production schedules and court-supervised restructuring milestones closely over the coming weeks, as any disruption could ripple through U.S. assembly plants with limited warning.