Genuine Parts Maps Motion Spinoff as Automotive Unit Modernizes Supply Chain

Genuine Parts is preparing to separate its automotive and industrial businesses, with the Motion spinoff targeted for the first quarter. Leadership appointments, standalone audits and SEC filing work are progressing, with no current delays expected. Motion will focus on organic growth, margin improvement and disciplined bolt-on acquisitions, while expanding customer relationships and exploring medium-term data-center infrastructure opportunities. The automotive business is prioritizing U.S. supply-chain modernization, including new distribution centers, robotics and network redesign. Management expects continued low-single-digit pricing benefits and sees additional margin expansion opportunities through better inventory, cost control and sales execution.

Genuine Parts NYSE: GPC executives outlined leadership plans, operating priorities and separation preparations as the company moves toward creating standalone automotive and industrial businesses. Chairman and Chief Executive Officer Will Stengel said the leadership selections were designed around aligning talent with business strategy, maintaining continuity and ensuring Motion can operate as a public company immediately following the separation.

Stengel is set to become chairman and CEO of Motion, the industrial business, while Bert Nappier, currently executive vice president, chief financial officer and chief operating officer, will take on expanded responsibilities on the automotive side. The company also named Court as CEO-elect of GPC's automotive business. Stengel said Court brings automotive experience, distribution expertise, board familiarity and experience in supply chain, technology, global sourcing and e-commerce.

Stengel said Motion's strategy is already established and will not undergo a major change because of the separation. He highlighted opportunities to expand wallet share with existing customers, improve margins through pricing and sourcing, and pursue acquisitions.

“The special sauce of Motion is just the way in which it interacts with its customers,” Stengel said, describing the company as deeply embedded in customers’ operations. Motion expects bolt-on acquisitions to be its primary M&A focus initially, given the fragmentation of its markets. Stengel said the company has demonstrated it can complete larger transactions, citing the KDG acquisition, but stressed that management will remain disciplined in deploying M&A capital. Data-center infrastructure is not currently a material part of Motion’s business, according to Stengel. However, he said the company sees a medium-term opportunity through offerings such as hose fittings and specialty solutions, supported by relationships with hyperscale customers and suppliers. Stengel also welcomed Howard Yu as Motion’s CFO. Yu previously led a spin-off from Danaher and brings public-company, capital-markets and capital-allocation experience, Stengel said.

Nappier said the automotive business is preparing for day-one readiness while maintaining momentum in its current operations. Its priorities include supply-chain modernization, sales excellence and continued improvements at company-owned stores. The company has two new U.S. distribution centers coming online this year and has approved three more. One returns-oriented distribution center opened in August, while a core distribution center is expected to open later...