Archives for month: February, 2010

Junk Car CEO Steps Down

Junk-car auction service Copart said that founder Willis J. Johnson stepped down as CEO on Monday. He was replaced as CEO by A. Jayson Adair, who had been Copart’s president since 1996. The company has suffered five straight quarterly profit declines.

In December, the company said first quarter profits slid 5.3 percent. Copart has cited both currency exchange and the poor economy. Also effective Monday, Adair’s title of president was given to Vincent W. Mitz, who had been an executive vice president at Copart.

Johnson will continue as chairman of the board and an executive officer. Copart Inc. was founded in 1982 to sell vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships and to the public.  Auto recyclers have been pushing back by joining forces to cut-out middlemen like this.

Crazy Crash Photo

This is one of the craziest crash photos I have ever seen!

crazy car crash in house

OMG, Car vs. Airplane

Now this will certainly results in a junk car!!!

car vs plane this will be a junk car

ARA Expresses Concerns Over New Refrigerant

The Automotive Recyclers Association has expressed concern to the U.S Environmental Protection Agency over the recyclability, safety, and feasibility of the proposed HFO-1234yf refrigerant regarding the environment, automotive recycling employees, and the general public.

The comments were offered in the context of the U.S. Environmental Protection Agency’s (EPA) proposed rule to approve the new substitute refrigerant, HFO-1234yf, under the Significant New Alternatives Policy (SNAP) Program. Alternative refrigerants accepted by the program have generally been accepted for use in Canada.

While the association says it fully supports the intent of the SNAP Program to evaluate and regulate substitutes for the ozone-depleting chemicals that are being phased out under the stratospheric ozone protection provisions of the Clean Air Act, it is urging the EPA to look at the total life-cycle of the fluid, and consider all ramifications that may occur from the use, and ultimately, the disposal of the new fluid.

The recyclers association says that, while it appreciates the EPA’s obligations to identify the best available alternatives to ozone harming fluids, it has concerns.

Those concerns target the storage, disposal, occupational hazard, internal cost associated with specialized equipment, impact on air quality, and storm water run-off requirements.

The specific questions raised highlight the need for further information and in-depth research for handling this new fluid during the dismantling process of an end-of-life vehicle, to identify any associated occupational dangers or potential costs that could be incurred by automotive recycling facilities and their employees, or any environmental impact it may have to the public regarding air quality or storm water run-off, which are two key issues of concern for the professional automotive recycler. The current ruling does not address these concerns with any specificity.

According to the association, the EPA has expressed a willingness to address these issues and gain more of an understanding about the automotive recycling industry as it moves closer to administering a final rule.

“ARA is pleased that the EPA will address end-of-life disposal specifications in a follow-on rule-making, and looks forward to working with EPA staff on this matter,” said Michael Wilson, ARA executive vice-president. “Professional automotive recyclers have the expertise, availability, and willingness to assist the EPA with reaching a final decision that protects the environment, addresses safety concerns, and imposes the least amount of undue burden on the automotive recycling industry.”

The ARA represents over 4,500 auto recycling facilities in the United States and fourteen other countries around the world, including Canada. Buzz in the industry is that this will not be a problem for recyclers unless the new refrigerant proves unstable.

Schnitzer Steel Losses Almost $8 million in Recent Quarter

Schnitzer Steel Industries, Portland, Ore., has reported a loss of $7.8 million for its fiscal first quarter, which ended Nov. 30, 2009. The results compared with a loss of $34.4 million for the same time a year earlier. Revenue for the quarter was $394.3 million, down 17 percent compared to one year ago.

“This is our second consecutive quarter of profitability from continuing operations and it marks an improvement in our results on a year-over-year basis,” says Tamara Lundgren, president and CEO of the company.

The company’s metals recycling business generated operating income of $16 million for the quarter, compared with a loss in the first quarter of the prior year.

Ferrous scrap prices rose toward the end of the quarter after a sharp drop in late October and early November of 2009. The increase reflected strengthening demand, particularly in the export markets. Nonferrous prices also rose during the quarter.

Schnitzer predicts a slight increase in ferrous net sale prices in the second quarter compared with the first quarter of fiscal 2010. Nonferrous markets also are improving, which should support higher prices for nonferrous metals compared with the first quarter of the fiscal year.

Normal seasonal declines associated with the winter months will affect the flow of material. As a result, Schnitzer says it foresees increasing raw material purchase costs. However, the rising sales price environment and increased sales volumes will more than offset the purchase cost increases, according to the company.

As most in the auto recycling business hope, that scrap steel prices will continue to rise.

Interesting Junk Car Ordinance from Alaska

The Homer City Council postponed taking action on an update to the city’s comprehensive plan at its Monday meeting, it still wrestled with a variety of ordinances and resolutions.

Ordinance 10-08, which would spend $15,000 from the general fund reserve to remove junk cars from the city’s core, was passed by unanimous vote in its first reading with a second reading to be held on Feb. 22. The plan would cover the cost of disposing of fluids from one car per family on a first-come, first-served basis. Currently, the cost of removing fluids and the battery from a junk car costs about $150, and the total cost of disposal for an individual automobile $300.

This is a great idea and we would love to see more local governments be as proactive as the Homer City Council.  Kudos to taking care of these cars in an eco-friendly way!

MrCarJunk on Twitter and Facebook

facebook or twitterIf you have not been living under a rock for the past couple of years you know that social media sites are the buzz across the web and we have jumped in with both feet. You can follow us on Twitter or join our fan page on Facebook! We look forward to interacting with all our customers!

We just love all the great new social media sites because they offer us a unique opportunity to connect with our customers and supporters on a very personal level.  If you ever need us don’t hesitate to contact us via these social networks.