LKQ CORP
LKQ Corporation, a global distributor of vehicle parts and accessories, was formed in 1998 and has since expanded through internal development and acquisitions. The company's mission is to be the leading global value-added and sustainable distributor of vehicle parts and accessories by offering a comprehensive selection of parts and services, building strong partnerships, and focusing on operational excellence. LKQ operates in four segments: Wholesale - North America, Europe, Specialty, and Self Service. The Wholesale - North America segment is a leading distributor of alternative vehicle parts, including aftermarket, recycled, refurbished, and remanufactured parts, as well as new OEM parts. The Europe segment is a leading distributor of aftermarket mechanical parts in Europe, and the Specialty segment is a leading distributor of specialty vehicle aftermarket equipment and accessories. The Self Service segment operates self-service retail facilities across the U.S. that sell recycled automotive products. LKQ's website is www.lkqcorp.com and its ticker symbol is LKQ. The company's strategic pillars include growing diversified product and service offerings, expanding geographic footprint, adapting to evolving technology, and rationalizing the asset base. LKQ's extensive distribution network, broad product offerings, high fulfillment rates, and strong business relationships provide competitive advantages. The company has implemented various improvement plans to enhance operational efficiencies and focuses on technology-driven business processes and adaptation to evolving technology in the vehicle industry. LKQ's website provides a full suite of e-commerce services for approved partners and operates a delivery fleet of trucks and vans to minimize distribution costs and improve customer service. The company competes with alternative parts distributors, OEMs, and internet-based suppliers based on distribution systems, product lines, inventory availability, customer service, and relationships with insurance companies. LKQ's Europe segment operates in over 20 countries and has a distribution network larger than those of any of its principal competitors. The company uses various IT systems for its operations and is implementing a European-wide ERP system to reduce the number of IT systems it operates. LKQ's Specialty segment was formed in 2014 and serves the following seven product segments: RV, truck and off-road, towing, speed and performance, wheels, tires and performance handling, marine, and miscellaneous accessories. The company's inventory is primarily composed of mechanical aftermarket parts for the repair of vehicles 3 to 15 years old and includes top selling products such as brake pads, discs and sensors, clutches, electrical products, steering and suspension products, filters, and oil and automotive fluids. LKQ's top supplier represented 9% of its aftermarket inventory purchases for its Europe segment in 2023, and the company purchased 94% of its products from companies in Europe. The company primarily operates a two-step distribution model in Europe and sells the majority of its products to commercial customers consisting of professional repairers. LKQ faces significant competition in Europe from other alternative parts suppliers and OEMs and their dealer networks. The company uses various IT systems for its operations in Europe and is implementing a European-wide ERP system to reduce the number of IT systems it operates.