Carl Icahn Want Pep Boys To Exit The Auto Repair Business!

[Trusting]

Who needs Pep Boys?

 

[Aprilia]

One blog by an unknown writer is worthless. If you read mainstream media outlets, most are pretty clear Icahn has not been breaking apart his automotive parts companies because he views them as a significant growth area and wants to pump up his portfolio, Berkshire Hathaway style (as opposed to Gagnam style ), I see no reason at this point to think he would not want a low cost, high volume, off the shelf parts company like Elio Motors in his backyard. Anyway, we've mulled this scenario over in previous threads fairly heavy.

You might be correct...but in both WSJ & Barron's articles, Icahn's lieutenants have been clear about the intentions to return Pep Boys to profitability...this might be accomplished by winding down the Pep Boys service center's...the core retail & wholesale parts business is the performing asset...not repair service...

 

[pistonboy]

It would be very bad for EM and us, if at the last minute Pep Boys is no longer available . EM is scheduled to sign the service provider contracts in the 11th hour--just before production starts. EM would be left with no service provider. That would cause a delay. Hopefully agreements have already be signed such that Pep Boys can not back out.

Hmmm. If EM agreed to give all their carbon credits to GM in return for one of the GM divisions providing service (perhaps Chevy), then EM may get nation wide service from them. This could be done for a few years until EM finds another service provider. That would be a high price to pay but it would only be temporary and it would save EM from a bad situation and give many more service centers nationwide. it would also get GM to support Senator Vitter's bill (which EM wants) and GM has considerable lobbying power.

 

[TCBronson]

It is my understanding that Paul Elio already has an agreement with Pep Boys to be the service provider. If Pep Boys got bought out then the buy out agreement should honor the Elio agreement. Any new owner of Pep Boys I would think would love all that future business. Just my 2 cents.

 

[Aprilia]

It is my understanding that Paul Elio already has an agreement with Pep Boys to be the service provider. If Pep Boys got bought out then the buy out agreement should honor the Elio agreement. Any new owner of Pep Boys I would think would love all that future business. Just my 2 cents.

I could not find any information where Paul Elio states they currently have a signed contract with Pep Boys...

 

[TCBronson]

I could not find any information where Paul Elio states they currently have a signed contract with Pep Boys...

On Elio's website the following is stated:
"An iconic brand signs on

We are partnering with Pep Boys (Yes THAT Pep Boys) to be the official Elio Service Center. It’s no small thing to win the confidence of this leading national service brand. With 800 locations in 35 states and Puerto Rico, Pep Boys will provide Elio Motors customers a full range of service options from one of the most trusted names in the automotive aftermarket.

We are also working with Pep Boys to develop ways of bringing solid service options to Elio owners in areas where Pep Boys stores are not present. As you read this, our guys and theirs are deeply immersed in developing the game plan. So as soon as all the i’s and t’s are dotted and crossed, we’ll go public with the details.

Meanwhile, you can be sure the best interests of Elio owners will be driving every decision."

Also on the ElioMotors website it states:


"We are evaluating some of those options and will certainly have service in place when we launch in 2016. For now, just know that the Pep Boys partnership is a major step forward, as it provides service for 90 percent of our customers."

The term that Elio uses is a partnership. I don't think Elio Motors could make that claim with out it being in writing of some kind. Otherwise known as an agreement.

 

[Aprilia]

On Elio's website the following is stated:
"An iconic brand signs on

We are partnering with Pep Boys (Yes THAT Pep Boys) to be the official Elio Service Center. It’s no small thing to win the confidence of this leading national service brand. With 800 locations in 35 states and Puerto Rico, Pep Boys will provide Elio Motors customers a full range of service options from one of the most trusted names in the automotive aftermarket.

We are also working with Pep Boys to develop ways of bringing solid service options to Elio owners in areas where Pep Boys stores are not present. As you read this, our guys and theirs are deeply immersed in developing the game plan. So as soon as all the i’s and t’s are dotted and crossed, we’ll go public with the details.

Meanwhile, you can be sure the best interests of Elio owners will be driving every decision."

Also on the ElioMotors website it states:


"We are evaluating some of those options and will certainly have service in place when we launch in 2016. For now, just know that the Pep Boys partnership is a major step forward, as it provides service for 90 percent of our customers."

The term that Elio uses is a partnership. I don't think Elio Motors could make that claim with out it being in writing of some kind. Otherwise known as an agreement.

Thanks for that info!

 

[TCBronson]

Thanks for that info!

With all do respect, I would suggest to anybody to spend some time reading through all the information on the Elio Motors website. There is a wealth of information, it might take some time to look at everything, but it is very interesting and kind of fun!

 

[Ian442]

I don't think i've used a Pep Boys for service since the 90's.

I am proficient enough now in my automotive mechanic skills that aside from alignment, tires and my inspections i can just do it myself.

 

[Muzhik]

Well, since the Authorized Service Center is where you'd go to get your warrantied service, you might wind up going once or twice during the 36 month warranty period. (I wonder if oil changes count as something covered under the warranty?)