Pep Boys Signs Settlement Agreement with EPA
May 10 2010 - 3:30PM
Business Wire
The Pep Boys – Manny, Moe & Jack (NYSE: PBY), the nation's
leading automotive aftermarket service and retail chain, today
announced that it has signed an agreement with the Environmental
Protection Agency (EPA) memorializing its previously disclosed
settlement of the EPA’s investigation into the Company’s sale of
certain small-engine merchandise (recreational vehicles and
generators) from 2005 through 2009.
Pursuant to the terms of the settlement agreement, the Company
has implemented a formal compliance program designed to ensure that
all small-engine merchandise purchased by the Company for resale
complies with the Clean Air Act. The Company has been voluntarily
following this program since the beginning of 2009. The Company
also agreed to pay a $5 million civil penalty, which was previously
accrued in the Company’s financial statements. In addition, the
Company will implement a lawn mower exchange program designed to
reduce emissions in the communities where its stores are located.1
To mitigate the effects of excess emissions that may have been
generated from previously sold merchandise, the Company will make
available discounts on new push and electric mowers in exchange for
the retirement of participating customers’ gas-powered mowers.
Pep Boys is proud of its commitment to the environment. It
maintains chain-wide programs designed to reduce waste and properly
handle the hazardous substances contained in the products it sells
and uses in its service bays. All Pep Boys stores accept used oil
for proper disposal and recycle the tires, batteries and hard-part
cores handled in the course of its business.
“Pep Boys strives to be a good corporate citizen,” said General
Counsel, Brian Zuckerman. “Unfortunately, in this circumstance, we
relied upon our vendors to ensure that their products were
compliant. We now take it upon ourselves to ensure that all of our
small-engine merchandise fully complies with the Clean Air
Act.”
Zuckerman continued, “While the vast majority of the allegations
in the EPA’s complaint relate to deficiencies in paperwork, we do
acknowledge the possibility that some of the merchandise that we
sold may have generated excess emissions. Accordingly, we will
support one of the EPA's emission-reduction initiatives by
participating in a lawn mower exchange program. The program allows
us to support our nationwide DIY customer base and our shared local
community environments. In addition, our vendors will support the
effort by offering extended emission warranties on certain
previously sold small-engine merchandise.”
Customers should note that all previously sold small-engine
merchandise is safe for continued use and not subject to recall.
Details of the lawn mower exchange and extended warranty programs
will be forthcoming shortly on Pep Boys’ Web site at
www.pepboys.com.
1 The lawnmower exchange project is being undertaken in
connection with the settlement of the enforcement action,
United States v. The Pep Boys –
Manny, Moe & Jack and Baja, Inc., taken on behalf of the
U.S. Environmental Protection Agency under the Clean Air Act.
About Pep Boys
Pep Boys has over 6,000 service bays within over 580 stores
located in 35 states and Puerto Rico. Along with its full-service
vehicle maintenance and repair capabilities, the Company also
serves the commercial auto parts delivery market and is one of the
leading sellers of replacement tires in the United States.
Customers can find the nearest location by calling 1-800-PEP-BOYS
or by visiting www.pepboys.com.
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