Great Inflation Surge Is Burying Auto Suppliers Deeper in Debt

It has been, by almost any measure, an extraordinary few years for the likes of Mercedes-Benz Group AG and Renault SA: Soaring vehicles prices have fueled record profit margins.

But for the companies that make everything from the wiring to the sealing systems and thermal insulation that go into their cars — and virtually every other vehicle made in Europe — it’s been nothing short of a disaster.

From supply-chain disruptions and labor strife to rising material and energy prices, the cost of doing business for firms such as Standard Profil Automotive GmbHand Adler Pelzer Holding GmbH ...