This week’s top news kicks off with speculation once again that Pep Boys may be up for sale. In a report this week, Tony Cristello, managing director of BB&T Capital Markets-Equity Research, writes, “Are Manny Moe & Jack In High Demand? What a wild day for PBY as the shares nearly hit $16 and finally settled up 14.9 percent at $14.15 as news of the potential exploration of strategic alternatives fueled speculation that the company was in play.”
As for potential buyers, Cristello said BB&T does not foresee any strategic buyers and believes if a deal did happen it would likely involve private equity or an international buyer. Cristello compared the potential for an international buyer to the Sumitomo acquisition of TBC in 2005 and Japan’s Autobacs Seven Chapter 11 buyout of Strauss Auto in 2007.
In legislative news this week, industry associations including SEMA and AIAM (now called Association of Global Automakers) expressed their disappointment in the Environmental Protection Agency’s (EPA) approval of a measure that would raise the amount of ethanol that can be blended into fuel from 10 percent (E10) to 15 percent (E15) for all vehicles built in the last decade. Last Friday’s decision to permit E15 for 2001-to-2006 model year vehicles follows an October decision by the EPA to permit blends up to E15 in vehicles 2007 model year and newer. Several weeks ago, SEMA requested the EPA suspend its partial waiver to permit the sale of E15 for model year 2007 and newer vehicles. In a written statement, SEMA said Friday’s decision seems to conflict with President Obama’s Executive Order from earlier in the week requiring government agencies to balance social and economic costs.
Two major personnel announcements made it into the round-up of top news this week. Bill Carter, a former partner at Bain & Co. and veteran of the U.S. Navy, has been appointed senior vice president, commercial at Advance Auto Parts. In this new role at Advance, Carter will be responsible for the continued development and implementation of the company’s commercial strategy and program. He will report to Jim Wade, president, and will relocate to Roanoke, Va.
In addition, Affinia this week appointed two new VPs. Jeff Blocher has been named the new vice president of sales – WIX Filters and Lori Tremonti was named vice president, global IT strategy and sourcing – Affinia Group. Blocher, who previously served as marketing brand manager for WIX Filters, will report directly to Keith Wilson, president of Affinia Group Global Filtration. Tremonti, who will coordinate and implement initiatives designed to improve Affinia’s global operating efficiency, will report directly to Kathi Mehall, vice president, Information Technology, Affinia Group.
Dorman Products announced the addition of nearly 100 new products this month, including what it describes as formerly "dealer only" parts previously unavailable in the aftermarket. According to Dorman, some of the new products it introduced to the market this month can help professional technicians and vehicle owners reduce repair costs by replacing just the failed part. For example, the ignition switch actuator pin actuates the ignition switch when the key is turned. Instead of going to the dealer to purchase the entire steering column assembly, Dorman supplies just the failure-prone ignition switch actuator pin assembly, for several hundred dollars less.
