LKQ Corporation is a global distributor specializing in vehicle products, including replacement parts, components, and systems for vehicle repair and maintenance, as well as aftermarket products and accessories. LKQ operates in four main segments: Wholesale - North America, Europe, Specialty, and Self Service. In the Wholesale - North America segment, the company focuses on distributing alternative vehicle collision and mechanical replacement products, with additional services like mobile diagnostics and hybrid battery reconditioning. The Europe segment targets aftermarket parts for vehicles aged 3 to 15 years across approximately 20 countries. The Specialty segment caters to aftermarket products for various vehicle types, including RVs and marine equipment. The Self Service segment allows consumers to extract parts from salvage vehicles at retail facilities.
LKQ generates revenue primarily through the sale of vehicle parts, aftermarket products, and related services. Its primary customers include professional repair businesses, consumers seeking vehicle parts, and specialty vehicle owners. The company has a significant presence in North America and Europe, enhanced by the acquisition of Uni-Select in 2023, which bolstered its position in the Canadian automotive parts market.
LKQ's operational structure includes a large distribution network and a hub-and-spoke model to optimize delivery and inventory management. Key factors impacting LKQ's business performance include competition from other aftermarket suppliers, OEMs, and recycling businesses. The company's performance is influenced by its distribution efficiency, product availability, and customer service. LKQ sources its products from independent manufacturers and distributors, with significant procurement from North America and Asia.