Auto Recycling eNewsletter

Auto Recycling eNewsletter

For immediate release -September 2006

Written and published by Mike Gibson and Ron Sturgeon, autosalvageconsultant.com, email to email Mike Gibson

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

ADESA Impact Acquires Three Texas Auction Pools, San Antonio Business Journal -- September 5, 2006

ADESA Impact has purchased the Alamo City Auction Pool along with two other independent auto-salvage auctions in Texas. ADESA Impact is a subsidiary of Carmel, Ind.-based ADESA Inc. (NYSE: KAR), one of the largest publicly-traded providers of wholesale vehicle auctions in North America. Alamo City Auction Pool will now be known as ADESA Impact San Antonio. ADESA Impact also acquired Bayou City Auction Pool in Houston and Dallas/Fort Worth Cities Auction Pool based in Wilmer, Texas. "These acquisitions position ADESA Impact as a major player in Texas, the second largest U.S. salvage market," says David Gartzke, CEO and chairman of ADESA Inc. "Each of the Texas salvage auctions has experienced staff and solid client relationships to build upon." The acquisitions bring to 42 the number of salvage auctions operated nationwide by ADESA Impact.

Insurance Auto Auctions To Market ALPS Software By Assurant Solutions, BankNet360 -- August 17, 2006

Insurance Auto Auctions Inc. has agreed to market the new web-based Auto Lien Payoff System (ALPS), developed by Assurant Solutions, to U.S. insurance companies seeking loan payoffs on totaled and unsalvageable vehicles. Assurant Solutions specializes in debt-protection programs for auto lenders and dealers. Assurant says that ALPS can reduce the amount of time it takes auto insurers to process and settle claims on totaled vehicles by as much as two thirds. Using ALPS, insurers and lenders exchange information and move funds electronically, and title delivery is guaranteed. ALPS was designed for insurance companies with the needs of the auto insurance, auto salvage, and auto lender markets in mind, according to Assurant Solutions.

AADCO Automotive Plans Major Expansion Into Canada, CNW Toronto -- August 11, 2006

AADCO Automotive Inc. (TSXV:AA) has engaged Harris Brown and Partners of Toronto, to raise up to $20 million of acquisition financing to further the Company's corporate strategy to become a national provider of LKQ (used) and aftermarket parts serving the Canadian automotive repair industry. AADCO Automotive is the parent company of AADCO Vehicle Disposal Services Inc, a leading supplier of quality (LKQ) used auto parts, "This financing facility is the first step in the company's plan to start consolidating this industry in Canada," said Mr. Charles Hodgkinson, President and CEO of AADCO Automotive Inc. "We have seen the process successfully underway in the United States over the past number of years and believe that AADCO, as the only public company in this space in Canada, is very well positioned to become the industry leader." Mr. David Holden, Senior Vice President of Harris Brown and Partners Ltd. of Toronto, added that his "company has identified this industry as a primary opportunity for the consolidating process."

How’s Business?

“In the business world, everyone is paid in two coins: cash and experience. Take the experience first; the cash will come later.” Harold S. Geneen

AutoSalvageconsultant.com was formed in 2001 to help recyclers improve their businesses. With over 50 years of experience amongst the three staff members, this group is THE definitive source for recyclers’ management and training needs. The founder, Ron Sturgeon is past owner of AAA Small Car World. Mike Gibson and Tammy Sturgeon joined the team in 2003, and bring a wealth of experience to the team, plus more resources, as there have been more requests for help than Ron could meet. In 1999, Ron 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 2002, his book “Salvaging Millions” was published to help small business owners achieve significant success, and was recently reprinted and published in Chinese. In June 2003, he joined the new ownership and management team of GreenLeaf. He also manages his real estate holdings and investments. You can learn more about how to help your business at www.autosalvageconsultant.com. Mike can be reached at 628 SW Rand Drive, Burleson, TX 76028, (preferably) email Mike Gibson, or 817-925-8430.