Salvage Wire

Salvage Wire
Helping Automotive recyclers become leaders in their industry

Thursday 11 November 2010


Reputation is the opinion (more technically, a social evaluation) of the public toward a person, a group of people, or an organization. It is an important factor in many fields, such as education, business, online communities or social status.
Reputation is 'the result of what you do, what you say, and what other people say about you'.
Put in simpler terms a working definition of reputation is: the sum of impressions held by a company's stakeholders.
In other words, reputation is in the "eyes of the beholder". For a company, its reputation is how esteemed it is in the eyes of its employees, customers, investors, talent, prospective candidates, competitors, analysts, regulators and the list goes on.
Firm reputation
Many businesses have public relations departments dedicated to managing their reputation. In addition, many public relations firms describe their expertise in terms of reputation management. The public relations industry is growing due to the demand for companies to build corporate credibility and hence reputation Incidents which damage a company's reputation for honesty or safety may cause serious damage to finances. For example, in 1999 Coca-Cola lost $60 million (by its own estimate) after schoolchildren reported suffering from symptoms like headaches, nausea and shivering after drinking its products.
Building reputation through stakeholder management
The stakeholder theory says corporations should be run for the benefit of all “stakeholders,” not just the shareholders. The stakeholders of a company can be suppliers, consumers, employees, shareholders, financial community, government, and media. Companies must properly manage the relationships between stakeholder groups and consider interest of each stakeholder group carefully. Good reputation enhances profitability because it attracts customers to products, and employees to its jobs. Company’s reputation is an asset and wealth that gives that company a competitive advantage because this kind of a company will be regarded as a reliable, credible, trustworthy and responsible for employees, customers, shareholders and financial markets. In addition, according to MORI’s survey of about 200 managers in the private sector, 99% responded the management of corporate reputation is very (83%) or fairly (16%) important. Reputation is a reflection of companies’ culture and identity. Also, it is the outcome of managers' efforts to prove their success and excellence. It is sustained through acting reliable, credible, trustworthy and responsible in the market. It can be sustained through consistent communication activities both internally and externally with key stakeholder groups.
CEO reputation
Research has shown the reputation of the CEO is inextricably linked to the reputation of the company. CEOs set the tone, define company direction, attract talent, and are the human face of the organization.
Online Reputation
Online reputation is a factor in any online community where trust is important. It affects a pseudonym rather than a person. Examples include eBay. One study found that a good reputation added 7.6% to the price received.
Another way to look at online reputation is how well its being managed. Nearly seven out of 10 global business executives see their reputations online as vulnerable.
An online reputation is the perception that one has on the Internet based on their digital footprint. This is why a merchant on the web having a physical shop (with real name, real address) is usually more trusted than an eBay member with a pseudonym.
Reputation Officers
Despite the rising interest in reputation, few companies have reputation officers. Although many companies will say company reputation is the job of the CEO, managing reputation is a daily function. Some would argue reputation-building and protection is the job of the CEO and not any direct report. Others would say that the CEO has too many responsibilities to focus on reputation.
Reputation Recovery
The convergence of globalization, instantaneous news and online citizen journalism magnifies any corporate wrongdoing or misstep. Barely a day goes by without some company facing new assaults on its reputation. Reputation recovery is the long and arduous path to rebuilding equity in a company's good name. Research by Weber Shandwick has found it takes approximately 3.5 years to fully recover reputation ([Safeguarding Reputation). James C. Collins of Good to Great fame says it takes a company seven years to go from good to great. The path is clearly long. The reason reputation recovery has risen in importance is that the "stumble rate" among companies has risen exponentially over the past five years. In fact, 79% of the world's most admired companies have lost their number one positions in industries in that time period. Companies which were once heralded as invincible, no longer are.

Tuesday 9 November 2010

Unregulated Internet Automobile Sales are a Ticking Time Bomb

The Automotive Recyclers Association (ARA) is calling upon state lawmakers to review and update gaps in laws that allow: (1) vehicles to be sold and transferred without the proper paperwork; (2) allow total loss vehicles, vehicles damaged so severely that the cost of repairs and the salvage value combined exceed the current value of the vehicle, back on the road and (3) allow individuals to bypass important environmental regulations regarding the safe disposal of vehicles. Last year alone, some three million-plus total loss vehicles were sold at salvage pool auctions throughout the United States many of which were sold to unregulated buyers via the Internet.

In a steep departure from past practices, these severely damaged motor vehicles are now electronically bypassing state laws and regulations. ― Most of the safeguards in place across the country were instituted before the explosion of the Internet and don't take into account the ease and reliance of our society on Internet commerce. Every day in the United States, individuals and entities are using the Internet to bypass safety standards and circumventing state statues designed to protect consumers and the environment, says Michael E. Wilson, Automotive Recyclers Associations Chief Executive Officer.

Terrorist networks and organized crime syndicates are exploiting loopholes to fund their criminal activities. In fact, many severely damaged total loss vehicles that are sold through salvage auctions are fetching huge sums because criminals merely want the VIN plate and paperwork that go with these vehicles. The purchasers can then use this information to cover up undamaged stolen vehicles by replacing the VINs and corresponding paperwork from the total loss vehicle securing tens of thousand of dollars in financial gain from the sales of clean stolen vehicles.

Based on press accounts, the Times Square bombing suspect Faisal Shahzad purchased the 1993 Nissan Pathfinder through a cash deal made on the popular consumer Web site Craigslist. No documents were exchanged and no vehicle registration was recorded. The $1,300 deal was finalized at a Connecticut shopping mall where the buyer handed over the money to the unsuspecting seller and drove off. Shahzad then destroyed one Vehicle Identification Number (VIN) on the Pathfinder not realizing it had many others. This mistake gave investigators the ability to trace the car to the Connecticut seller. Shahzad also used a stolen license plate to drive the car into New York City.

―Loopholes like this result in the defrauding of consumers on motor vehicle sales and purchases, criminal activity of all sorts, and even the bypassing of safe environmental regulations regarding the disposal of retired vehicles. The Time Square bombing attempt should be a wake-up call to elected officials throughout the country to review motor vehicle sales statues, Wilson adds.

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,

EMR to open new facility

European Metal Recycling Ltd. has opened its newest scrap recycling facility in Darlington.
The new site will include a special depollution rig to safely remove liquids from end-of-life vehicles before they are processed, according to EMR.
“As such, we will play an important part in ensuring vehicles are disposed of safely, responsibly and efficiently and we can pay the customer the best price,” says Andrew Sheppard, EMR area manager.
The facility will accept all grades of ferrous and nonferrous metals.

Calls for salvage code of practice

With more vehicles forecast to be produced in the next 20 years than in the entire history of the motor industry to date, its feared millions of scrapped cars may find their way back onto the roads if the recycling community fails to take action to implement recognised standards, according to Bluecycle.

Calling for the first worldwide code of practice for motor vehicle salvage, Bluecycle claims that the rising cost and complexity of vehicle repair presents a 'clear and present danger' that more unsafe vehicles will be sold across borders and instances of fraud will escalate, unless countries work towards a common objective to improve standards and tighten controls relating to salvage categorisation and recycling.
Speaking at the USA’s Automotive Recycling Association annual convention to be held in Texas on 20-23 October, Andy Latham, Bluecycle’s Reputation Manager, will champion the case for the development of a global code of practice for the disposal of motor vehicle salvage and re-use of parts.
Andy Latham, Reputation Manager, Bluecycle, said, 'Vehicle salvage has global reach now but there are differing standards of repair and legislation regarding recycled or green parts, not to mention a severe lack of information exchange and documentation control. Continuing technical advances are making vehicle repair much harder and more expensive and this has the potential for sub-standard repair and fraud to increase on a global scale unless collective measures are taken to address these issues.'

Global Motor Salvage Code

The motor salvage market has moved from being a 'local' industry into a global industry generating millions in cash every year.
Many countries do not have controls on motor salvage, so is it time for the motor salvage industry to introduce a global code of practice?
A code of practice designed to support all legitimate motor salvage and auto recycling operations, those that care about their individual businesses, their staff, their customers, the environment, and the need to have a sustainable business plan.
An effective code could avoid draconian legislation, give more opportunity to sell recycled vehicle parts, give increased customer safety, more repair opportunities, reduce repair costs, reduce CO2 emissions as a direct result of less new parts being used, reduce fraud, increase the numbers of legitimate operations and increase the professionalism of the auto recycling industry.