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Auto Recycling eNewsletter

For immediate release - January 2005

Written and published by Mike Gibson and Ron Sturgeon, www.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

Schnitzer acquires 4 auto parts stores in Missouri, Ohio, Virginia
Schnitzer Steel Industries Inc. will expand its retail used automobile parts chain through the purchase and leasing of four stores in Missouri, Ohio and Virginia, the company said Jan. 4.

Pick-n-Pull, the steel recycler’s used auto parts chain, has signed a definitive agreement to buy the assets and lease the sites from Vehicle Recycling Solutions LLC. The stores are located in St. Louis and Kansas City, Mo.; Columbus, Ohio; and Virginia Beach, Va. Pick-n-Pull already operates 26 stores. It expects to close the transaction in mid-January.

VW chases customers with free insurance deal, Automotive News, January 3, 2005
Volkswagen of America Inc. is offering a year of free car insurance to attract buyers who have grown bored with conventional sales incentives. VW is conducting the pilot program, called "In the Car," from Jan. 4 through March 31 at its 43 dealerships in Illinois and Wisconsin.

Big 3 pay price for bad supplier relations, Automotive News, December 27, 2004.
Vendor survey: Red tape adds 8% to cost of parts. The Big 3 pay a price for poor relations with their suppliers. A study by researcher John Henke Jr. concluded that supplying a component to the Big 3 costs 8 percent more on average than supplying a similar part to Toyota Motor Corp. or Honda Motor Co. - even when it's the same supplier.

Suffolk shop owners sue auto network, the Virgina Pilot, December 3, 2004
Norfolk— Two Middle Eastern-American men trying to get a foothold in the region’s used auto-parts business claim that the industry is rife with price-fixing and that they have been blacklisted because of their nationalities, according to a federal lawsuit. Hasseb Obaidy, a native of Iraq, and his partner, Mosen Azad, from Iran, operated a used auto-parts yard in Suffolk for the past four years. They purchased the business in 2002 and changed the name from Gentry’s to Two Chiefs. The substantial portion of the auto salvage industry in Hampton Roads operates over a telephone hot line, in which parts are bought and sold. The hot line is run by the Tidewater Auto Parts Network, a corporation that acts more like a club, with members who pay dues and vote on newcomer applications. When Two Chiefs was denied membership in the network, the owners sued two weeks ago in U.S. District Court, citing a long list of allegations including discrimination. Sixteen dealers – members of the network – were named in the lawsuit as well.

Japan's auto recycling law takes effect January 1, Stars and Stripes, January 3, 2005
Japan’s new automobile recycling law, which creates an additional one-time tax for vehicle owners ranging from 7,000 yen to 18,000 yen (about $69 to $178), goes into effect Jan. 1, Japanese officials said. The Vehicle Recycle Law was passed in July 2002 to combat costs from illegal dumping of automobile scraps such as metal, Freon and air bags. Space within Japan’s reclamation sites is dwindling, officials say. To stretch capacity, Japanese government policy now requires vehicle parts to be separated more efficiently to reduce waste and recycle as many parts as possible. The cost of junking vehicles increased because of the change.

Mom and daughter receive early present Parent essay wins car, The Sentinel, December 24, 2004
One lucky North Channel mother received an early Christmas present from Bates Custom and Collision Dec. 16. Teamikka Adolph and her four-year old daughter were the recipients of this year's Responsible Parenting Award and benevolence Car by Bates and Harris County Department of Education (HCDE) Head Start. Businesses that donated parts, mechanical services and paint materials that made it possible for Adolph to receive her car are Champion GM, Parts Unlimited, LKQ, Akzo, Wheels of America, D.C. Bumper and Baytown Auto Upholstery. Six months of insurance was donated by Nunley Insurance Agency in Channelview.

How’s Business?

An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” Jack Welch

2004 is over! Will you make 2005 better by learning new skills and methods, to translate into a competitive advantage? If your answer is yes, here is one of your first opportunities.

The Seven Systems every Recycling Facility Needs – a one day Seminar

If you need to: Increase Productivity... Decrease Expenses... Make More Money... Have More Free Time... This seminar is for you! This powerful one-day seminar will show you how you can easily increase productivity, reduce employees and expenses, make more money and have more free time by installing seven systems. Filled with practical "how-to" scalable systems tailored to the recycling industry this seminar will assure that you make more money with less employees than you ever thought possible!

Location
Houston Hobby Airport Marriott
9100 Gulf Freeway
Houston, Texas 77017

Cost: $395.00

Date and Time
Saturday, January 29, 2005
9:00 AM to 5:00 PM

Includes morning coffee, working lunch and afternoon refreshments

Seminar taught by Mike Gibson.

For a registration form please contact Mike Gibson at email Mike Gibson, or 817-925-8430.

AutoSalvageconsultant.com was formed in 2001 to help recyclers improve their businesses. With over 50 years of experience in 3 staff members, the group is THE definitive source for recyclers’ management and training needs. 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. 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 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 1409 Carson, Haltom City, TX 76117, (preferably) email Mike Gibson, or 817-925-8430.