News of March 14, 2001
SKF, Tenneco Automotive, TRW and Valeo to engage in plans to provide enhanced automotive aftermarket services in Europe
SKF, Tenneco Automotive, TRW and Valeo have signed a memorandum of understanding relating to the development of plans for a strategic alliance for the provision of enhanced services for their European automotive aftermarket customers.
The companies will now undertake detailed studies of opportunities to share skills and resources and to improve overall performance and efficiency. The focus of the planned alliance will be on training and technical support services and logistics - particularly in the area of transportation.
The organizations are looking to provide additional and improved commercial offerings to their customers, pulling together their skills and expertise in training and technical support using traditional initiatives and exploring the potential application of new media technologies. The joint skills of the parties could enable them to put together a comprehensive package that would cover most of the needs of the automotive aftermarket industry, now and in the future.
Another area of joint review will be physical logistics, in particular, potential synergies in transportation to customers. The objective is to improve logistics services to customers in the most cost effective way.
The four companies will continue as independent and separate entities in both original equipment and the aftermarket. Each will retain its own product brands, product programs, channels of distribution and commercial activities. Each company anticipates that there will be no impact on the involvement in any existing partnerships or initiatives.
The focus of the proposed alliance between the companies is the European automotive aftermarket. Formation of any alliance between the companies, based on the above projects, will depend on the results of the joint review and the parties' negotiations and be subject to customary conditions such as receipt of necessary government approvals.
(March 13, 2001)