Pep Boys Introduces Used Car Certification Program

19 April 2000

Pep Boys Introduces Used Car Certification Program

    PHILADELPHIA--April 19, 2000--The Pep Boys - Manny, Moe & Jack (NYSE: "PBY"), the nation's leading full service automotive aftermarket chain, announced that it has introduced a comprehensive, all-brands used car certification program that will serve the massive $336 billion used vehicle market.
    Last year, more than 40 million used vehicles, most of which were not certified, were sold in the United States.
    Pep Boys' unique brand of certification will provide used vehicle buyers with the assurance that a vehicle is mechanically and operationally sound. In addition, the program will enable individual and commercial sellers to pursue retail alternatives to the customary wholesale trade-in.
    Pep Boys combines its unique service capabilities with extraordinary brand equity. It's non-franchised chain of 662 stores in 37 states and Puerto Rico feature 6,900 service bays, a huge complement of ASE-certified technicians and state-of-the-art equipment. In addition, unlike other service providers who must depend upon secondary distribution for the parts and tires that they install, Pep Boys' store inventory and fleet of delivery trucks combine to provide a low cost, independent supply chain. As a result of these competitive advantages, Pep Boys is uniquely positioned to recondition and certify used vehicles for buyers and sellers in both the "business-to-business-to-consumer" and "consumer-to-consumer" markets.
    After extensive analysis and a test period, a pilot used car certification program is currently operating in eleven stores. Approximately 200 additional stores will offer the program by the end of May and a rollout to the balance of the chain is expected to be completed by September 1, 2000.

    Pep Boys' CEO, Mitchell G. Leibovitz, made the following comment:

    "We are extremely excited about this dynamic growth opportunity. In addition to expanding our service customer base, as the program grows, we expect to significantly increase the utilization of our 6,900 service bays which would have a positive impact on labor revenue and installed parts as well as the return on existing assets. The fact that our Supercenters are all company owned and operated, coupled with our ability to access our store inventory for parts, accessories and tires, provides us with a significant competitive advantage as well as the flexibility to extend our service hours should the need arise.
    "In light of the industry-wide shift from "do-it-yourself" to "do-it-for-me," we have worked diligently to reposition Pep Boys to maximize our service and supply chain advantages. While this new program has stand-alone growth potential, we believe that it will enable us to establish synergistic business alliances in the near future."