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Auto Recycling eNewsletter

For immediate release – July, 2008
Written and published by Mike Gibson and Ron Sturgeon, autosalvageconsultant.com, email to mikeg@autosalvageconsultant.com. 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

Media Syndicate, Mission KS, June 12, 2008 Automotix, the leader in online Automotive parts, announced today that they are now offering LKQ engines and transmissions on an exclusive basis. LKQ is the renowned supplier of Used Engines and transmissions, leveraging their network of more than 200 salvage yards across the country to provide quality parts on a regular basis. The new Automotix™ Used Engine N' Transmission Store is the best place to find used gas or diesel engines, Japanese engines, Used Transmissions both manual and automatic as well as used truck transmissions. Thanks to their innovative online experience, buyers from all over the world can easily find the engine or transmission they need with a 1 year warranty and a 90 day price guarantee. More than 100,000 engines and transmissions are currently available, at unbeatable prices. Buyers can purchase their used car engine right online, or by calling 1-800-378-7566. Thanks to LKQ's huge network of suppliers, the supply of used car and truck engines is updated on a weekly basis. "We make the experience of buying used engine or used transmission safe, easy and guaranteed. No surprises, bad experience with mediocre and fraudulent salvage yards, but direct from the source - the top salvage yards network in the US. Why to take chances elsewhere. We can find any engine or transmission in the market and still offer you the warranty and lowest price guarantee," commented Frank Shick, a spokesman for the Automotix online network. To learn more about these exclusive, high quality used engines and transmissions, visit http://www.automotix.net/usedengines/

LKQ shares decline following downgrade, Associated Press, June 19, 2008, Shares of LKQ Corp. fell sharply on Thursday after an analyst downgraded the supplier of used automobile parts, predicting slower demand for its products. The stock dropped $1.33, or 7.2 percent, to $17.31 in afternoon trading. Raymond James analyst Sam Darkatsh lowered Chicago-based LKQ to "Market Perform" from "Outperform" in a client note Thursday, saying several factors lead him to believe that demand for the company's parts will begin to slow and "shackle the stock's performance." Wholesale used vehicle prices are falling rapidly he said, which lead to fewer vehicle repairs and, subsequently, demand for LKQ's parts, Darkatsh said. Additionally, drivers are spending less time on the road. Total vehicle miles driven fell 4 percent year-over-year in March - the first decline since 1979, he said. "Intuitively, along with fewer miles driven, drivers may opt to drive slower so as to improve gas mileage, negatively impacting accident rates," Darkatsh wrote. While the analyst praised the company's recent acquisition of Keystone Automotive Industries Inc. (nasdaq: KEYS - news - people ), he expected integration issues to weaken its aftermarket growth at least through the end of the second quarter and perhaps through the year. When it reported first-quarter results in May, LKQ said it took a $1.2 million restructuring charge related to the Keystone acquisition. An LKQ representative did not immediately return a phone call seeking comment Thursday afternoon. Separately, Piper Jaffray (nyse: PJC - news - people ) analyst Michael E. Cox was less downbeat. He said the correlation between vehicle miles driven and LKQ's growth rate is "nominal," and reiterated his "Buy" rating on the stock. Shares of LKQ have traded between $11.87 and $25 in the last 52 weeks.

Suit accuses recycler of dumping steel, W Pacific Business News, June 18, 2008 Oahu's largest scrap metal recycling company is being sued by a competitor for allegedly dumping recyclable metal into the Waimanalo Gulch Landfill. Paragon Metals filed the lawsuit in U.S. District Court in Honolulu on Wednesday, accusing Schnitzer Steel Hawaii Corp., based in Portland, Ore., of dumping scrap metal in the landfill in violation of a city subsidy program that pays Schnitzer approximately $2 million a year to keep metal out of the dump, which is quickly running out of space. Honolulu-based Paragon said in the complaint that the company's business has been "injured" by what it described as unfair competition from Schnitzer, and that Schnitzer is in violation of Hawaii's laws against unfair competition, deceptive conduct and misleading conduct. It also accused Schnitzer of dumping 50 million pounds of scrap metal residue in the Leeward landfill each year. Paragon said it ships all of its metal scrap and residue overseas. Rene Mansho, the community relations director at Schnitzer Steel Hawaii Corp., said she could not comment on the lawsuit because no one with the company had seen the complaint.

Still Opposing Plan to Develop Willets Point, One Business Decides to Sell, New York Times, June 21, 2008 The offer from the city was sweet enough to jeopardize the rewards of decades of tedious surgery - gutted transmissions, mix-and-match motor parts, skeletons of abandoned cars. So sweet, in fact, that it persuaded Daniel Sambucci to aid a plan he still opposes Daniel Sambucci, 77, in his salvage yard in Willets Point, Queens, accepted the city's offer to buy the business. Another business owner, Gordhandas Soni, at right with his son Neil, said the pressure to sell had become intolerable. But Mr. Sambucci, 77, whose family owns an auto salvage company in Willets Point in Queens, would not say exactly how sweet. "They treated us well," was all he would say on Friday. The sale, announced on Wednesday, marked a flash of surrender in a community that has long opposed the city's ambitious efforts to transform its scruffy 13-block industrial park into a $3 billion retail, office and residential district with restaurants and a park. Under the deal with the city, the Sambucci Brothers business will move to College Point, Mr. Sambucci said. In Willets Point, a triangle east of Shea Stadium and west of the Van Wyck Expressway where stray cats roam the streets and shoes are stained by muddy clay, news of Mr. Sambucci's decision to sell was met with surprise and vows to continue to fight the city's plan.

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"Change is the law of life. And those who look only to the past or present are certain to miss the future."                      John F. Kennedy
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 628 SW Rand Drive, Burleson, TX 76028, (preferably) mikeg@autosalvageconsultant.com, or 817-925-8430.