Click to the full November/December issue in PDF format
Official Publication of the Automotive Recyclers Association
Growing an effective team
of employees starts with a
thorough hiring process.
Getting it right at the start
eliminates many obstacles,
and allows you to take your
team from good to great.
The ARADirect Salvage Solution
Training for Great Customer Service
RD Hopper: ARA’s New Secretary
November-December 2013 | Volume 33 Number 6
TUTORIAL IN TRAINING
Co l u m n s
President’s Comments | 4
• Ed MacDonald
Editor’s Notes | 6
• Caryn Smith
Driven to Learn 28
The making of the first-ever automotive
recycling college program.
By Pat O’Connor
Auto Recycling | 53
• Andy Latham
• Steve Fletcher
Final Thoughts | 62
• Michael Wilson
Powered by Sonny’s 43
De p a r t m e nt s
Letter to the Editor | 7
ARA Action | 10
Insure This | 14
• Bill Velin
Marketing 101 | 16
• Mike French
On the Road | 18
• Sandy Blalock
Incoming Secretary RD Hopper
is ready to do his part.
From Good to Great Sales 30
Strengthening your parts sales requires
a systematic approach to training
your sales team.
By Taia M. Cesana
By Michelle Keadle-Taylor
Can Fairy Tales Come True? 45
A story about how state associations
work for you.?
By Cheryll Lambright
Advice Counts | 20
• Jim Counts
Safety Matters | 22
Lessons Learned | 24
On Top Down Under 46
Aussie ARA member honored for excellence.
• Ginny Whelan
That’s My Opinion | 26
• Ron Sturgeon
Cover and inside photos
by Joe Treleven/
Automotive Recyclers Association
9113 Church Street, Manassas, VA 20110-5456 USA
(571) 208-0428 / (888) 385-1005 / www.a-r-a.org
You’re Hired 34
Your hiring process can directly
impact your firing process.
By Michelle Keadle-Taylor
PROGRESS FOR MEMBERS
Recycled Parts 48
Direct Impact 40
ARADirect provides automotive recyclers a
fast lane in a crowded salvage marketplace.
This family business is dedicated to growing
with excellence, but their secret to success
is all about building community.
By Michelle Keadle-Taylor
By Lynn Novelli
AUTOMOTIVE RECYCLING (ISSN 1058-9376) is published bi-monthly by the Automotive Recyclers Association, 9113 Church Street, Manassas, VA 20110-5456 USA, (571) 2080428 / (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 nonprofits. Copyright © 2013 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.
November-December 2013 | Automotive Recycling 3
By Ed MacDonald, ARA President
PR e S I D e n T
Maritime Auto Salvage, Ltd.
Truro, NS Canada
FIRST VICe PReSIDenT
Keys to the Kingdom
am deeply honored and humbled to accept the ARA Presidential gavel, and I pay tribute
to all who have come before me to help pave the way for those who follow.
It is forward that we must point our compass. Many a wonderful discovery has been realized by strong hands on the tiller following the compass point to success. With our salted and
seasoned crew working in unison, all of these hands hold the keys to the kingdom – one we
all have so proudly built and nurture every day, known as the automotive recycling profession.
All of us must play our appropriate role to ensure continued success: the guiding hands with
learned expertise, implementing hands with current state of the art knowledge, and creating
hands with innovative purpose to seek new, and yet, uncharted, opportunities.
Unlike many of you, fortune was not given to me to grow the business as a family member,
but rather I fell in love with this industry while employed in the federal government in Ottawa,
after casually asking my high school friend, Alvan Aumont, just what he did at Arnprior/Ottawa
Auto Parts, in Arnprior, Ottawa. He proceeded to show me his operation, and to say I was overwhelmed and amazed is an understatement. The rest, as they say, is history. We eventually
bought Maritime Auto Salvage Ltd. in Truro, NS and off we went to join this wonderful profession, after a career in government.
I hope, during my tenure as ARA President, to establish in the individual ARA recycler a
collective mindset of these two enduring principles: 1) strength through partnerships, and 2)
growth through succession.
Changes in the marketplace are deluging us on a daily basis and to ensure that ARA is a
major player in this economically driven arena, I intend to continue what others before me
have begun – the pursuit of long term relationships/partnerships with major stakeholders in
And about the second enduring principle, growth through succession:
We are principally made up of family-owned businesses. I know firsthand the pride of passing on a successful business to my son, who has now taken over the keys of Maritime. I enjoy
providing him with experiential wisdom from past successes – or failures as the case may be –
as he identifies new areas of growth. He and others like him are now the stewards and rightful owners of the keys to the kingdom, and it is through this succession of experience, wisdom, fresh new creative, and dynamic hands that the professional automotive recycling industry
will trump all others.
ARA members have spoken and we have developed a multi-year strategic plan which will be
the guiding principles to chart our future course to success. Each of the five initiatives included in the plan are important in their own right. I look forward to leading the dialog on these
pillars and other related ideas in support of our association’s growth in the future. We are growing when so many other associations are not! We must prove ourselves to members by defining the value of membership in ARA and grow these numbers so we are more globally
encompassing and stronger.
Protecting the keys to the kingdom, building strength and wealth for all ARA members, developing partnerships, and supporting growth through succession and education are the key concepts that I want to focus on during my presidential tenure.
Our ability to succeed is in your hands and, in the spirit that defines this profession and each
one of you, let us challenge each other to join hands – experienced, new and all those in
between – and walk across new thresholds to our future success.
I want to personally thank all the well-wishers for their support that has recently come my
way, and especially thank the staff, ARA members, and exhibitors. No doubt there will be lots
to do and lots to accomplish.
ARA President 2013-2014
4 Automotive Recycling | November-December 2013
Young’s Auto Center & Salvage/Car Crushers
S e C O n D V I C e P R e S I D e n T/ T R e A S U R e R
Trails End Auto and Truck Salvage
Des Moines, IA
S e C R e TA R Y
Sonny's Auto Salvage
I m m e D I AT e PA S T P R e S I D e n T
Capital Auto Parts
ARA executive Staff & Contractors
ARA Headquarters • (571) 208-0428
CHIeF eXeCUTIVe OFFICeR & PUBLISHeR
Michael E. Wilson
[email protected] Ext. 14
DIReCTOR OF memBeR SeRVICeS
[email protected] Ext. 26
DIReCTOR OF POLICY AnD eXTeRnAL
A F FA I R S & e- C A R C e n T e R
[email protected] Ext. 17
D I R e C T O R O F S TAT e & G R A S S R O O T S
A F FA I R S
Jessica M. Thomas
[email protected] Ext. 23
D I R e C T O R O F P O L I C Y & P O L I T I C A L A F FA I R S
[email protected] Ext. 18
meeTInG & eXPOSITIOn PL AnneR
A D m I n I S T R AT I V e A S S I S TA n T
[email protected] Ext. 10
A C C O U n TA n T
[email protected] Ext. 16
C A R P R O G R A m , C O n S U LTA n T
G O L D S e A L P R O G R A m , C O n S U LTA n T
AUTOmOTIVe ReCYCLInG mAGAZIne &
Caryn Suko Smith
For advertising, editorial, or production information,
e-mail [email protected] or call (239) 225-6137.
By Caryn Smith [email protected]
Making Great Debate
t is unusual to receive a Letter to the
Editor, but the September-October issue
struck a cord with at least one particular
reader. His letter along with the author’s
response is printed on page 7-8. My guess
is many of you, too, had thoughts about
that issue. With the future of car manufacturing up in the air, and many more
questions than answers on how new car
design will impact the automotive recycling industry, I hope that you will lend
your thoughts to the issue as opportunities
arise. The more perspectives we have looking at all the issues, the more likely profitable answers will result for the industry.
This issue’s articles address training,
opportunity, and success. It comes to you
following a very successful ARA Annual
Convention & Exposition, which includ-
6 Automotive Recycling | November-December 2013
ed plenty of sessions for training and education, as well as highlights of current and
future opportunities for the industry.
Sure, there are challenges, but as the ARA
grows in strength in numbers, and state,
provincial, and international organizations help auto recyclers move toward successful resolutions to their challenges, the
industry will thrive. For an example of
that, see article on page 45.
It is more important than ever that professional auto recyclers focus on running
their businesses like a well-oiled machine.
Making sure your customer service is at its
best is ever more important today. Read
about the lessons auto recycler Taia Cesana
educates her staff about sales on page 30.
Then, there is the issue of hiring!
Daunting, exhausting, and sometimes a
shot in the dark, this process is critical to
the success of your business. Employee
issues can drain you and your staff, as well
as take the focus off what you need to be
doing – selling parts. Auto recycler Eric
Schulz shares his master plan on hiring
smart on page 34. He has developed a
thorough process that has helped his
many businesses thrive. His overall hiring
and training process was inspired by
Shawn Collins who told him, “I’d rather
train my employees and have them leave,
than not train them and have them stay.”
Lastly, as you heard at the ARA
Convention, ARADirect is up and running and is your solution to salvage. Are
you signed up? Read about it on page 40.
E-mail your thoughts to the Editor at
[email protected] ■
Letter to the Editor
What Readers Are Saying
Send your thoughts to [email protected]
Something to Consider
I would like to offer both a
compliment and, then, a
thought for consideration:
First, let me say any professional auto recycler that
does not receive and study
this fine publication is
going to let industry challenges hurt them more than they
need to and will see the opportunities
much too late to take advantage of them.
The September-October edition is
again a fine example of ARA’s dedication
to educate those in the industry that want
to meet industry challenges and take
advantage of the opportunities that will
and do exist.
Second, in this day and age of OEM’s
seeking to approve who shall and shall
not repair the vehicles they produce, as
well as how they should be repaired, this
issue needs to be of utmost concern to
ARA and our industry. Not only do the
OEM’s want to control who repairs the
vehicles and how they should be
repaired, but also from what sources we
obtain the parts to approve who repairs
those vehicles. To that end, I feel ARA
needs to be ever more vigilant in what is
said in Automotive Recycling to this regard.
For example, in the boxed article The
Dilemma of High Strength Steel, I take
exception to the suggestion given “... to
never cut an UHSS panel out of a vehicle
structure for use in the repair of another
vehicle, never try to repair UHSS panels,
and if you are replacing one of these panels purchase new from the manufacturer
and follow manufacturer or I-CAR standards when fitting.”
It is my opinion that this advice is way
out of bounds. Should we not sell rocker and center posts? Should we not sell a
door that has these
products in them?
Should we not sell various other sections that
have UHSS components in them?
I believe that is what
the article implies. I also
take exception to the fact
that the article suggests
that we cannot cut, at factory seams, a
UHSS component and sell to a repairer
for installation at factory seams just as
they would install a new one.
I believe if we remove UHSS components with the proper tools, at factory
seams, it’s something we can safely do.
No, we cannot cut it out with a torch just
as we should not use the same cutting
blade to remove steel and aluminum
Let’s face it, if a shop can remove a
damaged UHSS component and install
a new one, so then can the professional
recycler properly and safely remove a
recyclable one and the shop can then
install the same-as-new recycled UHSS
Lastly, as referred to in the article,
UHSS actually stands for Ultra High
Strength Steel and HSS is High Strength
Steel. I do not want to split hairs here but
they are two very different steel products.
ARA Past President
A Response from the Author
I share Herb’s concern about manufacturers dictating standards, however
the advice I referred to originated from
Thatcham, who are an independent
Repair and Research Centre funded by
UK Motor Insurers.
The aim of any repair is to ensure that
the repaired vehicle performs as its
manufacturer intended in any subsequent incident. Thatcham uses brand
Editor’s Note: The editor regrets the mix up on
UHSS and HSS as an editorial oversight in editing. The writer shared his experience and
thoughts with our readership on the future
impact of the materials from which automobiles
are made and these thoughts are not necessarily
the specific thoughts of ARA or this publication.
November-December 2013 | Automotive Recycling 7
Letter to the Editor
new panels to repair their test vehicles
and document repair methods; using
their methods and standards does
ensure “best practice” and in the UK
would be sufficient to prevent any future
lawsuits in the event of a serious injury
or fatality in another incident.
To date no tests have been completed
on vehicles repaired in the manner that
Herb suggests, and I, for one, would not
want to guarantee occupant safety on a
vehicle where a centre pillar or rocker
panel has been removed from one vehicle and used in another, unless this
method of repair has been documented and tested to prove safety.
UHSS is still relatively new in vehicle
manufacturing and the welding standards
and practices that many of us have grown
up with over the last 30-40 years in this
industry do not apply to UHSS; heat is the
real problem and too much heat removes
the strength in the metal so welding activities need to be strictly controlled to
ensure that the strength of the metal is
not compromised – in my experience
many auto recyclers and salvage yards do
not have the expertise or the equipment
to do this because they are not undertaking the intensive training and purchasing regime that are enforced on
insurer- or manufacturer-approved repair
I think this is great, as debate in this way
results in better understanding of the
issues. Please feel free to contact me for
8 Automotive Recycling | November-December 2013
Just finished reading Andy Latham’s
article, “The Future of Cars,” and thought
it was well researched, informative, and I
enjoyed reading it.
Industry Relations Advisor
Burnaby, BC Canada ■
Latest News and Reports from ARA
Attend Annual SCADA
and CMARC Shows
he annual State of California Auto
Dismantlers Association (SCADA)
Convention and Trade Show was held
September 19-21 in San Diego’s historic
Gaslamp Quarter. Automotive recyclers
from SCADA’s Affiliated Chapters
(BAADA, CVARA, NCADA, SCCARA,
SDCARA, SJVADA), enjoyed three days
of committee meetings, valuable networking opportunities, informative educational sessions, and fun social activities.
In attendance to represent ARA were
CEO, Michael Wilson and Director of
State Government and Grassroots Affairs
Highlights of the SCADA convention
included an annual awards banquet with
outgoing SCADA President Jeff Buchanan
of BW Auto Dismantlers receiving the coveted Dismantler of the Year award.
SCADA members also honored the memory of Nancy Hall, San Diego County Auto
Dismantlers Association’s long-time
Executive Director, noting her valued
friendship and strong commitment to the
association and its members. Nancy
passed away earlier this year and her
daughter Stacy was in attendance to
receive an honorary membership and
standing ovation in her honor.
ARA CEO Michael Wilson spoke to
members during the General Member-
ship meeting, focusing on ways in which
ARA and its affiliate chapters can work
together to protect and promote the
industry. Wilson touched on the importance of data quality and access to OE data
for electronic commerce as well as the role
that electronic parts and telematics will
have in the future for the industry.
Automotive recyclers from Illinois and
Indiana converged on the grounds of
Auto Parts City in Gurnee, Illinois on
September 20-21 for the Central Midwest
Auto Recyclers Convention and Trade
Show. Incoming ARA President Ed
MacDonald flew in from Canada for the
event to share news from ARA and dialogue directly with the membership.
Hosted by ARA member Auto Parts
City and owners Jay and Larry Brosten,
discussions focused on all things “green.”
Auto Parts City is a proud Certified
Automotive Recycler (CAR) Member
and was the first “Certified” Green
Business League automotive recycler in
the entire country. Facilities participating
in the Illinois Auto Recyclers Association’s
Green Car and the Indiana Auto
Recyclers Association’s Clear Yard programs were recognized throughout the
Highlights included instructors from
Waubonsee Community College who
offered sessions on fork lift and air bag
training. Waubonsee has several campuses in the Chicago suburbs and has part-
ARA Welcomes New Affiliated Chapter in Alabama
RA is pleased to announce the addition of a new affiliated chapter member: the
Alabama Automotive Recyclers Association (AARA). Twenty-four members of
AARA, led by association President Chad Counselman of Counselman Automotive
Recycling in Mobile, Alabama, held their inaugural meeting in late August. AARA also
took advantage of ARA’s new affiliate chapter website design template to build a brand
new website, available at www.alabamaara.com.
With the addition of Alabama, ARA currently has affiliated chapters in 42 states and
is actively working with local automotive recyclers to establish affiliated chapters in the
remaining 8 states. ARA leadership and staff welcome AARA ands its members to the
10 Automotive Recycling | November-December 2013
nered with the ARA University on several initiatives this year, including an automotive recycling curriculum. Attendees
also participated in a social media workshop, PartsTrader update, and a session
on family businesses led by fellow recyclers Frank and Sherri Heckenast. Ed
MacDonald provided attendees a summary of current ARA programs, such as
the Green Recycled Parts, Certified
Automotive Recycler and Gold Seal programs, ARA University and the association’s new online auction platform,
ARADirect. The convention concluded
with an entertaining poker tournament
and casino night, as well as wine tasting
ARA Attends 2013 NASCAR
RA participated in the 2013
NASCAR Green Summit in September, held in Chicago. The summit celebrated the numerous environmental
improvements and technological advancements made by the NASCAR community. NASCAR has the largest recycling and
environmental sustainability programs
among all United States sports. In addition to keynote speakers, the Summit featured several discussion opportunities
focused on the strategy of the NASCAR
Green platform, consumer education,
environmental sustainability programs,
technological innovation, and opportunities for multi-industry collaboration.
While in Chicago, ARA met with a
number of NASCAR representatives
regarding ARA’s Green Recycled Parts®
ARA Integrates with CIECA
Standards to Streamline Parts
and Salvage Procurement
RA’s integration of CIECA technology solutions in both recycled parts
procurement and salvage acquisition
was spotlighted at the 2013 CIECA
Implementation Conference in September. Representatives from ARADirect,
Ginny Whelan and Mark Buffa, were on
hand to provide attendees with two business-focused and one technical educational session. ARA also presented on an
eCommerce Codes Case Study.
The common threads grounded in the
history of ARA and CIECA were made
very clear at the CIECA conference. The
development of standard formatting has
led to the electronic procurement of
recycled parts within the collision industry and for the creation of tools for
CIECA members to enable bi-directional communication of data and messag-
ing. ARA’s involvement in CIECA’s
Salvage and Recycled Parts and Inventory
Committees has provided CIECA with
the first implementation case studies.
ARA Completes Fluid Study
RA together with the Association of
Global Automakers has completed a
study that illustrates how design factors and
methods impede fluid extraction.
Specifically the data revealed that due to
factors such as reservoir geometry, drain
points, design components and dismantler
techniques and methods, one hundred
percent of fluid removal is not possible.
The study focused on the fluid volumes
The 2013-2014 FIRST Robotics-ARA Partnership Program is Underway!
Sign-Up and Educate Today’s Youth About Automotive Recycling!
or the third year in a row, the
Automotive Recyclers Association and
the ARA Educational Foundation are
proud to partner with FIRST® Robotics
Competition to provide small motor parts
to their competition teams. Last year,
ARA members donated over 2,000 recycled small motor parts to the FIRST® program.
“All ARA members should jump at the
chance to work with FIRST®,” says ARA
President, Ed MacDonald. “As auto recyclers, we often contribute to our local
school programs in one way or another
with little acknowledgment. This is a
chance for us as an industry to gain national attention.”
How You Can Participate
1. FIRST® teams are looking for:
• Working small electric motors (such
as door or window motors)
• The motors should be clearly identiﬁed with the year, make, and model
of the vehicle they came from.
12 Automotive Recycling | November-December 2013
2. Locate a local FIRST® team in your
community by visiting www.usﬁrst.org and
clicking on the link for Locate a FIRST®
Team or Event. You can search for a robotics team by zip code and within a 10, 25 or
50 mile radius.
3. Mail the motors directly to the
FIRST® warehouse location below:
Attn: FIRST® Choice
2311 North Washington St
Kokomo, IN 46901
Please include your business card
along with the motors you donate, so that
the FIRST® teams know what recycling
facility provided their motors, and realize
that the motors are coming from all over
the country. Your help creates goodwill
from our industry!
For more information, contact your
affiliate chapter Executive Director or
ARA Director of State Government and
Grassroots Affairs, Jessica Thomas, at
[email protected] or 571-208-0428.
not collected from gasoline tanks, torque
converters and identified potential design
changes and/or collection techniques
that could improve the efficiency and
completeness of fluid collection.
ARA Introduces New Website
Design Template for Member
RA announced in August a new
benefit exclusively for its member
affiliate chapters: a professionallydesigned association website template
and content management system. The
new benefit debuted in partnership with
the Vermont Automotive Recyclers
Association (VARA), the first affiliate
chapter to participate in the new program. VARA’s new website can be viewed
The template features a rotating homepage banner and news feed that is updated in real-time directly from the ARA
website, an interactive Member Directory,
exclusive members-only content, an
online shopping cart, advertising opportunities for local vendors, and much
more. The specialized content management system designed for ARA allows for
the customization of each website as well
as administrator access to the content
management system, and is free of charge
to all ARA member affiliate chapters.
“The affiliate chapter website template
brings a degree of consistency in terms of
what information, news, and resources
are available from the many unique affiliated chapters of ARA within the United
States and around the globe,” said ARA
CEO Michael Wilson. “Affiliate chapters
will be able to ensure that their membership has access to the most up-to-date
industry news and resources from ARA,
while keeping intact the specialized member benefits and style that they provide to
their members -- and all with very little
time spent administering the website.” ■
By Wells Fargo
Rental Car Disaster
textthe cost of purchasing comtextprehensive and collision coverage
(also known as the Loss Damage Waiver
■ Damage Waiver) can be outrageous, you may be best advised to purchase it for short-term rentals (less than
30 days). This is becoming increasingly
the case as car rental companies charge
ever-higher fees and penalties for occurrences not covered by most auto insurance policies. Here are some terms and
reasons you should know what you are
talking about when you do rent a car.
1. Loss Valuation. The value of a rental
car, according to virtually all rental agreements, is determined solely at the discretion of the rental company and may be
significantly different from the “ACV”
basis used by most auto insurers. The standard personal auto policy out there covers “the lesser of the Actual Cash Value”
or the “amount necessary to repair or
replace the vehicle.” The rental agreement may very well contractually obligate
you to reimburse the rental company for
the “full value” of the vehicle (whatever
that is). Under the current personal auto
policy, the “betterment clause” may result
in you being significantly underinsured
relative to your obligations under the
2. Loss Settlement. As implied above,
there may very well be a disagreement
over the value of the vehicle or the
amount charged for labor and materials
to repair the vehicle. Depending on your
personal auto carrier, the Appraisal
Clause may be invoked by your insurer
with the cost being covered partially by
More importantly, your insurer has the
right to “inspect and appraise the damaged vehicle before its repair or disposal.”
However, the rental company may
choose to effect the repairs immediately, potentially voiding your coverage
because of failure to comply with the
Appraisal Clause. There have been
14 Automotive Recycling | November-December 2013
You will most likely be responsible for
the rental company’s loss of rental
income on a damaged vehicle.
many cases of insurers denying coverage
when the rental companies have a vehicle repaired immediately in order to
minimize the lost rental value where
your insurer never had the opportunity
to appraise the damage.
3. Loss Payment. The rental agreement may require immediate reimbursement for damages and it is not uncommon for the rental company to charge
your credit card. This, of course, can create a significant debt, max out your credit card (perhaps shortening a vacation or
business trip), and result in litigation, etc.
4. Loss Damage Waivers (LDW). The
rental agreement usually requires reimbursement for more than collision, making you responsible for any loss in value
of the vehicle – beyond normal wear and
tear, regardless of fault. And obviously,
your personal auto policy must include
collision coverage for at least one owned
vehicle in order for the rental vehicle to
have collision coverage.
Therefore, if the Rental Agreement has
a Loss Damage Waiver (not just a
Collision Damage Waiver), your personal auto policy must also have comprehensive coverage in order for you to have
“other than collision coverage” on the
rental vehicle. Even so, keep in mind that
your contractual liability under the rental
agreement may be almost absolute so it
is possible your personal auto policy may
not respond to all losses. Likewise, it is
possible that your personal auto policy
may respond to losses not covered by a
Loss Damage Waiver, such as use off
paved roads, use while intoxicated, use by
unlisted drivers, etc. Therefore, it is critical that you have both your personal auto
coverage and the Loss Damage Waiver
coverage offered by the rental company.
5. Indirect Losses. You will most likely
be responsible for the rental company’s
loss of rental income on a damaged vehicle. Your personal auto policy has, at
best, daily and maximum caps for this
indirect loss, and in most cases, will pay
for loss of the rental company’s loss of
rental income only resulting from theft of
Additionally, rental car companies are
increasingly charging for “diminution of
value,” an indirect loss that is not covered
by any personal auto policy’s physical
damage section nor most credit card coverages. We have seen documented examples of these charges for amounts in
excess of $7,500!
6. Administrative Expenses. The rental
contract may make you liable for various
“administrative” or loss-related expenses
such as towing, storage, appraisal, claims
adjustment, etc. None of these expenses
are typically covered by your personal
7. Other Insurance. The personal auto
policy says it is excess over: (1) any coverage provided by the owner of the auto
(does coverage include Rental Car company self-insured plans?) (2) any other
applicable physical damage insurance,
and (3) any other source of recovery
applicable to the loss – collision damage
or Loss Damage Waiver, travel policies,
credit card coverages, etc. And what if
your credit card coverage says it is “ excess
of the auto policy?) The potential controversy over who pays what is obvious
and can result in litigation.
8. Excluded Vehicles and Territories.
The personal auto policy normally does
not cover motorcycles, motorhomes, etc.
and use of covered vehicles is limited to
the U.S., its territories and possessions,
Puerto Rico, and Canada, in which case
your personal auto policy would not cover
such claims. You have no choice but to
rely on the rental companies Loss
Damage Waiver for coverage under these
circumstances. One often overlooked
issue where a large coverage gap can exist
is where you may be using valet parking
at a hotel or restaurant during a trip.
Many rental companies will have an
exclusion in their coverage for “any drivers not listed on the rental agreement.”
In summary, you can see how many
exposures that are excluded from the
rental companies coverage are covered by
your personal auto policy and vice versa.
Therefore, it is always a very wise decision
when renting a vehicle for business or
pleasure reasons to purchase the rental
companies Loss Damage Waiver. You
should not have to purchase their liability coverage if you have a personal or business policy that includes liability coverage
for “hired and non-owned” vehicles, but
you should ALWAYS purchase the rental
companies Loss Damage Waiver (comprehensive and collision coverage).
Please feel free to call me if you need to
discuss this further. ■
For more information on how Wells Fargo Insurance Services can benefit your business,
contact Bill Velin at 800-328-6311, ext. 3039,
direct 952-830-3039, or by e-mail bill.velin
November-December 2013 | Automotive Recycling 15
By Mike French
Direct Mail … Dead or Alive?
he year was 1982. As Paul arrived to
open his used auto parts business for
the day he knew instantly that his sales
flyer had landed in prospects’ mail boxes
because he could hear all his phones ringing off the hook. His sales staff rushed in
to answer them, but as soon as each one
finished a call and returned their phone
to the receiver, it immediately rang again.
The phones continued to ring for days.
At the end of the month he determined that his direct mail campaign had
produced two distinct results. First, it produced a record month in part sales and,
secondly, it produced pronounced symptoms of battle fatigue for the sales staff
answering the phones and processing the
mountain of part requests during the
Without exaggeration Paul’s direct mail
campaign had been a great success!
That was how direct mail was for auto
recyclers thirty years ago, but this is 2013,
and much has changed in the world of
direct mail marketing since then.
“So, is direct mail dead or alive?”
That’s a question recently posed to me
when I was speaking at a recycler event.
My answer, “No, it’s not dead, but it’s definitely different!”
Different, indeed! No longer can you
simply dump a large batch of flyers into
the mail and get the kind of response that
Paul did with his first campaign many
years ago. There are a number of reasons
for this change.
These days, you’re competing with
many other forms of direct response type
advertising vying for consumer’s attention. Besides stuff coming in the mail,
they get a mountain of marketing messages through electronic means such as
the Internet, e-mail, and multiple forms
of social media such as Facebook, Twitter
and, LinkedIn. It is instant, inexpensive
So, why should auto recyclers even
16 Automotive Recycling | November-December 2013
bother with direct mail when there are so
many electronic advertising options available today? Here are some reasons.
Direct mail will reach many businesses that electronic advertising will miss.
Some businesses are not computerized.
You will never reach them electronically.
For example, only 60% of the automotive recycling industry is computerized.
Therefore, if you tried to reach them only
through electronic means you would miss
more than half of them. This means that
companies who have switched away from
direct mail to reach recyclers have actually dropped off the planet, so to speak,
to a large segment of their customers.
This makes those customers sitting ducks
for anyone else who sends them something in the mail. I tell my clients that they
should engage in both electronic and
direct mail in order to reach the most
Some business owners are not computer-minded. They are what is known as
“tactile” by nature, which means they have
to physically hold something in their
hand, like a flyer or magazine, in order to
get it. They will never respond to electronic social media of any kind because of
how their mind works. They simply cannot pay attention to it. Some studies say
that half of humankind is tactile which
means that you are missing a lot of customers if you rely solely on electronic
Direct Mail is Sophisticated
It’s targeted. It can be tailored to reach
specific audiences from long-time customers to new prospects. Mailing lists are
much better now making it possible for
you to reach the right prospects with the
right message. Customers and prospects
receive only offers or information that
meets their buying habits or individual
needs. Mail pieces can also be piece by
piece personalized with a specialized
message printed on each piece that is cus-
tomized to the specific person. You can
also send mail to specialized segments
such as only hispanic males, age 18-35, living within five miles of your business.
It’s flexible and controllable. You can
send out small quantities at a time to test
a large list before rolling out to the entire
list. You can divide a large list into smaller segments and mail them a few at a time
as needed. When I rolled out my first auto
recycler ad campaign back in the 1980’s,
I mailed it out to 20,000 addresses all at
once. This mistake swamped the sales
team of the salvage yard I did the campaign for. They couldn’t keep up with the
demand. I quickly learned to mail out to
a fraction of a large list every week,
depending on how many counter people
there are answering phones.
Predictable response rate. According
to a study by Direct Marketing News, the
average response rate to a direct mail
campaign is four percent, meaning you
can expect four responses to every hundred pieces mailed. I believe the response
rate of any campaign is also affected by
the quality of the mailing list and the offer
on the mail piece. The better the list and
offer, the better the response!
Another factor that can affect a
response is how personal the mail piece
is and how personal it appears when it
comes into the mail. One business owner
wrote personal notes to two hundred
prospects. He kept it short and simple by
writing only five or six sentences to each
person and he addressed them by their
first name. He included a small handmade coupon offering a great savings on
their first order and signed the coupon.
He mailed them all in hand addressed
envelopes with a first class stamp in the
corner. He got a 97% response rate! ■
Mike French, president of Mike French &
Company, Inc., can be reached toll free at 800238-3934, or visit his company’s Web site at
On the Road
By Sandy Blalock
y travels recently took me to Ohio,
a state with plenty of activity generated by busy automotive recyclers. In our
industry, Ohio is a key strategic state, with
one of the most restrictive salvage buying
regulations of almost any other state. It is
because of this that Ohio has been faced
with the constant barrage of attempts to
overturn those restrictions. Ohio requires
all buyers of salvage vehicles to have a permit issued by the state of Ohio.
You might ask why would someone who
is operating legally be concerned with
obtaining the required permit and why
the sellers of salvage vehicles would be
opposed to maintaining the appropriate
registering to buy salvage vehicles. That is
an excellent question!
Our industry already faces enough competition for materials, with over 30 percent
of all U.S. salvage vehicles being purchased by foreign buyers for export, so we
must find a solution to protect the rest of
our market. Our share is constantly being
diluted with buyers purchasing salvage
vehicles for any number of reasons, and
many of which are not so honest. The
entire U.S. auto recycling industry needs
to support Ohio, as well as other states, to
protect the sanctity of the systems they
have fought so hard to maintain.
It is imperative that we are proactive in
everything that we do and making sure
that legislation does not bury us under a
mountain of paperwork, paint us into a
corner or restrict our ability to be successful. Automotive recycling is already a
tough job and we do not need legislators
A Little Bit of Ohio
he name “Ohio”originated from the Iroquois word ohi-yo’, meaning “great river” or
“large creek,” presumably due to its proximity to what is now known as the Ohio River.
Ohio’s state nickname is the Buckeye State after the Buckeye Tree.
Ohio played a vital role in the Civil War because of its central location and population
density. The Ohio River and Ohio’s railroads were important transportation sectors during
the war. Ohio contributed more soldiers to the Civil War effort than any other state and was
the home to the three top generals of the war, Ulysses S. Grant, Philip Sheridan and William
In 1803, President Jefferson signed an act by Congress that essentially approved Ohio’s
Constitution and boundaries, however Congress never passed a resolution to formally admit
Ohio to statehood. The custom of declaring official statehood did not take place until 1812
when Congress admitted Ohio the as the 17th state, and Louisiana as the 18th.
It was not required at the time for a state to be formally admitted but in 1953 George H.
Bender introduced a bill to Congress to formally admit Ohio retroactively to March 1, 1803,
which happened to coincide with the ﬁrst time the Ohio General Assembly convened. On
August 7, 1953, President Eisenhower signed a congressional joint resolution that officially
declared March 1, 1803 the date of Ohio’s admittance into the Union. When it was officially
declared a state, Ohio was already celebrating its 150th anniversary of statehood!
18 Automotive Recycling | November-December 2013
and others who do not understand our
industry working against us. Each one of
us needs to be cognizant of what is happening, in both our states and others, that
impact our ability to run profitable businesses. Do not sit back and think, “Oh
that will not affect me, it is happening in
Ohio.” Wrong. What happens in Ohio or
any other state greatly impacts us all.
Auto recyclers are fortunate to have
some great organizations, like the various
state associations and ARA to help monitor and keep us all in the loop of what is
happening around us. It is not enough,
however, to just be a member. You must
be engaged in your organizations and
help solve the issues we all face. When
called upon to serve, plan on stepping up
in whatever way you can.
Sometimes it only requires making
phone calls, and who can’t do that? Other
times it may necessitate a trip to your state
capitol to testify or give your support.
Another great way to support our industry is to offer legislators a tour of your facility to show them the complexities of what
we do so well. The most important thing
to remember is, do what you can when
you can, and really make an effort.
It is a costly endeavor to fight our battles on the legislative front and recyclers
in Ohio have paid more than their fair
share. During this legislative session in
Ohio you may be asked to voice your support and concern and I hope that you will
stand up alongside our friends there and
lend the support they need to come up
with a solution to this issue that will affect
salvage buyers, not only in Ohio, but the
rest of the country. For our industry, for
your company and all the communities
we serve, please be part of the solution
and not part of the problem. ■
Sandy Blalock is a consultant to the auto recycling industry, traveling to help states without an industry association formulate them.
She is the former the owner of Capos Automotive Recycling and an ARA Past President.
By Jim Counts
Why Employees Bring All the Problems to Us
he short answer to this dilemma is
because we train them that way. We
tend to handle issues for the employees
conveniently so they can’t be held
accountable for the decisions. While that
may seem over simplistic, it’s the reason.
Employees are only human. They want
to feel secure and not be criticized for
their actions. If they come to us every time
something comes up and we will tell them
what to do, they are safe. Furthermore, if they are lucky, we might just take
the problem off their hands and do it ourselves. The more it works, the more problems they bring to us. We may complain
about why they can’t make any decisions,
but that’s a lot better to them than taking
a chance of making a wrong decision.
Another reason that everything comes
to us may be that we want it that way. We
may say we want the employees to make
a decision, but when they do, we tell
them it’s wrong for some reason.
My dad used to do that to me. I could
do exactly what I saw him do, in what I
believed was exactly the same situation
and for some reason, my decision was
almost always wrong. My solution to this
dilemma was the same as any intelligent
person – I stopped making decisions. He
made comments like, “I don’t know how
you are ever going to get through life
without me around to make all your decisions.” I think anyone who knows me
knows I’m not afraid to make a decision
or take action. However, I’m also smart
enough to not fight a losing battle.
If we keep changing the rules for every
little exception, then we will continue to
be forced to make all the decisions and
our company is never going to grow.
Here’s how to empower employees to
make better decisions:
1. We should make sure to hire smart
people who are willing to work and grow.
Ultimately, we get what we pay for.
20 Automotive Recycling | November-December 2013
If we want our company
to grow, we must have
people who can learn
to make decisions for us.
2. We should empower people, rather
than belittle them, especially in front of
others. If we make this error, we could be
left with a workforce of employees who
make decisions that can hurt the company; such as to miss work twice a month,
to steal from us, to fake being hurt, or to
cause dissention among employees.
3. We should never take a piece of
paper from an employee until you know
what is on it and why they came to you
with it. This is very important. As long as
the employee has that paper, it’s still their
problem. Once we take it, we are likely
to have to deal with it.
4. We should insist, within reason, that
employees come to us with suggestions of
what to do with a problem. Over time,
this ultimately reduces the number of
things they bring up because they have
to think it through and can begin to handle problems directly without you.
5. We should be open to an employee’s
suggestions on how to handle a problem.
If we are not, all the problems will be ours
to handle. Use these times as a positive
training exercise to explain how we think
the problem should be handled so they
understand our reasoning process. Gradually, their suggestions should improve as
6. We should be prepared for the fact
they may not always do everything the
way we would. This could be a good thing.
After all, who says we have all the correct
answers. Take them aside, tell them you
appreciate the fact that they were willing
to try to handle the problem and then
explain what additional thoughts or situations you would like for them to consider the next time this problem comes
up. Then, thank them again for being
willing to handle problems.
7. We should always be on the lookout
for opportunities to brag about the good
decisions, such as at staff meetings or in
front of other team members. It makes
the employee feel great and encourages
others to learn to do the same.
If we want our company to grow, we
must have people who can learn to make
decisions for us. In order to do this, we
have to start with reasonable intelligent
people and let them know what our goals
are, and how to reach them. Take the
time to explain why we want things done
a certain way, so they can learn to think
our way. Solicit their ideas and thoughts
on how to reach the goals and resolve
roadblocks that arise. Always thank them
for their input and be very careful to
never embarrass or humiliate anyone.
Always give credit for ideas where
credit is due. People will appreciate it and
will work hard to come up with more suggestions. Over time, you will also discover who is growing and blooming and
who is a stagnant rock. Don’t waste your
time watering the rocks.
With over 40 years of combined experience in helping recyclers develop their
employees and heirs into the next generation of managers, we have found this
a key part of the succession plan. If you
plan on retiring someday, it is important
to start the process of bringing the key
people up to speed on what has to be
done and how to accomplish it. Teaching
them how to make good decisions is just
one of the things they have to learn. If you
wait too long, you may find that you’re
just tired, instead of retired. ■
Jim Counts, Counts Consulting, provides organization and financial development for dismantlers. Contact Jim at (817) 238-9991 or visit
From the ARA Safety Committee
ARA Safety Tip on Automotive Lifts
Lift Certificate Label
SHA has no regulations
that specifically address
the subject of automotive lifts. Rather,
OSHA uses the General Duty Clause
(OSHA General Clause – Section 5(a)(1)
of Occupational Safety and Health Act of
1970) which is a catch-all for unsafe working conditions, as an enforcement tool
for lift safety. OSHA also relies on the
American National Standards Institute
(ANSI) standard for automotive lifts that
requires that all lifts to be tested and certified. So when buying an automotive lift,
make sure it has the “ALI/ETL Lift
Certification Label,” shown above. This
label indicates that the lift meets National
You can find sample lift inspection
checklists at www2.worksafebc.com/
An automotive lift should be inspected
at least once per year and more frequently when specified by the manufacturer or the authority having jurisdiction.
The ANSI Standard provides guidance to
the owner, employer, and lift service and
inspection provider(s) with regard to the
required qualifications, training, reporting, and documentation for operators,
inspectors, and maintenance personnel.
This Standard also provides sample
forms and checklists for use by all parties
attempting to comply with this Standard.
For a list of inspectors in your area’
please go to www.autolift.org/inspectors.
Until the 1980s, most automotive lifts
were of the in-ground type. Today, surface mounted lifts make up a large part
of the total auto lifts in use and include
types such as the 4-post lift. Surface
mounted lifts are typically bolted to the
22 Automotive Recycling | November-December 2013
garage floor and are usually powered by an electric
motor which operates
either a hydraulic pump or
a screw type drive. All of
these lifts must be ANSI
certified and all users must
be trained on how to operate them safely. In addition,
owners/employers are required to appropriately
document operator training by completing an operator training log. ■
Don’t be surprised by an OSHA inspector. Know that OSHA requires
automotive lifts to be certified! Do your automotive lifts have the
ANSI/ALI Lift Certification Label?
to get yours
By Ginny Whelan
Modern Conveniences: Are They Convenient for Auto Recyclers?
does the future hold that
text makes it harder and harder to
embrace? Here are some thoughts from
to consider on
the future of repairs. He explains:
Telematics are the “extra” electronics in
your vehicle; things like satellite navigation, blue tooth connectivity, and even a
vehicle’s own IP address. More and more
this stuff is showing up in modern vehicles. The question I pose is, how will this
affect the future of auto repair and what
is in it for auto recyclers? At some point
these systems will need to be repaired.
When that happens, will the independent
shop or DIY be able to deal with those
repairs? Will those repairers find their way
to recycled parts or will it be dealers only?
I’ve read a number of articles on how
manufacturers view telematics as a great
way to direct service customers to the
dealers. It’s a powerful tool if a code sets
and the customer gets an e-mail or message in the car that directs them to the
nearest dealer. Independents should be
strong supporters of “Right to Repair”
laws. These are proposed laws that
require manufacturers to make service
information and technology available at
reasonable cost to vehicle owners and
independent repair shops so that owners
will have a real choice about where to get
their vehicles fixed.
There was a big push for this back in
24 Automotive Recycling | November-December 2013
the early 2000s that resulted in manufacturers “voluntarily” releasing some things
-- Chrysler, for example, finally made the
proprietary DRBIII scan tool available for
purchase by the “public.” Manufacturers
then successfully argued against a Right to
Repair Law by stating that they were now
voluntarily making everything available.
They have continued to do so to some
extent, but I have heard in the case of
Chrysler that the aftermarket version of
their new scan tool, the wiTECH, has
much more limited functionality than the
versions available to dealers. The tool also
is not a stand-alone unit, but must be constantly connected to the Internet under
a valid subscription to remain functional. Yes, they can say they’ve made it available to the aftermarket, but the devil is in
Now when my car gets a virus where do
I take it, to Eric the repair guy or to an
IT shop? My only hope is that as it has
already happened before when the
OBD2 standard came out and put order
to a chaotic situation, it will also happen
with this new breed of computer-cars.
So there will be tools which are a simple cable to hook up into your laptop
and will tell you a lot of things about the
car. Ten years ago the very same tools cost
heaps of money and weren’t so universal.
It’s exactly like in IT; to solve a problem
they create a whole new control system,
which in turn adds ten new problems
and tons of complexity.
Once there was the carburetor. Then
came ECUs and O2 sensors, then they
had to monitor if the O2 sensor was
doing its job, so they added a second O2
sensor, and so on.
Remember, an ECU (or whatever) is
only as good as its sensors are, in fact
sometimes a perfectly running (mechanically) car can be stopped by a malfunctioning (for example) crank sensor,
which fools the ECU into thinking the
engine isn’t running at all, and thus it gets
stopped. Maybe I’m narrow-minded on
this, but a car is a car, not a computer.
I think it is not quite as bad as it sounds.
Manufacturers have always claimed their
cars are so sophisticated they need special dealer tools etc. It’s a bit like cracking copy protection on your console
game to prove what is wrong. They cannot afford to misdiagnose and do a big
job that does not solve the problem.
I think the days of assuming it’s a “pattern fault” and making a guess is over for
an independent. Modern cars, in general, are far more time-consuming to work
on. This means it is very easy for the cost
of repair to be more than the value of the
car. Therefore, I expect modern cars to
be scrapped fairly soon after falling out
of the dealer system.
On the positive side, there will be bargains out there for recyclers who can
solve these high tech issues.
I’m concerned about the independent
side of it right now, but I am more concerned about the amount of service
information and training available to
auto recyclers. Even for techs who work
at the dealers, there is very little information about how these systems actually
work, or how they’re supposed to work.
Ginny Whelan, an ARA Past President, is ManThe infoaging
is basicalDirector ofby
Foundaly a moretiontechnically
and founder ofwritten
the ARA University,
training resource in auto remanual, leading
cycling education. Visit www.arauniversity.org.
impossible to properly diag-
modern cars, in general, are far more time-consuming to work on.
This means it is very easy for the cost of repair to be more than the value of the car.
Therefore, I expect modern cars to be scrapped fairly soon after
falling out of the dealer system.
nose some customers’ complaints of
what their system is doing.
Another huge problem is the poor
implementation of technical standards,
like Bluetooth. This is not just on the
vehicle manufacturer’s side, but the
phone manufacturer’s side as well. Some
implementations of Bluetooth aren’t as
robust as others, or are buggy, or simply
won’t work with the vehicle’s system. To
me this is infuriating. I understand why
it doesn’t work, but the customer doesn’t.
If there is a standard, why isn’t it being
adhered to on all sides, phone and vehicle? Why should only some combinations
of phone and radio work?
All of the new electronics integration
has one big downside. It makes it harder
to concentrate on the actual driving of
the vehicle. The upside is that this will be
a big boon to the body shops.
As for the repair side many of these systems are module based, like working with
a flash ECM. Plug it in, flash it with the
correct info using the VIN and it works.
The problem will be the same as it is with
ECMs currently, how much money does
the independent want to spend to provide the service? Take a look at the current pricing for ECM flash data and add
each module to that.
Then you have the data security to
think about. How do you ensure that
only the proper people have access to
the flash software and feature enabling
items? Take On-Star for instance, it
already has the ability to do much more
than is advertised. Most of it is turned off
or only usable with court order or similar. Vehicle tracking through GPS, ability to monitor all the aspects of the
vehicle that are on the data bus, ability
for remote activation of any ECN controlled item in the vehicle. All the fuss
that was being made over the black
boxes in the cars that could be abused
by the police/insurance companies?
That is just the very tip of what is actually already in that system. Now you add in
the cell phone linking, data transfer and
the self-driving controls (park assist or
Will auto recyclers be more than happy
to tell the customer, “Sorry that is something we don’t sell?” ■
© Eric The Car Guy. All Rights Reserved. Reach him
at [email protected] or find him on YouTube.
November-December 2013 | Automotive Recycling 25
That’s My Opinion
By Ron Sturgeon
How Long Will You Wait to Start Growing Your Sales Using the Web?
hope you learned some new things at
the presentation about using the web
to improve your sales that I gave recently at the ARA convention in Phoenix. It
was so good to see old friends from the
last 35 years and to make new ones. But,
let’s get down to business.
I gave you a few takeaways to initiate to
increase your sales. Have you gotten started yet?
Just today, I had lunch with a recycler
who I gave ideas on an actionable plan
to increase his sales on the web. I gave
him those actionable insights over two
years ago. He said, “I just can’t find the
time to get started.” For 2 years?
He admitted that he and I had created a good plan with the right steps but
he still had not taken Step 1.
As I listened to the reasons he had not
taken the first step, I started to think
about what some other business owners
say about the web: “The Internet just
doesn’t do much for us, so we’re focused
on getting more walk in business and
finding places to cut costs.”
That’s a real problem. Many business
owners have not unlocked the formula
for getting sales from the web. They may
have spent some money creating their
site and experienced a good return on
investment, so they regard the website as
an expense that doesn’t bring in revenue.
Think of developing your business
website as similar to adding a new city to
your sales and delivery area. You would
be willing to spend big money for marketing, a delivery truck, another salesperson, or pretty much whatever it took
to break into that new market.
How is the web different?
Perhaps it takes a little longer to get
traction on the web, but it’s virgin territory if you have not been getting sales
The web has compelling advantages
from the expense side. Costs of expand26 Automotive Recycling | November-December 2013
So, have you begun to apply what you
learned? Did you take notes, then go
home and get to work using the web to
buy cars with a lower cost of goods while
increasing your inventory with parts your
customers want? Have you begun to use
Craigslist and eBay?
Remember one of my clients doubled
his sales in one month using the eBay
techniques we discussed. Find the time to
start growing your sales online today!
The web has compelling
advantages from the
expense side. Costs of
expanding on the web
taper off as a percentage
of sales as you gain traction.
ing on the web taper off,
as a percentage of sales, as
you gain traction. That
more your web marketing
works, the lower your costs for the
incremental sales. That’s not true about
your new territory with the new salesperson and new truck and new driver.
Had the gentleman I had lunch with
found the time two years ago to start
using the web to sell, he would be seeing
his web revenues climb steadily.
Instead, he waited. I can promise you,
however, that one of his 25 or so local
competitors did begin to deploy a strategy to sell more parts on the web without
using Pay Per Click.
In my presentation, we also discussed
how to avoid pay per click, which will cut
your expenses while you grow sales, and
connecting your value proposition to the
web to make sure you are.
If you have a website,
I will give you a free
report that shows how
search engine friendly
it is and lists suggested
changes to get more traffic
from paying customers!
Remember only you can make business great!
To get a free website review or inquire about
engaging Ron as a consultant, contact him
at [email protected] or call
(817) 834-3625. ■
Ron Sturgeon, an author and founder of Mr.
Mission Possible small business consulting,
over 35 years of entrepreneurship with extensive experience in consulting, speaking, and
business writing. Ron shares his expertise in strategic planning, capitalization, compensation, growing market share
providing field-proven, high-profit best practices.
From the ARA Technical Committee
Report of the Automotive Recyclers Association and Association of
Global Automakers Fluid Study, September, 2013, Executive Summary
otal loss and end-of-life vehicles are
routinely processed by automotive
recycling facilities and scrap metals companies to manage environmentally sensitive materials, such as engine oils,
coolant, transmission fluid, gear oil, gasoline and brake line fluid. Due to factors
such as reservoir geometry, drain points,
design components and dismantler techniques and methods, 100% fluid removal
is not entirely possible. Existing techniques for collection include gravity
draining fluid reservoirs and negative
pressure evacuation of the systems. This
study focused on gasoline tanks, torque
converters and differentials and attempted to quantify fluid volumes that are not
collected due to these factors and identify likely changes to help improve the
efficiency and completeness of fluid collection.
Current collection techniques for each
selected component were documented
at participating locations and special
methods were used for removing and
quantifying fluid left behind in each component studied. All participating locations were full-service, automotive
recycling facilities, members of the
Automotive Recyclers Association and by
study design remain anonymous. No selfservice facilities were included in the
study as they were less likely to process targeted model year vehicles. Sixteen automotive recycling facilities, located in 13
states and Ontario, Canada, participated
in the study either for data collection or
as part of initial scoping efforts. A total of
82 vehicles were processed to evaluate 76
gasoline tanks, 40 torque converters and
17 front or rear differentials for fluids
remaining after normal processing and
draining by the participating automotive
Gasoline tanks studied had a mean volume of fuel remaining of 699 milliliters
(ml.) (~23 oz.) after processing. Six different methods to remove gas were
observed among the 16 participating
facilities. The volume of remaining fuel
was related to the technique used by dismantlers and to the design of the fuel
sending unit (FSU), but not to the tank
material (plastic or metal) or tank design.
Facilities that did not remove the tanks
before or after draining had 50% more
remaining fuel than tanks that were
dropped and the FSU emptied. Fuel
sending units designed as a large container hold considerable amounts of fuel.
If the tank is not dropped, the fuel in the
FSU does not reach the drain point created during normal drilling or punching
of tanks. Most remaining fuel in tanks is
likely to be released through evaporation
either during storage on the vehicle,
when tanks are stored before disposal, or
during the shredding process. Small
amounts of fuel may be released as liquid
gas during draining and handling before
complete evaporation occurs. Evaporated gasoline (hydrocarbons) contributes to ozone formation. Maximum fuel
removal is important to reduce safety
concerns for fire and explosive hazards.
Torque converters (TC) had a mean
volume of 902 ml. (~32 oz.) of fluid
remaining after processing. Only two TC
(5%) of all units studied, had drain
plugs. Neither of the TCs with plugs were
actually drained using the drain plug during normal processing by the dismantlers. Dismantlers may be used to having
no plugs available and they simply invert
the TC on a drain table without checking. As the majority of TC are sold for
reuse, sent for remanufacturing or
processed as metal scrap for recycling,
the remaining fluid is unlikely to be
released to the environment.
Front and rear differentials studied had
a mean volume of 98 ml. (~3 oz.) of fluid
remaining after processing. Contributing
factors include time of drain and design
of the opening. Typical drain times by the
dismantler mechanics were limited to the
inspection of the gears, housing, presence of metal shavings and the fluid condition (10 to 12 minutes). Some
differentials have a significant internal lip
that holds back small amounts of fluid
after the cover is removed, particularly if
the differential is not inverted 90°. As the
majority of differentials are sold for
reuse, sent for remanufacturing or
processed as metal scrap for recycling,
the remaining fluid is unlikely to be
released to the environment.
Based on the report findings, recommendations for dismantlers and automotive manufacturers were identified
with the recognition that the benefits of
design changes will take a number of
years before they are commonplace for
Recommendations for dismantlers
1. Dropping the gas tank before or
after draining to remove the fuel
sending unit will improve fuel collection;
2. Torque converter plugs, where available, should be removed for draining; and,
3. Differential draining should include
a longer drain time and 90° inversion.
Recommendations for automotive
manufacturers to consider include:
1. Design fuel sending units without a
container like area that holds fuel
during dismantler draining;
2. Incorporate drain plugs in torque
converter design; and,
3. Design differentials without a significant lip at the opening. ■
Acknowledgements: This study was funded by the Association of Global Automakers and the Automotive Recyclers Association.
Appreciation is extended to the 16 automotive recycling
companies that participated in the study and provided
time and resources and required significant disruptions
to production during data collection
November-December 2013 | Automotive Recycling 27
TUTORIAL IN TRAINING
The making of the first-ever
automotive recycling college program.
B Y PAT O ’ C O N N O R , W A U B O N S E E C O M M U N I T Y C O L L E G E
ine months ago I was given the challenge
to create the Automotive Recycling program for Waubonsee Community College.
As I began developing the program I soon
learned the impact the auto recycling
industry had in moving our culture to a
more sustainable future, perhaps more
than any other industry in the world.
Until recent years, most consumers believed that their problems were over when
they left their garbage at the curb or traded their old, worn out car in at the dealer.
But what most of them did not know is that the auto recycling industry is one of
the industries that has been playing a key role behind the scenes, one that transforms what used to be thought of as waste into usable and viable resources.
This is one of the first things I learned about the industry and one of the major
reasons Waubonsee Community College saw the need to create a program that
educates students on the skills and knowledge needed to enter into the auto recycling industry.
First, A Little History Lesson
This started two years ago when Ken Kunz, Professor of Automotive Technology
for Waubonsee Community College in Sugar Grove, Illinois, met with Sean Krause,
owner of Speedway Auto, Ltd. in Joliet, Illinois, and came up with the idea to teach
an auto recycling class. They realized that with the abundance of new technology
28 Automotive Recycling | November-December 2013
incorporated into vehicles today and the ever-increasing Environmental Protection Agency (EPA) regulations being imposed on the industry, there would be
a need for a more skilled employee within this field.
Two years later, with two auto recycling classes
under their belt, Waubonsee Community College
was asked by the Illinois Green Economy Network
(IGEN), a consortium of 48 Illinois community colleges who encourage green initiatives and is funded
by a grant from the Department of Labor, to partner
in creating an auto recycling course to add to IGEN’s
list of classes that promote green and sustainable
careers. Seeing that the automobile is one of the
most recycled machines on the planet, this was a perfect opportunity for Waubonsee to bring their auto
recycling program to the next level.
Program in Action
Waubonsee’s new Automotive Recycling program
was launched in June of this year and is being taught
in a combined format that includes both online and
in-class instruction, allowing easier access for students.
The program focuses not only on the skills that are
already required in the industry, such as vehicle dismantling, Inventory Management System (IMS), and
parts grading, but also introduces the environmental
practices that have influenced change in the industry.
The learning path that each student takes begins
with an overview of the industry and the direction it
has gone, then moves into safety and safe shop practices. The class then takes the student through the
entire process of managing a vehicle that has reached
its end-of-life stage and emulates real-life work experience with all the tools and equipment necessary,
including IMS software, depollutioning stations and
forklifts. The goal of the program is to mirror what is
happening in the field now, as well as implement new
and innovative technology and procedures to help
advance the industry.
Technology and innovation have aided in creating
a safer and more profitable business environment for
all industries. They have helped streamline inventory
and manufacturing processes, enhanced working
environments to be more efficient and safe, and
brought our world together to allow us to communicate farther and more effectively across our entire
planet. But to survive the technological adolescence
we are now experiencing we must keep our focus on
educating our workforce.
We must try to find the direction that will allow us
to take advantage of opportunities that will be made
available to us as well as transform our attitudes of yesterday into tomorrow’s possibilities. This is the view
chosen in creating Waubonsee’s Automotive Recycling
program, along with the thought that if we want to be
competitive locally and globally, we need to develop
the educational models
that keep pace with new
technology. This will allow
us to deliver the right education for tomorrow’s workforce.
I would like to thank
everyone that has helped
Waubonsee in developing
our auto recycling course.
This all would not be possible if it wasn’t for the
cooperation and input of
several ARA members
including Sean Krause of
Speedway Auto, Doug and
Dave Anderson of I-55
Auto Salvage, Jay and Larry Brosten of Auto Parts
City, Paulette Cuvala & Mark Sievert of LKQ
Corporation, Jim Hope of Stafford’s Auto Parts &
Recycling and especially Ginny Whelan, ARA
Educational Foundation Executive Director and ARA
We depend on input from the ARA and local automotive recyclers to give us direction on what is
needed in today’s industry and we hope to continue
to work together to achieve the goal of a brighter
future and a better tomorrow. ■
We must take
that will be made
available to us as
well as transform our
Pat O’Connor is the Automotive Recycling Program Developer at Waubonsee Community College in Sugar Grove, Illinois.
November-December 2013 | Automotive Recycling 29
From Good to
Strengthening your parts sales requires a systematic approach
to training your sales team.
B Y TA I A M . C E S A N A
alking in to my local chain coffee shop I am greeted
with a very typical, “What can I get you this morning?” On this particular day I was ordering coffee for
a couple of people at the office. I told the barista my
first drink order, “I need one grande, soy, vanilla
latte...” Then, I politely paused as she was entering the
order so I wouldn’t confuse her with my next drink
request. But before I could continue she blurted, “That
will be $3.45.”
I explained that I actually need to order a couple
other drinks. She had an annoyed look on her face
as she got back into the order to add to it. I finished
telling her my drink orders and again before I could
ask for anything else she gave me the total price for
the drinks. At this point I was quite exasperated and
I told her I would also like to order some food. I felt
like I was inconveniencing her by adding to my order.
It was a very uncomfortable situation. I left the coffee
shop that morning wondering how much money this
particular multi-billion dollar company loses because
their staff isn’t trained to ask for more sales.
You may wonder what ordering coffee has to do
with auto parts, but sales are sales. Almost every day I
am on the receiving end of customer service and,
whether good or bad, I take a moment to reflect back
on my own business and how I can apply what I have
learned to improve our sales.
30 Automotive Recycling | November-December 2013
My uncomfortable experience at the coffee shop,
which happens more often than I would like, has me
thinking about one of the most basic principles of
the sales profession, but often the least practiced:
asking for the sale. If you don’t ask for the sale the
answer will always be “No.”
When we hire and train our sales people are we
training them to sell? Do you train them to ask for
the sale? Many of us, myself included, have hired
sales people and trained them on nothing more
than how to answer the phones and enter orders
thinking that the sales part takes care of itself once
you get a customer on the line. The sad truth is it
doesn’t. Even though we are blessed not to be in an
industry where we are trying to convince someone
they “need” to buy some luxury item, we can’t count
on the customer to close the sale, we must train our
sales people to do so!
Following are my five quick tips for training your
sales people to ask for the sale:
1. Get the customer to acknowledge that the part has
value to them. This is one of the oldest sales tactics in
the book but remember that sales is a game of psychology. You need to get inside your customer’s
mindset and help them see why ordering the part
from you is better than any other option they may
have. In the case of used auto parts, getting the customer to see the value in the part they are after
usually has to do with learning about what they are
repairing and why. Whether it is an individual or
garage you must ask questions about the job. This
will help you better understand their needs and then
in turn comment on why the part you have in stock
will help them get the job done.
Often in our industry one of the biggest values to
the customer is the lower price of used OEM parts
versus new. You can almost always get the customer to
agree that the part will save them money, this is a first
step. But even so, your customer probably has many
options for used OEM parts, which is why you also
need to stress the value that your company has to
offer. This can be many things including a more competitive price, a better warranty, the right color body
part, low mileage, quick delivery, etc. Pick your
strongest selling point and get your customer to
agree that this will help them get their job done.
2. Don’t blurt out the price and then wait for an answer.
If price must be discussed, follow it up with a question
and guide the conversation into closing the sale. If
you blurt out the price and wait for the answer you are
only rolling the dice and hoping you will win. Yes,
there is a slight chance that the customer will immediately agree to purchase and proceed, but there is a
much greater chance that they will not and then you
November-December 2013 | Automotive Recycling 31
have lost control of the sale. I find that price is a hard
thing to avoid in our industry because we price on
supply and demand. Many customers realize that the
price of our parts fluctuates depending on the market.
Often a customer calls specifically letting me know
they are checking the price. If this is the case, my
favorite thing to do is to wrap the price up in a
question that will get the customer to state a positive
affirmation. For example “Yes, I have that engine in
stock for $650, you wanted the one with 80K miles
correct?” or “Yes, I have that front door in stock for
$150, you were looking at the red one on our website
correct?” The customer will answer with a “Yes”
because you are really just confirming something that
you already knew about what they were looking for.
You then have the opportunity to set up delivery for
the part by another engaging question “When do you
need the part by?” and then use that answer to get
your order in and close the sale.
3. Always ask if there is anything else that the customer
needs. This is one of the simplest and least invasive questions you can ask your customer
that can lead to more sales; yet again it is
often forgotten. If you took the time in the
beginning of the conversation to understand the job they are working on you
might already have an idea of the other
parts they might need and can make suggestions without asking.
For example, if they called looking for a rear quarter panel, they
might also need the tail light,
bumper and trunk lid. Do not
32 Automotive Recycling | November-December 2013
assume that the customer would think to ask if they
need it. Many times shops are working off of repair
estimates that have not taken into consideration that
vendors have more of the required parts than originally written. If nothing else, make sure you wrap up
your sales with a simple “Can I help you get any
other parts for this vehicle?” or “Do you have any
other jobs right now that I can check on parts for
4. Make it easy for your customer to order from you.
In the case that you were not able to close the sale on
the first phone call you must outright ask what it will
take for them to decide and then give them a reason
to reach you or confirm that you will follow up. If
you don’t have information about what is driving
their decisions, you will never efficiently make sales.
Most people are either searching for pricing or availability. Find out which it is and then make your pitch
based on what they need.
If the customer tells you that they do not know if
they will get the job, you need to ask when they will
know. Then offer to call them back to make it easier
for them. Also make sure you are using your quote
system to its fullest potential. We know that quotes
are useful for our sales people to remember details
of a request but they are not used as a selling tool
often enough. Make sure your sales people tell the
customer they have the part request in a quote. Have
them offer the quote number or a faxed or e-mailed
copy of the quote.
Even just verbally communicating to the customer
that there is a record of the request on file helps to
solidify in the mind of the customer that their
business matters to you. If you discussed special pricing or requests during the conversation make sure
you confirm that, too. It
shows the customer
that you are paying
I have that engine
attention and gives
in stock for $650.
them a reason to
call you back.
the one with 80K
5. Stop fearing remiles, correct?
jection. One of the
hardest parts of asking
for the sale is being rejected.
I have read countless articles on sales
that remind me that a rejected sale is not
to be taken personally. The customer is
not saying “I do not like you,” they
are just saying that they are not
ready or willing to give their
money in exchange for your product or service.
Pick your strongest selling point and
get your customer to agree that this will help them
get their job done.
However, many of us, myself included, can feel like
it is a personal offense when a customer outright tells
us why they won’t purchase our parts. Some customers feel it is necessary not only to refuse the sale
but add insult to injury. I will never forget during my
first year in the business I was on the road making
customer visits to local body shops and garages. I had
my little speech prepared and my visits were going
well until I got to one Mom & Pop shop where the
owner came out to talk to me. I introduced myself,
thanked him for his business and offered up the free
pens, notepads, and food that I had brought with
me when he told me outright that he hated buying
used parts, he thought they were all junk and only
did so when he had to for insurance jobs.
He then went as far as to hand me back my pens
and notepads but said he would keep the food.
Being new to the sales side of the parts business I
think I turned five shades of red, apologized profusely
for bothering him, and walked out the door with my
tail between my legs. I will never forget how rejected
I felt and I have thought about it a lot since then. I
learned a couple of things that day. First, his rejection
of my product was not a personal insult, but him verbalizing frustrations with past experiences. Second, it
was an opportunity to engage him in a discussion of
why he had that opinion about used parts and to
possibly change his mind, or at least convince him
that when he had to buy used parts that he should
buy them from us.
If you take sales rejection personally you will always
be paralyzed in fear. Ask for the sale and be prepared
with information that will help you make the sale
when there are doubts from your customer. ■
Taia M. Cesana, a second generation auto recycler, is Vice President of East Coast
Auto Salvage, Inc., in Higganum, Conn.
November-December 2013 | Automotive Recycling 33
Extending the scope of your hiring process to
analyze candidates from different perspectives can
eliminate the surprise factor once they are hired.
B Y M I C H E L L E K E A D L E - TAY L O R
am slow to hire and
perhaps should be a
little quicker to fire
Eric Schulz, co-owner
of AAA Auto Parts.
“I know that many
auto recyclers will say
they don’t have time
to devote several hours to an interview,
let alone two or three with a potential
candidate. The key thing I’ve learned is
that if you take the time to hire the right
people it will pay off in the long run.
We tend to hire people and throw them
into the fire then we wonder why they
leave? Perhaps they weren’t the right
people to start with, even though they
may have had great skills.
34 Automotive Recycling | November-December 2013
“It’s taken me some time to learn the best way to
hire people is to look at their personality and problem-solving skills first, rather than how much experience they have with cars,” said Schulz. “I used to
start off with their skills first, but after hiring people
who had great skills but didn’t fit into the overall
culture of our company I started to see that it was
more important that they fit in with our team and
the flow of the company culture. I also feel that if we
take the time to train our employees properly, it will
pay dividends later and we will retain some good
THE SECRET TO FINDING AND
KEEPING GREAT EMPLOYEES
any businesses look for employees by placing
ads in local newspapers, using online job
resources, or even turning to a hiring agency. They
attempt to attract good employees by offering a
good and fair salary and a great benefits package
that includes health and dental insurance, paid
time off, and retirement benefits. Schulz says he has
used all these things, but he has found that the
The AAA Auto Parts crew at a recent company gathering to celebrate the 30th anniversary of the company.
secret to both finding and keeping great people has
to do with your own reputation and how well you
treat your employees.
“Finding a great employee is just one part of the
equation,” said Schulz. “He or she must also want to
work for you as well. Your reputation is everything
and you never know where your next employee is
coming from. If you treated someone in the drivethrough at McDonald’s poorly and then they find
out it’s you, you have lost a potential great employee.
Most people will say that their customer is number
one, but I like to say that it’s your employees that are
number one. When you treat your employees like
they are number one, they will treat the customers
that way, too. They will also want their friends to
work at your company too and experience the culture that treats them with respect, integrity and
takes a personal interest in them. Almost all of our
hiring is now done by word of mouth and we’ve
reached the point where potential employees are
waiting to work for us.”
Schulz says they bring up open positions in their
weekly meetings because employees might want a
change in position. He finds it tends to work a little
like Facebook, in that advertising it to their employees opens it up to all the people their employees
know as well. They also offer incentives to employees
if they refer someone for hiring.
“There are many great sources to begin to look
for great people,” said Schulz. “One of the best that
I’ve found is word of mouth. We ask our employees.
“I’d rather train my employees and
have them leave, than not train them
and have them stay.” –Shawn Collins
November-December 2013 | Automotive Recycling 35
“I started asking for an application even if the
applicant had a resume after attending an ARA seminar two years ago,” said Schulz. “I learned that the
application is a form of contract and it satisfies the
legal requirements for Human Resources. They
may also list different references than what they
have on their resume.”
As an employer, it’s important to make sure your
application complies with all state and federal
requirements and stays up on the latest regulations
in your state. For instance, there is a current battle
going on over banning questions about criminal history from applications so it is wise to be up-to-date
on your state’s regulations.
WHAT TO ASK IN THE INTERVIEW PROCESS
Schulz says he used to dread annual
reviews but now he no longer conducts
them. Instead he has opened up
monthly (or more) dialogue that
serve as mini-reviews.
“I also actively recruit and go after people who I,
myself, have received exceptional service from. The
way they treat me is a good indication of how they
will treat our customers. I carry business cards with
me so I can give them out if I come across someone
with potential for our industry. I also keep an active
file of potential employees. I go through the applications every four months or so and call applicants
to let them know that I still have their applications.
I take the time to make contact and to find out if the
applicant is still searching for a job, in a new
position, or is still interested. This helps establish
contact with potential employees and lets the applicant know that you are aware of their potential and
that you are still interested. This makes it much easier once a position does open up.”
HOW DO I QUALIFY A GOOD CANDIDATE?
t’s a big job to start to sift through the various
applicants and determine which one best fits the
position. Schulz says he starts off by eliminating all
incomplete or unsigned applications. Then he
makes sure references are listed and he asks the
applicant to fill out an application even if he or she
has given a resume.
36 Automotive Recycling | November-December 2013
he interview process is an important part on the
journey to qualify a good candidate. Once
you’ve established that this person has skills you
feel would match the position, Schulz feels that taking your time to interview the applicant several
times is key to finding the right employee.
“The goal of your first interview is to make sure
that the applicant will fit and get along with your
existing employees,” said Schulz. “Avoid asking yes
or no questions; instead ask open ended questions.”
Begin by disclosing your drug and alcohol testing
policy, Schulz recommends. If there is a problem
with that, you don’t want to waste any more of your
time or theirs. Then, move on to asking the
applicant how much he or she knows about your
company and the industry. Basically, you need to get
to know your applicant so your goal is to get him or
her talking about himself or herself.
“Some examples of the type questions I might ask,
include,” says Schulz, “what do you like to do, tell
me about your best friend, if I asked your friend or
spouse to describe you what would they tell me? If
you have a free weekend to hang out with anyone
you want and do whatever you want, who would you
hang out with and what would you do? Also, you can
ask the applicant where he or she would like to be
in three, five, ten years from now to determine if the
goals he or she has match the goals you have for the
Schulz recommends that after the first interview,
assuming you’ve established this candidate could
possibly become one of your employees, make sure
to check all references. Call all of their professional
and personal references and verify information
from the interview and application. Then ask for
the contact information of another person who
knows the applicant and call that person. That person may be surprised to hear from you, but you will
get more honest answers.
“Most people listed as references have been prepped to some degree knowing they might get called,
but when you call the second layer of people who
know the potential employees you’ll get a more
honest assessment,” said Schulz. “If you get glowing
comments from this second layer of referrals then
you’re on to a pretty decent person.”
nce the applicant has passed the reference
check it’s time for the second interview.
“For me, the second interview is when I get into
the specifics of the job, including what it takes both
physically and mentally,” said Schulz. “Get them
talking about their previous work experience and
skills and how it might apply to this job. It’s important to remember that even if the applicant doesn’t
have all the skills you require for the position, you
can train a person who is trainable. Talk about problem solving and critical thinking so you can find out
if he or she can think on their feet as well as independently. Also ask them why they think they would
be the best candidate for the job. All of these ques-
tions will give you an idea of how close a match they
are to the position.”
uring the third interview, you will need to discuss benefits in details and go into salary negotiation.
“If your cap is $18 per hour and you want this
employee to stay, then you will need to take this into
consideration,” said Schulz. “You can start anywhere
in your salary range that you want such as higher for
more qualifications but I find it’s a good idea to let
the applicant know there is a cap. Always, always,
always do a pre-employment drug screening and a
background check. If I am hiring a sales person or
anyone who will be handling money, I also do a
credit check. For some positions, it is also a good
idea to do a motor vehicle background check.
NOW THAT YOU’VE GOT THEM,
HOW DO YOU KEEP THEM?
he first step in getting off on the right foot with a
newly hired employee is giving them an orientation and telling them everything they need to know
for a successful start in your company. Give them the
November-December 2013 | Automotive Recycling 37
ping. That way, the new employee has someone he or
she can go to with questions about how the process is
done as well as someone to connect to and help the
transition into the business. Initially, I have them get
together once a day, then less frequently, as the new
employee gets used to things.”
Empower employees to do the things
they excel at and enjoy, instead of
bogging them down with things they
are not really excited about.
whole story of the company history and an employee
handbook. Make sure to go over your expectations
regarding customer service, quality and respect as
well as company policies. It is a good idea to give several weeks of on-the-job training, including safety
training from the ARA University online.
“We rely heavily on ARA’s University safety training
to ingrain good safety habits in our new employees,”
said Schulz. “As part of our orientation, especially
with sales, we have new employees work with each
department at least half a day so they can learn how
different departments do things and how it affects
each of the other positions in the business. It helps
the new employee to see the bigger picture and how
his or her job affects other jobs.”
Recently, Schulz and his team have implemented a
mentorship program that assigns a mentor to each
new employee. That mentor serves as another source
to answer questions and help the new employee to
“learn the ropes.” So far, Schulz says it seems to be
making a difference.
“We just implemented this mentoring program not
too long ago but it’s really taking hold,” said Schulz.
“When we hire a new employee, we assign him or her
a mentor from a cross department. For example, if I
hire an outside dismantler then I might give him or
her a mentor from Quality Care or someone in ship-
38 Automotive Recycling | November-December 2013
he next key step in keeping your great employees
is to engage in constant conversation with them.
Schulz says he used to dread annual reviews but now
he no longer conducts them. Instead he has opened
up monthly (or more frequent) dialogue that serve
as mini-reviews. He visits the employee’s workplace
and discusses one or two topics each visit. He says he
always finishes the discussion with a personal question
and tries to learn more about the employee’s family
“I always make notes on what each employee is
telling me which is particularly useful when we are
trying to implement something new,” said Schulz.
“Then we can begin to see trends and find out if this
new proposed change will really work or not.”
mpower employees to do the things they excel at
and enjoy, instead of bogging them down with
things they are not really excited about. Same goes
for owners – hire someone to do what you’re not
“We have to be really careful that we don’t take
really good employees who are exceptional at one
thing and give them more responsibilities because
they were so great at the one thing,” said Schulz.
“When we do this, we often end up with an employee
who is not great at anything but mediocre at all his
or her responsibilities. For example, if you have an
employee in a body shop that is a really good estimator and attracts customers because he is so good at
that role, don’t give him other responsibilities, such
as insurance information, just because he is so good
at estimating. Let him excel at what he is good at,
because then you’ll have an employee who is great at
something and that spark will not die out under
et realistic expectations regarding compensation.
According to Schulz, you’ve got to know what
each job is really worth and pre-set salary ranges for
“It is an uncomfortable conversation for everyone
involved but eventually you have to have the money
conversation,” said Schulz. “Pay scales can certainly
help in this situation. It is not to say that your people
shouldn’t want to make more but they have to
realize that they have to bring more to the table in
order to make more. The days of longevity raises are
long gone. If an employee is at the top of the pay
scale already, they need to consider how they can
grow within the company with either more responsibility or a different position.”
A FEW MORE RECOMMENDATIONS
chulz has worked hard to develop this hiring
program and the payoff has been a solid staff of
long-standing and reliable employees. Here are a
few more of his tips:
• When it comes to incentives and sales commissions, you want to avoid the incentive pay trap. For
some positions, such as delivery drivers, incentives
work great. Make sure there is an incentive for picking up returns, too, and this will ensure great customer service on their part.
• If you want to remove the “you stole my sale”
issues and improve customer service fast, take your
sales people off commission. The quality of sale and
the bickering between sales people goes away overnight and they become more of a team. I am certainly not saying that you completely stop tracking sales
and all the other stuff that goes along with a sales
team. You still need to make sure each of them is carrying their own weight. Not only does it take pressure
off of them, we no longer need complicated formulas
and reports just to pay our people.
• Provide an annual earnings statement for each
employee. Include employer paid benefits, employer taxes, 401K matching funds, pro-rated employee
outings or parties, and anything else employee
related. We show our people what they are really
getting by working for us. Most employees are
amazed at what it actually costs to have them working for you. It can be an education for both you
and the employee.
It takes time and deliberate effort to change the
course and culture of your organization but the hiring process that Schulz and the team at AAA Auto
Parts has implemented has paid off with great
employees and a company culture that regularly
attracts potential employees. ■
Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.
November-December 2013 | Automotive Recycling 39
PROGRESS FOR MEMBERS
ARADirect provides automotive recyclers a fast lane
in a crowded salvage marketplace.
B Y M I C H E L L E K E A D L E - TAY L O R
key element in the success of an auto
recycler’s business is acquiring good
salvage. With an ever-increasing
crowded marketplace, obtaining
quality salvage has grown more
difficult in recent years. It’s
become a serious concern for
all association members. So
much so, that is has become
a constant and unsettling
topic of discussion among
auto recyclers. As the
expression goes, you cannot sell from an
empty warehouse. To meet this concern
head-on, ARA has recently launched
ARADirect, an Internet salvage auction
that is poised to be a solution to the members’ concern.
ARADirect is a service of ARA Product Services,
LLC (“ARAPS”), a subsidiary of the Automotive
Recyclers Association (“ARA”). ARAPS, along with
Alteso Group, offers the automotive recycling
industry a new and refreshing means to acquire
40 Automotive Recycling | November-December 2013
vehicles and thus meet their acquisition demands.
The ARADirect platform provides a significant
benefit for vehicle disposal and fleet management
for insurance companies, wholesalers, fleets, franchise dealers and others in a manner that significantly improves their methods of vehicle disposal
and changes the way auto recyclers acquire product.
“We are able to provide this product directly to
our membership, at the same time giving the vehicle providers a fully responsive North American
buying clientele,” said Ed MacDonald, ARA
President. “Furthermore, certain funding generated
from this program will be reinvested into endeavors
which will foster new growth and development in
“ARADirect is the newest source for salvage and
damaged vehicles for the automotive recycling
industry, with buyer membership to the site restricted to ARA members, State and Provincial Affiliates,
and licensed automotive recyclers,” said Ginny
Whelan, Director of Procurement for ARA Product
Services, LLC. “This impacts the crowded bidding
marketplace because it gives ARA members and
the professional automotive recycling industry the
advantage in buying quality salvage from one site
that has eliminated the middle man by bringing
multiple sources of inventory right to members’
“The marketplace is crowded in many ways,
including a vast number of auctions, variety of buyers, vehicle conditions and title considerations.
Within the auction network there are certainly so
many sizes of auctions from less than 100 units to
over 1000 units per facility,” Whelan said. “Most
recyclers purchase many of their vehicles through
online auctions which means they must consider
quality of the description, quantity, and quality of
the pictures and other information given to calculate the best possible bid for that particular auction
ARADirect is different from other auctions
because it’s an auction hub specifically developed
for ARA, state association, and provincial organization member buyers. This hub gives registered
buyers the opportunity to buy vehicles efficiently
both through area pools as well as in independent
auctions worldwide; all from their desktop or
iPads. Through ARADirect, members will benefit
from a wide network of buying options listed on
one site, with significant discounts in customary
pool fees. Access to the global inventory of salvage
vehicles will only be one click away for ARADirect
members, giving member-recyclers an edge in
managing their purchased inventory and building
a sustainable and growing business model.
The website is easy to use, with the ability to comfortably scroll through all the items available for
purchase. By clicking on each vehicle the purchaser
will see photos of the vehicle as well as details, date
of the auction, price, current bid, and whether or
not the purchaser can buy it now. There are also
full vehicle descriptions and shipping information.
One of the challenges recyclers face today in the
crowded marketplace comes when trying to purchase a true total loss vehicle such as a Hurricane
Sandy flood car. Those vehicles have already been
evaluated by an insurance company or collision
shop and deemed beyond a reasonable repair and
unsafe to be on the road. Some states allow those
vehicles to be sold at auctions that are open to the
general public, thus allowing unlicensed buyers,
exporter, and rebuilders who may not be concerned for the impact on the environment or
safety to purchase vehicles.
Doug Reinert, Chuck’s Auto Salvage, feels
ARADirect addresses that problem head-on.
“ARADirect is the best solution,” he said. “ARA has
set up a competitive auction platform to benefit
the seller and the recycler. ARADirect created a
marketplace where thousands of recyclers can
have the opportunity to bid on vehicles for the
purpose of recycling, not rebuilding. With up to
thousands of buyers, the seller can maximize their
BENEFITS TO MEMBERS:
• FREE Registration – NO ADDITIONAL COST TO ARA
MEMBERS AND AFFILIATE CHAPTERS. Fee paid on
vehicle purchases only.
• Expands the inventory pool for good quality salvage
• Brings multiple sources for acquiring vehicles into one
easy-to-use site that is only open to REGISTERED
professional auto recyclers.
• Allows ARA Member and ARA affiliates to shop for vehicles from home or the office and to bid on vehicles
through both area pools and independent auctions
• Easy-to-use site.
• Gives members significant discounts on customary pool
• Gives ARADirect members an advantage in purchasing
good quality salvage that can sustain their business.
• Saves time and money.
November-December 2013 | Automotive Recycling 41
PROGRESS FOR MEMBERS
return, while backing up their corporate commitment to be environmentally responsible by being
sure their vehicles are purchased and processed by
responsible auto recyclers.
“I look forward to the continued success of
ARADirect as a recycler who not only has the
opportunity to purchase a particular vehicle but if
I don’t have the winning bid, I at least have the
chance to buy a part from a fellow recycler to
satisfy one of our customers’ orders,” Reinert said.
There is no cost to ARA and ARA Affiliate chapter members to sign up for ARADirect when they
register by filling out the form available on the
ARADirect website, www.ARADirect.net.
Once registered, members will gain the ability to
bid on and secure the vehicles they need to continue to grow their business. Registered bidders
will be able to place bids during the online
auctions remotely from any location, and the bid
amount covers the price of the vehicle at the auction. Any additional fee or transportation cost will
be separate and vary from item to item, depending
on the price of the vehicle and membership type.
42 Automotive Recycling | November-December 2013
“ARADirect is counting on the robust support of
our automotive recycling association membership,
both national and statewide, which will help draw
additional salvage vehicle supply opportunities,”
said Whelan. “After considerable market analysis
to understand the challenges of this initiative, we
have learned from the experiences of others.
Issues related to storage, low dollar inventory, and
static location have been deliberated at length and
stakeholders know that the near-sourcing hub that
is ARADirect can successfully address these challenges.”
“We have listened to our membership, developed
a user-friendly platform, and launched this product
in order that our membership and indeed, all
association members, benefit from the continued
flow of product at the same time solving our suppliers’ demands and growing our associations,”
said MacDonald. “These are wonderful positives
for our current industry members.”
Get more information and sign up for this
online auction service at www.ARADirect.net. ■
Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.
Incoming Secretary RD Hopper
is ready to do his part.
B Y M I C H E L L E K E A D L E - TAY L O R
have benefitted from other ARA
members who have given of their
time to serve on the Executive
Committee – now it’s my turn to
do my part,” said RD Hopper,
the new Secretary for ARA’s
Executive Committee for 2013- 2014. “I plan
to bring my energy, industry experience,
and enthusiasm to the table and do what I
can to make sure our industry stays valid and
continues to thrive in the future.”
Hopper grew up in the auto parts industry, spending many summers with his grandfather, L.D. Hopper,
a District Manager for the Arkansas State Highway
Department who was responsible for, among many
things, vehicle and equipment purchases and maintenance. RD learned a lot about cars and parts
during those summers. In addition to that, RD’s
father, Roger Hopper, owned and operated Hopper’s
Auto Parts in Mt. View, Arkansas for many years.
When RD wasn’t in school, he was often helping in
the family business and learning hands-on.
“I grew up around new auto parts and it wasn’t
until my wife and I were expecting our first baby, that
I decided to make the move to auto recycling,” said
Hopper. “My first job was
as an auto parts salesman
that eventually led to my
wife and I purchasing
Sonny’s Auto Salvage.”
Sonny’s, which is located in Jacksonville, Arkansas, has been serving the
Central Arkansas area for
over 37 years and has
been a family-owned and
There has been a salvage
yard at Sonny’s current
location since the early
1960s. It was owned and
operated at varying times
by both James Bell and
Joe Mills. In 1976 Sonny Taylor purchased the business from Joe Mills and renamed it Sonny’s Auto
Salvage. The Taylors’ operated the business for 22
years before deciding to sell it to the Hoppers in
order to retire.
RD Hopper and his wife Jennifer purchased the
business in June of 1998. They have continued the
tradition of family with their children, Blake (25),
Alex (12) and Anna (9), representing yet another
generation of Hoppers growing up in the auto parts
November-December 2013 | Automotive Recycling 43
business. Sonny’s Auto Salvage encompasses about
22 acres and specializes in late model domestic and
foreign cars and trucks. Sonny’s also stocks a wide
variety of aftermarket parts and some new OEM
parts. It has grown to employ about 20 people.
Hopper closes the business on Saturday so employees
can spend time with their families.
Hopper has years of industry experience that he
brings to his new role as ARA’s Executive Committee
Secretary. Sonny’s has been an active member of
ARA and Arkansas Automotive Dismantlers and
Recyclers Association (AADRA) for many years and
Hopper served as President of AADRA and is currently their Southwest Director. For ARA, Hopper
was recently an At-Large Director and is the chair of
the NMVTIS workgroup which is part of the
Governmental Affairs Committee. In this capacity, he
regularly works with both the state and federal legislative houses.
Sonny’s is also a charter partner and member of
Hopper says that one of the main goals he hopes
to achieve during his term as Secretary is to help
ensure fair trade in the industry.
44 Automotive Recycling | November-December 2013
“One of the things I would like to really work on is
establishing a fair marketplace to purchase total-loss
vehicles, especially when it comes to international
bidders,” said Hopper. “I’m all for free trade as long
as it is fair trade. We want to work with honest businesses to ensure that salvage is not bought by less
than honest businesses that may have the intent to
put unsafe vehicles back out on the road.
“I also want to work on the interchangeability of
parts and accuracy of descriptions between insurance
companies, body shops and recyclers to make sure
we work together to get vehicles fixed quickly and
economically. We want to be part of the solution –
getting the right parts to the right place at the right
time. We can better achieve this if our parts descriptions and information are uniform and accurate.”
Hopper is ready to roll up his sleeves and get to
work and says he is looking forward to working with
many ARA members.
“I love the people in this industry,” said Hopper.
“They are like family and I can’t wait to meet new
members and work together to make our businesses
the best they can be!” ■
Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.
Can Fairy Tales
A story about how state associations work for you.
BY C H E RY L L L A M B R I G H T
ather around auto recyclers and let me tell you a story about a recycling fairy tale that came true! This story is full of lies, cheating, coverups, bad dudes, heroes, and TDLR. Oh my, can that be true?
It all started with a simple
complaint from one of our
story’s heroes, a Texas Automotive Recycler Association
Our hero sent a complaint to TARA to file with
the Texas Department of
Licensing and Regulation
(TDLR) that pointed out that a bad dude was in
the neighborhood. This bad dude (BD) was running a business that strongly resembled a Used
Automotive Parts Recycler (UAPR), but low and
behold, he did not have a license to operate this
business. (Heard this one before?)
BD had a sign on the street and ads on the
Internet and in the yellow pages, but no TDLR
license. How could it be, then, that BD advertised
and sold used automotive parts?
Our TARA hero was determined that this should
not be. The complaint was sent to TARA and filed
with the TDLR, and we twiddled our thumbs for a
while waiting for the BD to get a kick in the pants.
The TARA hero kept asking, “Why are they not
doing something?” And, just when it seemed that
all was lost – as it does in most fairy tales – the superhero, Mike Shirk (MS) from the TDLR enforcement
department, swooped in to save the day.
Superhero MS contacted TARA and said, “I am
going to take BD down.” He immediately leapt
into action and gave the BD notice that he would
be shut down by a certain date if he did not have
a license. Of course, that date came and went, and
BD still did not have the license. Then, superhero
MS issued a cease and desist order and, after many
battles, BD said he would shut his gates and would
obtain the required license.
Could it be our happy ending? Not so. Our
TARA hero did not believe all was well and checked to see if BD was really closed. Not surprised, he
found that BD was still selling used parts behind
the closed gates. When customers would call BD
for a part, he would tell them to come to the gate,
honk, and the part would be brought out to them.
TARA even called BD to request a part to verify this
So superhero MS came to the rescue again,
adding more fines on BD. After bringing in the
big guns, fining him a lot of money per day until
he got the license, BD’s gates were shut and all was
well. In the end, BD paid hefty fines, now has a
license, and everyone is happy. TDLR did their
job. TARA hero did his job. It felt really great to be
part of the story and see what can happen when
people take action working together.
This is just one story of many on how your state associations fight for you. Become a part of one and make a
difference in your state! ■
Cheryll Lambright is the Executive Director of the Texas Automotive Recyclers Association.
November-December 2013 | Automotive Recycling 45
On TopDown Under
ARA Member Honored for Excellence
usiness and community leader
and long-time ARA member
Lawrie Beacham, director of
Jeeepart Recyclers, Hervey Bay
Australia, has been described as
one of the most well respected
people in the Australian auto
parts recycling industry.
Lawrie was presented with the prestigious Bob
Scott Memorial Award for outstanding industry
contribution during the Auto Parts Recyclers
Association of Australia (APRAA) conference and
trade show in Sydney which attracted delegates
from the Australian and New Zealand auto parts
recycling industry and after-market supply firms.
The presentation was made by Peter Scott, son of
Bob Scott, who established Scott’s Parts Plus, at
Dubbo, New South Wales in 1951. Bob passed away
in 1983. Peter was successful in staging, at Dubbo,
APRAA’s first regional conference in 1992 and the
record 350 delegates responded by setting up the
trophy in memory of his father, a leading industry
The Beacham family proudly show oﬀ the trophies awarded at the APRAA conference. Lawrie (Center) and his wife Joy and sons Zane and Shannon are closely
involved in all sections of the Hervey Bay business.
46 Automotive Recycling | November-December 2013
figure. The perpetual trophy is based on a Rolls
Royce hub cap.
Jeeepart Recyclers, one of Australia’s leading
Jeep, Chrysler and Dodge specialist parts firm, also
received APRAA’s conference award for “Excellent
and Professional Business Practice.”
The award states that regardless of size, many
recycling firms operate successfully and efficiently,
making a positive impact on their surrounding
“I was very proud to accept the APRAA award
and the memorial trophy on behalf of our family
and staff,” Lawrie said.
Lawrie is no stranger to APRAA, having helped
and the industry body to other states after the association was established in N.S.W. 30 years ago.
Lawrie has staunchly advocated industry standards and changes to motor industry rules, including recent regulations on the handling of
flood-damaged and written-off vehicles.
With a grassroots start in all-brand vehicle dismantling in Bendigo, Victoria 40 years ago, Lawrie
is now recognized as an authority in the business,
marked personally by an extraordinary memory
for a range of vehicle makes and parts.
“I have known Lawrie for 30 years,” Scott told the
conference. “He is an affable character who is
approachable and welcoming to everyone he
meets. Apart from his excellent people skills, he is
also one of the most experienced, successful and
capable automotive recyclers in Australia. His firms
have been at the forefront of innovation in the dismantling and recycling industry for more than 40
years. Lawrie is a genuine industry leader, being
involved in APRAA since its inception.
“He has given countless hours to APRAA –
serving on many committees, a stint as Victorian
delegate and National President, as well as serving
as the ARA representative for Region 14 (Pacific
Rim) for 4 years and was elected again for 2013-14.
“Lawrie’s commitment to APRAA was borne out
of a concern for the reputation of auto recyclers
and a desire to see the industry progress and
flourish in an ethical and professional environment.
The status our industry now enjoys, connecting and
working with other automotive and government
bodies, can be attributed to the dedication and
hard work of people such as Lawrie,” Scott said.
He told the conference Lawrie was just as passionate about his local community, contributing to
many fundraising events, projects, and committees,
with most of this work reflecting his three decades
of Rotary service. At his own expense, Lawrie joined
other Rotarians overseas to assist communities in
building an infrastructure in the Solomon Islands
and Nepal; he has also given his time and opened
his home to numerous exchange students.
Lawrie said, “Our firm has been recycling Jeep,
Chrysler, and Dodge automotive parts for the past
16 years and, in recent times, thanks to a combination of experience, marketing, and customer care,
our business has surged ahead, against some national trends.
“During my career, I have always been keen to
emphasize the value of recycled parts, not just in
terms of motorists saving money and the planet, but
as a critical segment of the motoring cycle from new
vehicles to scrap metal bound for overseas markets.”
The firm supplies recycled, new, genuine and
aftermarket parts, panels and accessories for most
Jeep vehicles, including models from the 1960s
through to current model Cherokee, Wrangler,
Rubicon, Patriot, Commander, Compass, and
Grand, Chrysler Voyager, Neon, PT Cruiser, 300C,
Sebring, Crossfire along with the Dodge Nitro,
Avenger, Caliber and Ram.
Jeeepart Recyclers was one of the first to achieve
the top Five Star status in APRAA’s National
Accreditation Program, regarded as the most important advance by Australia’s auto recycling industry.
The system grades auto recyclers on the quality and
correct description of used or after-market parts
plus business and staff presentation, staff training,
complaint handling, warranty and refund policies,
condition of sale, delivery, safety requirements and
environmental aspects. ■
November-December 2013 | Automotive Recycling 47
SPOTLIGHT ON EXCELLENCE
Wilbert’s Premium Recycled Parts
This family business is
dedicated to growing
with excellence, but their
secret to success is all
about building community.
B Y LY N N N O V E L L I
48 Automotive Recycling | November-December 2013
ou could say that Wilbert’s
Premium Recycled Parts went
“green” more than 50 years ago.
That’s how long three generations of
the Wilbert family has owned an auto
recycling business and the Christmas
tree business next door.
Auto recycling is the core family business, with two full-service, ARA Gold
Seal-certified facilities in Webster and
Ontario, N.Y. and a self-service yard in
Williamston, N.Y. The Christmas tree
business, brothers Pete, Rick and Ron
contend, “is more like a hobby.”
The Wilbert family’s “hobby” shifts
into high gear around this time every
year. From the weekend before Thanksgiving until Christmas, Wilbert’s Tree
Farm sells thousands of live, fresh-cut
Christmas trees each year.
The way the brothers tell the story, the Christmas
tree business got started by accident. “Back in the 60’s,
Dad put up a chain link fence to keep the deer out
of his recycling yard,” Rick starts the story. “Next he
put up one of those bamboo fences to screen it, but
he wasn’t happy with how it looked.”
Older brother Pete takes up the tale. “Then one
year, he planted rows of evergreen trees to provide a
more attractive screen. They grew, and people passing
by noticed and would stop in to ask him if he would
sell them a Christmas tree.”
Sensing a business opportunity, Art Wilbert planted
20 acres of Christmas trees, and Wilbert’s Tree Farm
was born. “Dad loved the land,” Ron, the
youngest of the three brothers, says. “He
bought the farm next door, then the
farm next door to that. He kept buying
more land.” And planting more trees.
Today, more than 180,000 Christmas
trees in various stages of growth cover
more than 100 acres.
For local families, buying a tree at
Wilbert’s is what the brothers like to call
a “tree-dition.” More than just a trek
through the woods to chop down a tree,
it is an experience. A giant candy cane
creates the perfect spot for a picture. The
Wilbert’s live nativity scene is renowned throughout
the region. Santa cruises in for a visit at the wheel of
a self-powered sleigh.
For the Wilberts, including the three brothers, their
two sisters, and their extended family, the tree farm has
become a platform for community service. They
donate a portion of the proceeds to the town each year,
they give trees to needy families as well as other auto
recyclers in the area, and they participate in Trees for
Troops. In 2012, they invited the police department’s
child identity team to set up their trailer at the
The thousands of happy families who roam the tree
farm every Christmas season, searching for the perfect
November-December 2013 | Automotive Recycling 49
SPOTLIGHT ON EXCELLENCE
tree, never see the labor that goes
into it the other 10 months of the
year. Last year the Wilbert brothers
planted 26,000 seedlings. Then
there’s the spraying, mowing and
a myriad of other chores involved
in nurturing the trees. During the
brief selling season, the whole
family pitches in.
Wilbert’s provides Santa with
Work Hard, Together
all kinds of cool cars to cruise
Art Wilbert, who passed away in
2007, instilled the value of hard
work in his children early in their
mary customer base is
lives. “Our house was across the
body shops, dealers and
street from the business so Dad
repair shops, Wilbert’s
knew when we got off the bus, and
tire and wheel division is
we knew it was in our best interest
to get our butts over there,” Pete
To meet their cusrecalls. Dad was a great teacher
tomers’ needs, the Wiland transferred his skills in recyberts are high-volume
cling and repairing to all of us.”
salvage buyers through
“Our customers are the bosses
Art gave the boys the opportuCopart and IAA aucnity to make their own money by
tions, purchasing 130 to
because they dictate whether
straightening damaged bumpers
140 vehicles a month.
we are going to be in business.”
discarded by body shops. They
They also purchase in— Rick Wilbert
worked many evenings and weekventory from dealers.
ends to earn their own cash. “We
learned early on that everything has value,” Pete adds.
Pete, Rick and Ron are not afraid to make a bold
Started from Seedlings
change if they believe it will help them serve their cusIn 1952, Art Wilbert started by turning his part-time
tomers better. By networking with other recyclers and
car hobby into a full-time business, rebuilding Buicks
being active in ARANY and ARA, “We try to stay in the
and selling extra parts to area dealerships. “Rebuilding
forefront of what’s going on,” Rick says.
cars continued to be a big part of the business through
In 2002, this approach led to the Wilberts becomthe 60’s and 70’s until changes in title laws brought
ing founding members of the PRP Northeast Group,
an abrupt end to that,” Pete says. Almost simultanea decision that fundamentally changed their business
ously, the 1970s gas crunch sounded the death knell
model. ‘With the availability of parts in our group and
for the big Buicks that were the core of Art’s business,
our GM customer base shrinking, we decided to no
and Wilbert’s transitioned to GM vehicles and parts.
longer limit ourselves to GM,” Ron explains.
“Dad was ahead of everyone,” Pete recalls. “He
As a result, in 2004 they purchased the Ontario locajoined ARA early on and was in ARANY when it was
tion to service other brands. “We were so renowned
for our GM yard that it was simpler to purchase anothBy 1980, when the auto recycling business purer yard than to try to re-educate our customers,” Ron
chased its first computer, Art was ready to shift out of
the auto recycling side of the business and focus on
Supported by the PRP-Northeast Group’s focus on
the Christmas tree business that he loved. Pete and
quality and service, Wilbert’s has grown “beyond all
Ron took over the recycling business, to be joined a
expectations,” he says. “I would never have believed
few years later by Rick.
ten years ago that quality control would be our largest
Today, the 15-acre Webster, NY, yard still specializes
department – we didn’t even have a QC department.”
in late-model GM vehicles, while the Ontario location
Under Ron’s presidency, the Northeast Group
covers all other brands. Together, both facilities
implemented overnight distribution of brokered
process 4,000 to 5,000 vehicles a year. Although the priparts from a centralized hub in Binghamton. “That
50 Automotive Recycling | November-December 2013
Wilbert’s Best Practices
• Embrace change, if it has the
potential to improve your business.
• Work hard, but work smart.
• Make honesty, quality and
service your priorities.
• Treat your employees with
respect and dignity.
gave us the inventory of almost 20 yards that could be
delivered to customers just like it was on our shelf,”
Membership in the Northeast Group generated
excitement that extended to the Wilbert family’s third
generation. In 2010, following a Northeast Group
training meeting at a recently renovated yard, the
younger family members put their heads together
with key sales staff. Two days later, the Wilbert 20somethings presented their dads with a list of
improvements that they wanted to make, promising
to work weekends and evenings to accomplish their
It was a defining experience for the family business.
“They went at it, assisted by employees who caught
their enthusiasm and energy,” Pete recalls. “Production and sales increased and even more importantly,
it created a team spirit that will continue through the
In 2008 the brothers began exploring another
potential business opportunity in the form of a rundown yard with a great location. After two years of
cleanup and three years of construction, they opened
Wilbert’s U-Pull-It in late 2013.
The self-service operation, managed by Ron, his wife
Kathy, and son Eric, strives to be the cleanest and
November-December 2013 | Automotive Recycling 51
SPOTLIGHT ON EXCELLENCE
greenest self-service facility in the region. “We’re
employees enjoy a generous benefit plan, including a
finicky about the cleanliness of our yards,” Ron says,
401k and bonus sharing. As a result of their promoteadding that their father was a two-time winner of the
from-within policy, Wilbert’s is home to the top parts
ARA Beautification Award.
salesman in the country, a man who started with them
The brothers are equally finicky about maintaining
while in high school 15 years ago.
an organized inventory to maximize productivity. They
The Wilbert’s employee team includes Ron’s sons
take organization to the max through their computEric, Aaron, and Daniel; Pete’s son Kevin and Rick’s
erized inventory system. “Dad
daughter, Melanie, as full-time
might think I went too far,
employees. Other family memthough, when I pinned the “We’re finicky about the cleanliness bers help out in any area when
location of every car at the Uneeded.
of our yards,” Ron says, adding that
Pull-It,” Ron adds.
Having grown up in the
their father was a two-time winner business, Ron, Rick, and Pete
Value Your Employees
of the ARA Beautification Award. can – and sometimes do – perSince assuming ownership
form any job in the yard. One
of the business after their
of them arrives at 4 a.m. with
father’s death, the brothers have expanded the work
the first employees, everyone is present for the 6:45
force from 25 to approximately 70 employees. They
a.m. production meeting, and another brother stays
consider their employees one of the company’s most
late to wrap up the day’s business.
valuable assets and strive to retain them by following
“To succeed, you have to be willing to lead by examthree simple principles: treat them right, promote
ple,” Rick says. “Or as Dad would say – lead, follow, or
from within and communicate with everyone.
get the hell out of the way.” ■
Wilbert’s boasts many long-time employees, and all
Lynn Novelli is a freelance writer based in Ohio..
52 Automotive Recycling | November-December 2013
International Auto Recycling
Reports from Around the World
the Switch Out Mercury Recovery
Program; and the development and
deployment of the Canadian Auto
Recyclers Environmental Code. ELVs in
the North fills a strategic gap we have in
working with all levels of federal, provincial and territorial governments to document the benefits of a licensed auto
By Steve Fletcher,
to make our
convention in Kansas City a success,
but not limited
the sponplanner, andoftheanstaff.
All are management
for a in
I was elected
had the stanrealizationlinked
that I to
as my father
did when heprograms,
in 1969-70. I have had the
over the leader,
up to all unparalleled
of us to participate.
ARA. and confidence because of their
extensive subject matter knowledge and
experience in energy efficiency and product stewardship. Their purpose is to
make a positive environmental impact
with consumers, and to help clients
achieve and to further consumer engagement and impact.
Operation Clean Up
Summerhill is launching the new ARCsponsored program, an end-of-life vehicle
waste diversion program in the Canadian
North, in cooperation with funding from
the government of Canada’s Eco-Action
fund. Summerhill will be working with
community based organizations within
Nunavut; territorial government representatives; Gerdau Ameristeel; and vehicle recyclers, in collaboration with the
Automotive Recyclers of Canada, to provide training, enhance capacity and develop a model for materials recovery that
provides an economic benefit to community, while clearing the land, water
and air of harmful toxins and waste.
Smart environmental management of ELVs in the
Canadian Far North is underway.
Their plan is to commence the stakeholder engagement and training in the
winter of 2013 with the intent to remove
substantial volume of de-commissioned
vehicle waste in spring/summer of 2014.
Teamwork Makes Great Work
The Canadian Council of Ministers of
the Environment (CCME) has been
reviewing ARC’s White Paper, “A National
Approach to the Environmental Management of End-of-life Vehicles in Canada.”
One of the gaps in the analysis is the
impact on Canada’s vast Far North. The
ELV in the North project will help fill in
those information gaps and further
ARC’s goal of achieving a national
licensed environment for progressive
Steve Fletcher, ARC Managing Director,
states, “Working with Summerhill Impact
is a natural for ARC. We collaborated
with them on Retire Your Ride – the
National Vehicle Scrappage Program;
The End-of-Life Vehicle Waste Diversion
Program in the Canadian North is a program designed to engage, educate and
employ local community members in
end-of-life vehicle (ELV) waste diversion
from the remote communities of Cape
Dorset, Whale Cove and Rankin Inlet.
The main goal of this project is to prevent harmful potential pollutants in ELVs
from contaminating local water resources
through empowering community members, improving their capacity for pollution-prevention and enabling them to
take action alongside industry professionals.
A secondary goal of this project is to
see to the recovery of ELVs from communities that currently have no resources
to have them transported to recycling
facilities. Doing so will relieve pressure
on local dumpsites, restore tracts of
nature adjacent to each community and
recover valuable recyclable resources. In
addition to engaging and increasing
capacity within these Northern communities, this project will also advance knowledge around end-of-life vehicle management in remote regions of Canada, which
is an area of priority for the Canadian
Council of Ministers of the Environment
(CCME) working group on end-of-life
This project will result in the protection
of water resources, the development of
local capacity, and the development of
data to prove concepts for sustainable
ELV recovery in Northern Canada. ■
November-December 2013 | Automotive Recycling 53
International Auto Recycling
Reports from Around the World
End of an Era
By Andy Latham
It is the people that make the
difference, and I have had
the pleasure of working with
some of the best leaders
who constantly push the
boundaries to work better,
faster and more efficiently.
viva announced in July that they
were closing their wholly-owned
motor salvage subsidiary, Bluecycle, and
outsourcing the contract for disposal of
motor salvage to Copart. Bluecycle held
its final salvage auctions in September
and the business will then be shut down.
The knock on effects for staff and
contractors are massive, as all Bluecycle
staff lost their jobs and contractors are
having to adjust their own staffing levels,
in some cases closing some of their
yards, and in one case closing their business completely.
54 Automotive Recycling | November-December 2013
For over 13 years, Bluecycle has been
a major player in the motor salvage marketplace in the UK and Europe. When
they entered the UK market, they turned
procurement of auto salvage upside
down by being the first to complete all
auctions and sales online. Previously,
customers had to travel to physical auctions to purchase stock – now they can
sit in their office, and avoid the time and
cost of traveling around the countryside.
On one memorable occasion, I was
with a customer when a transporter
arrived to deliver a vehicle to this customer’s location and no one in the business knew about this delivery. They
couldn’t even find out who had placed
the bid. It later transpired that the company chairman was sitting on his yacht
in the Mediterranean Sea and had
logged onto Bluecycle via his satellite
phone, won the auction, arranged the
delivery, and promptly forgot to tell his
staff what he had done!
Bluecycle was originally formed with
the idea of selling stolen property that
had been recovered by the police (hence
the Blue in the name), but quickly
found that vehicle sales were profitable
and far easier to deal with, so this
became the main focus of the company.
I joined the company shortly after this
decision had been made and have over
12 years service with Bluecycle.
As with many jobs, it is the people that
make the difference, and I have had the
pleasure of working with some of the
best – leaders who moved onwards and
upwards within Aviva, customers who
lead the industry, and contractors (such
as Ian Hill – ARA member of the year
2012) – who constantly push the boundaries to work better, faster and more
I have been to places in the UK,
Europe, and the U.S. that I would never
have been able to otherwise, where I
met some fantastic colleagues, and
found a love and passion for this industry that I have never felt for any other
industry I have worked in.
The impact that the decision to close
Bluecycle will have on the UK motor salvage marketplace is yet to be seen,
Copart is getting close to a monopoly
on insurance total loss contracts and
this could result in higher costs for auto
recyclers looking to purchase stock and
possibly lower returns for insurers. Time
will tell if Aviva’s decision to close as
Copart’s biggest competitor in the UK
was the right decision. It is truly the end
of an era; I am proud to have been part
of Bluecycle and can look back with satisfaction at the market-leading achievements, the success and the professionalism of Bluecycle. ■
Andy Latham is the Managing Director of Salvage Wire, a
unique Auto Recycling and Motor Salvage Consultancy that
helps businesses be safe, ethical and profitable. See more at
Approved Gold Seal Participants
A & P Auto Parts, Inc.
A-1 Auto Recyclers
AAA Auto Salvage, Inc.
ABC Auto Parts & Sales, Inc.
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 and Import Auto Parts
American Auto Recycling
Automotive Parts Solutions
B & B Auto Parts & Salvage, Inc.
B & B Auto Salvage, Inc. - PRP
B & M Auto Sales & Parts, Inc.
B & R Auto Wrecking
B Auto Parts
Baird's Auto Parts, Inc.
Bay Auto Parts
Bessler Auto Parts
Bionic Auto Parts & Sales, Inc.
Bishop's Used Auto Parts, 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.
Carcone's Auto Recycling
Central Auto Recycling, Inc.
Centre De Recyclage Universel (1981) Ltee.
Chuck's Auto Salvage, Inc.
Cocoa Auto Salvage, Inc.
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
Fox Auto Parts, Inc.
G & R Auto Parts, Inc.
Grassy Auto Parts, Inc.
Grimes Truck & Auto Parts, LLC
H & H Auto Parts & Salvage, Inc.
Hanser's Automotive & Wrecker Company
Hickman Motors, Inc.
Highway 54 Salvage, Inc.
J & R Truck Parts
J.C. Auto & Truck Parts
Jantz's Yard 4 Automotive, Inc.
Jerry Brown Auto Parts Center, Ltd.
Jerry Carney & Sons, Inc.
Junior Sinn Auto Parts, LLC
Kelly Auto Parts
Kirchhayn Auto Salvage, Inc.
Kosiski Auto Parts, Inc.
Lacy Auto Parts, Inc.
LKQ Advanced Auto Recycling
East St. Louis
Fond Du Lac
LKQ Auto Parts of Central Texas
LKQ Auto Parts of North Texas, LP
LKQ Auto Parts of South Texas
LKQ Canadian Auto Parts Inc. -Ste. Sophie
LKQ Four States
LKQ John's Auto Parts
LKQ Midwest Auto Parts
LKQ of Michigan, Inc.
LKQ of Nevada, Inc.
LKQ of New Mexico
LKQ of Southern California
LKQ Pick Your Part/Car World
LKQ Potomac German Auto
LKQ Smart Parts, Inc.
LKQ Star Auto Parts, Inc.
LKQ Triplett ASAP, Inc.
LKQ Viking Auto Salvage
LKQ West Michigan
Logel's Auto Parts
M & M Auto Parts, Inc.
Metro Auto Recyclers
Midway Auto Parts, Inc.
Miller's Auto Recycling (1992), Ltd.
Mitchells Auto Parts dba
Chuck & Eddies Used Auto Parts
Morris Rose Auto Parts, Inc.
Morrisons Auto, Inc.
Mott Auto, Inc.
Mr. R's Auto Salvage
Nordstrom's Automotive, Inc.
Northwest Auto Parts
Olston's Auto Recyclers
Pam's Auto, Inc.
Parts Unlimited, Inc.
Peacock Auto Salvage, Inc.
Pete's Auto & Truck Parts, Inc.
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.
St. James Auto & Truck Parts, LLC
Stadium Auto & Truck Parts, 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.
Walt's Auto, Inc.
Waterloo Auto Parts, Inc.
Wayne Auto Salvage, Inc.
Weller Auto Parts, Inc.
West Side Auto Parts, Inc.
Woodfin Honda / Pick and Save
Yancey Auto Salvage
Y-Yard Auto & Truck, Inc.
North Las Vegas
Santa Fe Springs
November-December 2013 | Automotive Recycling 55
Approved Certified Auto Recycler 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 & L Auto Recyclers, Inc.
A & T Auto Parts, Inc.
AAAACO Auto Parts, Inc.
AADCO Auto Parts
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
Allwest Auto Parts, Inc.
Alvin's Automotive Recycling
American Auto Parts
Arnprior and Ottawa Auto Parts
Auto Parts City, Inc.
B & B Towing & Auto Recycling
B & M Cars & Salvage
B.O.S. Auto Parts
Bauer's Auto Wrecking
Bell City Auto Center, Inc.
Bill's Used Parts, Inc.
Black Gold Import Auto Parts
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.
Cambridge Auto Parts and Wreckers Company, Ltd.
Camp Auto Salvage
Canadian Auto Recycling
Central Small Car Salvage
Central Truxx North Bay
Clayton Auto Parts & Wrecking, Inc.
Colorado Auto & Parts, Inc.
Compact Auto Parts
Cookstown Auto Centre, Ltd.
Cosmos Ocean County Recycled Auto Parts
Cosner Brothers Auto Parts, Inc.
Counselman Automotive Recycling, LLC
Cousineau Auto, Inc.
Covey's Auto Recyclers, Ltd.
Danny's Auto Salvage, Inc.
Denison Auto Parts, Inc.
D-N-J Auto Parts
Dom's Auto Parts Co., Ltd.
Don Scharf Automotive, Inc.
Doug's Auto Recyclers, Inc.
Dulaney Auto and Truck Parts of Amarillo, Inc.
Duval Auto Parts
East Bay Auto Parts, Inc.
Economy Auto Parts
Eden Used Auto Parts, Inc.
Ed's Auto Salvage, Ltd.
Elgin Super Auto Parts and Sales, Inc.
Fireside's U-Pull It Auto Parts
Five J's Auto Parts, Inc.
Foreign Car Parts, Inc.
Gary's U-Pull-It, Inc.
Geiger Truck Parts, Inc.
Glenn's Auto & Truck Parts
Green Point Auto Parts, Inc.
Harry's Auto Wrecking
Higgins Auto Parts
Hillsboro Auto Wrecking
Hilltop Auto Wreckers, Ltd.
Hi-way Auto Parts
Hi-Way Auto, Inc.
Horsehead's Automotive Recycling
Hovis Inc. dba Patterson Auto Wrecking
I-55 Auto Salvage
56 Automotive Recycling | November-December 2013
J & J Auto Wrecking, Inc.
Jeff Smid Auto, Inc.
Jerry's Auto Salvage, Inc.
Keiffer Auto Recyclers
Keith Auto Recyclers LLC dba KARS
Knox Auto Parts & Rebuildable Wrecks
Leesville Auto Wreckers, Inc.
Lems Auto Recyclers, Inc.
Lentini Auto Salvage, Inc.
Lewisville Motor Company, Inc.
LKQ - Barber's Auto Sales
LKQ 250 Auto, Inc.
LKQ A & R Auto Parts, Inc.
LKQ A Reliable U Pull It South
LKQ Arizona (aka: LKQ All Models Corp.)
LKQ Atlanta, LP
LKQ Barger Auto Parts Nampa
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 Dominion Auto Recycling, Inc.
LKQ Foster Auto Parts of Salem
LKQ Foster Auto Parts, Inc.
LKQ Gorham Auto Parts Corp.
LKQ GreenLeaf - Dallas
LKQ GreenLeaf - Fort Worth
LKQ GreenLeaf - Kennedale
LKQ GreenLeaf - Seguin
LKQ Hunts Point Auto Parts Corp.
LKQ M. Robert, Inc.
LKQ Mid-America Auto Parts, Inc.
LKQ Minnesota, Inc.
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 Gainesville
LKQ Pick Your Part Help Your Self
LKQ Pick Your Part Stanton
LKQ Pick Your Part Sun Valley
LKQ Pick Your Part Wilmington
LKQ Pintendre Autos, Inc.
LKQ Potomac German
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
Marco Auto Recycling, Inc.
Maritime Auto Salvage, Ltd.
Marshall Auto Wreckers, Ltd.
Massey's Auto Parts, Inc.
McDill Auto Wrecking, Inc.
Metro Auto Salvage, Inc.
Mid Island Auto Wreckers, Inc.
Middleton Auto Parts
Milliron Auto Parts, Inc.
Salt Lake City
Misgen Auto Parts, Inc.
Newton Auto Salvage, Inc.
Newville Auto Salvage, Inc.
Nicklin Auto Parts and Recyclers
Niks Auto Parts, Inc.
Nissenbaum's Auto Parts, Inc.
North Verde Auto Salvage
Novak Auto Parts, Inc.
Ole South Auto Salvage, Inc.
P & C Auto Wrecking, Inc.
Pacific Auto Salvage, Inc.
Parkway Auto Recyclers
Pat's Auto Salvage, LLC
Pick-n-Pull - Cumberland
Pick-n-Pull Auto Dismantlers - Calgary
Pick-n-Pull Auto Dismantlers - Edmonton
Pick-n-Pull Auto Dismantlers - Kelowna
Poell's Enterprises, Inc.
Popow & Sons Body Shop, Ltd.
Premier Auto & Truck Parts, Inc.
Pull-A-Part Atlanta East
Pull-A-Part Atlanta North
Pull-A-Part Atlanta South
Pull-A-Part Baton Rouge
Pull-A-Part Cleveland I (East)
Pull-A-Part Cleveland II (West)
Pull-A-Part New Orleans West
Ransom Motors, Inc.
Reitman Auto Parts & Sales, Inc.
Rhinelander Auto Salvage
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
SGI Salvage Moose Jaw
SGI Salvage North Battleford
SGI Salvage Regina
SGI Salvage Saskatoon
SGI Salvage Yorkton
Shipman Auto Parts, Inc.
Smith Auto Parts & Sales, Inc.
Snyder Auto Body & Paint
Southern Maryland Used Auto Parts
Sunscape Enterprises, Inc. dba Ace Auto Wreckers
Swift's Auto Salvage, Inc.
Van Horn Auto Parts, Inc.
Vander Haag's, Inc.
Vander Haag's, Inc.
West Auto Wreckers, Ltd.
of industrial markers
for auto salvage and auction
• Permanent paint markers from $1.30 each
• Steel tip pressurized markers for wet and oily metals
• Removable markers for auto repair and dealerships
Free Shipping for orders over $25
We accept Visa, MasterCard, and American Express
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November-December 2013 | Automotive Recycling 57
Latest Legislative Updates from the Hill and Around the Country
ARA Follows Up on 2013 Congressional Asks
RA staff continue to follow up with
Congress on the 2013 Congressional Policy Objectives that were discussed
during the ARA Annual Hill Day. The
status of the 3 is as follows:
Objective 1: Support federal legislation
that would add a new section to the
Clean Water Act (CWA) prohibiting the
U.S. Environmental Protection Agency
(EPA) and it’s State permitting authorities from applying numeric effluent
limitations to industrial stormwater discharges, unless the Agency develops
such limitations based on recognized
scientific methods and promulgates
them through the well established regulatory process.
ARA is working with a Member of
Congress who expressed interest in the
issue after the meetings. Discussions are
ongoing on potential actions.
Objective 2: Support federal legislation
that would require repairers to replace a
deployed OEM airbag after a collision,
with a non-deployed OEM airbag so that
the inflatable restraint system is restored
to its original operating condition.
On the federal level, ARA has met
with the Deputy Administrator and senior staff of the National Highway Traffic
Safety Administration (NHTSA) and
discussed the gravity of this issue and its
implications for consumer safety. ARA is
also exploring legislative opportunities
and possible champions in both the
U.S. House and Senate.
On the state level, legislation targeting
the sale, installation, import, and manufacture of counterfeit airbags has been
introduced in several states and is now
the subject of model legislation
approved by the upcoming Council of
State Governments conference. ARA
actively worked with local automotive
recyclers, affiliated state chapters, bill
58 Automotive Recycling | November-December 2013
The proposed Clean Water Act (CWA) regulation
would require permittees and regulators to use existing,
available information technology to electronically
report information and data related to the NPDES
permit program in lieu of ﬁling written reports.
sponsors and other stakeholders to support such initiatives and as a result, bills
were signed into law over the summer
in Connecticut and New York. ARA
actively worked with ARANY to introduce a separate piece of legislation,
Senate Bill 3779, that would have incorporated guidelines from the ARAPro
Quality Control Inspection and Protocol
and allowed for the sale and installation
of recycled, non-deployed OEM airbags
in the state of New York. ARA will continue to work with ARANY to build support for passage of the bill in the next
Objective 3: Support H.R. 763, The
Jobs and Premium Protection Act, to
repeal the health insurance tax (HIT)
provision enacted as part of the Patient
Protection and Affordable Care Act
(PPACA – referred to as Obamacare).
ARA has supported this legislation
and continues to be an active participant
of the Health Insurance Tax (HIT)
Coalition, whose purpose is to build
support for efforts to repeal the tax.
ARA Works With National
Association of Manufacturers on
Recycling Policy Statement
RA is currently a member of the
National Association of Manufacturers’ (NAM) first-ever Recycling Working Group. The group was recently
established to discuss principles and language that will be included in a NAM
Recycling Policy statement and position.
Once completed, this policy document
will provide NAM staff with “guiding
principles” on recycling issues as they
ARA to Comment on EPA Proposed Rule to Require Electronic
Reporting for Permitted Facilities Under the Clean Water Act
RA plans to submit comments on the EPA’s proposed rule that would require
electronic reporting for current paper-based National Pollutant Discharge
Elimination System (NPDES) reports. The proposed Clean Water Act (CWA) regulation would require permittees and regulators to use existing, available information
technology to electronically report information and data related to the NPDES
permit program in lieu of filing written reports. This information includes:
• Discharge monitoring reports;
• Notices of intent to discharge in compliance with a general permit; and
• Program reports.
RA and its aﬃliated state chapters are busy gearing up for the
2014 state legislative season, monitoring pre-ﬁled legislation and
bills carried over from the 2013 session that could have an impact on
the operation of ARA member businesses. ARA members are busy
reaching out to stakeholders and meeting with their elected oﬃcials in
anticipation of another busy year. A summary of recent activity is
curement of parts or materials illegal. The two bills, Assembly Bill
7234 and Senate Bill 5786, would add the prohibition to an existing
statute governing insurance companies that makes it illegal for an insurer to require repairs be made at a particular repair shop. The bills
have been referred Insurance Committees in the Assembly and Senate.
ARA is actively monitoring bill developments and coordinating with
its aﬃliated chapter, ARANY.
Right to Repair
The Council of State Governments’ Committee on Suggested State
Legislation considered the issue of counterfeit airbags at their National Conference in late September. Up for discussion was a model
law based on legislation passed in Connecticut over the summer that
makes it a crime to manufacture, import, install, reinstall or sell a
counterfeit or nonfunctional airbag. That law went into eﬀect in Connecticut on October 1. Similar legislation also passed in New York this
year and went into eﬀect on November 1. ARA along with its aﬃliated
state chapters in Connecticut and New York worked with bill sponsors
and other stakeholders to secure passage of both pieces of legislation.
Legislators in Ohio and Pennsylvania are currently considering their
own counterfeit airbag bills. ARA expects more bills to be introduced
on this issue in 2014.
Right to Repair initiatives spread across the New England states
this year, as legislation similar to the 2012 bill passed in Massachusetts was introduced in Maine, New York and New Jersey. State legislators and stakeholders on both sides of the issue adopted a
wait-and-see approach as legislators in Massachusetts tried to resolve
key diﬀerences between their 2012 bill and 2012 ballot referendum
that resulted in two separate Right to Repair laws in the state. ARA
staﬀ has been actively coordinating with aﬃliated state chapters in
New England throughout the year to monitor developments. ARA staﬀ
also met with stakeholders involved in the national Right to Repair
eﬀorts as discussions took place over the summer between auto manufacturers and several organizations active in last year’s Right to Repair Coalition. The groups hope to develop a national agreement based
on the same framework as the legislation that passed in Massachusetts.
State legislators in New York introduced legislation in late September in both houses of the legislature that would make insurance
company requirements to use a speciﬁc vendor or process for the pro-
Legislators in Ohio and Wisconsin continue to discuss their state’s
salvage vehicle laws. Stakeholder meetings began earlier in the year
and have continued on a regular basis. ■
develop in the U.S. Congress or within
regulatory agencies and departments.
The initial meeting included broadbased discussions reflecting NAM’s
diverse membership, possible areas of
consensus and the process towards their
Board’s approval. ARA staff suggested,
and it was agreed, that the statement
should highlight the benefits of recycling
to the environment, the consumer and
Over 45 companies and trades are
represented in the NAM Working
Group. ARA will continue to contribute
the automotive recycling industry’s
unique perspective and professional
experience into the formulation of this
The group was recently
established to discuss
principles and language
that will be included in
a NAM Recycling Policy
statement and position.
U.S. House Committee
he U.S. House Small Business
Committee has approved an amended version of the bipartisan Regulatory
Flexibility Improvements Act of 2013
(HR 2542), introduced by Committee
Chairman Congressman Sam Graves
(R-MO) that would require federal agencies to consider both the direct and
indirect effects of regulations on small
businesses. ARA has met with the
Chairman and expressed the association’s support of the legislation as well
as signed onto a letter from the National
Association of Manufacturers that was
sent to Representatives endorsing the
The Act would ensure careful consideration of the consequences of rulemaking on small businesses, including
direct impacts, and require agencies to
convene small business review panels.
The legislation now must be considered
by the full House of Representatives. ■
November-December 2013 | Automotive Recycling 59
By Murray Jackson
1. It’s been called “America’s Sports Car”
5. Beast on Lamborghini emblem
9. Destination of “American Pie” Chevy
10. Engine output, in a way
11. Trucker slang for Milwaukee, ____ City
12. Car owners’ monthly obligations
14. Rock band’s tour-bus passenger
15. Certain turns
19. Big name in the tire biz
21. ’11 Nissan compact crossover model
23. Defunct Lincoln for a flyboy
24. Given name, car-company founder Citroen
25. Traction-enhancing tire-tread slit
26. Rolls-Royce rides, for some folks (3,5)
1. ’10 Dodge compact crossover
2. ’71 boat-tailed Buick
3. Stuntman Knievel’s first name
4. ’77 movie with homicidal vehicle (3,3)
6. Automotive about-face (1,4)
7. “The Spy Who Loved Me” star car
8. Carwash leather
13. ’10 Jeep SUV
16. Carmaker with an Accent
17. Oft-stolen dash items
18. A heavy highway hauler (3,3)
19. Items on wheels, sometimes
20. Jackrabbit-start tire noise
22. ’60-’76 Dodge model name
60 Automotive Recycling | November-December 2013
2013 Industry Calendar
NOW ACCEPTING 2014 CALENDAR EVENTS.
ARA Annual Convention & Exposition ............................8
Biz Unite. .............................................................................23
Brock Supply Co.................................................................37
Buddy Automotive Innovations ...........................................47
Commercial Forms Recycler Supply .............................39
Company Wrench ..............................................................19
Connection, The ...................................................................5
CRUSH/S3 Software Solutions, LLC...............................57
Hollander, a Solera company.......................................C-3
Panhandle Converters ......................................................15
SAS Forks ............................................................................21
Sierra International Machinery .........................................13
Toyota Tsusho America ..........................................................11
United Recyclers Group .....................................................C-2
Vander Haag’s, Inc.............................................................61
Wells Fargo Business Insurance ...........................................9
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STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION
1. Publication Title: Automotive Recycling 2. Publication Number: 1058-9376 3. Filing Date: October 9, 2013 4. Issue Frequency: Bi-monthly 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 26, 2013 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) 1425, c. Total Paid and/or
Requested Circulation: 1268, 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: 1418, g.
Copies not Distributed: 7, h. Total: 1425, 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) 1304, c. Total Paid and/or Requested Circulation: 1304, d. Free Distribution by Mail
(Outside County as Slated on Form 3541): 150, e. Free Distribution Outside the Mail (carriers or other
means): 150, f. Total Distribution: 1454, g. Copies not Distributed: 46, h. Total: 1500, i. Percent Paid
and/or Requested Circulation: 87% 16. Publication of Statement of Ownership will be printed in the
November/December 2013 issue of this publication. 17. Signature and Title of Editor, Publisher, Business Manager, or Owner: Michael E. Wilson, Managing Editor.
November-December 2013 | Automotive Recycling 61
By Michael E. Wilson, ARA Chief Executive Officer
A Busy 2013 Leads Us to Even Greater Initiatives on the Horizon
s the year ends, let’s reflect upon key
activity for the Automotive Recyclers
Association’s (ARA) in 2013.
January: We kicked off the year with a
successful Congressional facility visit with
ARA Gold Seal member Kelly Roepke,
President of Y-Yard Auto & Truck, Inc. of
Effingham, Illinois hosting her Congressman John Shimkus (R-IL). Rep. Shimkus
is Chairman of the Environment and the
Economy Sub-committee of the powerful
House Energy and Commerce Committee and is also Co-Chairman of the
House Recycling Caucus.
ARA hosted a gathering of the ARA
Board of Directors, Past Presidents,
Committee Chairs, and staff who met for
a three-day strategic planning discussion.
The leaders reviewed the organization’s
mission and vision, the status of the
industry, and broader automotive sector
trends in the United States and abroad.
ARA met with the National Highway
Transportation and Safety Administration
(NHTSA) staff to discuss their policies
and statements on the continued use of
recycled non-deployed OEM airbags in
automotive repairs. In November 2012, a
NHTSA press release on counterfeit
airbags included many misrepresentations
and errors about recycled airbags, ones
that ARA corrected with NHTSA staff.
February: ARA officially announced that
its subsidiary, ARA Product Services LLC,
had reached an agreement with Alteso
Group to provide ARA members and
ARA Affiliate Chapter members with
ARADirect®, a robust online auction platform for the efficient procurement of
motor vehicles. This ultimately increases
members’ opportunity to grow their revenue stream and their business, and
lowers operation costs, while helping to
keep the salvage in the United States
The Automotive Recyclers of Canada
(ARC) adopted the Gold Seal Program.
This program upholds industry standards
for customer service and recycled auto
62 Automotive Recycling | November-December 2013
parts quality based on the industry’s highest service goals and ethical business practices. This program ensures that successful
ARC applicants are best-in-class representations within the industry.
March: ARA leadership adopted ARA’s
Strategic Plan, resulting from the strategic
planning sessions in January. It identifies
five strategic initiatives that are the means
through which ARA plans to translate its
vision into practice. They include: obtain
the full data necessary for proper parts
identification, collaboration and electronic commerce; recognition as the depository and processor of end-of-life vehicles;
improve governance structures and facilitate marketplace opportunities; increase
membership; and develop an integrated
strategy between ARA and ARA University
to educate key stakeholders.
ARA held the annual Hill Day and the
Legislative Summit in Washington, D.C.,
together this year for greater impact, as
well as held its first Congressional briefing
to Capitol Hill staff.
April: ARA President Chris Wright was a
panelist at the National Alliance of
Highway Beautification Agencies conference in Savannah, Georgia, addressing
the implications of the 2012 federal highway bill, Moving Ahead for Progress in
the 21st Century Act (MAP-21). A MAP21 provision expands the National
Highway System to incorporate the entire
Interstate System. With this provision and
new road segments, states are now responsible for maintaining and enforcing outdoor advertising and junkyard control
procedures for businesses located along
these new segments.
May: State Farm’s PartsTrader pilot phase
concluded and the national rollout began
of the electronic ordering system to its
Select Service direct repair facilities in
Arizona, Colorado, New Mexico, and
Texas in August. ARA members are on
the PartsTrader Advisory Board.
June: The U.S. Senate Judiciary Com-
mittee approved The Metal Theft Prevention Act of 2013 (S. 394) containing a
provision that ARA helped to craft. It was
introduced by Senator Klobuchar (DMN) and co-sponsored by Senators Graham (R-SC), Schumer (D-NY).
U.S. House Energy and Commerce
Committee Vice-Chair, Congresswoman
Marsha Blackburn (R-TN) toured ARA
member facility Pull-A-Part in Nashville.
Steve Levetan, Senior Vice President for
Pull-A-Part, and ARA hosted the visit to
showcase the benefits of a professional
self-service auto recycling facility.
July: ARA staff met again with senior
NHTSA officials on ARA’s concerns with
the pending federal regulation for a
recall database and to discuss the critical
counterfeit airbag issue.
August: The South African Department
of Transport decided not to include a
proposal banning used auto parts in their
proposed amendments to the National
Road Traffic Act regulations. ARA supported efforts by industry stakeholders in
the country by providing data on the negative implications of such a policy.
September: ARA members Joe and Steve
Kosiski, Kosiski Auto Parts in Omaha,
Nebraska, provided Rep. Lee Terry (RNE), Chairman of the U.S. House Energy
and Commerce Subcommittee on
Commerce, Manufacturing and Trade,
with a tour of Kosiski Auto Parts. The
Congressman’s Subcommittee has jurisdiction over motor vehicle safety issues.
November: ARA hosted the 70th Annual
Convention & Exposition in Phoenix,
Arizona, which boasted educational sessions, international exposition, and prestigious keynote speakers. ARA also hosted
the International Roundtable directly following the convention.
The ARA has spent the year developing
future plans for growth, educating on the
industry’s value proposition, and adding
value to the member programs. ARA will
head into 2014 strong and prepared. ■
Automotive Recyclers Association
9113 Church Street
Manassas, VA 20110-5456 USA