Knecht Auto Parts will replace parts in the next big business.
The Milwaukee-based company is looking to be the third auto parts supplier to do so, after American Auto and Fox Auto Parts.
The news comes after a company executive told Fox that the business could be worth $10 billion by 2020, and a recent report indicated that Knech’s was one of the biggest suppliers in the business.
Kneech’s plans to be a $5 billion supplier have been met with skepticism.
Fox Auto, which was founded in 2006, was the first major manufacturer to begin buying Kneches products.
Fox has been a vocal critic of Knecks business model, and it has said that the company’s sales are actually slowing.
Fox is also trying to get into the auto parts business with its own business, the Fox Parts Group, which will focus on providing new vehicle components for the car and truck market.
Fox plans to start selling the Fox parts to automakers in 2019.
Fox will be the biggest of the three major auto parts companies to do the transition, Fox executives have said.
“We are pleased to be expanding our supply base with Kneces Auto Parts, and are confident that our new business model will result in greater value for our customers,” Fox CEO Jim Schulz said in a statement.
KNECH’S NEW BUSINESS PLAN Knechuk’s plans are a departure from the business model of other major auto suppliers.
Fox, which also bought the Kneching business in 2007, has made the transition to its own manufacturing operation and is currently manufacturing some of its own parts.
Fox was originally planning to buy Knechy’s business but decided to stop that project earlier this year because of the economic challenges of manufacturing auto parts for mass-market vehicles.
Fox said in its latest financial report that its revenues in 2018 were about $40 million and its gross profit margin was about 28.7%.
Fox has said it expects its profit margin to be about 26% for the year.
KREUTER’S BUSINESS PLANS Kneche’s and Fox have said they plan to create a joint business, and Fox has expressed interest in partnering with Kievert.
Kieverts business model has been criticized for being overly aggressive.
The company said in April that it plans to hire about 200 people in 2018 and has said the company is aiming to sell about 1 million vehicles per year.
In 2018, Fox’s sales were about 13% lower than Kiecht’s and Knechants business, according to Fox’s financial report.
Fox’s executives have also said that Kiechs current stock price is worth less than half of what it was before it acquired Knechers.