ARA’s New Automotive Recycling Museum • Marketing to Generations
Automotive
Recycling
™
November-December 2011
Official Publication of the Automotive Recyclers Association
Achieving
SUPER LEADER
Status
Successful leaders learn how to develop people who are productive,
work independently, and need only minimal attention to complete their work.
The good news is that you don’t need super powers to achieve this.
• Learn the Keys of Communication
• Understand Why People Follow
• Practice Creative Management
• Leading Retention Practices
Automotive
Recycling
™
November-December 2011 | Volume 31 Number 5
LEADING WITH CONFIDENCE
Co lum n s
President’s Comments
Editor’s Notes
International
Auto Recycling
Final Thoughts
| 4
| 6
You’re All Talk 20
| 57
| 62
By Craig and Deb Van Batenburg
Communication breakdown occurs most often
between the sexes. Improve workplace practices
by getting this right.
Who Will
They Follow? 24
Your team members
will not be everything
you want them to
be if you’re failing
as a leader.
D e pa r t m e n ts
At a Glance | 7
Simplifying Claims
ARA Action
Marketing 101
Sales Call
Lessons Learned
That’s My Opinion
Advice Counts
Tech Knowledge
LARA
Certified News
Capitol Connection
Crossword Puzzle
Industry Calendar
Advertiser’s Index
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59
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61
61
By Chris LoCurto
Keeping it Simple 25
By John Graci
Mindful Management 26
This excerpt from Beyond Effective offers up practices in self-aware leadership. By David Peck
The Good Boss: Insights for a Healthy and
Productive Workplace in Challenging Economic Times 27
By Jim & Matt Finkelstein
Creative Retention 28
A creative alternative work arrangement
can fix the revolving door – unlocking the
mystery of younger workers. By Wendy Phaneuf
FEATURES
PAST, PRESENT AND FUTURE
The Way We Were 30
Cover Photography by
Robert Churchill/
iStockphoto.com
ARA’s Museum dedicated to Automotive Recycling
celebrates the past to raise awareness for the future.
By Michelle Keadle-Taylor
BRANDING FOR LOYALTY
Generational Influences 33
Does your sales plan consider generational
marketing? Here’s why it should – they’re all friends.
By Michelle Keadle-Taylor
www.facebook.com/
AutomotiveRecycling
Automotive Recyclers Association
9113 Church Street
Manassas, VA 20110-5456 USA
(571) 208-0428 / (888) 385-1005
Fax (571) 208-0430 / www.a-r-a.org
ARA CONVENTION PHOTOS
Fast and Fun 40
ARA’s 68th Annual Convention & Exhibition proved to be an event to remember.
Enjoy these photo highlights and stay tuned for our full report in the January-February issue.
SPOTLIGHT ON EXCELLENCE
Olston’s Auto Recyclers 49
By Michelle Keadle-Taylor
November-December 2011 | Automotive Recycling 3
President’s
Comments
By Randy Reitman, ARA President
Aiming High
ime has gone by so quickly. Three years ago I accepted the role as ARA Secretary. In
2008, my wife Fran and I were attending ARA’s Mid-Year Business Development meeting where I was asked to serve on the Executive Committee. I was already involved in ARA,
but not to the extent that voicing my opinion would make a difference. I had goals and
ideas that I would like to see for every auto recycler, so this opportunity allowed me to
put them into action. I decided that I can make a difference, or at least try.
Our business became a member of the Automotive Dismantlers and Recyclers
Association (ADRA) in 1985. In 1988, we went to our first convention in Nashville to
learn to grow our business, not just financially, but also in the practice of doing the business that I love.
We are still listening, learning, and growing. We listen to how the industry has changed.
We learn to change with the times. We don’t always know why we must, but over time we
understand. We change for the better, for ourselves, and for our communities.
As an association, we change to make the industry better. It is up to us to manage our
destiny. We help make challenges more reasonable with the goal of growing your business. We all have close ties in the industry whom we influence, whether family in the
business or close friendships developed over the years. Many even watch us from a distance. We should all endeavor to represent our industry well.
I have two main goals that I would like to address in my term. First is salvage acquisition. I would like to see the purchase of salvage become easier. Right now, we are all having a hard time buying. The vehicles are available but, all too often, at a steep price. We
are competing against body shops, garages, and, of course, the unregulated individual.
Many vehicles are going out of the country. We need to know who we bid against to ensure
that they are licensed buyers with legitimate credentials in order to keep the playing field
level.
My second goal is just as ambitious. I would like to double the number of ARA members who participate in ARA certification programs. We currently have a task force working on a new industry-wide accreditation, designed to be recognized by the recycling
industry, vendors, consumers, and legislatures as the standard for environmental stewardship and best management practices in the automotive recycling industry. We are studying the industry’s model programs to lay the groundwork.
Currently, we have 1,100 members in ARA. I know that a large majority, if not most,
work under best management practices to stay in compliance, but only 25 percent are in
a certification program.
The main benefit of strength in this area as an association is leverage. We gain instant
credibility when we talk with auto manufactures, legislators, and even the people in your
community, especially when programs such as Toyota truck buy-back or a recurrence of
a Cash for Clunkers programs arise. I have confidence that I will have your support to
accomplish this and other goals. I appreciate your support and participation.
In conclusion, I need to thank you for all the thoughts and prayers over the past year.
They kept us focused along the way. Most of all I have to thank my wife, Fran. In the past
year, we have gone through many things together. She was my rock. I could never had
done it without her.
This next year will go as quick the first three. You know the old saying “Time flies when
you are having fun.” I applaud each and everyone of you. Thank you for listening, learning, and most of all getting involved to make our industry better!
Randy Reitman
ARA President
T
4 Automotive Recycling | November-December 2011
Officers
P R E SID E N T
Randy Reitman
Reitman Auto Parts
Melbourne, KY
randy@reitmanautoparts.com
F IR ST V IC E P R E SID E N T
Chris Wright
Capitol Auto Parts
Thomasville, GA
chris@capitalautoparts.com
SECON D V IC E P R E SID E N T/ TR EA S UR ER
Ed MacDonald
Maritime Auto Salvage, Ltd.
Truro, NS Canada
edmacd@maritimeauto.com
SEC R E TA RY
Ricky Young
Young’s Auto Center & Salvage / Car Crushers
Benson, NC
ricky@youngsautocenter.com
IMME D IATE PA ST P R E SID E N T
Doug Reinert
Chuck’s Auto Salvage, Inc.
Douglassville, PA
dougchucks@aim.com
ARA Staff & Contractors
P U B L ISH E R /C H IE F E X EC U TIV E O FFI C ER
Michael E. Wilson
michael@a-r-a.org
DIRECTOR, MEMBER SERVICES
Kelly Badillo
kelly@a-r-a.org
D IR EC TOR , G OV E R N ME N T A F FA I R S
Elizabeth Vermette
elizabeth@a-r-a.org
ME E TIN G & E X P OSITION
Kim Glasscock
kim@a-r-a.org
AU TOMOTIV E R EC YC L IN G E D ITO R I A L ,
A DV E RTISIN G , D E SIG N & P ROD UC T I O N
Caryn Smith
Suko Creative Communications
ARAEditor@comcast.net
For advertising information or to submit
article ideas or member news, e-mail
Caryn Smith at ARAEditor@comcast.net
Or call (239) 225-6137
www.a-r-a.org
AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the
Automotive Recyclers Association, 9113 Church Street, Manassas, VA 201105456 USA, (571) 208-0428 / (888) 385-1005, Fax: (571) 208-0430, Internet:
www.a-r-a.org. Periodicals postage at Manassas, VA, and additional mailing offices. Additional member subscription are $15/year. Non-member subscriptions
are $40/year U.S. Non-U.S. mailing address subscriptions are USD$55/year surface mail or USD$85/year airmail. $20 libraries and non-profits. Copyright ©
2011 ARA. All rights reserved. Materials may not be reproduced in any form without written permission from the publisher. Statements of fact and opinion are
the responsibility of the authors alone and do not necessarily imply any opinion
on the part of the officers, directors, staff, or the members of the Automotive Recyclers Association. Postmaster: Send change of address to Automotive Recycling magazine, 9113 Church Street, Manassas, VA 20110-5456 USA.
Editor’s Notes
By Caryn Smith ARAEditor@comcast.net
On My Soap Box ... Again
suspect that you will hear more about
two themes in these pages with which I
have recently become obsessed.
First and foremost, I have become
aware, through the many things I have my
hand in, that one thing is significantly
lacking everywhere – capable functional
leadership. Where have all our inspirational leaders gone? The media picks
them off one by one as they implode their
lives through scandal and disgrace. We
see lack of leadership from Capitol Hill,
corporate America to Wall Street to the
grass roots. Enough of the greed, please.
Frankly, it is getting old.
That said, I have hope because I know
many great leaders in this industry, and
am proud that several of those I really
admire might consider me a friend.
I
6 Automotive Recycling | November-December 2011
One tough and inspiring industry
leader is exceptional to work with. She
expects a lot, but gives more. I appreciate
that and always try to get as close to excellence as I can for her, because that is what
she expects. She leads with a steady hand,
vast knowledge, and a compelling drive to
move things forward – now. The respect
she has earned qualifies her for Über-leader
status, yet she barely acknowledges this
because the work is more important. I
hope the collection of articles inspires you.
If you know me, you have heard my
speeches on marketing, my second obsession. For years I have felt that some of
ARA’s programs need to adopt a marketing mind-set. To my pleasure, after the
convention, many are doing so – not to
sell you, but to teach you about their value.
Last spring, I volunteered with Junior
Achievement and taught two third grade
classes about “their city,” which included
discussions on ZONING. In that context,
I brought them the ARA Coloring Books
and we talked about Automotive Recycling as an industry. The kids and teachers
were amazed with all the details. I am pretty sure I secured at least 45 future green
parts customers.
Generational marketing is so important
to the survival of this industry. Recycling is
not abstract, it is daily life. Green recycled
parts (GRP) are not a tough sell. That battles are mainly now fought with those
wanting your customer base. America is
ready to hear about GRP. Tell them!
Your letters to the editor can be sent
to ARAEditor@comcast.net. ■
At a Glance
A SSOC IAT E M EM BER
By Caryn Smith
Simplifying Claims, a division of Car Inspector US, Inc.
our salesperson is on a roll with yet
another drive train sale this week.
Then, one of last week’s customers calls
him back. The drive train part that was
sold to them is bad and the shop needs
help. Now your super salesperson – who
should be selling – is helping a previous
customer. How many new sales are not
being made during that time?
That’s where Simplifying Claims, a division of Car Inspector US, Inc., steps in.
“We have a proven track record for handling your claims quickly and fairly. If
your customer says ‘this drive train part is
no good,’ you can say, ‘Let me connect
you to my trained team,’” says Jim Stone,
CEO. “Then you get back to selling.”
Y
How it All Works
Simplifying Claims makes it affordable
by offering three plans – Silver Advantage for the budget conscious, Gold
Advantage with increased support, and
Platinum Advantage, for the best upscale
service with surprising affordability. Each
plan requires a monthly service fee,
based on volume, plus a per-claim fee.
The auto recycler would be responsible to
the shop for any repair costs they authorize. Beyond the technical help, the Claims
team will help each facility develop an
effective warranty.
Furthermore, ARA members are eligible for additional discounts on program
pricing through the ARA Marketplace.
To initiate a claim, the auto recycler
provides specifics through an online
form. A call is placed to the parts installer within four hours of the claim to
gather information, although Stone
notes that the current response time is
less than 10 minutes. The claim is passed
to a master technician to review the case,
along with the auto recycler’s warranty.
Then, as warranted, the technician will
call the installer to begin diagnostic testing and determine validity of the claim.
The team compiles all documentation
for the auto recycler, such as oil change
receipts, etc., and will proceed according
to the recycler’s choice of resolution.
How Many Claims are Legitimate?
Simplifying Claims aims to keep
money in the auto recycler’s pocket and
save them from non-profit generating
work. Specifically for auto recyclers,
Simplifying Claims provides your business
with a team of more than 1,300 experienced ASE-certified master repair technicians, with access to thousands of car
manuals, to work with Dealerships, Independents, Body Shops, and DIY’ers to:
1) Determine the part has been properly installed, all codes are cleared, and
the shop’s diagnostic tools are up-to-date.
If installed properly;
2) The customer is walked through a
repair, in order to avoid replacement.
“We estimate that the average return
ratio on drive train parts is 20-25 percent,” says Stone. “That means one in
four customers will be calling you back
about a part. Yet, nearly 70 percent of all
the claims we see are unfounded.”
“If the repair shop failed to do their
part correctly, such as neglect to put in
a thermostat which causes the engine to
overheat, then the auto recycler has several options,” says Stone. “They can offer
to send the customer another motor, sell
them another one at a ‘best’ price, or tell
them ‘it’s your problem.’ We leave the
final decision to each automotive recycler, based on all of the circumstances.”
Ultimately, Simplifying Claims wants to
discover if the shop has made an error.
If the part is bad, yet fixable, automotive
recyclers find that it is cheaper to pay
Simplifying Claims to assist in a repair
than it is to replace the part.
Stone says that most of the shops they
help enjoy having their expertise to rely
on. “Our techs have extensive experi-
ence, combined with repair
manuals on every car. Body shops benefit most from this because they use us as
a data resource. There is no way they can
have information on every car,” says
Stone. “We have manuals on every
American model, as well as Canadian,
European models. By next year we will
have all United Kingdom and Australia
models.”
The Numbers Please
In their experience with Dealerships,
Independents, Body Shops, and DIY’ers:
• 69.9 percent of the parts are installed
improperly;
• In 10.7 percent of cases, a shop is
walked through the repair where it
doesn’t cost the recycler any money;
• In 3.3 percent of the claims, a repair
is needed which does cost the auto recycler money; and,
• In 16.1 percent of instances, a bad
part needs replacement.
To put this into perspective, assume
the following: A yard is selling $100,000
per month in drive train parts. Their
returns ratio is around 14 percent.
Returns cost them $14,000 each month.
“In our experience, 80.6 percent of all
claims can be fixed with no extra cost to
recyclers,” says Stone. “Many recyclers
who begin with a 20 to 25 percent return
part ratio can decrease that significantly.
One customer has a 2.3 percent ratio.”
Model Experience
With 15 years in business, Car Inspector US, Inc. has spent the last six offering services to auto recyclers. “We started with the PRP Mid-Atlantic group and
are now rolling out this successful system
to the whole industry,” Stone says.
For information, call (888) 615-7555,
visit www.simplifyingclaims.com or e-mail
Jim Stone at jim@carinspector.us. ■
Caryn Smith is the editor of Automotive Recycling magazine.
November-December 2011 | Automotive Recycling 7
ARA Action
Latest News and Reports from ARA
ARA Comments on FTC's Magnuson Moss Review
n a recent letter to ARA Chief Executive Officer (CEO) Michael Wilson, the
Federal Trade Commission (FTC) affirmed the use of recycled automotive parts
in warranty repairs. In the letter, the FTC
says: “Warrantors may not claim that a
warranty is void simply because a consumer has used an authorized or recycled part.”
ARA sent several letters to the FTC on
this issue and the ARA Executive Committee met with the FTC during ARA’s
Hill Days 2011 to discuss concerns face to
face.
ARA believes that the position statements of the automobile manufacturers
I
Now
Available
for $99
might mislead consumers into thinking
that using recycled parts in a repair could
void their warranty.
As a result, the FTC announced the
update of a consumer alert, Auto Warranties, Routine Maintenance, and Repairs: Is
Using the Dealer a Must? The revised alert
specifically notes that the mere use of
recycled parts does not void a warranty
and that it is illegal for warrantors to void
a warranty or deny coverage simply
because a recycled part was used in an
auto repair.
An updated version of the alert can be
found at www.ftc.gov/bcp/edu/pubs/
consumer/alerts/alt192.pdf.
Hybrid Vehicle Dismantling Guide
Unveiled at the ARA Convention
he Automotive Recyclers Association’s
Technical Advisory Committee Hybrid
Vehicle Workgroup, working in conjunction
with the Environmental Compliance for
Automotive Recyclers (ECARCenter.org)
center, showcased the first edition of the
Hybrid Vehicle Dismantling Guide at ARA’s
68th Annual Convention in Charlotte, NC
in October.
The first of its kind to be developed specifically for Hybrid vehicles, the Guide educates
automotive recyclers on the safe and efficient dismantling of Hybrids, as well as their
differences from other vehicles. With the popularity of Hybrids on the rise, these green
recycled parts will increase in demand. The Guide serves to assist automotive recyclers
prepare for the rise in this consumer market segment.
This Guide includes an over-view chapter and specific section modules for the Prius
and Honda hybrids. Each section of the guide is organized into topics on vehicle identification components and locations, description and operation of specific hybrid parts,
safety measures, and removal procedures.
The guide’s unveiling allowed convention session participants to learn about the
detailed content of the Guide from presenters Committee Chair Chuck Ossenkop, and
the Committee Workgroup Members Sue Schauls and ARA?s Betsy Beckwith. The
Guide is now ready for wide distribution to automotive recyclers in either book form
or on CD for the price of $99 each, plus shipping and handling.
Cost is $99 for a Printed Guide or a CD, plus shipping and handling. Go to www.a-ra.org to download the order form, and order one for your facility today!
8 Automotive Recycling | November-December 2011
T
ARA Comments on EPA’s
Municipal Solid Waste (MSW)
Characterization Report.
n a notice published in August, the
Environmental Protection Agency
(EPA) asked stakeholders for input on
the MSW Characterization Report.
ARA was compelled to respond to the
request for comment even though
automotive recyclers do not handle
“solid waste” because EPA wanted to
know if “automotive waste” should be
included in the Report.
Automotive recyclers do not discard
used materials. Rather, the materials
are recycled and immediately reused
or processed for reuse by consumers.
Indeed, materials at automotive recycling facilities never even enter into
the waste stream measured by the EPA
in this report.
In our comments ARA gave several
examples of how automotive recyclers
process end of life vehicles (ELV),
highlighting the resale and reuse of
parts and the recovery of all fluids,
refrigerants and solvents.
We believe it would be inappropriate to include ELVs in the MSW
Report because these vehicles are
never discarded and are not solid
waste. Therefore they cannot be
included in a report about discarded
materials that are solid waste.
I
Renew Your Membership Now!
f your company hasn’t renewed, you are
no longer accessible to customers looking for you in our online directory.
Please send in your membership renewal form now to avoid an interruption of
services. One reason to renew: ARA
BizUnite Marketplace (ara.bizunite.com)
potential savings alone could offset your
membership investment. Thank you for
your continued membership support!
I
Marketing 101
By Mike French
mike@mikefrench.com
Avoid the Death of a Sale: Make It Easy to Order
ecently, a decisive client called me to
place an order. He wanted 3” x 5”
post-it notes with his company name and
phone number printed at the bottom in
blue. He gave me his credit card number
and he wanted them ordered that day.
I really like it when a client knows what
they want and is ready to buy, so I said
“no problem.” I hung up the phone and
got to work. It only took a few minutes to
produce the artwork as he had described.
I e-mailed him a proof, and he immediately replied with the okay to print.
R
Order Gone Wrong
Here’s how it went from here.
There are several factories that produce sticky notes. I immediately called
the first one on my list to get this order
into production. The phone rang until I
got a recorded message. I listened to all
the choices, there were several, and I
pushed the appropriate number to speak
to a sales person.
Instead of getting a live person, however, I got another recorded message that
said, “I’m sorry, I am presently helping
another customer. Please leave a detailed
message, as well as the time you called,
and your phone number, and we will get
back to you as soon as possible.”
But I want to talk to someone now, I said
to myself. I have an order! The art is prepared,
and I don’t want to play phone tag!
So, I hung up the phone and redialed
the number. This time I pushed “0” hoping to get a live operator to help me.
Someone answered. I told them I was
ready to place an order, that I had the artwork ready, and a credit card to pay for
it. I wanted a way to do it quickly and simply. Could we please proceed?
The person replied, “I’m sorry, but you
will have to talk to a sales person. What
state are you calling from?” I told them
and they put me on hold to wait. I waited, and waited. Every few minutes a
recorded message told me that my call
was very important to them and that a
10 Automotive Recycling | November-December 2011
salesman would soon be there to help
me. Finally, a salesperson came onto the
line and I quickly told her my story
emphasizing, “I have a credit card to pay,
but I need to get the order placed, now!”
Here’s what she told me. “I’m sorry, but
I can’t take your order until you fill out
a credit application and receive an order
number. I will put you through to our
accounting department so you can get
this done.”
The easier you make it for
people to order, the more
they will spend with you.
Its that simple.
I was beginning to lose it!
So I tried another way to pay. “Okay, I
want to pay cash. I don’t need any credit, so I don’t need to fill out a credit application. I just want to place my order for
post-it notes!”
“I’m sorry,” she said, “Our Company
policy is that we don’t take orders without an application and an order number.
I will put you through to our credit
department so you can take care of that.”
I hung up.
I called another vendor and a live person immediately answered, gladly took
my credit card number, and told me
where to e-mail the artwork. The whole
transaction took me less than five minutes to complete. What a difference!
I will never call the first company again.
I wonder how they stay in business.
The Lesson Learned
Make it as easy as possible for your customers to place an order with you! Here
are a few tips.
By Phone: Your customers should be
able to place their parts order by phone,
talking to a live person who is focused on
meeting the customer’s need. Most people are accustomed to ordering this way
and prefer it. Don’t discourage them with
your fancy phone system. You know what
I mean because you hate them too, everybody does!
By Fax: Even though most businesses
have a fax machine, it is amazing how
many fail to use them to receive orders.
Fax machines take the pressure off both
your phone system and your counter
staff. Create an easy-to-use form for customers who want to order this way.
This form should start with ample
place for customer information, such as
name, address, and phone number, as
well as a place to describe parts requests.
Be sure to capture fax numbers and email addresses to expedite the return of
information. Include as many check
boxes as possible for choices such as pick
up, delivery, use credit card on file, etc.
Include a payment section for credit card
orders, and be sure to briefly state your
payment terms (cash on delivery, 30-day
terms, etc.). Designate an area for quotes,
and other information.
To go one step further, customize a
form for your best customers, with all
their information pre-printed on it. The
easier it is, the more likely they will use
the fax machine to place their orders.
By E-mail or IM: Include your counter
staff’s e-mail and personal instant message addresses on your web site, on their
business cards, and on your advertising
pieces, so people can quickly see how to
reach them with parts requests.
By Web site: Your e-commerce Web
site should be a shining example of userfriendliness, so customers can easily
order online from you 24/7. E-commerce is here to stay. You don’t want to
miss out on sales due to a clunky or
archaic ordering process.
Remember, the easier you make it for
people to order, the more they will spend
with you. Its that simple. ■
Mike French, President of Mike French &
Company, Inc., can be reached toll free at 800238-3934 or visit his company’s website at
www.MikeFrench.com.
Lessons Learned
By Ginny Whelan
ginny@araeducation.com
Curb Appeal – Does Your Business Have It?
he recession has not stopped people
from shopping, but it has made
them smarter and more selective consumers. That means retail-focused automotive recyclers, whether full-service or
self-service, need to rely on inexpensive
ways to improve business curb appeal
and lift morale.
Cut-backs or layoffs can create an unintended downward spiral, and the little
things may get overlooked. Meanwhile
when a customer does walk through your
door, how do keep your edge?
T
The Experience Counts
An article in the The Daily Reporter, published in Milwaukee, Wisconsin, says
“Most good design strives for somewhere
in the middle of legacy and prophesy,”
said Tom Stacey, a retail expert with
Eppstein Uhen Architects Inc., Milwaukee. “You need to have one foot in the
past and one foot in the future.”
Because of the stark realities of the
market, today’s customers gravitate more
toward “something real that doesn’t try to
fool you,” Stacey said. “Customers are
looking for something less contrived.”
“Strong retailers can create a winning
experience by knowing their customers
and their customers’ aspirations,” Stacey
said.
The Experience Counts
Selling the products [like green recycled parts] isn’t enough anymore; retailers need to sell an experience.
Improve morale and curb appeal to
prospective customers and staff through
an inexpensive face lift. Think about first
impressions. Here is a checklist of low-cost
suggestions that can make a difference.
• Is the reception area welcoming (i.e.;
warm and inviting or cold and untidy)?
Check walls for grease and floors for
stains.
• Does your customer area smell good?
An air purifier is an inexpensive and lowmaintenance way to clear the air.
•Check outside the building for chipped paint. Also, is your business sign
intact? If not, think about the impression
these make. Even if your business does
not regularly host customers, the employees, vendors, and creditors notice. Keeping morale high and showing your staff
that you care about the workplace is an
essential tool for personnel retention.
• What does the employee entrance
look like? Consider it as a launching pad
to a productive day. Post your company
mission statement (a must have) at the
employee entrance.
• Lastly, check that the restrooms are
clean and odor-free.
Tell Your Story
“Strong regional, locally
based retailers can offer a
1. Keep buildings, including doors and windows, clean and in
good repair. Buildings should be free of excessive damage,
real advantage in today’s
peeling paint, dirt, and grime.
market; I call it the anti2. Maintain fences, repair damage, remove graffiti, and re-paint
Starbucks effect; they have
as necessary.
the local appeal that will
3. Maintain landscaped areas to offer an attractive appearance.
pull customers away from
4. Prevent severe erosion or scouring of unpaved roadways and
a national chain. I think
aisles.
we’ll see a re-emergence
5. Keep vehicle holding space and parts storage areas reasonably of that type of retailer,”
organized.
Stacey notes.
Whether it’s once a week or once a month, curb appeal can be
“Local retailers have the
assigned to your staff or the owner with a touch of insomnia.
advantage when it comes
People will notice.
to reflecting the commu-
WHAT TO DO:
12 Automotive Recycling | November-December 2011
nities in which they’re based and appealing to specific markets. The ‘anywhere
architecture’ of many big-box retailers is
struggling to attract today’s savvy consumer,” Stacey said.
Good design should pick up on cues
from the surrounding area, Stacey suggests.
Getting It Done
There are inexpensive but thoughtful
touches that show pride in the workplace
that go a long way to lifting morale and
maintaining customer readiness.
How do you start? Go to www.a-r-a.org
to download the Certified Automotive
Recycler manual for suggested practices.
Then, consider becoming CAR certified,
as well. Here is just one example of the
program’s recommendations:
General Business Standards
1. Adequate, well-graded (or paved),
well-drained customer parking facility that is separate from the vehicle
holding area.
2. Clean and organized retail sales
counter and reception area.
3. Signs in good taste and of positive
tone.
4. Building and property is well-maintained to reflect a clean, orderly, and
safe operation. Buildings, fences,
landscaped areas, and parts and
vehicle storage areas give customers,
visitors, neighbors, and others in the
community their first impression of
the business. Well-kept structures
and property are indicative of a reputable, professional, and respectable
facility. ■
Excepts from Copyright © 2011, The Daily Reporter Publishing Company; By Caley Clinton, Special to The Daily Reporter
Ginny Whelan, an ARA Past President, is Managing Director of the ARA Educational Foundation and founder of the ARA University, the
leading Web-based training resource in auto recycling education. Visit www.arauniversity.org.
That’s My Opinion
By Ron Sturgeon and Greg Morse
rons@rdsinvestments.com
Covering the Bases from the Bottom Up
his installment from Getting To Yes With
Your Banker will inspire you to get your
plan flushed out before meeting with
your banker.
Ron (entrepreneur): One thing that I
like to do, and I know most people don’t
do that much, is called bottom-up planning. These days, it’s really easy to create
a spreadsheet and create a top line
where advertising costs are five percent,
labor is 20 percent and so forth.
But what about the metrics? Using an
ice cream shop as the example: how
many scoops of ice cream are they going
to sell? Once they’ve figured that out, they
need to extrapolate that into how many
cups and cones they’ll need to buy, how
many freezers they’ll need, how many
employees they’ll need to scoop all that
ice cream.
And if they’re going to sell 10,000
scoops a day, how many tables will they
need, and how big will their lobby need
to be to hold all those people, and how
big a parking lot it would take to accommodate all those cars? I would say that 98
percent of the business plans I see don’t
take this approach.
Greg (banker): That’s a problem we see
a lot. I know of a couple of brothers from
a foreign country who wanted to open a
restaurant in a small town. When they
opened a checking account at a local
bank, the banker told them that in order
to be successful, they needed to be able to
make a great chicken fried steak. When
they left the bank, the brothers asked each
other, “What’s a chicken fried steak?”
Ron: And it’s not just new businesses.
Once, I was in a bank and overheard a
conversation in the next booth. The guy
sold parts and provided services for 1964
through 1966 Ford Mustangs, and he’d
been doing this for several years. He was
blindsided because of a sudden downturn
in his business.
All I could think was, “How stupid is
that?!” There are a finite number of 1964
to 1966 Mustangs, and how many people
14 Automotive Recycling | November-December 2011
iStockp[hoto.com/gerenme
T
out there want to fix them? He hadn’t
thought to expand into servicing modern
Mustangs, or adding Camaros, or some
other car. So now he was in the bank trying to get a loan to get out of this bad situation he was in.
Planning for Scenarios
He had obviously been very unstrategic
in his planning, and the banker had to be
concerned about how he got there. I
mean, who couldn’t see that coming?
You must think about what may happen, and then what happens as a result of
that, good and bad, think about all scenarios. Beef up your plan accordingly, but
also be prepared when the banker asks,
“but what if that happens?”
Greg: Sounds like that customer was
trying to become the eight-track player of
his industry. One of the many problems
we see is that people are managing for the
quarter, not for the quarter-century.
Ron: That’s how they end up with
“green weenies” in the business plan. A
green weenie is exactly what it sounds
like – a weenie that’s been left in the
refrigerator for three months with the
refrigerator unplugged … you might call
it a very unpleasant surprise. A banker
doesn’t want any of those.
And they aren’t there to give advice. I
am amazed at the bankers who have told
me stories about a customer who comes
in and says, “I need some money, but I’m
not really sure how much. How much do
you think I’m going to need?” That
banker is absolutely not interested in giving them any advice – and probably won’t
lend them any money. I am always amazed
at the borrowers who ask the banker how
much do they need. Isn’t that silly?
Make it Easy for Them
Greg: Another thing we don’t want to
see is three years’ worth of monthly historical financials. When someone brings
us a business proposal with thousands of
numbers in it, we get lost. Bring us annual or, at the most, quarterly statements. I
don’t usually need to see monthly statements.
Ron: But as an entrepreneur, I need to
know what those monthly numbers are!
Greg: Sure, business owners need
monthly numbers to figure out how
Sounds like that customer was trying to become
the eight-track player of his industry.
they’re going to hit their projections.
Because if you can’t measure it, you can’t
manage it.
So gather your monthly numbers (metrics), but don’t think that the banker
wants to see all of that. Too much data just
drowns them, or triggers unnecessary
concerns and anxiety for all. Not gathering monthly numbers is like playing a basketball game with the scoreboard covered
up, then pulling the cover off at the end
of the game to see which team won, without understanding the strategies, failures,
and successes of the game.
To a banker, numbers talk.
Ron: There are a lot of people who say
that business plans are not really needed;
they are way too much work. I was guilty
of that in my early years. But those peo-
ple will never be as successful as they’d
like. It’s hard work and it’s a lot of planning, but it’s not just for the bank. A business plan is so much more, and should be
the road map you are executing against,
measuring your success and making
course corrections.
Greg: Right. Every company needs to
have its own strategic plan. If someone
has a goal and it’s not in writing, then it’s
just a dream. As I always say, dreams don’t
have a direction.
Ron: What else do bankers want to see?
You want to see some skin in the game,
right? What does that mean in terms of
down payments and equity and those
kinds of things?
Greg: Never go in and ask a bank for
100 percent financing on anything. I want
the customer to task some risk in the
game; maybe put down 20 percent on
whatever it is he or she needs.
Let’s say someone comes to the bank
and wants to finance a new bulldozer. The
day it’s driven off the lot, it’s not worth the
$100,000 it cost, it’s worth $80,000. As a
banker, I’m already down to having
something that is only worth what I just
financed. And if the customer has some
skin in the game, I know they’re going to
lose some money if they have that bulldozer taken away. ■
Getting To Yes With Your Banker includes 93 secrets you
likely didn’t know about dealing with your banker, from
an entrepreneur and a lender’s perspective. Co-authored
by Ron Sturgeon, entrepreneur, and Greg Morse, founder
and president of Worthington National Bank, the book is
packed with tips and advice on how to choose and get
along with a banker, what they want to see, a must-have
guide for both start-ups and existing business persons.
November-December 2011 | Automotive Recycling 15
Advice Counts
By Jim Counts
jimcount@wans.net
iStockp[hoto.com/gerenme
How Purchases Affect Profits
We need to know
what we have to buy
to be profitable.
We are, in fact,
in a “Buy or Die”
industry.
16 Automotive Recycling | November-December 2011
t’s easy to look at vehicle hulls out in the
field or walk through the warehouse
and racks and believe that we have lots of
inventory. However, the facts indicate that
almost half of our sales come from what
we purchased within the last 120 days.
This means that if we stop or slow down
in making our normal purchases, we are
very likely to see a decrease in sales during the upcoming 120 days.
Here’s some numbers to help explain
the importance of what we buy. Plug your
figures in instead of mine to get your
results.
Assume that it costs $50,000 a month to
pay all of the business’ bills without
including the actual cost of inventory or
brokered parts.
Assume that our historical cost of goods
is 45 percent of sales. (This means that for
every dollar’s worth of sales produced
from a vehicle costs .45 cents when the
vehicle was purchased.)
Assume that the average cost to process
the average vehicle is $1,500. ($50,000
divided by the number of vehicles processed.)
Using the above numbers, the business
has to buy enough vehicles to produce
$90,910 worth of sellable parts, cores, and
scrap each and every month or we need
to have additional revenue sources which
will cover any shortfall just to break even.
This means that if we don’t broker parts
I
or sell warranties or have other sources of
profit, the vehicles have to cover all the
overhead.
In this case, we will have to average
spending at least $41,000 per month on
salvage. (The cost of the inventory is 45
percent of sales of $90,910 or $40,910
which leaves $50,000 as gross profit to
cover the cost of running the business.)
So if we only buy enough vehicles to
produce $85,000 in sales for any given
month, then we will shortly lose $3,250 in
profit unless we broker enough parts or
sell enough warranties to make up the difference. (A gross profit of 55 percent
times $85,000 is only $46,750 and we
need $50,000) If we have bought more
than the needed sales in the last couple
of months then we may have enough
carry-over to cover the short month.
Ladies and gentleman, I cannot emphasize enough that buying inventory is the
most important job in our industry. We
need to know what we have to buy in
order to be profitable and then find and
pay for the vehicles that will keep us growing. We are in a “Buy or Die” industry.
If you think vehicles cost too much,
then either your company’s overhead to
process them is out of line (which usually means you have too much payroll) or
we are under-estimating what the vehicles
will do in sales. Remember, all vehicles at
the auctions are being bought so obviously they are not too expensive for someone to make a profit handling them. We
just have to figure out how to be that
“someone”.
So now for the big question: what
action are we going to take to make sure
we can always buy the inventory we need?
Remember, no action is, in fact, an
action. Let us know, if we can help! ■
Jim Counts, Counts Consulting, provides organization and financial development for dismantlers. Contact Jim at (817) 238-9991 or visit
www.countsconsulting.com.
Tech Knowledge
By the ARA Technology Committee
ARA Explores Alternative Market for Used Catalytic Converters
he catalytic converter is installed in
passenger vehicles and light-duty
trucks by the manufacturers to reduce
exhaust emissions and allow the vehicles
to meet federal standards. More specifically, a converter is one of the several elements of an exhaust system that reduces
the emission of harmful pollutants, such
as carbon monoxide, hydrocarbons and
nitrogen oxides. The catalytic function of
the converter will activate certain oxidation and/or reduction reactions, which
transform these pollutants into carbon
dioxide, water and nitrogen.
Reportedly, if a vehicle is properly
maintained has not been in an accident,
or subject to converter theft, the converter should not require replacement
for the life of the vehicle. However,
replacement converters can be necessary
in the case of accidents, poor maintenance, and theft. Since the effectiveness
of converters depends on their durability, performance, and proper application,
the federal government requires aftermarket and used converters to meet certain minimum performance standards
before they can be sold and installed.
Experts state that catalytic converters
typically consist of a ceramic or metal
honeycombed monolith substrate that
carries precious metal catalysts. The coated substrate is wrapped in an intumescent
mat that expands when heated, securing
and insulating the substrate which is packaged in a stainless steel shell and fitted
into the engine exhaust system.
As exhaust gases pass over the catalysts, they promote chemical reactions
that convert pollutants into harmless
gases and water. Hydrocarbons combine
with oxygen to become carbon dioxide;
oxides of nitrogen react with carbon
monoxide to produce nitrogen and carbon dioxide; and with hydrogen to produce nitrogen and water vapor.
According to Environmental Protection
Agency (EPA) documents, there are two
T
EPA states further that
“salvage yards would be considered liable for
causing tampering if they sell converters that have
not been tested according to EPA specifications.”
categories of aftermarket converters: new
and used. New universal converters usually cover a wide variety of vehicles within certain limits. New aftermarket converters are required to have a 5-year/
50,000 mile warranty on the converter
shell and end pipes. They are also
required to be warranted to meet EPA’s
emission performance standards for
25,000 miles when the vehicle is properly used and maintained.
Used converters, however, are usually
“reconditioned” original equipment
(OE) converters and can only be installed on the type of vehicle or vehicles
for which they were originally intended.
Used converters are only required to
meet the performance requirements at
the time of sale; no additional warranty
is required.
EPA clearly states that “it would be a
violation of federal policy to install a used
converter from a salvage yard or sell it for
reuse unless it has been properly tested
and labelled.” EPA states further that “salvage yards would be considered liable for
causing tampering if they sell converters
that have not been tested according to
EPA specifications.”
EPA outlines the required testing specifications in a 1986 Interim Rule which,
although never made final, was considered as EPA official policy. No durability
testing for used converters is required,
but each converter must be tested using
a container mechanical integrity check,
a substrate mechanical integrity check,
and a performance test.
Today, automotive recyclers sell the cat-
alytic converters for their cores, but
would like the option of selling the entire
converter for reuse to help keep vehicles
on the road which would be better for
both the environment and the economy.
Many recyclers believe that the advent of
on-board diagnostic systems in cars manufactured since 1986 change the regulatory landscape and make the need for
specific EPA performance testing criteria
redundant.
The Automotive Recyclers Association
(ARA) believes the considerable advances that have been made in the past 25
years in vehicle parts manufacturing and
testing are not appropriately reflected in
the interim guidelines. ARA strongly
encourages EPA to review its longstanding interim policy on the sale of
used catalytic converters and specifically
consider whether individual bench testing is still necessary to certify the efficiency of used catalytic converters.
ARA believes that EPA could streamline testing to ensure that consumers
have access to used catalytic converters
that are functional.
In an effort to continue to support our
nation’s “green movement,” ARA looks
for opportunities to reuse as well as to
recycle. Often automotive recyclers are
forced to sell used catalytic converters for
parts rather than for reuse solely because
the appropriate bench testing is not available or feasible.
Efforts need to be undertaken to identify user access methods to ensure the
functionality of and access to used catalytic converters. ■
November-December 2011 | Automotive Recycling 17
LARA
By Caryn Smith
Ladies of the Automotive Recyclers Association
here is something to be said for havat the 2012 ARA Convention in Orlando.
ing momentum. The Ladies of the
No doubt you will hear more from LARA
Automotive Recyclers Association, or
in 2012.
LARA, are clearly an example of that.
What started several years ago as a social
What Does it Take to be a Member?
mixer with about a dozen women in
Some women in the industry today
attendance has blossomed into more
own or lead multi-million dollar busithan sixty women in a banquet hall room
nesses, with teams of people. Others have
eager to get to work advancing the indussmaller businesses or provide a service to
try they dedicate themselves to every day.
the industry. This group’s membership is
The women of LARA, an arm of the
comprised of not just women automotive
ARA Educational Foundation, have
recyclers, but any woman who serves the
charged themselves with mentoring, eduindustry, including vendors and sister
cating, and expanding
industries, such as buyThe group ultimately ers of salvage metal,
the scope of automotive recycling as it
aims to advance the service industries, and
relates to women. At
automotive recycling others.
the core, this group has
Whatever the busia broader reach than industry, and showcase ness model, most who
just a social connection,
attend the meetings
it as a viable career
although that element
will agree that women
option for women.
is evident. They plan to
work hard to gain
leave no stone unturned and are comrespect in the male-dominated automomitted to tackling broad issues.
tive recycling workplace. Thankfully
At their recent semi-annual meeting
there are women business owners and
held at the annual ARA Convention in
former owners in this group that serve as
Charlotte, North Carolina (see group
a resource on how to earn that respect
photo), it was announced that the group
and thrive in this industry. That may be
will have a dedicated page on the www.
the most unique benefit of the group,
a-r-a.org Web site.
the experienced passing tricks of the
Plans are also in the works to develop
trade to those new to the industry.
a LARA-related seminar to be conducted
Membership is easy. All it takes is an
T
18 Automotive Recycling | November-December 2011
e-mail to Ginny Whelan, ginny@
araeducation.org, co-organizer of the
group with Sandy Blalock and Fran
Reitman. You will be added to the group
e-mail list and be notified with exciting
announcements for 2012.
Whelan and company hope that more
women will join in. They want to hear all
the ideas and needs of the group in
order to provide resources to meet those
needs. The group ultimately aims to
advance the automotive recycling industry, and showcase it as a viable career
option for women.
Family-Style Business
As we all know, many auto recycling
businesses are family-owned, which
means one way or another women are
involved. It was determined at the LARA
meeting that while family issues are a
large part of what the automotive recycling community often deals with, this
group did not want to focus mainly on
this one issue. Therefore, another arm
of the ARA Educational Foundation, the
ARA Family network, was established to
deal specifically with issues relating to
owning and operating a family business.
Look for a an educational track at the
2012 Orlando ARA convention from
this group as well. ■
Sales Call
By Sam Parker
sparker@givemore.com
How to Focus
magine the incredible results you’d
have if you and your team really focused
on a consistent basis.
You’d likely…
■ contribute more
■ waste less time ramping back up
■ serve customers better (internally
and externally)
■ find more customers
■ come up with more ideas
■ plan better
■ be less frustrated and stressed
■ help others focus more (by interrupting them less)
■ make more money (for everyone…
including you)
Nothing’s guaranteed, of course. But
it’s a better bet. (And in the long run,
you’ll enjoy more.)
I
you’re SalesTough, most of your
inbound e-mails are probably
important, but still don’t need
attention for at least an hour (if
not longer). Be truthful with yourself and set your interval so everyone wins. If you can set only two
or three specific times a day to respond
to email, do it. (See the next column for what
we learned about people who check it only 3
More on this topic from
others (great stuff)…
The Web Shatters Focus, Rewires Brains
by Nicholas Carr (Wired Magazine; www.
wired.com/magazine/2010/05/ff_nicholas_
carr/all/1). This one inspired us to start
migrating our links out of our posts, so
you can focus.
Solitude and Leadership by William
Deresiewicz (The American Scholar; http://
theamericanscholar.org/solitude-andleadership/). This one makes us want to
be smarter people.
Three Ways to Knock Out
the Bulk of Distractions
■ Establish focus hours with your team
(or company-wide) – chunks of time each
day where everyone will allow everyone
else to focus (that includes
you). No inter-office commuThe 8 SalesTough Fundamentals
nications unless it truly can’t 01/ Let nothing interrupt your money hours – the hours in the
wait. At JustSell, hours are
sales day where you can talk with prospects/ customers.
from 9 a.m. to 11 a.m. and 2
02/ Start early and go long.
p.m. to 4 p.m. (4 total hours
03/ Live a sales day schedule of calls first, paperwork last.
a day). You’ll make mistakes
04/ Excite prospects with strong opening statements that
occasionally and break focus
mean something.
hours but with commitment
05/ Know everyone by networking more.
and reinforcement, everyone
06/ Develop a comfort with closing through solid preparation
will benefit. If you’re really
SalesTough (see box to learn and solid front work.
07/ Keep your personal problems to yourself during the sales
what this is) in order to miniday – especially when you're with your prospects/ cusmize outside distractions, let
tomers.
your family and friends know
08/ Pause at the start of each week or month to quickly (and
your focus hours (and turn
objectively) evaluate your personal sales value.
off your cell).
SalesTough™
is the perfect “first read” for your newly■ Turn off e-mail alerts and
hired
salespeople
as well as a great reminder for your more
commit to checking it at the
experienced
people
(including you).
most minimal level you feel is
This book is quick a read (less than 30 minutes). Find your
possible for your particular
copy at www.givemore.com.
sales world without having a
negative impact on service. If
times a day.) Consider having
an auto-responder that let’s
people know when you
address your e-mail (e.g.,
“Thanks for your note. I usually check my e-mail three
times daily (8:30 a.m., 11:30
a.m., 4:30 p.m.). If you need
me immediately, please call my cell/assistant/office line.)”
Furthermore, instant messaging should
be used strictly for business purposes.
■ Avoid personal Web use during
money hours. The distractions are endlessly wonderful for those who’d prefer to
avoid making things happen (which of
course, isn’t your goal). If you must open
a browser during the money hours (or
focus hours), make sure your home page
is something that doesn’t have the potential to encourage you down destructiondistraction road (e.g., news or e-mail sites,
personalized pages, etc.).
One More …
If you’re in an office setting that allows
you to face away from distraction (the
door or other people – not customers, of
course), do it.
Managers: Depending on your team,
some or all of these ideas might not go
over well (we know firsthand). Involving
people in a discussion, asking them for
ideas on how to improve internal focus
and minimize distractions, might be a
good first step. Also, consistently helping
people remember the purpose behind
what it is you do for customers can help
gain commitment to your reasons for
focusing. If you’re looking for a way to
encourage people to push it, take a look
at my book, 212˚ The Extra Degree. ■
Sam Parker is a co-founder of JustSell.com –
the Web’s resource for sales leaders. He is the
author of 212° The Extra Degree (little efforts,
big results), Smile & Move (be positive, take action), and SalesTough (8 key fundamentals).
He can be reached at (804) 762-4500, ext. 303.
Leading with
CONFIDENCE
You’re All
O
“
ften it is not what you say ,
but how you say it that
counts. The success or failure of any relationship
depends on the conversational
signals such as voice level, pitch,
or timing.”
Your “at work” communication
sets the tone for your work relationships, says Dr . Deborah T annen, communication expert and professor of linguistics at
Georgetown University, and author of You Just Don’t
Understand: Women and Men in Conversation. Without
reminders and some training, communications can
go south pretty quickly. So why is it challenging for
men and women to communicate clearly and easily
with each other? And what are some guidelines that
can keep communication on a more positive and
productive path?
As management trainers in the automotive field
for over 15 years, we are using broad concepts here
and some generalizations on the differences between
men and women based on our experiences in conducting seminars. And we are starting with the premise that men and women think differently , process
information differently, and react in ways based on
how their brains are organized.
Your Brain
Our brains are organized differently? Well, yes. Based
on scientific evidence, male and female brains are
wired differently from the time we are infants. We all
have the same computing power and we are all born
with the same amount of connections between the
left and the right brain. Those different parts of the
brain perform different functions. When testosterone
enters the male body in infancy , it erodes many of
20 Automotive Recycling | November-December 2011
Communication breakdown occurs
most often between the sexes.
Improve workplace practices
by getting this right.
By Craig and Deb Van Batenburg
the connections from the right brain. So, what does
that do? One of the results of that process is that it
stops the male brain from being able to quickly
transfer stimulus from one side of the brain to the
other side. It means the wiring diagram gets changed.
In other words, it causes male communication to be
much more linear and therefore much less complicated.
Female infants do not have this going on, allowing
the web of networks from the left to right brain to
continue to develop. This permits female brains to
quickly shift from one brain core to the other . In
grown ups we call it multi-tasking. So when we know
we compute information differently , it helps us to
have a much more accepting attitude when communicating. And with training on our part, we can ask
for communication that works best for each of us,
male and female.
Getting Started
How do we start to use this kind of information to
ensure better communication in the workplace? We
all spend plenty of time at work and deser ve to have
it be a place where we thrive. Learning a new way
could save you a lot of frustration when working with
the opposite sex.
This can be tricky because there are emotional factors that also enter into communication. In our
workshops, what can get dicey is when we ask both
the men and women to identify the things that drive
each other crazy. All of us hear complaints about the
opposite sex daily. We see jokes on the Internet and
hear them on TV and on the radio. But when a com-
i8Stockphoto.com/DrAfter123
Talk
November-December 2011 | Automotive Recycling 21
Leading with
CONFIDENCE
munication breakdown at work with the opposite
sex occurs, none of that seems too funny.
Here are some of the characteristics of both sexes
that get in the way when we want to be successful coworkers and good communicators.
This is what the women say to describe men in
general when asked during our ACDC “W orking
with Men and W omen in the Automotive
Workplace” seminar:
• Men are blunt and abrupt.
• Men are impatient.
• Men don’t listen or tune out.
• Men don’t follow directions.
• Men don’t pay attention to the details.
• Men feel they are always right!
For women the list isn’t any nicer ... just different.
Here are the most common complaints we hear
from the men:
• Women talk too much.
• Women beat around the bush.
• Women are too picky … too many details.
• Women offer advice we didn’t ask for.
• Women take everything personally.
• Women tell you the same thing over and over .
The Learning
When we created these lists in the recent workshop,
immediately one woman said, “Oh! I see three of
these I have been doing all along. No wonder I get
push-back.” And one man recognized that his auto
parts manager, who is female, wanted “acknowledgement not attention.” By analyzing these behaviors
that men and women exhibit towards each other ,
both sexes feel less confused and are more compassionate and understanding for the opposite sex.
In John Gray’s book Men Are from Mars, Women Are
from Venus, he discusses that women desire caring and
men want acceptance. If we read the above lists with
that filter in mind, they make a lot more sense and
explain why men and women can irritate each other.
In the heat of the moment, or the silence that follows a communication mishap, it takes discipline to
employ this reasoning and not to react in the way our
instincts tempt us to react. But if we use this information to make better relationships at work, the benefits
pay off pretty quickly.
EGO at work
An additional critical aspect of mis-communication
is how quickly the ego gets engaged. In his bookWhat
Really Works With Men/Solve 95% of Your Relationship Problems (And Cope With the Rest), A. Justin Sterling
defines the ego as that part of your personality that
22 Automotive Recycling | November-December 2011
wants to be the best. He also warns that the ego is the
predator of good relationships. When ego is engaged,
an interaction quickly occurs and results in a combative interaction, which can manifest as verbal or silent
(cold shoulder), or a fight to the end or a flee
response. Many a regretful incident at work was
caused by out of control egos.
Men and women display their egos differently .
Regardless, there is sure to be an interaction that
will have negative consequences for both parties.
Sign of the Ego
How will you know your ego is engaged? Before
we get angry, our body will signal to us to let us know
it is preparing to do battle. Some of us get red in the
face; some take a strong posture or clench their
teeth or fists; and some of us hold our breath. This
is a warning that you need to take a personal time
out and want to communicate when you are more
prepared or clear-headed. To take a stand for good
communication the phrase to use is simple: “I am
upset (or unhappy) and I will talk to you about this
later.” Then, leave the conversation. This is not
about being right; it about be caring or gracious
enough to simply cut the communication short –
right then and there. It is a smart and easy tool for
everyone to use.
Making Changes
Change will occur only when there is recognition
that the price of staying the same is too great or too
costly. We change to relieve the pain we are feeling
emotionally. Repeated militar y studies have deter mined that it takes 30 days without a relapse to
make a change stick. Thirty days includes your days
not at work, so those around you at home get the
extra benefit of your behavioral work as a bonus.
It will be hard to accomplish this if you aren’
t
invested in the required changes and willing to take
a close look at yourself.
In closing, here is a short review to accomplishing
effective change:
• Practice, and then practice some more.
• Accept that you will make mistakes.
• Analyze what you learn about yourself and then
use it to try again.
If this was easy there wouldn’ t be so many books
and workshops about this subject. Now go out there
and communicate with caring and acceptance!
Good luck. ■
Craig and Deb Van Batenburg are the owners of Automotive Career Development Center (ACDC). Craig teaches the Hybrid Module at the ARA University.
For more information about ACDC’s seminars, visit www.auto-careers.org.
Leading with
CONFIDENCE
Who Will They
Follow?
W
iStockphoto.com/Robert Churchill
hat is a leader? A leader
is a person who guides
or inspires others. So,
when I say the word
“leader” what are some
attributes that come to
mind? I’ll tell you what
enters my mind; words
like involved, assertive, passionate, and proactive. The
list goes on and on. Y ou
could add words like charismatic and energetic, too.
Now, let’s switch things up a bit. When you think
of a good leader, what are some of the qualities they
possess? Honesty, intelligence, confidence, and compassion are some of the things that come to mind.
Let’s throw in sincerity , integrity, and empathy. To
24 Automotive Recycling | November-December 2011
me, this is a pretty good start. I can look at all these
words and think, ‘yeah, these are necessar y qualities
of a good leader.’ If you agree that these are all necessary ingredients for good leadership, and you’re
not exhibiting these traits, then you’re failing as a
leader!
Get Your Cape On
It really doesn’t matter if you’re the head of a 300member company, or a super visor with just three
people on your team. As a leader, you’re supposed to
be every one of these things, and more, ever y single
day. To the extent that you are doing this, you’re
doing a great job. T o the extent that you’re not
doing these things, however; you’re failing as a
leader. And if you’re failing as a leader , guess what?
Your team members can’ t be ever ything you want
them to be, and they can’ t experience the kind of
success they desire.
Several years ago, when I was putting together my
first team at The Lampo Group, I decided it would
be a good idea to meet monthly with my team members individually. Not just to go over figures and
strategies, but to give them a
chance to voice their opinions
and tell me what kind of job I
Your team
was doing as a leader . How bad
members will not
could it be, right? Here’ s how
bad. The ver y first person I
be everything you
talked to told me, on no uncer want them to be
tain terms, that my communication skills stank. T alk about a
if you’re failing
shot straight to the ego! Without
as a leader.
missing a beat she explained
that I did a lousy job of commuBy Chris LoCurto
nicating information on some
projects. That, she explained pointedly, was my problem. I assumed
that she and her teammates knew
everything I knew . In the process,
nothing was being communicated.
That was a tough thing to hear ,
but I’m the dummy who set the
whole thing up. So, what do you
think I did next? I didn’ t fire that
team member, and I didn’ t hide in my office and
pout. Okay, maybe I did for a little while. But what I
really did was to begin studying and focusing on the
communication aspects of being a good leader . Not
only so my team would be better informed and do
their jobs to the best of their abilities, but so I could
grow as a leader and as a person.
Fortune 500 companies have been
responsible for a net decrease of
almost two million jobs. During the
same time period, family-owned and
privately-held businesses have been
responsible for a net increase of
more than 18 million jobs. T oday,
over 90 percent of all American
businesses are family owned or controlled, and together they generate more than half
of our nation’s gross national product!
Take a look at that list of words we went over that
describe a leader again. Do those words describe you
and your attributes as a leader and a person? If not,
it’s time to get to get serious. What are you going to
do to grow? What are you going to do to grow your
business and your team? (Don’ t forget about your
team.) Remember, they’re the ones who make you
look good.
Take the pulse of your team on a regular basis, and
find out what you can do to help them grow and
learn, too! ■
We’re also
the ones who
are making it
happen for
this country.
Motivated by the Bigger Picture
This episode made me realize some other things,
too. As a small business leader , it’s my responsibility
to take care of my team, because we – together – are
the ones who are making it happen for each other
and the company. We’re also the ones who are making it happen for this countr y.
A recent report showed that in the last decade
Keeping it Simple
By John Graci
s a manager it is easy to be overwhelmed
by all the advice from so called “management experts.” Every year, books are
written describing the latest and greatest approaches to creating a successful team. These
experts main strength seems to be their ability to
create new buzz words for their “cutting edge”
management ideas.
I suspect the main objective is to impress
others and to sound authoritative. Unfortunately
“buzz word” management is all too common.
After being a manager for 15 years and working
with people on the front lines, I wonder if the
buzz word managers from corporate actually
know what employees say about them when they
leave the room. Not only are their ideas vague
and lacking substance, but they have very little
credibility with the people that actually do the
work. I am a big fan of using common words and
simple straight forward ideas.
Like most things in life, there are some fundamentals when it comes to managing and lead-
A
Chris LoCurto is an accomplished speaker who travels extensively throughout the United States helping families and businesses learn how to handle
their money. For more information visit www.daveramsey.com/speakers.
ing others effectively. Leaders who don’t spend
time getting better at the fundamentals of management are not likely to succeed.
What are the fundamentals?
They include:
• Understanding how to hire effectively which
includes specifying what you are looking for and
developing interview questions that minimize the
possibility of making a hiring mistake.
• Communicating and establishing the job
expectations with the employees and ensuring
they are understood.
• Training employees effectively to meet the
expectations of their jobs.
• Leading the effort to develop and implement improvements on the job and involving the
employees in these efforts.
• Recognizing employees when they do
things to help the company be more effective.
• Helping employees learn from their mistakes.
• Delegating tasks and projects to employees
that help them learn, expand the capabilities of
the team, and allow the leader to spend time on
the leadership responsibilities of their jobs.
• Developing employees so that they can operate independently from the Leader.
• Giving performance feedback (formal and
informal) to employees to help employees improve their performance.
• Communicating effectively on work assignments and projects to insure everyone is on the
same page, avoiding misunderstanding.
• Confronting and using corrective action
with the minority of employees that are not
meeting the expectations of their jobs.
Leaders need to ask themselves: How much
time and effort do I spend on the fundamentals
of leadership? Unfortunately, an honest answer
to this question is likely “not much” by the majority of leaders.
The best thing managers could do in this
day and age is drop the buzz words and spend
more time getting better at doing the above.
John Graci is the Director, Leadership Training for Trusight.
John has more than 15 years of management experience
in production, office, union and non-union environments.
John assists leaders in understanding the responsibilities
that go along with their position and the consequences of
not applying their knowledge. He can be reached at
john.graci@trusightinc.com or visit www.trusightinc.com.
November-December 2011 | Automotive Recycling 25
Leading with
CONFIDENCE
Mindful
Management
Task and Relationship
Transmitting or Receiving
Self-aware leaders balance their
As leaders, we often find our This excerpt from
time well between tasks and relaselves more on “transmit” than
Beyond Effective
tionships. Overly relationship“receive.” Without monitoring
offers up practices in the balance between the two, we
centered people can be likable
but don’t seem to get much
self-aware leadership. can become isolated from the
done. “Results-or-else” people
news and information that can
By David Peck
tend to lose sight of humanity
help us guide our people. T ypiand get obsessed with the goal or
cally, a leader “stuck on transmit”
project at hand – making colleagues feel they are
is unaware of it. While some brave person may
merely a means to an end. While tasks or projects
bring that to your attention, it’ s really up to you,
come and go, never forget that relationships are
on a regular basis, to spend some time monitoring
an enduring source of strength in the workplace.
your own balance between “transmit” and
As you focus on results, remember that the strong
“receive.” Ask yourself questions like What perbonds you create by investing in relationships not
centage of that meeting was I talking versus listenonly help you achieve these results, they create an
ing? and How much of that conference call was I
environment that fosters loyalty and respect, where
really in a deep listening mode?
colleagues feel valued. By balancing tasks and relationships, you can find the perspectives and
Willingness to Be Wrong
resources needed both to achieve success and to
A key component of leadership is the willingness
weather the inevitable storms along the way .
to be wrong. Great leaders use their own potential
for error to help them listen with an open mind,
Purpose
really hearing the perspective and ideas of other
We do our best and are happiest when we seek
people. They understand that investing too much
out and understand our own professional “sweet
in the need to be “right” silences the feedback of
spot” – where our talent, capabilities, passion, and
others, causing them to shut up and shut down. In
sense of life purpose meet. It sounds lofty , but is
fact, the more you are willing to be wrong, the
actually pragmatic: Leader A thrives when tackling
more likely you are to get it right.
the thorniest problem around, while Leader B
prefers simply to “leave things better than I found
Leadership Signature
them.” Make a list of every conceivable fun, engagThe most compelling leaders have developed a
ing work and life experience you can remember .
unique “leadership signature” that embodies their
Show this list to a trusted advisor and ask: What are
core values, reflecting these to the outside world.
the common threads? Once you identify your
This “signature” includes attentiveness, energy ,
sweet spot, make the changes that need to be made
appearance, presentation/communication style,
to align or realign yourself in a more deliberate
and level of poise under pressure. Failing to develdirection.
op a signature of your own – or using an inau-
26 Automotive Recycling | November-December 2011
thentic one – diminishes a leader’ s impact and
credibility. How does your signature – what others
experience of you in terms of appearance, communication, style, and behavior – enhance or diminish
your ability to lead? What do you need to do to synchronize your outward characteristics with your
principles? Answering these questions will help you
tap into your greatest strengths.
People Pleasing
Our desire to be liked and loved is primar y. We
translate that into the need to please or caretake
others at our own expense, or that of the organization. This need can unintentionally cause more
harm than good, particularly if it manifests as a pattern of behavior. Taking too much responsibility
for others impairs a leader's ability to make incisive
decisions. While kindness is a leadership asset, it
needs to be balanced with the greater good, which
also includes your own needs and those of the
enterprise. As you consider your professional relationships, ask yourself if your concern for others is
interfering with your own effectiveness. ■
Executive coach David Peck focuses on identifying and expediting the highest value development areas for successful executives in unique or changing situations. David can be reached at dpeck@goodstonegroup.com
or (415) 846-6460. Get this free e-book at http://leadershipunleashed.
typepad.com/leadership/2011/11/beyond-effective-free-download-of-mybook.html.
The Good Boss: Insights for a Healthy and Productive
Workplace in Challenging Economic Times
By Jim & Matt Finkelstein
ost of us have all had a boss at some point and many of us may
be a boss or have been a boss in the past. Here, we’ll consider a
“boss” as any position managerial, supervisory, or executive – really
any time someone leads other people. Bosses are important; they lead
others through experience, vision, and honored time.
Not all bosses are created equal, however, and there are certain
trends that make for better bosses. Here are five examples of good
bosses (and they are not mutually exclusive):
1) The Listener – a boss who will listen to and appreciates different
points of view. This boss hears and honors their employees’ thoughts
and considerations respectfully, but with a caveat being they may or
may not put these ideas into action. The Listener listens to their employees because they were hired for a reason. As such, they trust their
employees and value their input. Sometimes, they are even dependent
upon it. The Listener is a good boss because they have insight beyond
their own experience and vision, insight that is influenced by many angles, and because their employees are allowed to voice their own opinions and ideas, they are inspired and engaged.
2) The Empowerer – a boss that lets employees run their own show
and lets them learn by making some mistakes. To a degree of trust and
support, this boss cultivates leadership in their team. Working together,
they identify tasks and create a plan, but let the employees decide the
nuts & bolts of how it actually gets done. The Empowerer doesn’t delegate aimlessly, creating a sense of subordination in their team, but
rather engages their employees from the ground up in a focused manner. Employees are inspired to take on leadership roles and collaborate
both with their boss and with others. The Empowerer is a good boss
because they can simultaneously ignite productivity, personal development, and satisfaction among their employees.
3) The Mentor – a boss that teaches, coaches and guides. This boss
doesn’t necessarily need to be older, but a tad wiser or simply just willing to share. They seek to understand their employees’ experiences and
M
identify which ones need or desire mentoring. The relationship with
their employees is constructive, meaning both criticism and praise are
offered with the intentions of growing the employees set of skills. An
offer to mentor is either explicitly offered or subtly developed over time.
The goal is both in current interest and looking towards the future, always geared to enhance the employees’ skills. The Mentor is a good
boss because they ensure a future for the employee and the company
while inspiring immediate productivity and engagement.
4) The Cool Dude (or Dudette) – a boss that has fun and lets their
employees have fun. This boss maintains a certain aura of authority
while creating a likeable and lively atmosphere. They let their employees enjoy their time at work and find time for small diversions, within
the confines that the job still gets done … and done well. At those instances, this boss rewards their employees with time off or special
workplace events within the realm of a respectable workplace culture.
The Cool Dude or Dudette is a good boss because they understand that
all employees are people, that all people need some kind of fun, and
that happy employees are healthy, productive, and engaged.
5) The Creator – a boss who inspires invention and creativity. This
boss pushes the limits of their employees to ignite innovation. They
challenge intellect and question the status quo, so that new products
and ideas are developed from within. The Creator embodies the spirit
of imagination and is never overly demanding. Creativity and invention
come from a unique mindset, so this boss correctly identifies those in
their team that are keen to this way of thinking. As such, The Creator is
a good boss because they are motivational and collaborative.
The characteristics of these five bosses exemplify what makes for
healthy leadership within organizations. Many bosses may embody
many or all of these characteristics, and the best bosses leverage
their assets and develop areas of weakness.
With 34+ years of consulting and corporate experience, Jim Finkelstein has specialized in business and people strategy, motivation and reward, and organizational assessment, development, communications and transformation. He has
built programs and provided services to Boards of Directors, senior executives,
management and employees. Editor’s note: Worth a look! www.futuresense.com;
www.fusethebook.com.
November-December 2011 | Automotive Recycling 27
Leading with
CONFIDENCE
Creative
Retention
hen it comes to the question of how to motivate
younger employees, many
automotive recycling business owners just raise their
hands in the air , give a
shoulder shrug, and hope
for the best when hiring the
young guns who walk in the
door in search of work.
Often, those worker’ s values seem to be counterproductive to the Boomer owner’ s work objectives,
and their normal day-to-day management style.
Let’s consider some creative options to this ongoing dilemna.
Your long week just got longer. Jason has served you
with his notice. Y ou are now facing the third
attempt in six months to fill his position, and your
staff is asking how you plan to cover his work
during the transition. If this sounds familiar , you
aren’t alone. Legions of managers are dealing with
the issue of employee retention.
Turnover costs money. Aside from basic recruitment costs, you will have to take into account orientation and training, not to mention overtime
and lost productivity . What will it take to find
someone who will stay? Studies in home improvement and grocery retail industries have estimated
replacement costs of $4,000 to $6,000 for a minimum wage employee.
W
Perhaps the most frightening part of this scenario
is that it’ s not expected to improve. As Baby
Boomers transition out of the traditional workforce,
Gen Xers and Millennials (basically , employees
under 40) will be primar y candidates to replace
them. Recent studies have estimated that the aver age Gen Xer changes jobs every 18 months. Younger workers have come to understand that any job is
not expected to last beyond three years, and most
anticipate having two or three distinct careers in
their lifetime.
So how will employers, forced by demographics
to rely on younger workers, find and keep staff?
The answer is in developing an alternative work
arrangement, and creating an environment that
supports growth and facilitates loyalty. Rather than
condemning younger workers for lack of commitment, understanding their career attitudes can be
the key to meaningful retention strategies.
We’re here for a good time…not a long time. Raised
during rampant corporate downsizing, younger
workers have no concept of job security . They
don’t expect long-term employment, but rather
daily proof that their contribution matters. Look
for ways to create security beyond compensation;
think about alternative work arrangements; tie
rewards to flexibility , learning and autonomy to
increase their motivation.
Keep up with us. Contrary to popular belief, not
all younger workers have short attention spans.
Gen Xers and Millennials have an insatiable
A creative alternative work arrangement can fix the revolving door
– unlocking the mystery of younger workers.
By Wendy Phaneuf
28 Automotive Recycling | November-December 2011
appetite for learning. They are accustomed to having immediate access to information and don’ t
relate to bureaucracy. Many will respond to alternative work arrangements and learning opportunities,
as well as immediate feedback and short-term
rewards. Examine your training efforts, recognition
practices, and the timeliness of incentives and
rewards. Where can the cycle be shortened?
There’s more to life than work. Younger workers
are more committed to work/life balance than
any previous generation. This phenomenon is
partly cultural – people in general are talking
about the concept of balance more than ever , and
organizations are taking a more holistic approach
to managing people. Bottom line? If the payback is
not there – they’ve got somewhere else to be. Does
your organization still define commitment by the
amount time on the job?
We need flexibility. These workers tend to focus
more on what gets done rather than where or how
it gets done. Of all employees, they are most likely
to leave a company for more flexible work schedules, job sharing, or the ability to telecommute.
Is your organization open to alternative work
arrangements? Are mechanisms in place to accommodate the new work style?
Free agents for hire. Younger workers are more
self-reliant and entrepreneurial than their predecessors. Some attribute this to the independence
of “latch-key kids,” who grew up solving their own
problems. One-quarter indicate that they believe
they’ll be self-employed within 10 years, and 16%
say they’ll eventually find themselves in consulting
and freelance work. Are you considering contract
or freelance arrangements for younger talent?
Providing younger workers – and in fact, all
employees – with alternative work arrangements,
flexibility, timely rewards, and innovative learning
opportunities can lead to a happier workforce and
create a catalyst to solve organizational challenges.
When job satisfaction is high, the revolving door
stops spinning quickly! ■
Wendy Phaneuf is a professional speaker and author and a global expert
in employee motivation and retention. Wendy is also the Founder of The
Training Source and www.LeadingforLoyalty.com — a one-stop information source that helps leaders and their organizations enhance employee motivation and retention.
November-December 2011 | Automotive Recycling 29
Past, Present
AND FUTURE
ARA’s museum dedicated to automotive recycling
celebrates the past to raise awareness for the future.
By Michelle Keadle-Taylor
he ARA Educational Foundation
has broken ground of the virtual
kind to build an online museum
that will showcase the Automotive Recyclers
Association’s (ARA) 68 years of rich histor y.
Along with its predecessor associations, the
mission is to preser ve the automotive recyclers history as a leader in the green revolution. As an idea whose time has come, plans
for the historical gallery are varied and limitless, and include a look at the histor y of the
automobile.
Initially, it will feature two main components; an
Online Museum that is interactive and video-based
and a Collection Galler y that will present histor y
through hundreds of photographs.
iStockphoto.com/Ralf Hettler
T
Historical Mindset
“It all started with aging,” laughed Ginny Whelan.
“When I decided to move to Florida, my daughter
was going through my stuff in storage in New Jersey .
She called me and said, ‘Mom, it’ s nothing but ARA
stuff! You’ve got so much stuff – what do you want
me to do with it? You could start a museum!’ That got
me thinking about how much histor y I have experienced in the last 30 years in the industr y and with
ARA. As family businesses are turning over to second
and third generations, I believe we were in danger of
losing some of our histor y.
“Many of us have been in the position of finding
something that belonged to a loved one and not
knowing why they kept something so trivial for so
many years,” Whelan continued. “Without much
thought, we throw it away not knowing the meaning
behind it, and sadly the stor y is lost forever.”
Recently, the ARA Executive Board approved the
idea for the museum and the ARA Educational
Foundation Museum Committee was formed with
past presidents, Ed Anspach (1991), Ginny Whelan
(2000), and Linda Pitman (2009) at the helm. They
decided to create this as an online museum to provide easy access to the rich histor y of the automotive
industry and allow for wider participation for all
ARA members both nationally and internationally.
“I envision this to be a living, interactive, virtual
museum that will be, on one hand, a Hall of Fame
for Past Presidents, as well as other industr y leaders
and members, and, on the other hand, be a touring
museum,” said Whelan.
“For example, if a recycler wants to use the information on the automotive industr y, such as what
advances have been made from a historical perspective since the 1940s or ’50s, he or she could present
this museum at a state association meeting, during
meetings with policymakers, or in training to educate
workers or school-age children.
“This is not just about being nostalgic,” said Whelan.
“It’s about protecting our image as a viable industr y,
both economically and environmentally. I’m tired of
The Way
30 Automotive Recycling | November-December 2011
attending meetings where, in this day and age, ever yone says they are ‘green’ companies. W e have always been at the forefront of recycling with impressive
numbers like 95 percent of the vehicle getting recycled. The museum will provide historical proof that
the automotive recycling industr y has really been a
leader in the movement as ‘true green’ companies.”
Phase One
The museum is currently in the collection phase,
which is where ARA Members including Associate
Members and Affiliates Chapters come in to play .
The ARAEF Museum Committee is looking for any
photos, videos, memorabilia, and other relevant items
to showcase the highlights and history of your business.
When submitting items, the committee asks that you
keep the original and only send digital photos or a
scan via e-mail. If they would like to have the original
item, the committee will l et you know upon submission.
Living Legacy
“To get a start on the online museum, we are
interviewing all the past presidents of ARA we
possibly can,” said Whelan. “W e interviewed many at
the ARA convention in October and that was a tremendous help, but there are still some that we need.
We are highlighting milestones from their presidencies
and their businesses in order to gain insight into what
the industry was like during their time.
“We have some wonder ful footage with Norman
Dulaney, who was ARA president in 1970 that we
wouldn’t have if it wasn’ t for the museum,” said
Whelan. Sandy Blalock, ARAEF President and ARA
past president 2008, filmed Norman at the request of
his daughter, Linda Pitman. She knew his health was
failing and that he held a wealth of information and
history that she thought would be nice to capture on
film. Norman was excited to do the inter view and
provided precious insights into his time during the
industry. Sadly, he passed away three weeks after the
interview.
As they work to interview all the ARA past presi-
Plans for the ARA Museum of Automotive Recycling were announced at the NASCAR Hall of Fame event at the ARA Convention
in October. The announcement included a broadcast of the video
Norman Dulaney that was taped just weeks before his passing. The
video was an inspirational tribute during the evening’s events.
dents, the committee also wants to inter view other
industry business leaders as well. If you or someone
you know in the business is an avid historian and
would have a historical perspective about their time
in the industry, they would like to know.
The historical vision includes reaching out to vendors that have shaped the industry and played a part
in the histor y of the automotive recycling. Other
information and trivia questions, such as who purchased the first computer and where is it? could be included in the museum experience as information comes
to light.
A Quick Tour
The online museum will be an interactive look at
how the industr y was shaped. A visitor to the
museum begins the tour by virtually walking through
a collection of stories as told by past presidents, and
other ARA members, in time. You’ll stand in front of
the portrait of one past president and click on that
person to see a video glimpse into his or her histor y.
According to Whelan, the museum needs to be ver y
We Were
November-December 2011 | Automotive Recycling 31
Past, Present
AND FUTURE
interactive and will continue
to develop as each day brings
new history to add.
For instance, Past President
John C. V ander Haag, 1971,
has proved to be a gold mine
of automotive histor y. He has
a two-story addition on his
home in Sanborn, Iowa that is
filled with everything he has collected over the years.
The entire first floor, known as his “Classic Garage,”
is dedicated to the automotive history and holds classic cars and trucks. Whelan plans to visit him and see
what can be added to the ARA
museum.
The success of the museum,
available to all ARA members
across the globe, will depend
partially on you. According to
Whelan, besides the advantage
of easy access to the museum,
it is being done online so it
can be easily funded and expanded as history grows.
“We are also taking items that you might find in
your Dad’s storage unit and wonder what you’ll do
with it,” said Whelan. “Ed Anspach has graciously
offered to help us store items that you want to
donate should we request the original item.”
There are many of you whom this article has triggered a memory of a box of things you have of historical worth in your storage or files. The committee
requests you not wait to inform them of your treasures.
Contact them today, even if you are not sure they will
fit the format. The committee will be the deciding factor on the relevance of any item donated.
If you would like to send digital photos, videos, or
other items please contact Ginny Whelan at Ginny@
ARAeducation.org. ■
The Museum
is online so it can be
easily funded
and easily expanded
as history grows.
Types of Items to Donate to the Museum
•
•
•
•
•
•
•
•
Memorabilia, such as programs from a NAWA meeting
Old equipment used for dismantling
NAWA/ADRA/ARA magazines
Photos showing the history of your business throughout the years,
especially those businesses that have a long history
Photos of your inventory and operations as it changed and developed
Photos of your employees and family as they worked and played
Video footage of your operations, industry events, industry conferences
Relevant newspaper articles or news footage
Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.
32 Automotive Recycling | November-December 2011
Generational
Influences
S
“
Does your sales plan consider
generational marketing?
Here’s why it should –
they’re all friends.
ome kids in my grade know about and
care about auto recycling,” said Cole
Reinert, son of ARA ’s Immediate Past
President Doug Reinert. “But most kids
only know about recycling paper , plastic,
and glass. Kids come up to me and say ,
‘Doesn’t your dad own the junkyard?’ I
try to explain to them that it’s an auto salvage facility and it helps the earth and people in many ways, but it’ s hard because I never
have enough time for them to get the point.”
With this in mind, Cole, age 11, decided to take
action on Earth Day this year and help his Dad get
the word out about their environmentally-friendly
business, Chuck’s Auto Salvage in Douglassville, PA.
Cole took it upon himself to set up interactive
games targeting kids from five to eighteen years old
(in fact, the games appealed to kids of all ages).
By Michelle Keadle-Taylor
November-December 2011 | Automotive Recycling 33
iStockphoto.com/franckreporter
Branding for
LOYALTY
Branding for
LOYALTY
Cole’s Story
For one game, Cole labeled eleven different
kinds of fluids and two solids (mercur y switches
and catalytic converter) and labeled them with flip
up cards. The person playing the game tried to
identify them.
In addition to these fun and informative games,
Chuck’s Auto Salvage hosted a recycle day where
the community dropped off items to be recycled
such as tires, anti-freeze, and other materials.
According to Doug Reinert, over 112 families took
part in the event and it ser ved as a successful way
to educate the public about auto recycling.
“I think that the games on Earth Day were a
good idea so kids can learn about the importance
of recycling car parts and the way members of
ARA do it, while having some fun,” said Cole.
“They can interact with hands-on guessing games
and when they’re finished they know a little bit
more about how many things are recycled.”
Not only did it prove effective in educating the
public about the role a automotive recycling takes
in preserving the earth, it also attracted media
attention. The local television station, WFMZ, covered the stor y, further raising public awareness
about the auto recycling industr y.
Evan’s Initiative
Not too far away in Stoystown, P
A, another
eleven-year-old student, Evan Barron (son of T rish
Barron, an employee at Stoystown Auto Wreckers),
decided to educate his class by using material from
ARA’s Green Recycled Parts Program (www.green
recycledparts.com).
“The recycling presentation was a real eye
opener for the 5th grade students and teachers,”
said Evan. “They didn’ t know much about the
auto recycling industr y; most thought wrecked
cars equaled a junkyard. The presentation showed
the wrecks and the recycling of them to be a ver y
interesting, organized, and earth-friendly process.
They were also impressed that used motor oil
could heat a building.
“I’m interested in recycling autos. Being raised
in a recycling family , I was able to get pictures,
information, and to talk to the workers. I wanted
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34 Automotive Recycling | November-December 2011
to show my classmates about the
family business and how there is
a lot more to recycling than just
aluminum cans and plastic bottles. There are so many ever yday things that we can reduce,
reuse, and recycle.”
per week (44%, Harris Inter active Youth Pulse 2007 study).
They also found that six out of
ten 13 to 21 year olds worr
y
about the environment and that
the world is getting polluted. It
appears that the environment is
a major focus for Gen Y – not
just on Earth Day and America
Recycles Day, but all year round.
According to Harris Inter active research, they worr y more about pollution
than they do about AIDS, p overty, or equal rights.
Interestingly though, 30% of them say they do not
recycle which is higher than previous generations:
Gen X (20%) and Baby Boomers (23%). When
asked why not, they stated that they don’t believe it
makes an impact or difference.
Alloy Media + Marketing’s 2006 College Explorer
study conducted by Harris Interactive found that
33% of college students prefer brands that give
back to the community and are environmentally
safe or that are connected to a cause.
The time to
coach a future-gen
customer
to buy a recycled
auto part is
before they acquire
their first car.
XYZs of Marketing
Interestingly, the passion to
get their peers to understand
and take part in saving the environment that these
two students exhibited, along with their initiative to
take action, corresponds with recent research on
reaching Generation Y (also called Millennials,
born between 1977 and 1998) and Generation Z
(born between 1995 and 2010). Much data is
now available to help with branding and marketing to these preteen to teen age groups.
Harris Interactive online magazine research
states that the number of preteens and teens using
a social media site has increased, with one in four
between ages 8 and 21 visiting a site at least once
November-December 2011 | Automotive Recycling 35
Branding for
LOYALTY
Cole Reinert, top center, and his team of helpers made his Earth Day activities a real success. Below: A reporter from the local television
station WFMZ interviews the team for a news story.
UK-based digital agency Amaze,
conducted a study that
showed that 69% of teens
say they could be persuaded
to engage with brands via
social networking if done in
the right way . The top ways
they said to get their attention
include offers and coupons
(44%), competitions (37.5%),
discounts on future purchases
(25%), and access to new products before launch (25%).
Why Should You Care About
This Right Now?
There are a number of reasons to start paying
attention to this demographic, and the first number
to pay attention to is 80 million. There are approximately 80 million Gen Y consumers; that number
exceeds Baby Boomers. Furthermore, this generation – sometimes called the Net Generation or “digital natives” – is the most technology-savvy group of
Americans, a noteworthy trait for all automotive
recyclers who rely heavily on Internet sales and
social media promotions.
While the Generation Z (Cole and Evan’s group)
is somewhat smaller at approximately 30 million,
they typically reject “badge brands” which means
name-brand is not their first choice, great news for
those selling green recycled parts. The product
itself is what is important, regardless of marketing
campaigns. The Harris study also showed that the
10-15 age group is looking to be engaged.
36 Automotive Recycling | November-December 2011
“I helped to conduct teen focus
groups and research on behalf
of The Center for Disease Control (CDC) two years
ago,” said Jeff Caporizzo,
Creative Director, Bates Creative Group. “What we found is
that in order to reach this
generation you have to
respect their voice and be
very sensitive to ‘talking
down’ or lecturing them.
“We found that they
respond to informality and
being genuine. You can’t try to adopt their
‘lingo’ because they see right through it. Also,
there has to be something in it more than just to
make money. If they think it’ s just about making
money, they turn off,” says Caporizzo. The green
recycled parts’ environmental benefits plus the
ability to save money will surely appeal to this generation.
“Generation Z wants to be part of a community
and, as far as social media, there’ s something
exciting about using it for a ‘call to action’ – like
let’s go clean up the park and see if we can do it
in thirty minutes.”
The demographic that initially adopted social
media, the 18 to 35 age group, made it popular
yet once it lost its cutting edge and became part
of the establishment (where grandparents and
parents use it), its appeal wained – a key characteristic of this generation. However, the trend indicates
that in order to reach the future generations we
will have to become more individualized and
that’s where niche magazines and newsletters
(such as Automotive Recycling magazine) will gain
voice in that age group.
Caporizzo sites Dominos Pizza’s current feedback
policy that offers an opportunity for customers to
provide immediate feedback, which is promptly
posted in Times Square as an example of gaining
immediate voice.
Another key factor to consider , according to
Caporrizo, is that for the 10 to 15 year old age
group, their parents’ influence is huge in their
lives – even if they don’t show it.
“We did research for the CDC before they
launched their safe driving campaign and found
that this group, while on the cusp of getting great
freedom to drive themselves wherever they wanted,
still say their biggest influence comes from their
parents – not their peers,” said Caporrizo. “Parents
still provide the greatest role model and carr
y
tremendous influence on their choices. Therefore,
if you are tr ying to sell a brand to that age group
you have to include the parents in your approach.
Ask yourself what part is targeting the parents?”
Its Good to Be Green
These research findings confirm that the auto
recycling industry is in a good position to be relevant and matter to the future generations. Statistically speaking, having a presence on the social
media sites would be vital, although to reach the
younger generations carries unique considerations
through this medium.
Educating future generations is vital to the
future of the industr y. Targeted brand awareness
starts before the need arises, so one might make
the argument that the time to coach a future-gen
customer to buy a recycled auto part is before they
acquire their first car.
One suggestion is to have a Facebook, Twitter, or
Web page for your company that targets these generations, and feeds them information that they
might find interesting. Get input from the children
of your employees on what to post.
It does make a difference to take the time to visit
schools and get involved in your local community
November-December 2011 | Automotive Recycling 37
Branding for
LOYALTY
Chuck’s Auto Salvage hosts a crusher party for moms and kids (top left), and regularly provides tours to groups like the Boy Scouts,
bottom left and at right.
Social Network – Quick Facts
A recent study called the Pew Internet
and American Life Project, conducted by
the Pew Research Center, looked at the
demographics of U.S. social media users
and the effect social media had on their life.
• Overall usage of social media has
almost doubled in the last two years.
In 2008, 26% of adults were social network users. Two years later, in 2010, that number jumped to 47%.
• The biggest increase was seen in those over 35 years of age,
which grew nearly two times as fast as the 18-35 year old group.
This makes the average age of social network users 38 as opposed
to 33 two years ago. My Space still attracts the youngest crowd,
with the average age being 32.
• The study also puts Facebook as the favorite site, with 92% of
all users compared to 29% on My Space, 18% on Linkedln, and
13% on Twitter .
• The most active Facebook users tend to be women.
• 96% of 18-35 year-olds are on a social network. (Kissmetrics)
• 1 in 5 Americans in that age group use Twitter. Eight percent of
those users, use Twitter on mobile devices. (Kissmetrics)
• Facebook usage is up since last year by 40%. (Kissmetrics)
• 65 million Facebook users access the site via their cell phone.
(Kissmetrics)
38 Automotive Recycling | November-December 2011
with Earth Day or America Recycles events, and/or
other times of the year.
The ARA Educational Foundation is creating
ways to reach children in elementar y and secondary schools. They have been working on W
eb
pages for “Go Kids Green Car ,” a segment of the
ARA University which will feature tools for teaching
resources and games for auto recycling. A digital
version of the ARA Coloring Book that is used by
auto recyclers for Kindergarten through third
grade is under construction. Children will be able
to color online and be able to print the pages
when they are finished. The site will host a galler y
of the children’s work. There will be a prepared
resource piece to go with the coloring pages so it
can be used in the schools.
Also in the works are plans to develop secondar y
education resources. All resources will be available
through ARA University so that recyclers can offer
them at local schools for career day or Earth Day
events, or as the need arises.
“We are looking for ways to make automotive
recycling a viable career choice for students,” said
Ginny Whelan.
“We currently are taking part in a joint project
with the Collision Repair Foundation where we’re
setting a goal to pledge $100,000 in parts. The
Collision Repair Foundation uses the parts for
extreme school makeovers for technical training.”
Whelan says she is always open to ideas from
younger generations. Therefore, she is interested
to hear what our “own” young generation representatives have to say about how to reach them.
Evan Barron feels that the best way to reach his
age group is by doing a presentation like he did
for his class or “maybe even a field trip.”
Cole Reinert says apart from regularly communication with his fellow students about recycling,
he gets them involved personally, which draws on
their desire for hands-on involvement in activities
that involve a small community of people.
“A way that I have taught other kids my age
about recycling is by bringing my scout group to
the business,” said Cole. “We were working toward
a recycling badge and I had the idea to bring them
here. Now, lots of scout dens come to Chuck’ s to
tour and learn about auto recycling. The parents
really like it, too. W e also have ‘Crusher Parties’
where our friends or the local mom’ s club can
watch cars being crushed. They love it and we give
them the ARA coloring books to learn more.”
His solution is per fect to reach his generation
because it involves the parents, who are the main
influencers of this demographic.
“I also think kids would be more excited to learn
with a video game,” Cole suggests. “They could go
into the office and receive a mission and then go
out into the salvage yard on an adventure. They
could purchase things to help them along the way
and so on. I will be working on this for a school
project this year.”
Paying attention to social media statistics and
trends, and the suggestions of the age group you
are trying to reach should help auto recyclers to
educate and raise public awareness. It also puts
tools in your hand to promote and preser ve the
auto recycling industry as the green industr y it is.
All of this helps you not only with future customers
but in attracting future employees as well.
Stay tuned for more information on reaching the future
generations when we look at the differences between Gen
Y and its previous generations, as well as how each generation acts on their beliefs about the green movement in
the next issue of Automotive Recycling magazine. ■
Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.
November-December 2011 | Automotive Recycling 39
Fun
Fast
ARA Convention
IN PHOTOS
40 Automotive Recycling | November-December 2011
From unique turns of events to fast turns at the track,
ARA’s 68th Annual Convention & Exhibition
proved to be an event to remember.
Enjoy these photo highlights and stay tuned for
our full report in the January-February issue.
ARA Convention
IN PHOTOS
42 Automotive Recycling | November-December 2011
ARA Convention
IN PHOTOS
November-December 2011 | Automotive Recycling 45
ARA Convention
IN PHOTOS
46 Automotive Recycling | November-December 2011
knopf
coming weds
November-December 2011 | Automotive Recycling 47
48 Automotive Recycling | November-December 2011
Spotlight on
EXCELLENCE
Olston’s Auto
Recyclers
By Michelle Keadle-Taylor
I
“
f I could choose a market to sell
to, I’d sell to auto salvage yards
and let them sell parts to the
local market,” said Paul Carter,
General Manager of Olston’s
Auto Recyclers. “Selling parts
on the Internet is like having a
bowl of cereal, full of fruit,
flakes and nuts!
Without a sales person, people are buying the wrong parts
and we can’t stop them. Then, they want a refund after they’ve
bought the wrong part. I may be unrealistic, but I’d like to see
them come to our yard or to a partnering yard and have a
trained and knowledgeable salesperson help them to get the
right part.”
The desire to help the customer get the right part every time
and “never tell them no” was the philosophy of founder and
CEO Jim Olston who started Olston’s Independent Specialists,
Inc. in 1971. “One thing I hate to tell a customer is ‘no,’” said
Jim Olston. “I hate to tell them we don’t have the part they are
looking for or that we can’t do it.”
“I teach my employees that we don’t want there to be any surprises for the customer,” said Carter. “We don’t want to disappoint them in any way, so we are going to be honest and let
them know what to expect. If they are going to be surprised
it’ll be because it’s even better than they thought.”
This philosophy has prompted changes and ushered in milestones for Olston’s Auto Recyclers over the years. The first
change they experienced was moving from handling mainly
import models to including domestic models. In fact, today,
their inventory is about 60 percent domestic models and 40 percent imports.
Starting from Scratch
“I started the business from scratch as a repair shop,” said
Olston. “At one time, we had an auto recycling facility, a repair
shop, and a body shop, all at three different locations. Over
time we sold the repair and body shop, and decided to focus
on auto recycling.”
Olston started by repairing Volkswagens which quickly
became his specialty.
November-December 2011 | Automotive Recycling 49
Spotlight on
EXCELLENCE
•
•
•
•
•
•
•
•
FASTfacts
Established in 1971
35 employees
Over 24,000 square feet of warehouse space
Over 100,000 major inventoried parts
Over 2,000 inventoried vehicles for parts availability
17 acres of late model foreign and domestic cars and trucks
Based in Lincoln, Nebraska
100 mile radius for delivery
1983
Today
“Back in the ‘70s, not many places were working on
import cars so we kind of stood out,” said Olston. “In
1980 our yard was nothing but 200 Volkswagen Beetle
roofs!”
Wanting to please the customer, they did an analysis of their business and listened to customers’
requests and feedback. Based on what they found,
they decided to get into the domestic business as well.
“Our customer base wasn’t as specialized as we were
and we kept getting calls asking for Fords and other
domestic models,” said Carter. “After doing a business
analysis we realized we needed to switch.”
This same attitude, to meet customers’ needs,
prompted Olston’s to take on aftermarket and OEM
parts, albeit very reluctantly on Carter’s part.
“I really, really didn’t want to get into aftermarket,
new and surplus OEM parts, and I said I would never
50 Automotive Recycling | November-December 2011
do it,” said Carter. “But, our motto is to never let the
customer down and to do what we can to keep them
calling us back, so we found ourselves with one floor
of inventory for aftermarket and OEM parts.”
Carter said the aftermarket and OEM parts accounts
for a small percentage of their business, probably only
three to four percent of their total sales. On the other
hand, it accounts for a decent size of their inventory
and they even have parts on hand from the original
Volkswagen Beetles!
Making their Mark
Another milestone for Olston’s Auto Recyclers came
with earning the CAR and Gold Seal certifications.
“The CAR and Gold Seal certifications were one of
the things that made us open our eyes to all the regulations and specifications we needed to adhere to,”
said Carter. “They helped us to lay out the business,
and streamline it, and pushed us to do even more
than we were doing.
“We tried to improve and do one step better than
the requirements. Instead of being afraid of audits, we
are excited to have them done!”
Olston’s Auto Recyclers regularly reviews aerial
shots of their property to make sure that they are not
letting anything get out of order or damage the land.
“We’re doing everything we can to keep our
ground from getting blighted,” said Carter. “If we see
sunken areas or standing water in one of the aerial
shots, we make sure to fill in the ground or fix any
problems we see.
“I’m a fisherman and a nature freak. I don’t want
to do anything that would hurt the environment so
I’m in favor of seeing more EPA regulation. Rather
than intimidate auto recyclers into following regulations, I would like to see the regulations help us to better ourselves.
“We are so proud of the condition of our yard and
parts that I invite insurance companies, lawyers, and
others to come look around for themselves and see
what we do. I think the general public would be
amazed at the lengths we go to follow regulations and
protect the environment.”
Jim Olston’s daughter and Paul Carter’s wife,
Deborah, agree that stricter enforcement is needed.
“There needs to be across-the-board enforcement of
the regulations we already have so that every recycler
is doing their absolute best to represent the automotive recycling industry,” she said. “Educating the public as to what we do is one of the greatest potentials
we have in our area. If one recycler does not follow
regulations, then it makes us all look bad to the public. It also totally misrepresents the industry.”
Recycling Life
Deborah has been in the family business ever since she was old
enough to alphabetize. She
would help her mother in the
office after school by alphabetizing and filing. She
then worked throughout high school and college at
the business. She divided her wages into two parts –
half for college fund and half for an allowance. After
receiving a degree in accounting and working at several accounting firms as a CPA, she returned to the
family business and took over for her mother when
she retired in 1998.
Having been around the industry all of her life, she
has witnessed many changes in the business and appreciates her father’s approach to pleasing the customer.
Both she and her husband, Paul, acknowledge that the
industry is challenging and that tougher regulation
could help the overall industry, not only in adhering
to EPA regulations on the environment, but help with
obtaining quality salvage as well.
“I feel like we were at our peak when we could
attend auction pools that were regulated,” Paul
Carter said. “It was like going to
a buffet for parts. You could pick
exactly what you needed and be
assured to get good parts, which
in turn helped the customer.
Those days are gone and the auction pools are wide
open to anyone and everyone. This is a problem
because there are people out there buying parts that
they don’t know how to dispose of correctly. I would
like to see more regulations on who can buy the parts
and cars, or at least some kind of accountability for
what they buyer does with the cars.”
As they take changes in the industry into consideration, Paul says that their focus on who they want as
customers is changing.
“I want the industry as a whole to grow,” said Paul
Carter. “I don‘t want to take business away from other
recyclers, but for us all to grow. We could almost just
do business with other recyclers because we have daily
trucks going back and forth between us and partnering recyclers.
“We’re putting our focus on selling to other recyclers and the local customer base. I don’t want to
November-December 2011 | Automotive Recycling 51
Spotlight on
EXCELLENCE
become a brokering house for
the Internet business. I would
much rather supply other recyclers with the parts they need at
a reduced cost and keep them
in the loop.
“When we switched from Pinnacle Classic to
Checkmate, we had an enormous customer base
because we had entered every customer into our database – it ended up being 850,000! My preference is
to focus on selling to partnering auto recyclers and
narrow my customer base down to a few thousand.”
In order to serve customers well, the management
team at Olston’s know that they must start with great
employees. One of their strengths is that they have
retained long-time employees.
In fact, Bernie Malousek, Sales Manager, was their
very first employee and will celebrate 36 years of service this December. Bernie’s brother, Dennis, is another long-time employee and has been working there for
25 years. Although they have loyal employees who
have stood by them, Paul says, finding the right
employees isn’t easy.
52 Automotive Recycling | November-December 2011
“The toughest times we’ve had
in business all boils down to personnel issues,” said Paul. “We pay
well but it’s not easy to find reliable, committed, honest people
to work in the positions that pay the least. We prefer
to promote from within, since we are in such a unique
industry.
“Finding people that want to
work their way up from the
bottom is difficult with the
current generation. They all
want to enter the workplace as
a manager, but there is no possible way to be properly educated in this industry
without experiencing it. Right now, I’m happy to say
that I have a good stable crew – the best I’ve had in
the last five to eight years.”
With a good solid group of employees and a targeted plan of action for sales to other recyclers,
Olston’s Auto Recyclers is poised to take on the challenges of the future. ■
Michelle Keadle-Taylor is a freelance writer in Northern Virginia.
Certified News
Gold Seal Program
Approved Gold Seal Participants
A & P Auto Parts, Inc.
A-1 Auto Recyclers
AAA Auto Salvage, Inc.
ABC Auto Parts & Sales, Inc.
Aberdeen Used Cars & Parts
Albuquerque Foreign Auto Parts
Algar, Inc. dba Grade A Auto Parts
All Auto Parts Co.
All Foreign & Domestic Used Auto Parts, Inc.
Al’s Auto Parts, Inc.
American Auto Parts
Automotive Parts Solutions
B & B Auto Parts & Salvage, Inc.
B & B Auto Salvage, Inc.
B & M Auto Sales & Parts, Inc.
B Auto Parts
Badger Motors
Baird’s Auto Parts, Inc.
Bay Auto Parts
Bessler Auto Parts
Bionic Auto Parts & Sales, Inc.
Blenkhorn’s Auto Recyclers, Ltd.
Bow Auto Salvage, Inc.
Brothers Auto Salvage Yard, Inc.
Brown’s Auto Salvage
Butler Auto Recycling, Inc.
BW Auto Dismantlers, Inc.
C & H Salvage Corp.
Calumet Auto Salvage, Inc.
Car World, Inc.
Carcone’s Auto Recycling
Central Auto Recycling, Inc.
Centre De Recyclage Universel (1981) Ltee.
Columbia Auto Parts
County Line Auto Parts
Cousineau Auto Parts, Inc.
D. A. Auto Parts, Ltd.
Decatur Auto Parts, Inc.
Denton County Auto Salvage
Diamond Auto Parts
Don’s Automotive Mall, Inc.
Eiss Brothers Auto Parts, Inc.
Elmer’s Auto, Inc.
Erie Vo-Vo, Inc.
Foreign Auto Salvage
Freeman’s Auto Salvage Center, Inc.
Goyette’s, Inc.
H & H Auto Parts & Salvage, Inc.
Hanser’s Automotive & Wrecker Company
Hickman Motors, Inc.
Highway 54 Salvage, Inc.
Hutch Auto & Truck Parts, Inc.
J.C. Auto & Truck Parts
Jantz’s Yard 4 Automotive, Inc.
Jerry Brown Auto Parts Center, Ltd.
Jerry Carney & Sons, Inc.
John’s Auto Parts
Kadinger’s II
Kadinger’s, Inc.
Kadinger’s, Inc.
Kelly Auto Parts
Kirchhayn Auto Salvage, Inc.
Lacy Auto Parts, Inc.
Lecavalier Auto Parts, Inc.
54 Automotive Recycling | November-December 2011
Cicero
Rapid City
Rosemount
Blue Island
Aberdeen
Albuquerque
Louisville
Fontana
Columbus
Trevose
Omaha
Rockville
Oklahoma City
Rapid City
Waukesha
East St. Louis
Wisconsin Rapids
Fairdale
Green Bay
Wilder
Chicago
Brookside
Bow
Indianapolis
Bomoseen
Pensacola
Roseville
Campbell Hall
Milwaukee
Candia
Aurora
Syracuse
Val D’Or
W. Columbia
Kingsville
Weston
Dumfries
Decatur
Denton
Fond Du Lac
Binghamton
Watertown
Fountain City
Whitesboro
Ft. Wright
Joplin
New Bedford
Sussex
Billings
Hickman
Trenton
Hutchinson
Monroe City
Kenosha
Queensbury
Ames
Blaine
Barron
Cadott
Downing
Faribault
Cedarburg
Charles City
Ste.-Sophie
NY
SD
MN
IL
NC
NM
KY
CA
OH
PA
NE
MN
OK
SD
WI
IL
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KY
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KY
IL
NS
NH
IN
VT
FL
CA
NY
WI
NH
ON
NY
QC
SC
MO
WI
Scotland
IL
TX
WI
NY
NY
WI
NY
KY
MO
MA
WI
MT
KY
TN
MN
MO
WI
NY
IA
MN
WI
WI
WI
MN
WI
VA
QC
Lewis Auto & Truck Parts
LKQ Advanced Auto Recycling
LKQ Auto Parts of Central Texas
LKQ Auto Parts of North Texas, LP
LKQ Auto Parts of South Texas
LKQ Midwest Auto Parts
LKQ of Michigan, Inc.
LKQ of Nevada, Inc.
LKQ of Southern California
LKQ Potomac German Auto
LKQ Smart Parts, Inc.
LKQ Star Auto Parts, Inc.
LKQ Triplett ASAP, Inc.
LKQ West Michigan
Logel’s Auto Parts
M & M Auto Parts, Inc.
Midway Auto Parts, Inc.
Miller’s Auto Recycling (1992), Ltd.
Morris Rose Auto Parts, Inc.
Morrisons Auto, Inc.
Nordstrom’s Automotive, Inc.
Norfolk Recycling Corporation
Northwest Auto Parts
Olston’s Auto Recyclers
Pam’s Auto, Inc.
Parts Unlimited, Inc.
Peacock Auto Salvage, Inc.
Pete’s Auto & Truck Parts, Inc.
Preferred Auto & Truck Parts, LLC
Remington Auto Salvage, Inc.
Rhine Auto, Inc.
Rhodes Auto S/S/S, Inc.
Ridge Road Auto Parts
Riteway Auto Parts, Inc.
Robertson’s Auto Salvage, Inc.
Rockford Auto Parts, Inc.
Sandhill Auto Salvage, LLC
Schram Auto Parts
Sharp Auto Parts, LLC
Shroyer’s Auto Parts
Snyder’s Recycled Auto and Truck Parts
Sonshine Auto Parts
Spalding Auto Parts, Inc.
Speedway Auto, Ltd.
Stadium Auto & Truck Parts, Inc.
Stafford’s, Inc.
Standard Auto Wreckers
Stoystown Auto Wreckers
Stricker Brothers, Inc.
Tolpa’s Auto Parts
Tom’s Foreign Auto Parts
Toomer Enterprises, LLC dba Doggett Auto Parts
Trails End Auto and Truck Salvage, Inc.
Viking Auto Salvage, Inc.
Walt’s Auto, Inc.
Waterloo Auto Parts, Inc.
Wayne Auto Salvage, Inc.
Weller Auto Parts, Inc.
West Side Auto Parts, Inc.
Wilbert’s, Inc.
Woodfin Honda / Pick and Save
Yancey Auto Salvage
Y-Yard Auto & Truck, Inc.
Topeka
Cumberland
New Braunfels
Hutchins
Houston
Omaha
Wayne
North Las Vegas
Santa Fe Springs
Frederick
Hustisford
Janesville
Akron
Holland
Kitchener
Stafford
Kansas City
Fort Erie
Kalamazoo
Edgerton
Garretson
Chesapeake
Anchorage
Lincoln
St. Cloud
Pearland
Macon
Jenison
Conway
Eau Claire
Plymouth
Streator
Cleveland
Phoenix
Wareham
Rockford
Tama
Waterford
Stillwater
Lansing
Holland
Cumberland
Spokane
Joliet
Denver
Montgomery
Toronto
Stoystown
Batavia
Remsen
Waterbury
Bryan
Des Moines
Northfield
Springfield
Waterloo
Goldsboro
Grand Rapids
Laurel
Webster
Midlothian
Perry
Effingham
KS
RI
TX
TX
TX
NE
MI
NV
CA
MD
WI
WI
OH
MI
ON
VA
MO
ON
MI
WI
SD
VA
AK
NE
MN
TX
GA
MI
AR
WI
WI
IL
OH
AZ
MA
IL
IA
MI
MN
MI
TX
ON
WA
IL
CO
IL
ON
PA
OH
NY
CT
TX
IA
MN
OH
IA
NC
MI
DE
NY
VA
MO
IL
Certified News
Certified Automotive Recycler (C.A.R.) Program
Approved C.A.R. Participants
43 Auto Salvage
A & A Auto and Truck Parts, Inc.
A & A Auto and Truck Parts, Inc. (North)
A & C Auto Parts & Wrecking Co.
A & T Auto Parts, Inc.
AAAACO Auto Parts, Inc.
Aadlen Bros Auto Wrecking
Ace Auto Recyclers, Inc.
Action Auto Parts, Inc.
All Car & Truck Recycling
All Foreign Used Auto Parts, Inc.
Alliance Auto Parts
Alvin’s Automotive Recycling
American Auto Recycling
Auto Parts City, Inc.
B & M Cars & Salvage
B & R Auto Wrecking
Barger Auto Parts
Bauer’s Auto Wrecking
Bill’s Auto Parts, Inc.
Bill’s Used Parts, Inc.
Borges Foreign Auto Parts, Inc.
Bowie Used Auto Parts, Inc.
Brandywine Auto Parts, Inc.
Brandywine Truck Parts
Brandywine Two, Inc.
Brooks Auto Sales, Inc.
Bruce Auto Parts, Inc.
Camp Auto Salvage
Central Small Car Salvage
Choice Auto Recyclers, Inc.
Chuck’s Auto Salvage, Inc.
Clayton Auto Parts & Wrecking, Inc.
Colorado Auto & Parts, Inc.
Comox Valley Auto Recyclers
Compact Auto Parts
Cosmos Ocean County Recycled Auto Parts
Cosner Brothers Auto Parts, Inc.
Counselman Automotive Recycling, LLC
Cousineau Auto, Inc.
Covey’s Auto Recyclers, Ltd.
D-N-J Auto Parts
Danny’s Auto Salvage, Inc.
Denison Auto Parts, Inc.
Dom’s Auto Parts Co., Ltd.
Don Scharf Automotive, Inc.
Dulaney Auto and Truck Parts of Amarillo, Inc.
Duval Auto Parts
Eagle Auto Parts, Inc.
Economy Auto Parts
Eden Used Auto Parts, Inc.
Elgin Super Auto Parts and Sales, Inc.
Fireside Auto Services, Inc.
Five J’s Auto Parts, Inc.
Foreign Car Parts, Inc.
Fox Auto Parts, Inc.
G & R Auto Parts, Inc.
Gary’s U-Pull-It, Inc.
Geiger Truck Parts, Inc.
Glenn’s Auto & Truck Parts
Green Point Auto Parts, Inc.
Grimes Truck & Auto Parts, LLC
Hi-Way Auto Parts
Hi-Way Auto, Inc.
Higgins Auto Wrecking, Inc.
Hillsboro Auto Wrecking
Joplin
Topeka
Topeka
Cleveland
Hyde Park
Lorton
Sun Valley
Iowa City
Marshalltown
Anderson
Fredericksburg
Woodside
Oakland
Gilbert
Gurnee
Sulphur Springs
Corvallis
Nampa
Fresno
Cumberland
Christianburg
Dighton
Bowie
Brandywine
Brandywine
Brandywine
Oilville
Mechanicsville
Barberton
Brandywine
Marinette
Douglassville
Clayton
Englewood
Courtnay
Brandywine
Bayville
Troy
Mobile
Antigo
Blandford
Owensboro
Tulsa
Cleveland
Courtice
Eagle River
Amarillo
Forest
Martinsburg
Tulsa
Eden
Elgin
Bellevue
Albuquerque
Upper Marlboro
Belleville
Oklahoma City
Binghamton
Watseka
Houston
Brewer
Grand Prairie
Tyler
Brownwood
Bakersfield
Hillsboro
MO
KS
KS
OH
NY
VA
CA
IA
IA
CA
VA
NY
CA
AZ
IL
TX
OR
ID
CA
RI
VA
MA
MD
MD
MD
MD
VA
VA
OH
MD
WI
PA
OH
CO
BC
MD
NJ
VA
AL
WI
NS
KY
OK
OH
ON
WI
TX
VA
WV
OK
MD
IL
OH
NM
MD
MI
OK
NY
IL
TX
ME
TX
TX
TX
CA
OR
Horsehead’s Automotive Recycling
I-55 Auto Salvage
J & J Auto Wrecking, Inc.
Jeff Smid Auto, Inc.
Jerry’s Auto Salvage, Inc.
Junior Sinn Auto Parts, LLC
Knox Auto Parts & Rebuildable Wrecks
Kress Auto Wreckers
Leesville Auto Wreckers, Inc.
Lems Auto Recyclers, Inc.
Lentini Auto Salvage, Inc.
Linder’s, Inc.
LKQ - Barber’s Auto Sales
LKQ 250 Auto, Inc.
LKQ A & R Auto Parts, Inc.
LKQ A Reliable U Pull It South
LKQ All Models Corp.
LKQ Atlanta, LP
LKQ Auto Parts of Utah, LLC
LKQ Birmingham, Inc.
LKQ Brad’s Auto & Truck Parts, Inc.
LKQ Broadway Auto Parts, Inc.
LKQ Copher Self Service Auto Parts Bradenton, Inc.
LKQ Copher Self Service Auto Parts Clearwater, Inc.
LKQ Copher Self Service Auto Parts St. Petersburg, Inc.
LKQ Copher Self Service Auto Parts Tampa, Inc.
LKQ Crystal River, Inc.
LKQ Foster Auto Parts of Damascus
LKQ Foster Auto Parts of Salem
LKQ Foster Auto Parts, Inc.
LKQ Gorham Auto Parts Corp.
LKQ Hunts Point Auto Parts Corp.
LKQ Melbourne
LKQ Michael’s Auto Parts, Inc.
LKQ Mid-America Auto Parts, Inc.
LKQ Minnesota, Inc.
LKQ North Florida
LKQ Northern California (Redding)
LKQ of Central California
LKQ of Ft. Myers
LKQ of Indiana, Inc.
LKQ of Northwest Arkansas dba
LKQ Mid-America
LKQ of Tennessee
LKQ Penn-Mar, Inc.
LKQ Pick Your Part Anaheim
LKQ Pick Your Part Bakersfield
LKQ Pick Your Part Chula Vista
LKQ Pick Your Part Help Your Self
LKQ Pick Your Part Stanton
LKQ Pick Your Part Sun Valley
LKQ Pick Your Part Wilmington
LKQ Pull n Save Auto Parts of Aurora, LLC
LKQ Route 16 Used Auto Parts
LKQ Salisbury, Inc.
LKQ Savannah, Inc.
LKQ Self Service Auto Parts - Holland
LKQ Self Service Auto Parts - Kalamazoo, Inc.
LKQ Self Service Daytona
LKQ Self Service Memphis
Manuel’s Auto Wrecking
Massey’s Auto Parts, Inc.
Elmira
Channahon
Marshallville
Iowa Falls
Big Lake
Cape Girardeau
Knoxville
Hazle Township
Rahway
Doon
Ringoes
Worcester
Ardmore
Harrisville
Duncan
Blue Island
Phoenix
Jenkinsburg
Springville
Birmingham
Redmond
Stuyvesant
NY
IL
OH
IA
MN
MO
TN
PA
NJ
IA
NJ
MA
AL
OH
SC
IL
AZ
GA
UT
AL
OR
NY
Bradenton
FL
Clearwater
FL
St. Petersburg
FL
Tampa
Crystal River
Portland
Salem
Portland
Gorham
Bronx
Melbourne
Orlando
Topeka
Albert Lea
Gainesville
Redding
Bakersfield
Ft. Myers
Plainfield
FL
FL
OR
OR
OR
ME
NY
FL
FL
KS
MN
FL
CA
CA
FL
IN
Fayetteville
Manchester
York Haven
Anaheim
Bakersfield
Chula Vista
Wilmington
Stanton
Sun Valley
Wilmington
Aurora
Webster
Salisbury
Savannah
Holland
Kalamazoo
Daytona Beach
Memphis
Merced
Millington
AR
TN
PA
CA
CA
CA
CA
CA
CA
CA
CO
MA
NC
GA
MI
MI
FL
TN
CA
TN
November-December 2011 | Automotive Recycling 55
Approved C.A.R. Participants Continued
McDill Auto Wrecking, Inc.
Metro Auto Salvage, Inc.
Middleton Auto Parts
Milliron Auto Parts, Inc.
Misgen Auto Parts, Inc.
Mitchells Auto Parts dba
Chuck & Eddies Used Auto Parts
Newton Auto Salvage, Inc.
Newville Auto Salvage, Inc.
Niks Auto Parts, Inc.
Nissenbaum’s Auto Parts, Inc.
North Verde Auto Salvage
Ole South Auto Salvage, Inc.
P & C Auto Wrecking, Inc.
Pacific Auto Salvage, Inc.
Paradise Auto Parts
Pat’s Auto Salvage
Premier Auto & Truck Parts, Inc.
Pull-A-Part Akron
Pull-A-Part Atlanta East
Pull-A-Part Atlanta North
Pull-A-Part Atlanta South
Pull-A-Part Augusta
Pull-A-Part Baton Rouge
Pull-A-Part Birmingham
Pull-A-Part Canton
Pull-A-Part Charlotte
Pull-A-Part Cleveland I (East)
Pull-A-Part Cleveland II (West)
Pull-A-Part Columbia
Pull-A-Part Indianapolis
Pull-A-Part Jackson
Pull-A-Part Knoxville
Pull-A-Part Lafayette
Pull-A-Part Louisville
Pull-A-Part Memphis
Stevens Point
Lakeville
Fraser
Mansfield
Ellendale
WI
MN
MI
OH
MN
Plantsville
Covington
Edgerton
Neenah
Somerville
Ontario
Lake Placid
Milpitas
American Canyon
Elkton
Waterloo
Cedar Springs
Akron
Lithonia
Norcross
Conley
Augusta
Baton Rouge
Birmingham
Canton
Charlotte
Cleveland
Cleveland
Columbia
Indianapolis
Jackson
Knoxville
Lafayette
Louisville
Memphis
CT
GA
WI
WI
MA
OR
FL
CA
CA
MD
IA
MI
OH
GA
GA
GA
GA
LA
AL
OH
NC
OH
OH
SC
IN
MS
TN
LA
KY
TN
Pull-A-Part Mobile
Pull-A-Part Montgomery
Pull-A-Part Nashville
Pull-A-Part New Orleans West
Pull-A-Part Winston-Salem
Ransom Motors, Inc.
Reitman Auto Parts & Sales, Inc.
Rhinelander Auto Salvage
Richard J. Cassidy, Inc. dba Interstate Auto Parts
Ripple’s Service, Inc.
Robert’s Engines, Inc.
Roberts Salvage, Inc.
Rock & Roll Auto Recycling
Rusty Acres Automotive, Inc.
Salvage GM Parts of South Georgia, Inc.
School Street Light Truck Parts
Schram Auto & Truck Parts Lansing, Inc.
Scotty’s Auto Parts
Shipman Auto Parts, Inc.
Smith Auto & Truck Parts, Inc.
Smith Auto Parts & Sales, Inc.
Snyder Auto Body & Paint
Southern Maryland Used Auto Parts
St. James Auto & Truck Parts, LLC
Van Horn Auto Parts, Inc.
Vander Haag’s, Inc.
West Auto Wreckers, Ltd.
Xtra Mile Truck Recyclers
Mobile
Montgomery
Nashville
New Orleans
Winston-Salem
Brandywine
Melbourne
Rhinelander
Tioga Center
Upper Marlboro
Lucama
Moffett
Pleasanton
Jacksonville
Valdosta
Lowell
Mason
Virginia
Brainerd
Garden City
Fairfield
Clarinda
Mechanicsville
St. James
Mason City
Spencer
Chula Vista
Phoenix
AL
AL
TN
LA
NC
MD
KY
WI
NY
MD
NC
OK
CA
FL
GA
MA
MI
IL
MN
KS
IA
IA
MD
MO
IA
IA
CA
AZ
Why Join the CAR Program?
The CAR program was created to produce a set of standards for general business practices,
as well as environmental and safety issues, and to provide guidance for member facilities in
adhering to these standards. This program is one of the cornerstones of our association as
the facilities participating strive to put forward quality service and parts for the professional
automotive recycling industry.
From the Automotive Recyclers Association and the
Environmental Compliance for Automotive Recycling Center
Hybrid Vehicle Dismantling Guide
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99
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This manual will help all technicians in
the recycling trade, both those with limited
experience in handling anddisassembling
hybrid vehicles and those who have yet to
open the hood on a hybrid, gain essential
knowledge on safety, theory of operation
and practical tear down procedures.
Order Yours Today!
Call (888) 385-1005 or
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56 Automotive Recycling | November-December 2011
International Auto Recycling
Reports from Around the World
Struggling to Make a Profit
from End-of-Life Vehicles?
By Andy Latham, Bluecycle, UK
ith current high scrap prices many
auto recyclers are finding that
they are struggling to purchase End-ofLife Vehicles (ELVs) at sensible prices,
and prices are unlikely to drop in the
near future.
There are still ways to make a profit
from ELVs by investing in stock control
and lowering costs.
One UK-based auto recycler has developed their management process to
make sure that they consistently make a
profit on all vehicles, even in the current
ELV market value. They know they will
return at least $368.00 (£230) on each
vehicle they process as scrap, and their
average return on each vehicle purchased for parts is over $962 (£600).
W
So How Do You Return a
Decent Gross Percentage?
• Choose a software provider that fulfils your stock control and vehicle management requirements; ensure that full
training is part of the package.
• Take time to learn the system and
how it would best work for you.
• Complete a full inventory of vehicles
and parts, identifying and labeling all
available components.
• Grade quality of all parts on a scale
from 1 to 3, with 1 being best quality, 3
being poor quality.
• Cross reference parts against manufacturer’s list price and set sales price
according to part quality.
• Make sure software is fully updated.
• Give sales staff ability to adjust sales
price to complete sale.
• Record details of all parts that could
not be sold – too costly or not available.
There are still ways
to make a profit from
ELVs by investing
in stock control
and lowering costs.
• Track the scrap price of every vehicle – i.e. revenue available for the hulk,
cores, wheels, batteries, cat, etc. This
value will change almost daily, so it must
be built into daily operations.
With all of this in place after a period
of time, the software system will be able
to produce management reports that
will highlight parts demand, how quickly parts are sold, and parts that cannot be
supplied due to lack of stock or cost. It
will also identify parts in stock that have
not sold.
From this the auto recycler can refine
their stock levels and sales costs to
reflect demand, and target ELV supply
to satisfy this demand.
The benefits to the auto recycler can
be measured in profit for the following
reasons:
• Only high-demand parts are removed from ELV’s, any parts not needed for
stock are left on the vehicle – reduces
dismantling costs.
• Storage of duplicate parts is kept to
a minimum – maximizes storage space
for parts that will sell.
• The auto recycler knows in advance
of purchase what the ELV is worth to
them and can adjust the auction bid
accordingly – avoids overpayment for
supply.
• If the potential return does not exceed the scrap price, then the auto recycler can purchase for processing only.
• The auto recycler can receive a
return on investment very quickly as they
only stock parts that are in demand.
• Yard space is better managed as vehicles that will not turn a profit inside a
specific timeframe set by the business are
sent for shredding – returning money
back to the business.
• Sales staff can advise customers
immediately on parts availability, quality,
cost and delivery thereby providing better service and increasing the likelihood
of gaining a repeat customer.
The Big Picture
Very quickly, the business will be able
to see how much return they make from
each vehicle and how soon after ELV
purchase they start to make a profit,
then start to set targets to improve stock
turnaround, profit, quality and so-on.
It will take investment, time, dedication, and training, yet the long-term
benefits far outweigh the initial work,
and will ensure continued profit for the
business that will then turn into investment, development, and growth.
Software packages are available that
assist auto recyclers to manage vehicles,
control stock, sell parts, and, more
importantly, assist profit growth.There
are many, so search carefully to make
sure that you get the right software for
your business. ■
Andy Latham is the Reputation Manager for Bluecycle, one
of the UK’s leading online car salvage auction sites and online auction technology specialists. They have been trading
for over 10 years and specialize in car salvage, end-of-fleet,
motorcycle, plant, equipment, and commercial salvage, selling hundreds of vehicles each week to customers throughout the UK and Europe.
November-December 2011 | Automotive Recycling 57
International Auto Recycling
Reports from Around the World
A National Approach to the
Environmental Management of
End-of-life Vehicles in Canada
By Steve Fletcher, Executive Director,
Automotive Recyclers of Canada (ARC)
nd-of-Life Vehicle (ELV) processing
represents one of the largest recycling sectors in Canada with about 1.2
million retired recycled each year. With
a 94 percent ELV recovery and return
rate, ELV waste diversion rates are higher than those for most provincial waste
diversion programs. While ELV processors are subject to a number of provincial
and federal requirements, ELV management practices are highly variable.
The practice of processing ELVs
throughout the country is not subject to
consistent or comprehensive regulated
standards. The lack of common processing standards for ELVs is significant.
While used parts and scrap metal values
are driving high recycling rates, ELVs
also include a number of substances of
concerns that incur costs when properly removed. It is common for many ELVs
processors to reduce costs by ignoring
environmental standards with respect to
these materials. This creates an uneven
playing field in the sector. While a number of vehicle recyclers operate to high
environmental standards, with attendant high rates of reuse, recycling and
minimal environmental discharges, the
majority operate to no standard at all.
Increasingly this sector is becoming
subject to a number of government waste
management requirements. Different
provincial and federal waste management initiatives create obligations with
respect to how vehicles and vehicle components are managed. British Columbia
has a requirement for ELV processors to
establish waste management plans.
Ontario has discussed designating ELVs
for waste diversion in its mid-term plans.
Quebec is expanding its extended pro-
E
58 Automotive Recycling | November-December 2011
ducer responsibility (EPR) programs
and will likely consider adding ELVs.
The federal government has proposed
implementing EPR rules related to the
management of ozone depleting substances (ODS) including how those substances in vehicles are managed.
To date government initiatives to
address vehicle components through
waste diversion programs have not effectively addressed the serious environmental problems associated with ELV
standard for ELVs. This would address
the single most significant problem associated with ELV recycling in Canada
today.
In Ontario, where the base of Canada’s automotive manufacturing sector
operates, the Ontario Automotive Recyclers Association (OARA), an ARC affiliate, has been working in collaboration
with the Canadian Vehicle Manufacturer’s Association (CVMA) to create a
licensing regime for vehicle recyclers in
Ontario. The CVMA and ARC
believe that the core elements
ARC believes that it is timely
of that proposal represent
to consider a national standard objectives that are readily
achievable throughout Canada.
with respect to ELV processing.
These include:
One of the core objectives is
1) Codifying the National
to implement and enforce a
Code of Practice for Automotive Recyclers developed
common environmental
under the National Vehicle
processing standard for ELVs.
Scrappage Program (“Retire
your Ride”) in provincially set
processing. The creation of EPR type
regulation;
waste management obligations with
2) Licensing or registering businesses
respect to ELVs, in the absence of a comengaged in ELV processing to ensure
mon and enforceable environmental
sector-wide compliance with that comstandard for ELV processing, is likely to
mon environmental processing stanbe counterproductive.
dard; and
With respect to vehicle manufacturers,
3) Auditing and monitoring procesa national sector is threatened with a
sors and reporting annually on ELV recypatchwork of various waste managecling activity;
ment requirements and obligations that
While the cross jurisdictional nature of
are unlikely to generate actual improveenvironmental policy raises issues relatments in ELV recycling. With respect to
ed to a national conception of ELV proautomotive recyclers, responsible busicessing, both the ARC and CVMA
nesses may be burdened with additional
believe that coordinating government
obligations, while their competitors conpolicy in this area is an essential compotinue to operate outside of provincial and
nent to enhancing vehicle manufacturfederal waste management programs.
ing competitiveness and generating
For the above reasons, the Automotive
positive environmental outcomes with
Recyclers of Canada (ARC) believes
respect to ELV waste management.
that it is timely to consider a national
ARC has created a consultation paper
standard with respect to ELV processing.
to bring this issue to a national discusOne of the core objectives of such an
sion – www.autorecyclers.ca/fileUploads/
approach is to implement and enforce
1313074351--National_ELV_EMS_
a common environmental processing
approach.pdf ■
Capitol Connection
By Elizabeth Vermette, ARA Director, Government Affairs
elizabeth@a-r-a.org
Congressional Highlights
NMVTIS Update
alifornia Governor
Jerry Brown signed
legislation that will require
all car dealers post a red sticker on the
used cars they sell that are flagged in the
National Motor Vehicle Title Information System (NMVTIS) as having a junk,
salvage or flood branded title. The law is
the first of its kind in the country.
C
The Environmental Protection
Agency Delays Storm Water
Memo Decision, Again
PA just announced that they need
more time to review and consider all
of the comments submitted by concerned entities (including those submitted by ARA) on the Agency’s Guidance
memo encouraging state permitting
authorities to measure industrial storm
water discharges through numeric effluent limits rather than the traditional best
management approach.
E
ARA voiced serious
concerns about the
procedural process
surrounding the Guidance.
In our comments, ARA voiced serious
concerns about the procedural process
surrounding the Guidance as well as the
potential negative impacts of the EPA’s
recommendations on both the environment and automotive recycling industry.
On the process level, ARA believes that
rulings of past court cases and the provisions of both the Small Business Regulatory Enforcement Fairness Act of 1996
and recent Presidential Executive Orders
require that EPA follow the formal notice
and comment rulemaking process for a
change of this significance.
Although a decision was expected
August 15, EPA now says to expect a decision sometime this winter.
STATES ON THE MOVE
ARA Opposes Bill to Open Salvage Pools in Michigan
t the Request of the Automotive Recyclers of Michigan, ARA sent letters opposing Michigan HB 4832 to all members of the Michigan House Transportation
Committee. The bill creates an economic disadvantage for Michigan’s responsible and licensed motor vehicle businesses. It allows individuals with any kind of
license (e.g. cosmetologist license) from another state to become a “foreign salvage buyer,” buy vehicles in Michigan and ship the vehicles out of the state. This
effectively ships jobs in the automotive recycling industry out of state. “Foreign salvage buyers” can purchase vehicles at a much lower price than licensed automotive recyclers in Michigan who are (1) required to pay Michigan’s administrative
and licensing costs; (2) required to report to the federal National Motor Vehicle
Title Information System and (3) are subject to a variety of state and federal environmental regulations.
Moreover, House Bill 4832 allows the general public from any state to purchase
vehicles located anywhere in the country through Michigan internet auctions. It
opens up the state’s salvage pools to a free market over the internet with no regulations for reporting of title transfers as required by federal law. It also makes no
provision for the collection or distribution of taxes or other fees on the sales of
out-of-state vehicles through Michigan salvage auctions.
A vote on the bill was not taken and is not expected.
A
Right To Repair May Be A Ballot Initiative in 2012 for Massachusetts
he Massachusetts Attorney General recently certified a proposed ballot question on Right to Repair. Now, the Massachusetts Right to Repair (RTR) Coalition
needs to collect 70,000 signatures, by Nov. 23, 2011, to secure placement of the question on the 2012 ballot. The Massachusetts coalition still plans to pursue legislation
this session but is the legislation fails they hope to have a ballot initiative as an option.
If the coalition is successful this will be the first time RTR has been on the ballot
anywhere in the country. ARA will update members as this develops.
T
California DMV Goes After “Curbstoners”
tilizing more than 160 investigators, California’s Department of Motor Vehicle
(DMV) organized to catch those participating in a growing trend: flipping and
selling unsafe vehicles across the state, a practice known as “curbstoning.” Curbstoning is a scam where unlicensed car dealers purchase low-end vehicles from other
dealers, salvage yards and at auctions, then sell them on the street, referred to as
“street corner car sales.” Investigations Deputy Director Kathryn Door says that,
“Many times the vehicles curbstoners sell are crashes waiting to happen.”
During this recent sweep, investigators issued 120 citations to curbstoners to 50
cities, per DMV. Not only are curbstoners misrepesenting themselves, but they also
commit tax fraud – fees desperately needed to fund public services. Often the curbstoner will leave the car title blank (open), allowing them to pocket any money made
and avoid paying States Sales Tax or Federal Income Tax on the sale. California is
fed up with them, referring to them as eye sores, competing against legitimate businesses. “By towing and issuing citations,” Door said, “we hope to wipe out their profit and prevent them from putting dangerous vehicles onto California roads.” ■
U
November-December 2011 | Automotive Recycling 59
Crossword Puzzle
By Murray Jackson
Across
1. Accelerator (3,5)
5. Travelers’ rural overnight lodgings
9. Gentlemen, ____ your engines!
10. ‘88-’96 Chevrolet two-door coupe
11. Transmission type, briefly
12. Slang term for convertible (4,3)
15. Big name in the GPS biz
16. ‘09 Toyota minivan
19. Mack-tractor attachment
21. Dirt-road feature, commonly
24. Land Rover’s homeland
25. Ohio’s “Rubber City”
26. Engine lubricants
27. Go-anywhere Jeep SUV
60 Automotive Recycling | November-December 2011
Down
1. Dash instrument marked E and F (3,5)
2. Key-activated component
3. Roadside-diner sign
4. ‘04-’36 car named for Indiana city
6. Explosive ‘07 Dodge SUV
7. Swedish carmaker
8. AAA or CAA route-planning product
13. Ubiquitous suburban-family vehicle
14. Nut, bolt, screw, etc.
17. The N in PRND321
18. Often-dented body panel
20. ‘73 to ‘04 Buick model name
22. Tonight Show’s car-crazy host
23. Farmer’s tractor garage
2012 Industry Calendar
To include your event in ARA’s calendar of events,
e-mail the complete listing to Maria@a-r-a.org.
Visit www.a-r-a.org for the most up-to-date calendar.
January
17-18
FADRA Hill Days in Tallahassee
28
Colorado Automotive Recyclers
Association
Annual Member Meeting
PPA Events Center 2015 Decatur St.
(just north of Sports Authority Field)
Denver, CO 80211
Cheryl Dotson
(303) 457-2119
info@coloradoautorecyclers.com
www.coloradoautorecyclers.com
February
10
Carolina Auto Recyclers
Conference Training /
Mini-Trade Show
Sheraton Imperial Hotel
Durham, NC
Register: (919) 796-4747
www.carolinaautorecyclers.com
24-25
Ohio Auto & Truck Recyclers
Association
Kalahari Resorts
Sandusky, OH
Pam Graffice, President
(800) 247-6993
pgraffic@powersupply.net
www.oatra.net
March
14-16
ARA 2012 Hill Day - Business
Development Conference
Elizabeth Vermette
(571) 208-0428, Ext. 18
elizabeth@a-r-a.org
www.a-r-a.org
15-17
Greater Midwest Automotive
Recycling Expo
Holiday Inn
Downtown Lincoln, NE
www.ari-ne.org
23-24
iT Show
Location: M & S Auto Parts
155 Roberts Rd.
Fayetteville, GA 30214
Contact Bill or Susan Weaver
(800) 525-2898
bill.weaver@autocycleparts.com
www.meetusatit.com
21-22
Saskatchewan Automotive
Recyclers Association (SARA) &
Automotive Recyclers of
Canada (ARC)
Member & Board Meetings
Regina Hoiymr
(306) 751-1787
www.autorecyclers.ca
29-31
Ontario Automotive Recyclers
Association OARA Annual
Convention & Trade Show
Toronto Airport Marriott Hotel
Reservations: (800) 905-2811
Information: Steve Fletcher
(519) 858-8761
steve@aora.com
A limited number of rooms have been
reserved for the Convention at the
Mariott Toronto Airport Hotel.
Please contact the hotel directly at
1-800-905-2811 and quote the “Ontario
Automotive Recyclers Association” to
receive the group rate of $129 per night.
The group rate is subject to availability
and is valid until March 9, 2012.
27-28
Alberta Automotive Recyclers &
Dismantlers Association
Meeting and Conference
Chateau Louis Hotel and
Conference Centre
Edmonton, Alberta
Ian Hope
(780) 478-5820
www.aarda.com
April
19-22
Florida Tow Show
International Expo
Orlando, FL
Host Hotel: Hilton - (407) 827-4000
Information: (407) 296-3316
www.pwof.org
20-21
Automotive Recyclers of
Michigan (ARM) 4th Annual
Road Show & Business
Networking Conference
Location: Fox Auto Parts
8111 Rawsonville Rd.
Belleville, MI 48111-9317
Barb Utter
(800) 831-2519
arm@mi.automotiverecyclers.org
27-28
Upper Midwest Auto &
Truck Recyclers Convention/
Trade Show
Ramada Plaza Minneapolis
For reservations:
www.ramadaplazampls.com
1330 Industrial Blvd.
Minneapolis, MI
www.recyclersconvention.com
Ad Index
Actual Systems of America, Inc./Pinnacle ...37, 46
Al-jon .........................................................................44
ARA BizUnite.......................................................51, 53
ARA University..........................................................15
Brock Supply Co. ...............................................32, 41
Car-Part.com ...................................................C-4, 48
Connection, The .........................................................9
CRUSH/S3 Software Solutions, LLC.....................39
Federal Autocat Recycling .....................................29
G.J. Sullivan Co. ...................................................6, 48
Hollander, a Solera company.......................43, C-3
Hybrid Vehicle Dismantling Guide .......................56
Industrial Netting ....................................................34
KBK Insurance Group, Inc. .....................................52
Knopf Automotive................................................5, 47
LKQ .............................................................................47
MarkingPenDepot.com...........................................34
OmniSource ..............................................................35
Phoenix Automotive Cores ....................................48
Pull-A-Part ...............................................................45
Rebuilders Automotive Supply..............................23
Sierra International Machinery .............................11
United Recyclers Group .................................C-2, 46
Vander Haag’s, Inc. ..................................................61
Wells Fargo................................................................13
Get Ahead in 2012
Empowering Your Team
To advertise, call Caryn Smith at
(239) 225-6137
Answers from Puzzle on page 60
28
BC Auto Recyclers
(B-CAR) Meeting
Ken Hendricks
(604) 419-4826
www.ara.bc.ca/div-bcar
Location: TBD
STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION
1. Publication Title: Automotive Recycling 2. Publication Number: 1058-9376 3. Filing Date: September 30, 2011 4. Issue Frequency: Bimonthly 5. Number of Issues Published Annually: Six 6. Annual Subscription Price: $40.00 7. Complete Mailing Address of Known Office
of Publication (not printer): Automotive Recyclers Association, 9113 Church St., Manassas, VA 20110-5456 8. Complete Mailing Address
of Headquarters or General Business Office of Publisher (not printer): 9113 Church St., Manassas, VA 20110-5456 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor: Publisher (Name and Complete Mailing Address) Michael E. Wilson,
9113 Church St., Manassas, VA 20110-5456 ; Editor (Name and Complete Mailing Address) Caryn Smith, 12901 Village Gate St., Ft. Myers,
FL 33913 10. Owner: Automotive Recyclers Association, 9113 Church St., Manassas, VA 20110-5456 13. Publication Title: Automotive Recycling 14. Issue Date for Circulation Data Below: September 23, 2011 15. Extent and Nature of Circulation: Average No. Copies Each Issue
During Preceding 12 months: a. total Number of Copies (net press run) 1500, b. Paid and/or Requested Circulation (Paid/Requested Outside-county Mail Subscriptions Slated on Form 3541) 1417, c. Total Paid and/or Requested Circulation: 1229, d. Free Distribution by Mail
(Outside County as Slated on Form 3541): 50, e. Free Distribution Outside the Mail (carriers or other means): 150, f. Total Distribution: 1379,
g. Copies not Distributed: 38, h. Total: 1417, i. Percent Paid and/or Requested Circulation: 89%. Actual No. Copies of Single Issue Published
Nearest to Filing Date: a. Total Number of Copies (net press run) 1500, b. Paid and/or Requested Circulation (Paid/Requested Outside-county
Mail Subscriptions Slated on Form 3541) 1249, c. Total Paid and/or Requested Circulation: 1249, d. Free Distribution by Mail (Outside
County as Slated on Form 3541): 100, e. Free Distribution Outside the Mail (carriers or other means): 200, f. Total Distribution: 1449, g. Copies
not Distributed: 51, h. Total: 1500, i. Percent Paid and/or Requested Circulation: 86% 16. Publication of Statement of Ownership will be printed
in the November/December 2011 issue of this publication. 17. Signature and Title of Editor, Publisher, Business Manager, or Owner: Michael
E. Wilson, Managing Editor.
November-December 2011 | Automotive Recycling 61
Final Thoughts
By Michael E. Wilson, ARA Chief Executive Officer
michael@a-r-a.org
Things to Consider Moving Forward
ith the United States elections
exactly one year away, political pundits almost uniformly say that the outcome will be determined by the state of
the economy at the time of the election.
With an average of 9 percent unemployment and record government spending
approaching 25 percent of Gross
Domestic Product (GDP), it appears
Americans are still turning the corner in
attempts to correct the problems gripping the economy.
Over the past three and half years,
many countries around the globe have
experienced their worst economies in a
generation. Unfortunately, these challenging economic times have led to
extreme measures. While many in the
professional automotive recycling community will debate whether the $3 billion
federally-financed Cash for Clunkers
(C4C) program was a good thing or not
for the industry, one would find it hard
to assess the program without pointing
out a number of serious deficiencies.
While many in our industry had a short
term financial benefit from C4C, one
must consider the big picture and longer
term cost. While many industry colleagues profited, here are three things I
ask you to consider:
• What was the overall cost to the
American taxpayer?
• What was the operational cost to
automotive recycling businesses that distorted their business model to take in
these vehicles?
• And lastly, what was the regulatory
cost to the industry?
With respect to regulatory risks, one
need not look too hard to see the federal bureaucratic apparatus at its worst, for
example: (i) interrupting a statue that
allows for the sale of everything from a
W
62 Automotive Recycling | November-December 2011
motor vehicle except the motor, (ii)
attempting to restrict front clips, truck
beds, and other valuable components
sales from these specific vehicles, and (iii)
perverting the dismantling and inventory practices of the marketplace.
Over the past several months, nearly
every presidential candidate seeking the
White House has questioned the wisdom
of the federal government’s $85 billion
automotive bail-out. Without getting into
the merits of the overall plan, and
whether it was appropriate or not, it is
simple to point out the unintended consequences of the heavy federal hand on
the free marketplace economy. Many
focus on the fact that U.S. Treasury
Department is estimated to lose $23.6 billion on the bail-out, yet one should pay
closer attention to how the federal government stakes in automakers, past and
present, is affecting policy.
With the current administration heavily leveraged on the success or failure of
the auto recovery programs, all appearances show that the cozy relationship has
emboldened manufacturers to aggressively push the limits of both the Sherman Antitrust Act and the MagnusonMoss Warranty Act. One might ask: do
they believe they have a green light to do
anything without consequences?
Over the past three years, the auto
manufacturers have become more
aggressive in pushing the limits and possibly violating Magnuson-Moss warranty
protections by releasing self-serving position statements with no scientific
research to back up outlandish and disparaging claims with respect to recycled
parts and have launched related media
smear campaigns. The apparent goal for
auto manufacturers and some in the collision repair industry seems to be to
secure a market that allows for only one
source of parts and procedures for the
repair of consumers’ vehicles. If that were
not bad enough, auto manufacturers are
now expanding their labeling of “theft
related parts” to a much broader segment of parts which blocks out all competition for the recycling or remanufacturing of those parts.
American taxpayers are slated to lose
over $23 billion dollars from the auto
bailout. How many more billions will
consumers lose from the manipulated
policies that limit their choice in collision
and mechanical repairs to one monopolistic entity – the particular manufacturer of one’s motor vehicle? If automobile
manufacturers succeed in being able to
exclude recycled parts from the marketplace, this will have the effect of harming
thousands of small businesses and millions of consumers, especially those consumers unable to afford the prices of
artificially inflated replacement auto
parts.
Join the ARA in the fight of these policies that could cripple this viable industry. We need financial support through
the ARA Defense Fund, and we need
your local colleagues as ARA members to
aid in this battle over basic free market
principles. ■
Automotive Recyclers Association
9113 Church Street
Manassas, VA 20110-5456 USA