DRiV Inc. has been announced as the name of the future publicly traded Aftermarket and Ride Performance company that will launch in the second half of this year, following Tenneco Inc.’s separation into two independent companies, Tenneco announced today. Once it spins, DRiV will serve as one of the largest global multi-line, multi-brand aftermarket suppliers and one of the largest global original equipment (OE) ride performance and braking suppliers to aftermarket, light vehicle and commercial vehicle customers, the company says. DRiV will be headquartered in the greater Chicago area.
“It is a landmark day, now that we are able to announce the future company’s name and identity,” said Brian Kesseler, co-CEO, Tenneco and future chairman and CEO, DRiV. “DRiV will be a unique new business, a more than $6 billion start-up, built from the combined strengths of Tenneco, Federal-Mogul and Öhlins – laser-focused on innovation, performance, brand development and customer service. Our global scale, our stable of well-respected and enduring aftermarket brands and our longtime partnerships with the world’s leading original equipment manufacturers give us a significant competitive advantage. We are strategically positioned to capitalize on secular trends such as the expansion of vehicles in operation globally, as well as growth in intelligent suspension, new mobility models and the evolution of autonomous driving.”
While many of the brands that will now reside under the DRiV umbrella have a long and storied heritage in the OE and aftermarket segments, that start-up mentality will be key for this new business, said Kesseler.
“With the combination of Federal-Mogul Motorparts and Tenneco’s aftermarket business and the ride performance OE business, we’ve really put together an organization that has some of the most storied brands in the industry – five of which are over 100 years old. And in January, we added the Ohlins team. Their heritage is in racing and the high-technology, precision side of the business, and they behave very much like a start-up. They stay focused and they move fast and that’s really where, as we are setting up the new organization, [we are] stressing the importance of having that ‘start-up’ mentality,” said Kesseler. “We keep it simple, keep it focused, move to market fast and bring solutions to our customers better than anyone else can. So, it’s a start-up mentality, we just happen to be starting off with about a $6.5 billion revenue and 30,000 people around the globe.”
With 65 manufacturing locations in 20 countries, a strong supply chain will be another key differentiator for DRiV, Kessler said, “With the scale that we do have, with the multiple product lines that we do have, we can move our product through our distribution network – from the standpoint of size and multiple product lines – through that same network better than most. But also, as we continue to make our investments in data analytics and the digital transformation that’s happened in the market, we are intent on making that a competitive differentiator.”
Tenneco says the “DRiV” name is emblematic of what the new company expects to be – a global leader in the aftermarket and original equipment businesses, driving advancements that help people get the most out of every vehicle, every ride, every race, and every journey. The black, red and silver logo is connected to a rich heritage of performance. The overall design is confident with a circular shape that evokes a tachometer, representing speed, strength, and pushing boundaries. The uniquely styled letters that form the company name are clean, dynamic, and forward leaning. In the logo design, the DRiV name incorporates a special character for the “i” that has multiple meanings. It can be read as a letter “i” which also represents integrity, innovation and insight. And it can also be read as the number “1,” which implies “our one team.”
“The DRiV name and logo is distinctive, standing out from the competition in both the original equipment and aftermarket spaces,” said Scott Usitalo, the company’s chief marketing officer. “It personifies the idea that there’s a driving force behind anything in motion. Our mission is to be a driving force that moves people – offering them enhanced ride experiences through differentiated brands, products and technologies. DRiV is an active name that inspires energy and movement, and signals what we intend to provide to our customers – superior driving advancements.”
Aftermarket Business – Motorparts
DRiV’s aftermarket business, which will be known as “Motorparts,” will develop, manufacture and distribute a broad portfolio of products in the global vehicle aftermarket. Through the acquisition of Federal-Mogul in 2018, the company has built an industry-leading brand portfolio that positions it to become one of the largest global suppliers of replacement parts to the global aftermarket. Its stable of well-respected, enduring brands includes Monroe, Champion, Öhlins, MOOG, Walker, Fel-Pro, Wagner, Ferodo, Rancho, Thrush, National, Sealed Power, Axios and others. All of the brands that have been acquired will be maintained, according to Kesseler.
“One of the things that differentiates us from our competition is that brand portfolio. We can help our customers, and tailor solutions to them with particular brands, multiple brands, even within a category. If you think about the brake category, as an example, we go to work with the Wagner brand and we go to work with the Ferodo brand. Some go to work together in different countries; others go to work by themselves in certain jurisdictions. That is a key differentiator for us, along with our global scale. Our brand portfolio is something that no one else really has,” said Kesseler.
Original Equipment Business – Ride Performance
The original equipment business, known as “Ride Performance,” is one of the world’s largest ride performance businesses, developing, manufacturing and supplying leading global original equipment manufacturers with shock absorbers, struts, NVH performance materials and brake friction.
Following the acquisition of Federal-Mogul in October 2018, Tenneco’s separation into two independent, publicly traded companies is expected to be complete in the second half of 2019. After the spin-off, the remaining Tenneco businesses will focus on powertrain systems technology and will retain the Tenneco name.
Editor’s Note:Stay tuned for more details on the new DRiV business from AMN’s chat with Brian Kessler later today in AMN Global.
