Icahn Acquires 10-Store Tire Dealership in Wash.

Dec. 22, 2017
Jim Lang says Carl Icahn is practicing vertical integration. Contrary to horizontal integration, where firms control one component of a market or process, vertical integration engages multiple segments of production.

Dec. 22, 2017—Carl Icahn's automotive business has acquired a 10-store tire dealership in the state of Washington, Modern Tire Dealer reports.

The stores will be rebranded under the Pep Boys brand.

In June, Icahn Automotive Group acquired 250 Precision Tune Auto Care locations, giving Icahn control of more than 1,000 auto repair shops.

As Jim Lang, president of Lang Marketing, pointed out to Ratchet+Wrench back in August, Icahn is practicing vertical integration. Contrary to horizontal integration, where firms control one component of a market or process, vertical integration engages multiple segments of production.

So, as the owner of Pep Boys and Just Brakes as well, Icahn's intentions were clear to Lang: Those 1,000 shops will now buy their products from the Icahn-owned Auto Plus, which will buy its parts from the Icahn-owned Federal-Mogul, stretching Icahn’s pull in the marketplace.

Icahn has continued his tear through the auto care and auto parts industry the past few months, acquiring a 15-shop network in Phoenix and, just earlier this month, acquiring B&SF Auto Parts.

In total, Icahn has pushed $2 billion into the auto parts industry.

A spokeswoman for Icahn Automotive Group LLC confirmed the purchase of Elliott Tire & Auto Service Inc., with four stores in Seattle, plus locations in Everett, Kent, Kirkland, Mt. Vernon, Woodinville and Yakima, Wash.

Elliott Tire was founded in 1978, and offered tire sales as well as a full range of automotive services.

Sponsored Recommendations

View insights, research and solutions curated specifically for shops like yours.
Our dedicated Valvoline Trusted Advisor Sales and Support Team provides hands-on classroom and targeted in-store coaching to help your employees become more skilled at selling...
Increase Sales and Customer Traffic To Your Store(s).
Reinvigorate your team and business success behind Valvoline's proven strategy that helps separate your business from competitors and create meaningful growth in sales and customer...