She DRiV Me Crazy- Tenneco Spinoff On Track For Second Half Of 2019

We thought it was unusual that Dow and Dupont merged into DowDuPont(DWDP) with the plan from the start being to break back up into three companies: Dow(DOW), DuPont, and Corteva. Yet here we are not a month later discussing a similar situation. Last year, Tenneco(TEN) purchased Federal Mogul from Carl Icahn with plans to spinoff the combined aftermarket and ride performance business into a separate company.

Back in February, Tenneco announced that the name of the new company would be DRiV. Combining both bad spelling and bad capitalization, the name reminds us that aftermarket parts are not quite like OEM? Oh no, that’s not it…

The DRiV name is emblematic of what the new company expects to be – a global leader in the aftermarket and original equipment businesses, driving advancements that help people get the most out of every vehicle, every ride, every race, and every journey. The black, red and silver logo is connected to a rich heritage of performance. The overall design is confident with a circular shape that evokes a tachometer, representing speed, strength, and pushing boundaries. The uniquely styled letters that form the company name are clean, dynamic, and forward-leaning. In the logo design, the DRiV name incorporates a special character for the “i” that has multiple meanings. It can be read as a letter “i” which also represents integrity, innovation and insight. And it can also be read as the number “1,” which implies “our one team.”

“The DRiV name and logo is distinctive, standing out from the competition in both the original equipment and aftermarket spaces,” said Scott Usitalo, the company’s chief marketing officer. “It personifies the idea that there’s a driving force behind anything in motion. Our mission is to be a driving force that moves people – offering them enhanced ride experiences through differentiated brands, products and technologies. DRiV is an active name that inspires energy and movement, and signals what we intend to provide to our customers – superior driving advancements.”

Umm. Ok. For us, it invokes marketing DRiVel, but it’s not nearly the worst name we’ve heard. Just wondering how much they paid to drop the ‘e’ and capitalize a few letters. We are available for branding consulting at a much more reasonable rate.

Brian Kesseler, who will be Chairman and CEO of DRiV, is certainly excited.

“It is a landmark day, now that we are able to announce the future company’s name and identity,” said Brian Kesseler, Co-CEO, Tenneco and future chairman and CEO, DRiV. “DRiV will be a unique new business, a more than $6 billion start-up, built from the combined strengths of Tenneco, Federal-Mogul and Öhlins – laser-focused on innovation, performance, brand development and customer service. Our global scale, our stable of well-respected and enduring aftermarket brands and our longtime partnerships with the world’s leading original equipment manufacturers give us a significant competitive advantage. We are strategically positioned to capitalize on secular trends such as the expansion of vehicles in operation globally, as well as growth in intelligent suspension, new mobility models and the evolution of autonomous driving.”

A $6 billion startup? Oxymoron much? The company laid out a roadmap for the spinoff in its Q4 2018 earnings presentation.

What are the DRiV financing activities? Money that DRiV will borrow and give to Tenneco to pay down its debt, leaving DRiV with a weaker balance sheet. We guess those naming consultants are really expensive.

Autonomous vehicle fleets driving many more miles may lead to increased need for aftermarket parts, but with reduced margins that large fleet owners will force. The automotive industry in general faces an uncertain future where there are bound to be significant changes in the coming years and it is difficult to predict how Tenneco and DRiV will fare.

Disclosure: The author holds no position in any stock mentioned

One thought on “She DRiV Me Crazy- Tenneco Spinoff On Track For Second Half Of 2019


    Tenneco has always underperformed ever since it was spun-off itsel. what with a reverse stock split? I have looked to always dump the stock but bvecause of the reverse split , it would ahve cost me more in fees to do so. a nightmare for sure. only the insiders amde the cash at the xpese of us all. I hope ever one keeps away from thsi merger. Carl Icahn who i respect a lot has deep pockets so he know what’s best for him.

Comments are closed.