Icahn Automotive Group announced that it is in the process of splitting into two independent companies.
Icahn Automotive will separate into a parts company led by Chris Cox, and a service company led by Brian Kaner. The two CEOs will report to Icahn Automotive’s board of directors and will be supported by their own leadership teams, as well as a shared service division led by CFO Michael Nevin.
“As separate companies, parts and service will be best-positioned to focus on unique strategies, customers and business opportunities,” Icahn Automotive said in a news release.
The parts company will include the retail and commercial lines of business of Auto Plus and Pep Boys.
“By focusing specifically on the parts sector, where our brands put us among the top 10 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,” said Cox, a veteran aftermarket executive with more than 40 years of experience leading commercial and retail parts teams.
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. “Our fast-growing fleet business stands to continue its growth from the expansion of ride-hailing, last-mile delivery and other fleets. 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 each will make adjustments to their store networks, and continue to streamline and decentralize the organizational structure, empowering local leadership to better serve their unique markets, Icahn Automotive noted.
The company expects a short transition period, at the end of which the parts and service businesses will operate as separate companies.