Icahn Automotive Splitting Into Service, Parts Companies
Aug. 28, 2019—Icahn Automotive announced on Tuesday that it will define two independent companies beneath the Icahn umbrella. One company will focus on parts; the other on service, according to a press release.
Chris Cox will become CEO of the parts sector, while Brian Kaner will be named CEO of service. Both will report to Icahn Automotive’s board of directors and be supported by their own leadership teams, as well as a shared service division led by CFO Michael Nevin, the company said.
The parts company will include the retail and commercial lines of business of both Auto Plus and Pep Boys.
"By focusing specifically on the parts sector, where our brands put us among the top ten commercial auto parts distributors in the U.S., we will continue to capitalize on industry growth, expand and integrate our customer programs, and invest aggressively in core markets where a solid base of business, excellent customer service capabilities, and one of the most experienced teams in the industry have us in a strong competitive position,” Cox said in the release.
The service company will include the automotive repair and maintenance businesses of Pep Boys, AAMCO and Precision Tune Auto Care, as well as several regional service centers the company has acquired.
“As the number of vehicles in operation continues to grow, and drivers continue to keep their cars longer, we have a tremendous opportunity to expand how we serve our DIFM customers," Kaner said in the release. "As an independent company focused on service, we’ll have more resources to invest in our core strategic priorities, including continuing to grow our national footprint, investing in new vehicle technology, technician training and career development, and the creation of a best-in-class service model.”
As part of the separation plan, the parts and service businesses will each make adjustments to their store networks, and continue to streamline and decentralize the organizational structure, empowering local leadership to better serve their unique markets. The company says it expects a short transition period and that the parts and service businesses will operate as separate companies.