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Tenneco creates US$6bn OE ride performance spinoff

Adam GavineBy Adam GavineFebruary 21, 20192 Mins Read
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A new aftermarket and ride performance company is due to launch in the second half of this year, following Tenneco’s split into two independent companies. The company, named DRiV Incorporated, is pitched to become what Tenneco describes as “one of the largest” global multi-line, multi-brand aftermarket suppliers and also one of the largest global original equipment (OE) ride performance and braking suppliers to the aftermarket, light vehicle, and commercial vehicle sectors. DRiV will be headquartered in the USA’s greater Chicago area.

Tenneco’s separation into two independent, publicly traded companies follows its acquisition of Federal-Mogul in October 2018, and is expected to be complete in the second half of 2019.  The remaining Tenneco businesses will focus on powertrain systems technology and will retain the Tenneco name.

Tenneco’s ambition is for the OE ride performance division to develop, manufacture and supply shock absorbers, struts, NVH performance materials and brake friction hardware to leading global OE manufacturers. On the other side of DRiV’s business, the aftermarket division will develop, manufacture and distribute products for the global vehicle aftermarket.

The DRiV executive team has indicated a goal to make the company a global leader in the aftermarket and OE businesses. Brian Kesseler, co-CEO of Tenneco and future chairman and CEO of DRiV, explained the new venture. “DRiV will be a unique new business, a more than US$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 long-time partnerships with the world’s leading OE 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.”

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Adam Gavine
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Adam divides his time as an editor between the worlds of aviation and motoring. These worlds may seem a little diverse today, but autonomous technology and future urban mobility is bringing them ever-closer. Adam is also chairman of the Vehicle Dynamics International Awards.

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