Auto Recycling Enewsletter

For immediate release - June 2004

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

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

IAA Reports No Plans to Move to Online Auctions Only

As reported recently in Auto Remarketing, IAA, CEO, Tom O’Brien says, “ IAA does not plan to move to an online auction format, despite Copart’s recent switch to the virtual bidding environment.” He adds, “The company is confident that its network of live on site auctions best serves its customers.” O’Brien also reports higher returns for insurers recently and a decline in collision claims.

LKQ Announces Acquisition of Albert Leah Auto Parts

LKQ Corp., of Chicago, said Monday it has agreed to acquire Minneapolis-based Albert Lea Auto Salvage. The facility is on forty acres of land in Albert Lea, Minn., and services the greater Minneapolis and St. Paul area. LKQ said the acquisition is not expected to dilute its earnings per share. LKQ has 41 sales and processing facilities, four self-service retail automotive parts facilities and eleven redistribution centers in the United States. Following their successful public stock offering, they continue to announce acquisitions and growth.

LKQ Stock & Quarterly Report

In other news, a research note published yesterday stated that analysts at Robert W Baird maintain their “neutral” rating on LKQ Corporation (LKQX.NAS). The target price is set to $24. The stock is currently trading in the mid $18 range, a slight increase from last month.

How’s Business?

Run to meet the future or it's going to run you down."

Anthony J. D'Angelo

Although the economy seems to be recovering, more and more recyclers seem to be struggling, especially the very small ones (sales below $40,000 monthly). Mike Gibson, with autosalvageconsultant.com reports that requests for help are up considerably over the last few months, with many concerned that they have waited for an upturn in profits, but conceding they need help. Most are considering pay for performance, as they realize that they simply have too many employees, so need more productivity from fewer employees, or lower labor costs.

The bottom line is this month’s quote. The future is coming fast, and it seems like no matter how fast you change, it doesn’t seem to be quite enough to keep up. So… stop procrastinating. My good friend, Don Egelseer always said “Coasting will only get you to one place – the bottom of the hill”. I add, “If you keep doing what you’ve been doing, you will keep getting what you’ve been getting”. If your results aren’t as you would like, look in the mirror, then take action. NOW.

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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. 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. He can be reached at 5940 Eden, Haltom City, TX 76117, (preferably) email Ron Sturgeon or 817-834-3625 ext 6#. Mike can be reached at 1409 Carson, Haltom City, TX 76117, (preferably) email Mike Gibson, or 817-872-1491.