SOUTHFIELD, Mich.—Federal-Mogul Corp., the diversified auto supplier and aftermarket parts maker controlled by investor Carl Icahn, said on Jan. 15 it will not spin off its Motorparts aftermarket parts division as it had planned.
The Southfield-based company said in a statement that its Powertrain and aftermarket parts divisions will continue to operate separately under two CEOs that report to Federal-Mogul's board of directors.
“The separate divisions more effectively serve their unique markets and allow each operating segment to more quickly react to its respective market conditions,” the company said.
Federal-Mogul announced the now-canceled spinoff in 2014, saying the aftermarket parts division would split off by the first half of 2015.
Icahn, meanwhile, has made several moves in the aftermarket retail world that could affect Federal-Mogul. On Dec. 30, Icahn won a $1 billion bidding war for parts retailer Pep Boys – Manny Moe & Jack over tire giant Bridgestone Corp. Federal-Mogul owns about 20 major aftermarket auto parts brands such as Champion spark plugs, Moog steering parts, Anco wiper blades and Wagner brake parts.