June 2015

In this issue ...

ARA Joins Transportation Secretary On Asking For OEM Parts Numbers

ARA announced that is has joined U.S. Department of Transportation Secretary Anthony Foxx’s call to automakers to provide industry partners access to critical original equipment manufacturers (OEM) part information to identify manufacturers' recalled parts in the automotive parts supply chain.

Following a February 11, 2015 hearing of the U.S. House of Representatives Committee on Transportation, Secretary Foxx, in response to a question submitted by Representative Sam Graves, stated his belief for the hearing record that automakers should provide “parts numbers related to recalls” in an “efficient and easy-to-use format directly to recyclers and others who need the information”. Foxx also commented that “this approach would not require the government to be the go-between or require the creation and expense of a new government program to collect and distribute the information.”

ARA supports the Secretary's statement and ARA's CEO Michael E. Wilson further noted that “the complexity of today's automotive supply chain and unprecedented number of motor vehicle safety recalls underscores the importance of access to VIN-specific OEM parts numbers and other identifying information.” Over the past four years, ARA has initiated over one hundred meetings regarding recall safety with administration officials, members of Congress, automakers, suppliers, consumer groups and others around the world to illustrate the critical connection between safety recall campaigns, OEM parts data, and all players in the automotive parts supply chain. ARA also has communicated frequently with its membership and affiliated organizations, representing 4,500 professional automotive recycling facilities, about the need to identify recalled parts in their inventory and the importance of OEM parts data to consumer safety.

“Part suppliers, manufacturers, government regulators, consumers groups and others must all work together to develop a system under which recalled parts are correctly identified, tracked and remedied or retired from service,” said Wilson. In this extremely volatile time of safety recall campaigns, ARA joins with Secretary Foxx and calls on all stakeholders to pool collective resources to promote consumer safety while supporting a vibrant and quality parts market. ARA agrees with Secretary Foxx that no new government program needs to be developed to share this data; rather the automakers simply need to remove the barriers they have set up that currently block access to part data. Wilson cautioned that “without access to this data, faulty parts may not be isolated and removed from the market, and the safety of our nation's drivers could be compromised.”

Takata Files Defect Reports, Enters Consent Order

U.S. Transportation Secretary Anthony Foxx today announced that at the department’s insistence, air bag manufacturer Takata has acknowledged that a defect exists in its air bag inflators. Takata has agreed to a national recall of certain types of driver and passenger side air bag inflators. These inflators were made with a propellant that can degrade over time and has led to ruptures that have been blamed for six deaths worldwide. The action expands the number of vehicles to be recalled for defective Takata inflators to nearly 34 million.

Secretary Foxx also announced that the Department’s National Highway Traffic Safety Administration (NHTSA) issued a Consent Order to Takata. The Consent Order requires the company to cooperate in all future regulatory actions that NHTSA undertakes in its ongoing investigation and oversight of Takata. In addition, NHTSA announced its intent to begin a formal legal process to organize and prioritize the replacement of defective Takata inflators under the agency’s legal authority.

“Today is a major step forward for public safety,” Secretary Foxx said. “The Department of Transportation is taking the proactive steps necessary to ensure that defective inflators are replaced with safe ones as quickly as possible, and that the highest risks are addressed first. We will not stop our work until every air bag is replaced.”

The actions expand regional recalls of Takata passenger-side inflators, currently limited to areas of high absolute humidity, to nationwide recalls involving more than 16 million vehicles. They also expand the current nationwide recall of driver-side inflators to more than 17 million vehicles. It’s anticipated that the remedy of vehicles will be prioritized based upon risk, with the vehicles that present the greatest risk in terms of age and geographic location to be serviced first.

“From the very beginning, our goal has been simple: a safe air bag in every vehicle,” said NHTSA Administrator Mark Rosekind. “The steps we’re taking today represent significant progress toward that goal. We all know that there is more work to do, for NHTSA, for the auto makers, for parts suppliers, and for consumers. But we are determined to get to our goal as rapidly as possible.”

The Department has established a new website, www.SaferCar.gov/RecallsSpotlight, to provide regular updates on the status of this and other recalls and of NHTSA’s investigation.

Testing and investigation by Takata, auto manufacturers, and independent researchers have not yet established a definitive root cause of the inflator malfunctions. NHTSA’s analysis of test results and engineering reports from independent organizations points to moisture infiltrating the defective inflators over extended periods of time as a factor.

Over time, that moisture causes changes in the structure of the chemical propellant that ignites when an air bag deploys. The degraded propellant ignites too quickly, producing excess pressure that causes the inflator to rupture and sends metal shards into the passenger cabin that can lead to serious injury or death.

Hollander Releases Core Buying Program

Hollander, LLC. has just released a new core buying program called CoreConnect. Developed in partnership with Rebuilders Automotive Supply (RAS), CoreConnect identifies the price and demand of core parts for an automotive recycler and simplifies the process of selling those parts.

CoreConnect enables recyclers to easily determine the value of cores they have in inventory or on salvaged vehicles they are considering purchasing, by identifying the demand for those parts. RAS identifies the demand for cores from manufacturers and rebuilders within a recycler’s inventory in EDEN®, Hollander’s parts locating network. Additionally, yards using Hollander’s Powerlink® yard management system can seamlessly integrate with CoreConnect automating the associated inventory management and sales process.

“A common ask from our customers is to help them identify more demand for their parts. CoreConnect provides them with that key knowledge for their business.  In one instance, the solution identified over $76,000 of immediate revenue for a recycler,” said Chad Meyer, Hollander's Senior Director of Product Management. “CoreConnect provides them with inventory valuation, key decision support information within the applications workflow, and streamlines the process of selling and shipping the parts to RAS.”

The web-based application optimizes the cores valuation process by giving recyclers various ways to identify the parts’ value. Users can search by vehicle by entering or scanning the vehicle’s vehicle identification number (VIN), run a query against their entire inventory, and subscribe to alerts for limited time offers for high value parts. Once a core is placed into the program the price is guaranteed for a period of time, while the recycler retains the ability to remove and sell the core elsewhere. Integration with Powerlink ensures the parts are removed from inventory and delisted from EDEN, eBay, HollanderParts.com and Hollander Storefront. CoreConnect also manages the process of notifying RAS to pick up a core bin when full and electronically invoices them.

“Our vision was to use technology to seamlessly connect the high demand for cores from numerous sources with supply; CoreConnect is the reality of that vision,” said Jack Bowser, CEO of Rebuilders Automotive Supply. “RAS along with Hollander is excited to bring this solution to market and help all core market stakeholders.”

Canadian Auto Recyclers Take Back Tires

The Ontario Automotive Recyclers Association (OARA) and the Ontario Tire Stewardship (OTS) have just held the sixth annual OARA Tire Take Back event, a fundraiser for The Sunshine Foundation of Canada, an organization that helps dreams come true for children who are challenged by severe physical disabilities or life-threatening illnesses.

The event was held June 1 - 6 and allowed Ontario residents to drop off an unlimited amount of used tires, for free, at participating auto recycling facilities. Every tire dropped off generated a donation to the Sunshine Foundation.

More than 60 OARA member locations participated in the event, including Standard Auto Wreckers. Toronto’s Breakfast Television used the company’s Toronto location to cover the event. You can watch all five segments in the clips below.

Segment 1 - http://bcove.me/non7k1va

Segment 2 - http://bcove.me/spcjlpzp

Segment 3 - http://bcove.me/usr2iqf2

Segment 4 - http://bcove.me/bzulxumt

Segment 5 - http://bcove.me/x0iap2om

July Deadlines

  • June 24, 2015: Listings for The Locator Magazine.

  • June 29, 2015: Display ads for The Locator Magazine.

  • July 2, 2015: The Locator Magazine goes to press.

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