The scholarship program is part of Icahn Automotive’s recently announced Race to 2026 initiative that aims to increase the number of trained technicians and help fill an industry-wide talent gap projected to grow to 46,000 over the next seven years.
Icahn Enterprises L.P.'s automotive segment reported $18 million and $52 million losses from continuing operations for the three- and six-month periods ended June 30, respectively, despite higher sales in both periods.
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.
This deal is Icahn's second acquisition this year of an automotive service-related franchise group, reported TireBusiness.com. ADS is the franchisor of approximately 680 AAMCO and Cottman locations in the U.S. and Canada.
Most recently, the company announced the acquisitions of Precision Tune franchise locations in Detroit, and Phil Cavill’s Tire & Auto Service Center, a staple in the community of Clawson, Mich., for 34 years. This 10-bay shop will be converted to a full-service Pep Boys Service & Tire Center.
Contrary to horizontal integration, where firms control one component of a market or process, vertical integration engages multiple segments of production. So while horizontal consolidation continues to grip the industry, Icahn’s form of consolidation allows him to accomplish what many independent facilities struggle with.
With that deal, Icahn Automotive Group said Friday it will now control more than 1,000 auto repair shops, with the idea that it will buy products directly from its own distributor, Auto Plus, instead of the national car parts chains. Auto Plus, in turn, will buy its parts from Icahn-owned Federal-Mogul and other manufacturers.