Crain News Service report
SOUTHFIELD, Mich. (Jan. 25, 2016) — Federal-Mogul Corp., the diversified automotive 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.