Icahn Automobile to Split Right Into Components and Solution Companies
Icahn Automotive Group - Icahn Automobile Team L.L.C. is splitting right into 2 independent aftermarket "Components" and "Solution" companies to focus better on unique strategies, customers and business opportunities better, inning accordance with moms and dad company Icahn Business L.P.
The Solution company will consist of the automobile repair and upkeep companies of Icahn's captive Pep Boys chain and its AAMCO and Accuracy Song Auto Treatment franchise business companies, as well as several local solution centers the company has acquired.
The company didn't address monetary problems or the particular dimensions of the recently regrouped business units. The Icahn automobile companies produced $2.86 billion in sales in 2015.
"As the variety of vehicles in procedure proceeds to expand, and drivers proceed to maintain their cars much longer, we have a remarkable opportunity to expand how we offer our DIFM (do-it-for-me) customers," Brian Kaner, recently appointed Solution unit CEO, said.
"Our fast-growing fleet business stands to proceed its development from the growth of ride-hailing, last-mile delivery and various other fleets," he said.
"As an independent company concentrated on solution, we will have more sources to spend in our core tactical concerns, consisting of proceeding to expand our nationwide impact, purchasing new vehicle technology, specialist educating and profession development, and the development of a best-in-class solution model."
The Components company will consist of the retail and industrial lines of business of both the Auto Plus and Pep Boys companies.
"By concentrating particularly on the components industry, where our brand names put us amongst the top 10 industrial auto components suppliers in the U.S., we'll proceed to capitalize on industry development, expand and incorporate our client programs, and spend strongly in core markets where a strong base of business, excellent customer support abilities, and among one of the most skilled groups in the industry have us in a solid affordable position," recently appointed Components CEO Chris Cox said.
Mr. Cox, a professional aftermarket industry exec with greater than 40 years of experience, most recently was elderly vice head of state of store integration and support for Icahn.
Messrs. Kaner and Cox will record to Icahn Automotive's board of supervisors and be sustained by their own management groups, as well as a common solution department led by CFO Michael Nevin.
"As component of the splitting up plan, the Components and Solution companies will each make modifications to their store networks and proceed to improve and decentralize the business framework, equipping local management to better offer their unique markets," the company said.
Icahn said it anticipates a brief shift duration at completion which the Components and Solution companies will run as separate companies.
In financial 2018, Icahn Enterprises' automobile section reported an internet loss of $230 million 4.7-percent greater sales of $2.86 billion.
The automobile section also reported an running loss of $48 million, Icahn reported in its 10-Q Filing with the Securities and Trade Compensation. The net loss quadrupled to $230 million from $51 million in financial 2017.