(Corrects to remove bullet point stating that the transaction includes the Carter Carburetor brand, which is part of the Walbro business but will be excluded from the sale)

By Dietrich Knauth

NEW YORK, March 10 (Reuters) - Bankrupt U.S. auto parts maker First Brands said Tuesday that it had agreed to sell its Walbro business line to Canada-headquartered Active Dynamics Group for $50 million. The company is selling business units to fund its bankruptcy restructuring and address fraud claims.

* The sale will preserve 600 jobs in Michigan, Arizona, andLos Mochis, Mexico, First Brands said.  * Walbro makes small engine fuel systems, carburetors, fuelpumps, ignition systems, and related parts. * First Brands is working to sell other assets, includingtowing company Horizon. * The company previously shut down Brake Parts, Cardone, andAutolite units without a sale. * First Brands filed for bankruptcy in September 2025.