LKQ ECP parent sees continuous COVID-19 recovery

Published:  25 June, 2020

 LKQ Corporation, parent company of LKQ Euro Car Parts, says it has come through the COVID-19 crisis ahead of its own expectations.

The company’s second quarter parts and services organic revenue was down approximately 25% when compared with 2019. Meanwhile, April and May monthly revenues were down approximately 30% and 20%, respectively.

“After a significant slump in the spare parts business at the beginning of April, the market will not return to its former level so quickly, but we are seeing continuous recovery of the workshop business in all our markets,” said Arnd Franz, CEO of LKQ Europe.

Arnd continued: “It has proven to be a good move that we prepared for the crisis as early as January, following all recommendations to protect our employees and customers. At the same time, we quickly implemented consistent cost-cutting measures and have succeeded in adapting almost all cost structures given the COVID-19-related decrease in sales revenue.

“Even in the deepest crisis to hit our industry in decades, we were able to fully maintain our ability to deliver to our customers and, on the other hand, make our company crisis-proof. We have consistently taken measures to emerge from this crisis stronger than before.

“As planned, we will complete the construction of our new logistics center in the Netherlands at the end of the year and put it into operation from the beginning of 2021. This will allow us to further strengthen the largest logistics network in the independent automotive aftermarket. Additionally, we are also consistently driving digitalization and sustainability forward. In the future, LKQ Europe will accept more responsibility.”

At the same time, the integration of LKQ’s European companies continues. Arnd observed: “The crisis has shown us the advantages of closer cooperation Despite the necessary focus on business operations during the crisis, the '1 LKQ Europe' integration strategy continues to progress as planned. This will help us reduce complexities, pool our strengths, and work together more efficiently, including with our customers and suppliers. In this way, we will consolidate our leading competitive position even after the COVID-19 crisis.”

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