|Auto Recycling eNewsletter
For immediate release – November 2011
Written and published by Ron Sturgeon, autosalvageconsultant.com, email to firstname.lastname@example.org. To register for future free issues, visit http://www.autosalvageconsultant.com. Don’t forget to watch for our management articles monthly in Recyclers Power Source Magazine, or posted at our web site.
This Month’s News
LKQ Earnings Up 37 Percent: Earnings for auto salvage giant LKQ are up 37 percent for the third quarter of 2011, as compared to the third quarter of 2010. LKQ posted net income of $49.2 million for the period. Analysts believe that the gains are largely due to LKQ’s acquisition of several businesses. Of the 10 businesses acquired during the third quarter, three are auto salvage companies.
Other companies acquired this quarter include three businesses that manufacture heavy-duty trucks, one business that manufacturers engines, two self-service companies, and an auto cooling parts business.
With these third-quarter gains, LKQ is on track to post high earnings for 2011. The company has revised its estimates and now expects its income for the full year to fall between $204 million and $212 million.
Read more about LKQ’s profitable third quarter.
Peer Benchmarking the Secret of Success:
After more than three decades in the auto salvage business, Ron Sturgeon knows a thing or two about how to create a successful salvage company. Some of what he knows comes from his experience at peer benchmarking sessions with other salvage professionals. Now Sturgeon passes on his own knowledge and facilitates creative discussions at the best peer benchmarking sessions in the industry.
“In a challenging economy, we all need to work together to succeed,” says Sturgeon. “I’ve designed these groups to make that happen.”
The benchmarking groups are limited to one auto recycling professional from each market area in order to eliminate fear of competition. The environment is constructive and welcoming. It’s the perfect recipe for success.
Learn more about how peer benchmarking can help make 2012 your best year yet. Register now.
Michigan Landfill to Become Salvage Operation:
The process is underway to turn one landfill site in Howell, Michigan into a scrap metal and auto salvage facility. The Southeast Michigan landfill, which has not been used in several years, is undergoing brownfield redevelopment to become a scrap yard for Regal Recycling, a Genoa Township-based salvage company.
The city has been working to clean up and reclaim the 45-acre portion of the landfill, which has been contaminated for many years. Regal Recycling plans to use the new property to expand its business. It also expects to add between 25 and 50 new full-time jobs as part of the expansion, welcome news in a state where the unemployment rate is one of the worst in the nation.
“It’s a good plan and a good project for the site,” said Howell Mayor Pro Tem Steve Manor. “Hopefully, we’re able to move the site forward.”
Read more about Regal Recycling’s purchase of the former landfill property.
Veteran Northern Virginia Salvage Yard Owner Dies: Former president of the Virginia Auto and Truck Salvage Dealers Association, Steve Horvath, died October 26 in Roanoke, Virginia. After serving in the Navy during World War II, Horvath began his career as an auto body repair person. He went on to open the auto salvage yard UPAR in 1960. Horvath operated the yard until 1988. In 1989, Horvath filed for bankruptcy, and soon after, he retired.
Survivors include five children and four grandchildren. Horvath was 85 years old.
Find out more about the life of Steve Horvath.
Company Hopes to Help Heavy Trucks Comply with New California Law: A recent California law required used car and truck dealers to flag vehicles that are listed as salvage autos. Under the law, dealers must run a vehicle history report on the autos, then attach red tags to those cars and trucks that have junk or salvage titles. Consumers will pay an extra fee at the time of purchase to help defray the cost of researching the titles.
Although services like CARFAX exist for passenger cars, dealers sometimes find it troublesome to get a history report on a heavy duty truck. The launch of a new service, RigDig Truck History Reports, is designed to help dealers identify those big rigs that have been listed as salvage.
“RigDig is able to help commercial truck dealers begin checking their existing inventory, possible trade-in vehicles, and auction vehicles right now,” says James Vogel, general manager of RigDig. “RigDig Truck History Reports mesh a variety of data sources, including NMVTIS junk and salvage vehicles, total loss insurance claims, title and odometer brands, with other sources of information for accidents, inspections, ownership, cargo hauled and CSA scores.”
Read the press release about RigDig Truck History Reports.
Flint Scrap Yard Goes to Court Over License Suspension: One Flint, Michigan salvage yard has been dealing with a suspended business license, after the city accused the business of accepting stolen goods belonging to the city. After stolen city property was discovered on the site, the city of Flint revoked the business license of Spooner Metals. The business maintains that it was planning to return the materials to the city, as it has on past occasions.
Spooner Metals feels the decision to revoke its license is unfair and is fighting against it in Genesee County Circuit Court.
“This suspension would prohibit Spooner from doing business under its city license if the injunction does not issue, causing irreparable injury to Spooner’s business and its 26 employees and their families,” the court document says.
Read more about Spooner Metals’ fight to regain its business license.
“The person who gets the farthest is generally the one who is willing to do and dare. The sure-thing boat never gets far from shore.”
AutoSalvageconsultant.com was formed in 2001 to help recyclers improve their businesses. The group has become THE definitive source for recyclers’ management and training needs. The founder, Ron Sturgeon is past owner of AAA Small Car World. In 1999, he sold his six Texas locations, with 140 employees, to Greenleaf. In 2001, he founded North Texas Insurance Auction, which he sold to Copart in 2002. In 2009, his book Salvaging More Millions from Your Small Business was published to help small business owners achieve significant success. Ron consults, speaks, and writes about issues key to successful entrepreneurship. Reach Ron at 817-838-8477 8# or contact him on www.autosalvageconsultant.com.