CHICAGO – LKQ Corp. has formed a joint venture with Suncorp Group to develop an alternative auto parts business in Australia and New Zealand. Suncorp Group is Australia’s largest insurer (measured by premiums) and New Zealand’s second largest general insurance company.
LKQ will supply aftermarket parts to the joint venture and will contribute its experience to help establish automotive parts recycling operations. Suncorp will supply salvage vehicles to the joint venture and help establish relationships with repair shops as customers. The joint venture is expected to bring significant benefits to consumers in Australia and New Zealand through the introduction of high-quality parts alternatives to repair vehicles that have been involved in collisions.
"We are thrilled to be working with Suncorp to grow the use of alternative auto parts in Australia and New Zealand. With over 12 million passenger vehicles on the road in Australia and a low usage of alternative parts in the market, we believe that this joint venture presents long-term opportunities for both companies," said Robert Wagman, president and CEO of LKQ Corp.
Terms of the transaction were not disclosed.
