In this issue ...
A Miami judge has dismissed part of a lawsuit against Takata Corporation, the company that manufactured defective air bags found in 19 million vehicles by 12 manufacturers.
According to the Daily Business Review, U.S. District Judge Federico Moreno dismissed claims of fraud filed by the Automotive Recyclers Association (ARA) against automakers that produced vehicles with Takata air bags. The media outlet reported Judge Morneo wrote that ARA lacked standing and failed to adequately specify which automakers allegedly harmed them. The judge denied a motion to dismiss the entire lawsuit.
These claims are just part of the class action lawsuit filed by vehicle owners last year against Takata, Honda, BMW, Mazda, Mitsubishi, Nissan, Subaru and Toyota. ARA brought the class action on behalf of all persons and entities that operate professional automotive recycling facilities in the United States who have purchased for resale any of the vehicles containing undeployed and allegedly defective air bags manufactured by Takata. The complaint alleges that Takata and the auto manufacturers withheld and / or misled automotive recyclers about the safety and reliability of the allegedly defective air bags, which led recyclers to over pay for now worthless air bags.
According to the complaint, Takata was aware of the air bag defect as far back as 2004 when it conducted secret tests on several air bags.
The complaint further alleges that following the disclosure of the air bag defect, recyclers are not able to sell or trade these air bags because they are valueless. ARA alleges that it and the auto recyclers involved had an expectation that Takata and the auto manufacturers would disclose known defects in a timely manner pursuant to federal, state and common law. The failure to properly disclose the defect caused recyclers to purchase vehicles containing the Takata air bags for amounts greater than their worth.
ARA is represented by Kessler Topaz Meltzer and Check, LLP. The complaint was filed in the United State District Court for the Southern District of Florida in February 2015.
Hollander is warning its customers about a scam to steal information and hold it for ransom.
A Powerlink customer was contacted by a person claiming they were a Car-Part.com employee and asked for server access to “install some software.” This customer had their server hacked and all 50,000 of their vehicle and part images were encrypted and cannot be accessed. Hollander stated the hackers are now asking for bitcoin ransom. The customer did not have their images hosted on EDEN or backed up locally.
Hollander warns do not allow anyone to access your Powerlink system unless you positive about who they are. Also, back up your data locally or to a cloud program. Call Hollander at 800-825-0092 with any questions.
B & R Auto Wrecking has acquired Pic-N-Save Auto Recyclers out of Carson City, Nev. This acquisition brings the total number of locations to three in the state of Nevada for B & R Auto Wrecking.
The company also has three locations in Washington and nine in Oregon. The family owned and operated company started in 1980 in Corvallis, Ore. Pic-N-Save is now B & R Auto Wrecking’s 15th facility. The eight-acre facility will immediately be filled with late-model salvage, mainly from insurance auctions in the area and updated to B & R Auto Wrecking’s Hollander Interchange computer system.
Pic-N-Save is the perfect "in between" location for B & R Auto Wrecking logistically, said Senior Business Advisor Brian Perlenfein. "From our distribution standpoint, we could not have asked for a better location," Perlenfein said. "Now, we have that access point between our southern Nevada stores and our Oregon stores to distribute parts back and forth in a much more efficient and timely manner."
B & R Auto Wrecking (www.autowrecking.com) will immediately begin overnight service from its Eugene, Ore. store to Henderson, Nev., store stopping at the new location to drop off and pick up product. Perlenfein goes on to say that the market surrounding Carson City is appealing too.
"We are excited to be here. Reno and the surrounding cities are in need of a supplier of quality recycled OEM parts. We feel our diverse product line of foreign and domestic late-model car and truck parts will be exactly what the collision repair shops are demanding these days," Perlenfein stated.
LKQ Corporation announced that it has signed a definitive agreement to acquire Pittsburgh Glass Works LLC (PGW) from private equity firm Kohlberg & Company LLC (Kohlberg) and PPG Industries, Inc. (PPG) for an enterprise value of $635 million.
PGW is a leading global distributor and manufacturer of automotive glass products. PGW’s business comprises wholesale and retail distribution services, automotive glass manufacturing, and retailer alliance partnerships. PGW operates approximately 120 distribution branches serving over 7,000 automotive glass retailer shops across North America. In addition, PGW operates 12 automotive glass fabrication facilities in North America, Europe and China.
The transaction is expected to be completed in the second quarter of 2016 and is subject to customary closing conditions and necessary regulatory approvals.
“We are excited to be partnering with PGW, and look forward to working with the existing core management team at PGW to continue to invest in and grow its business while continuing the high quality service to all its customers. PGW reflects LKQ's commitment to provide a one-stop-shop solution to the North American collision repair industry by adding automotive glass to our product offerings. PGW is the largest pure-play provider in the $3.5 billion North American automotive glass market. This acquisition will expand our addressable market in North America and globally; and simultaneously offers tremendous distribution synergy opportunities with our existing network,” stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation.
Jim Wiggins, Chairman and CEO, Pittsburgh Glass Works, LLC commented, “PGW transformed itself into a strong global competitor of automotive glass and enjoyed tremendous market and financial success under the stewardship of Kohlberg and PPG. We are excited to become part of the LKQ family, and expect that the Company will continue on its growth and success trajectory under LKQ.”
PGW’s revenue for the twelve months ended October 31, 2015 was approximately $1.07 billion, and LKQ expects the transaction to be accretive to its earnings in 2016. These projected results exclude restructuring and acquisition related expenses.
May 2016 Deadlines
March 30, 2016: Listings for The Locator Magazine.
April 4, 2016: Display ads for The Locator Magazine.
April 7, 2016: The Locator Magazine goes to press.