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Auto Recycling eNewsletter
For immediate release - October 2004
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.
Higher prices for scrap, steel hurting auto parts makers By Greg Keenan, Auto Industry Reporter Friday, October 1, 2004
The soaring prices for scrap and steel that are battering North American auto parts makers pushed Intermet Corp. into Chapter 11 bankruptcy protection yesterday --the second such U.S. company in 10 days to seek a financial restructuring. Intermet, which makes auto parts by casting steel, aluminum and other metals, blamed what it called an unprecedented rise in raw material costs -- mainly steel scrap -- for its decision to join Citation Corp., also a casting company, in protection under Chapter 11 of the U.S. Bankruptcy Code. "The company thus far has made every effort to mitigate the rise in the cost of raw materials, especially scrap steel," Intermet chairman and chief executive officer Gary Ruff said in a statement. "However, we operate within an extraordinarily competitive industry already challenged by relentless price and margin compression." The filings by the two companies come amid intense negotiations between steel makers and auto makers over contracts for next year. Those discussions coincide with record high steel prices of about $750.00 (U.S.) a ton on the spot market with steel mills determined to lock in higher prices. Steel makers have also added surcharges to cover the soaring costs of their raw materials such as the same scrap that Intermet and Citation used to manufacture brake, underbody and drivetrain components for auto makers. Intermet, which is based in Troy, Mich., and employs about 6,000 people, said scrap rose to $395.00 a ton at the end of August from $160.00 at the beginning of 2003. Birmingham, Ala.-based Citation, which has about 5,100 employees, noted similar figures when it filed for bankruptcy protection on Sept. 20, 2004
SWEETWATER - Copart made its case to be allowed to open its proposed salvage auto auction along Interstate 75 during a public hearing at Sweetwater High School Thursday night. But after a nearly two-hour discussion, it appeared the California-based company was unable to sway the crowd of about 100 people, who gathered mostly to voice opposition to Copart’s desire to build on a 101-acre site just off I-75’s exit 62. The matter is now in the hands of the Monroe County Commission, which will discuss the issue at its September monthly meeting at 7:30 p.m., Thursday at the Monroe County Courthouse. Copart’s plans to open a salvage auto auction hit a snag last month when County Mayor Allan Watson informed the company that the County Commission had passed a nuisance ordinance last fall prohibiting any new junk yards or automobile graveyards from opening in Monroe County. Copart, a $2.6 billion company, sells recovered and wrecked vehicles for insurance companies by Internet auction and stores the vehicles at 120 sites in the United States and Canada. Watson told the audience at the public hearing that Copart is on Thursday’s County Commission agenda asking for a “special exemption” to the law. However, Watson said the only way Copart could be allowed to go ahead with its salvage auto auction would be if the County Commission voted to change the law it passed last year. The county mayor said again on Friday it is doubtful the commission will change the law. “The hearing didn’t change anybody’s mind, I don’t think at all, especially the County Commission,” Watson said.
Seminole County, Fla. -- The Seminole County man, whose famous front yard got him sent to jail, is now at back home. Alan Davis is on house arrest after spending a half year in prison for defying Seminole County code enforcement for nearly a decade. "They are screwing with the wrong guy. I am not going to put up with it. Sending me to prison was really a bad mistake for them, a bad mistake," Davis says. Back home, Davis has been doing what most Central Floridians have been doing, cleaning up from hurricanes. But not all his energy is being used for yard work. He has had six months to come up with his next set of sculptures protesting Seminole County:
| "Well, we are going to have numerous a** sculptures, because that provokes them the most. We will have the kneeling a** sculptures; we're gonna have the standing a** sculpture; we are going to have the flaming a** sculpture," Davis says. He says he'll saw at Seminole County leaders more than ever before and he won’t rest until he's toppled them all with lawsuits filed in federal court. "They want to teach me a lesson. Well, I learned a lesson, and it ain't the lesson they wanted to have taught. Now it's time for me to teach a lesson, and they ain't gonna like what I have to teach them," |
How’s Business?
“Your most unhappy customers are your greatest source of learning.” Bill Gates
There's no time like the present
to review the past year and make some solid goals for your growing business.
Here are a few tips for setting and achieving those goals:
1. Brainstorm - 2. Write your
goals down in one central place and record any changes you make - 3. Make sure
your goals are challenging, yet attainable - 4. Set a realistic timeframe for
your goals - 5. As you write down your goals, ask why is this my goal? - 6. Make
your goals measurable - 7. Identify what "tools" you will use and how will
obtain the "tools" to achieve your goals - 8. Don't overload yourself - 9.
Divide your goals into short term and long term goals - 10. Revisit and revise
your goals when necessary
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 817-872-1491.