Toronto, Ontario — The first half of December saw a wave of financial announcements make waves across the automotive sector. In this week's Tuesday Ticker, parts retailers faced profit problems, major companies made moves to restructure their businesses and paint makers joined forces.
AutoZone profit drop pulls down sector
Tennessee-based AutoZone reported December 9 that quarterly profits dropped even though sales increased. The parts retailer said tariff costs and accounting charges cut into profits.
AutoZone shares fell 6.7 percent to about US$3,516, down roughly US$252 on the day (about $350). It was the worst-performing stock in the S&P 500. Billions in value disappeared as investors worried about squeezed profits rather than sales growth.
The company operates 7,353 stores across the Americas, with 6,432 locations in the U.S., 794 in Mexico and 127 in Brazil. During the quarter, AutoZone repurchased 160,081 shares at an average price of $3,155.99 per share.
LKQ looks to sell Specialty division
Chicago-area distributor LKQ Corporation said in early December it's exploring a sale of its Specialty segment to simplify operations.
Shares fell about 2.4 percent in the days after, dropping roughly US$0.70 a share (about $1). Investors questioned the price and timeline rather than the strategy itself.
The Specialty segment distributes automotive, RV and marine parts and accessories in North America. LKQ has engaged Bank of America as financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel to help with the sale process. The company recently sold its Self-Service segment as part of this same strategy to focus on core businesses.
Stellantis adds jobs in Ontario
Ontario's battered auto manufacturing sector has received some good news --Stellantis said it hired about 1,000 new workers in Windsor as it adds a third shift at its Windsor Assembly Plant.
The hiring boosts production of minivans and other models for North American markets at one of Canada's largest auto plants.
The plant launched production of the Dodge Charger Daytona in December 2024, adding a second major product line alongside its longtime minivan production. Windsor Assembly is Windsor's largest employer, currently operating with over 4,200 employees.
Axalta and AkzoNobel to merge
New details have emerged about a proposed merger between two of the world's largest automotive coatings companies.
As previously reported, Philadelphia-based Axalta Coating Systems said November 18 it agreed to merge with Amsterdam paint maker AkzoNobel in an all-stock deal.
Axalta shares rose about four percent, up roughly US$1 a share (about $1.35), as investors looked at potential size benefits and cost cuts. Trading settled as focus turned to regulatory approval and merger challenges.
The combined company will have $17 billion in annual revenue and an enterprise value of approximately $25 billion. The companies expect to achieve about $600 million in cost savings, with 90 percent of those savings expected within the first three years. The merged business will operate 173 manufacturing sites and 91 research facilities worldwide.
The deal is expected to close in late 2026 or early 2027.
