LKQ Corporation (Nasdaq:LKQX) today announced that it has entered into an agreement to acquire AkzoNobel Coatings Inc.'s U.S. paint distribution business consisting of 40 locations.
The acquisition will further LKQ's ability to supply the automotive collision industry with a full line of parts and paint solutions. The acquired locations will supplement LKQ's existing paint distribution business and provide the company with additional expertise to assist its customers with their paint needs.
"We have long admired the body shop solutions offered by AkzoNobel, recognized as a color technology leader and the world's largest coatings company," said LKQ's co-CEO Robert L. Wagman. "This transaction reflects LKQ's commitment to being a one-stop-shop solution to the collision repair industry."
"LKQ Corporation is one of the most recognized and respected names in the automotive industry," said AkzoNobel Americas General Manager AB Ghosh. "We are proud to have them as a part of our growing North American network of distribution partners."
Mr. Wagman continued, "LKQ currently has relationships with thousands of collision repair shops throughout the United States. By adding AkzoNobel's portfolio of brands to our product offerings we believe this transaction, coupled with our experience and extensive distribution network, offers LKQ an opportunity for continued growth and market penetration in the paint distribution business." LKQ will distribute all of AkzoNobel's paint lines including the Sikkens, Lesonal and U-Tech brands.
The transaction is expected to become effective May 27, 2011 subject to customary closing conditions. Financial details were not disclosed.
About LKQ Corporation
LKQ Corporation is the largest nationwide provider of aftermarket and recycled collision replacement parts, refurbished collision replacement products such as wheels, bumper covers and lights, and a leading provider of mechanical replacement parts including remanufactured engines, all in connection with the repair of automobiles and other vehicles. LKQ operates more than 325 facilities, offering its customers a broad range of replacement systems, components and parts to repair automobiles and light, medium and heavy-duty trucks. LKQ's operations include locations in Canada, Mexico and Central America.
Salvage Wire
Helping Automotive recyclers become leaders in their industry
Showing posts with label Recycled parts. Show all posts
Showing posts with label Recycled parts. Show all posts
Wednesday, 18 May 2011
Thursday, 28 April 2011
How 'Green' is the Auto Recycling World?
Sustainable development in the Auto Recycling Industry
Auto recycling can be a very green operation, but it can also be very dirty and harmful to the environment, the challenge has to be how to effectively improve the image of the industry, divert more product away from landfill and into recycling, and ensure that auto recycling activities do not harm this fragile planet we live on.
An immense challenge, especially when we hear about the predicted increase in new vehicle sales for China and S East Asia over the coming 20 years.
As with all things, this must start at the vehicle design stage – vehicle manufacturers must be forced to design vehicles that can easily be recycled once they reach the end of their lives. This includes materials used in production, restrictions in the use of hazardous substances such as mercury, and ease of dismantling.
During the life of the vehicle, manufacturers have a need to show that servicing schedules are designed to minimise waste, and service agents must be able to recycle as much of the waste products as possible.
When the vehicle reaches the end of its’ life it must go to an approved treatment facility for de-pollution, dismantling and recycling. A site where all waste products can be removed cleanly, efficiently and sent for recycling. A site where the ground will not be contaminated, workers are kept safe and the public are not in any danger.
The European Union is getting there – they already have rules and regulations in place regarding all of the above, including development of markets for the recycled products that come out of ELV’s – their target of 95% of each vehicle being recycled from 2015 is tough, but achievable.
Problem is, the rules only apply to cars and light commercial vehicles, when will similar standards be applied to motorbikes and heavy commercials?
What about the rest of the world and what happens in 10-12 years time when the 12 million new cars sold in China this year reach the end of their lives?
It is time for the worldwide auto recycling industry to set minimum standards for vehicle de-pollution, dismantling and recycling for all motor vehicles. Standards that reflect the need to protect our world from pollution, increase the amount of product that is recycled, and minimise waste.
Talk to your local Politicians, Councillors, Members of Parliament, Senators etc, ask them what they are doing to protect the environment, when can we see updated rules and regulations, and more importantly the funding to enforce these rules and regulations and drive illegal operators out of business.
Auto recycling can be a very green operation, but it can also be very dirty and harmful to the environment, the challenge has to be how to effectively improve the image of the industry, divert more product away from landfill and into recycling, and ensure that auto recycling activities do not harm this fragile planet we live on.
An immense challenge, especially when we hear about the predicted increase in new vehicle sales for China and S East Asia over the coming 20 years.
As with all things, this must start at the vehicle design stage – vehicle manufacturers must be forced to design vehicles that can easily be recycled once they reach the end of their lives. This includes materials used in production, restrictions in the use of hazardous substances such as mercury, and ease of dismantling.
During the life of the vehicle, manufacturers have a need to show that servicing schedules are designed to minimise waste, and service agents must be able to recycle as much of the waste products as possible.
When the vehicle reaches the end of its’ life it must go to an approved treatment facility for de-pollution, dismantling and recycling. A site where all waste products can be removed cleanly, efficiently and sent for recycling. A site where the ground will not be contaminated, workers are kept safe and the public are not in any danger.
The European Union is getting there – they already have rules and regulations in place regarding all of the above, including development of markets for the recycled products that come out of ELV’s – their target of 95% of each vehicle being recycled from 2015 is tough, but achievable.
Problem is, the rules only apply to cars and light commercial vehicles, when will similar standards be applied to motorbikes and heavy commercials?
What about the rest of the world and what happens in 10-12 years time when the 12 million new cars sold in China this year reach the end of their lives?
It is time for the worldwide auto recycling industry to set minimum standards for vehicle de-pollution, dismantling and recycling for all motor vehicles. Standards that reflect the need to protect our world from pollution, increase the amount of product that is recycled, and minimise waste.
Talk to your local Politicians, Councillors, Members of Parliament, Senators etc, ask them what they are doing to protect the environment, when can we see updated rules and regulations, and more importantly the funding to enforce these rules and regulations and drive illegal operators out of business.
Tuesday, 22 March 2011
Special Report on Salvage
The Automotive Recyclers Association latest magazine includes a special report on salvage, subjects discussed include:
Global Goods - Technical advances in motor vehicles are making repairs much harder and raising costs. This has the potential to increase instances of fraud and sub-standard repair -- issues that can seriously harm the reputation of the auto recycling industry. How can the global auto recycling industry, whilst keeping costs as low as possible, continue to improve standards, consumer protection, and eradicate fraud?,
Fairness - The 2009 study titled International Trade in Used Vehicles: The Environmental Consequences of NAFTA, by Lucas W. Davis, Haas School of Business, University of California, Berkeley, and Matthew E. Kahn, UCLA Institute of the Environ- ment, studied the effects of the law since its passage in 1993, including trade patterns. The North American Free Trade Agreement was created to expand trade between the United States, Canada, and Mexico to make them more competitive in the global marketplace. As of January 1, 2008, all tariffs among the three countries were eliminated and trade tripled from $297 billion to $1 trillion between 1993-2007, according to the study.
Fleecing Customers - In a 2009 CNN report, Guiseppe "Joe" Pirrone was on vacation when a relative called to say that the work truck he had purchased for his business was being seized by the police. Pirrone learned that the truck he legally bought in 2008 was actually a stolen vehicle, and he was a victim of a car cloning vehicle theft ring. While the truck was now police evidence, he is still on the hook for the $27,000 loan.
Stakeholder Perspective - Automotive Recycling magazine, in an effort to fully understand the issues surrounding the current marketplace of salvage and allow for varying opinions on the topic, sent questions to seven varying industry stakeholders, all who are members of the Collision Industry Electronic Commerce Association(CEICA) Salvage Committee. Here are three responses with their perspective on our questions. We appreciate their participation.
The full articles are available on-line at http://www.a-r-a.org/paper.asp?paper=102, they are well worth reading.
Global Goods - Technical advances in motor vehicles are making repairs much harder and raising costs. This has the potential to increase instances of fraud and sub-standard repair -- issues that can seriously harm the reputation of the auto recycling industry. How can the global auto recycling industry, whilst keeping costs as low as possible, continue to improve standards, consumer protection, and eradicate fraud?,
Fairness - The 2009 study titled International Trade in Used Vehicles: The Environmental Consequences of NAFTA, by Lucas W. Davis, Haas School of Business, University of California, Berkeley, and Matthew E. Kahn, UCLA Institute of the Environ- ment, studied the effects of the law since its passage in 1993, including trade patterns. The North American Free Trade Agreement was created to expand trade between the United States, Canada, and Mexico to make them more competitive in the global marketplace. As of January 1, 2008, all tariffs among the three countries were eliminated and trade tripled from $297 billion to $1 trillion between 1993-2007, according to the study.
Fleecing Customers - In a 2009 CNN report, Guiseppe "Joe" Pirrone was on vacation when a relative called to say that the work truck he had purchased for his business was being seized by the police. Pirrone learned that the truck he legally bought in 2008 was actually a stolen vehicle, and he was a victim of a car cloning vehicle theft ring. While the truck was now police evidence, he is still on the hook for the $27,000 loan.
Stakeholder Perspective - Automotive Recycling magazine, in an effort to fully understand the issues surrounding the current marketplace of salvage and allow for varying opinions on the topic, sent questions to seven varying industry stakeholders, all who are members of the Collision Industry Electronic Commerce Association(CEICA) Salvage Committee. Here are three responses with their perspective on our questions. We appreciate their participation.
The full articles are available on-line at http://www.a-r-a.org/paper.asp?paper=102, they are well worth reading.
Thursday, 3 February 2011
Legislating Write-Offs
The last few weeks have seen two new initiatives focused at legislating written-off vehicles.
The Irish Government are consulting on proposed legislation and the government of New South Wales enacted legislation to stop all write-offs being re-registered.
I have already commented elsewhere on the Irish proposals so will concentrate on New South Wales.
The legislation is very specific; any vehicle under 4.5 tonnes gross weight that is written-off in NSW cannot be re-registered anywhere in Australia. This includes cars, Light Commercials, Trailers, Caravans and Motorbikes.
There are a few exemptions, for example vehicles that have suffered hail damage, but in all cases the owner must apply for authority to repair the vehicle prior to repairs commencing, and the repaired vehicle must go through two inspections before being allowed back into use – one focused on vehicle repair standards, the other on vehicle identity.
A vehicle is classed as a write-off when the assessed repair cost added to the salvage value exceeds the market value of the vehicle. On assessment by a qualified vehicle damage assessor reports must be filed within 7 days, the vehicle must have a very prominent sticker applied where it can be seen (there are penalties for tampering with these stickers) advising all that this is a statutory write-off and cannot be used on the road ever again, and all assessment records must be retained for 7 years. The NSW government have also put a rigorous audit process in place to ensure that standards are maintained to the appropriate level.
What does this mean for the Australian insurance and vehicle repair marketplace; I believe a number of things will change.
• Insurers will be focused more on reducing repair costs, ensuring that fewer vehicles reach total loss status – more ‘recycled’ parts, cheaper labour costs, repairing more parts rather than replacing, and driving lower parts costs from manufacturers.
• Hopefully this will not lower repair standards in the body repair centres.
• There is potential for loss of repair capacity as repair shops close due to lower volume of repairs from insurers and repairable salvage.
• There will also be downward pressure on parts and scrap prices as more vehicles are broken for spares and scrapped than previously.
• Will insurance premiums rise to compensate for the loss of repairable salvage returns? I will let you make your own judgement!
As the various marketplaces consolidate over the next few months the picture will get much clearer and I am sure that the global market will be watching with interest to valuate the impact of this legislation.
More details are available at http://www.rta.nsw.gov.au/registration/written_off_vehicles/index.html
The Irish Government are consulting on proposed legislation and the government of New South Wales enacted legislation to stop all write-offs being re-registered.
I have already commented elsewhere on the Irish proposals so will concentrate on New South Wales.
The legislation is very specific; any vehicle under 4.5 tonnes gross weight that is written-off in NSW cannot be re-registered anywhere in Australia. This includes cars, Light Commercials, Trailers, Caravans and Motorbikes.
There are a few exemptions, for example vehicles that have suffered hail damage, but in all cases the owner must apply for authority to repair the vehicle prior to repairs commencing, and the repaired vehicle must go through two inspections before being allowed back into use – one focused on vehicle repair standards, the other on vehicle identity.
A vehicle is classed as a write-off when the assessed repair cost added to the salvage value exceeds the market value of the vehicle. On assessment by a qualified vehicle damage assessor reports must be filed within 7 days, the vehicle must have a very prominent sticker applied where it can be seen (there are penalties for tampering with these stickers) advising all that this is a statutory write-off and cannot be used on the road ever again, and all assessment records must be retained for 7 years. The NSW government have also put a rigorous audit process in place to ensure that standards are maintained to the appropriate level.
What does this mean for the Australian insurance and vehicle repair marketplace; I believe a number of things will change.
• Insurers will be focused more on reducing repair costs, ensuring that fewer vehicles reach total loss status – more ‘recycled’ parts, cheaper labour costs, repairing more parts rather than replacing, and driving lower parts costs from manufacturers.
• Hopefully this will not lower repair standards in the body repair centres.
• There is potential for loss of repair capacity as repair shops close due to lower volume of repairs from insurers and repairable salvage.
• There will also be downward pressure on parts and scrap prices as more vehicles are broken for spares and scrapped than previously.
• Will insurance premiums rise to compensate for the loss of repairable salvage returns? I will let you make your own judgement!
As the various marketplaces consolidate over the next few months the picture will get much clearer and I am sure that the global market will be watching with interest to valuate the impact of this legislation.
More details are available at http://www.rta.nsw.gov.au/registration/written_off_vehicles/index.html
Saturday, 6 November 2010
The Automotive Recycling Association responds to Auto Manufacturers' unfounded attacks on recycled auto parts
The ARA recently announced that they organisation has issued a formal complaint against Hyundai Motor America and American Honda. Both companies have released statements that warn against the use of recycled auto parts, and indicate that their use will void vehicle warranties.
"Neither manufacturer has provided any evidence that parts unaffected by an accident become inadequate once reused" ARA's Chief Executive Office Michael E Wilson states in his appeal the the Federal Trade Commission.
Full details of the complaint can be found at the association web site, www.a-r-a.org
"Neither manufacturer has provided any evidence that parts unaffected by an accident become inadequate once reused" ARA's Chief Executive Office Michael E Wilson states in his appeal the the Federal Trade Commission.
Full details of the complaint can be found at the association web site, www.a-r-a.org
Subscribe to:
Posts (Atom)