The sign at North Queen Auto Parts Ltd. means business.
"DO NOT PARK IN FRONT OF GATE. VEHICLE WILL BE SUBJECT TO REMOVAL BY FORKLIFT!"
I'm driving what Bob Sembay would call an "end-of-life" vehicle. My Ford Escort was young when Brian Mulroney was prime minister, and it really should be on the other side of that gate, its tires removed, its engine torn out, an empty shell ready for the crusher. But I'm fond of the old beater and I park a good space away from the gate.
I'm there on a grey winter day to visit a venerable Toronto institution, a business that dates back to 1958 when Jerry Sembay and six other investors set up shop on a country road. By 1964, the Sembays had bought out their partners, and now it's a three-generation family business.
Bob Sembay, who represents the second generation, remembers a nearby apple orchard. These days, a Jaguar dealership is located at the south side of the yard and to the west is an adult establishment called I Don Knows, a bunkerlike bar with a mural depicting scantily clad dancers. The parking lot is full.
It's also the busiest time of the year for North Queen – lots of accidents on wintry roads, lots of cars written off by insurance companies. Inside the office is Bob Sembay, a quiet, serious man, with an air of someone who knows his business inside out.
I tend to think of these places as junk yards. When I call the place a scrap yard, Sembay corrects me. Try auto recycling yard.
"But recycling yard isn't totally correct, either," he says. "As far as recycling is concerned, you have plastic recycling, you have paper recycling, but auto parts recycling is reusage of the same product."
Need a new mirror? The replacement is probably lying on a shelf somewhere in the yard. Did your sound system conk out? A clone that will fit your dashboard may be in that glass case by the cash register. How about a new front door?
As Sembay begins a tour of the yard I spot a grey 2008 Toyota Corolla by the gate, its front end crumpled like an empty beer can. This mint-condition vehicle collided with a hard object, and now here it is, its doors gone and snow collecting on the seats. The last few seconds behind the wheel of that car must have been nasty. Of the thousand or so cars in this Valhalla, it's likely that several took their drivers with them. That's history, however. It's as if the Corolla had signed one of those organ donation cards. Somebody could use its vitals.
Bob walks me down an avenue of dirt and snow bordered by metal sheds where cars are disassembled in various stages. In one shed, transmissions line the shelves. These complicated mechanisms look like parts of a nose cone. In another shed, a forklift deposits a white Pontiac Transport. An employee cracks open the hood with a thick metal bar – no worry about paint scratches now. Minutes later, he's going at the innards with a rattling pneumatic tool.
"He's probably taking a radiator out, or a battery," Sembay explains. "Also, he's going to be taking out mercury switches. Mercury switches, of course, are a big pollutant, so we remove them."
Cars are demonized as enemies of the environment but, in fact, they are among the greenest of consumer products. According to some estimates, they are close to 100 per cent recycled.
At the end of the avenue is a "holding area" where cars sit in rows, covered with snow. This area of the yard carries the whiff of death. That hot set of wheels that cost you $40,000? Someday it will be worth $50 or whatever the price for scrap metal will happen to be on that sad day – if it doesn't get here as an insurance writeoff first.
Sembay has seen auto parts disassembled in his yard return years later in another car.
"All our parts are numbered, and we've brought in a car that's been written off and we've looked inside and said, `Hey, there's our number'," he says. "Somebody bought our engine for that car. And now it's a writeoff, too."
There is something oddly encouraging in all this. North Queen Auto Parts, and companies like it, keep the automobile ecosystem going with a minimum of waste. I begin to warm to those forklifts holding defunct cars in their prongs. It's a more dignified sight than cars being towed by trucks, showing to the world what bad vehicles they were for parking in the wrong spot. By contrast, this is a mechanical Pietà , the crushed body cradled in loving arms.
-- by PHILIP MARCHAND, TORONTO STAR, Feb 07, 2009
Saturday, February 07, 2009
Monday, February 02, 2009
Salvage yards seek law to curb offenses, increase standards
Mike Swift, sitting just outside the Des Moines city limits in an office with a stuffed deer head on the wall and piles of junked cars outside, explains how his business is different from that of the beauticians who operate a few miles away:
"We really have no regulations on us," said the owner of Trail's End Auto and Truck Salvage. "People who do hair and nails have more regulations on them than we do."
Swift and the 58 other members of Iowa Automotive Recyclers, a trade association, hope to change that.
The state's largest salvage yards, stung by what they regard as a plague of small and unprofessional operators, now are shopping around a set of new regulations that could be written into Iowa law as early as next year.
The first step, which could come this spring, would ban the public from bidding on junked cars for sale by insurance companies. Beyond that, a 57-page draft proposal outlines a certification process whereby all Iowa salvage dealers would be inspected and monitored to make sure they meet detailed standards governing everything from the look of the lobby to how they handle used batteries and vehicle fluids.
Certification, at a cost of roughly $500 for the inspection, would be voluntary at first. But if legislators approve, the process eventually would be required for anyone seeking to get an auto recycler's license from the Iowa Department of Transportation.
"We think it's a great program," said Theresa Stiner, a senior environmental specialist at the state Department of Natural Resources, which enforces pollution laws on salvage yards but generally only when there's a complaint. "Basically, (the program) goes through all of our environmental regulations and kind of puts it all together for them."
Maj. Paul Steier of the DOT's Office of Motor Vehicle Enforcement said authorities "certainly would be in favor of increasing the professionalism and standards of being a licensed recycler. It's just good business practices."
If certification becomes a part of state law, "there'll be some folks who are recyclers now who may have to change some business practices," Steier said.
That is a key benefit to many salvage operators.
State and industry officials say many small junk dealers, some of whom call themselves hobbyists, do so without any real knowledge of the proper way to operate such a business. Small companies frequently transport junk cars down the highway without properly securing them or send vehicles to the crusher without ever seeing ownership papers, critics allege.
Most small operators don't have proper equipment to keep air-conditioner coolant and mercury light switches from damaging the environment, and critics say they flout local zoning laws both in how they dismantle vehicles and by posting illegal signs promising to pay "Cash for Junk Cars!"
Steier said bad operators technically are violating state law. But enforcement has mixed results.
"If there's somebody who's not in compliance, you can issue him a citation," Steier said. "But it's like if we issue a citation for speeding. Five minutes later, you could be driving down the road and speeding."
Tom Carney of the Jerry Carney and Son used auto parts store in Ames said the need for regulation is "more that everybody needs to abide by the same rules."
"As long as they're competing on a level playing field, I don't mind about the competition," Carney said. "For me, it's more about what needs to be done properly because that's what's best for the environment."
But Bart Linder doubts that the association's motives are that pure. "It's called 'Follow the money,' " said Linder, whose efforts to buy and sell junk cars have included ads in Spanish-language phone directories. "The big boys in the business, they don't want the competition. They don't want me to be competitive with them."
Competition can involve serious money, depending on the scrap steel market.
Swift, president of Iowa Automotive Recyclers, estimates that 40 or 50 small salvage operators buy and sell junk vehicles in Des Moines, compared with nine members of his association. On average, each of the small operators is responsible for scrapping one car a day, he estimates. Assuming a 3,000-pound car, for example, the small operators would have pocketed a collective $20,000 to $25,000 a day at the height of scrap steel prices last May.
By contrast, Trail's End, which normally crushes cars only after an 18-month wait to see whether they're needed for parts, was selling 30 truckloads of junked cars a month last summer. Swift estimates that a major drop in the market price of scrap steel - from $340 per ton last May to $80 in November, but back up to $120 in January - has cost his business an average of $100,000 a month.
Tough economic times eventually are expected to reawaken salvage entrepreneurs.
In a bad economy, "there's more demand for parts," said the DOT's Steier. "Naturally, when there's more of a demand, we see more people wanting to get into the business."
Linder said he agrees that certain standards should be followed in recycling vehicles. But he sees no reason why he should be required to buy equipment to do things he has no intention of doing. Linder said his business, unlike large salvage yards, generally involves little dismantling of the vehicle. He said he generally removes wheels and catalytic converters but sells the rest of the vehicle for scrap without bothering to remove radiators or drain vehicle fluids.
"I don't dump stuff on the ground," Linder said. "I'm a Christian, and as a Christian, I just don't think that the good Lord would approve of me doing it."
BY Jeff Eckhoff, http://www.desmoinesregister.com/article/20090128/BUSINESS/901280369/-1/ENT06
"We really have no regulations on us," said the owner of Trail's End Auto and Truck Salvage. "People who do hair and nails have more regulations on them than we do."
Swift and the 58 other members of Iowa Automotive Recyclers, a trade association, hope to change that.
The state's largest salvage yards, stung by what they regard as a plague of small and unprofessional operators, now are shopping around a set of new regulations that could be written into Iowa law as early as next year.
The first step, which could come this spring, would ban the public from bidding on junked cars for sale by insurance companies. Beyond that, a 57-page draft proposal outlines a certification process whereby all Iowa salvage dealers would be inspected and monitored to make sure they meet detailed standards governing everything from the look of the lobby to how they handle used batteries and vehicle fluids.
Certification, at a cost of roughly $500 for the inspection, would be voluntary at first. But if legislators approve, the process eventually would be required for anyone seeking to get an auto recycler's license from the Iowa Department of Transportation.
"We think it's a great program," said Theresa Stiner, a senior environmental specialist at the state Department of Natural Resources, which enforces pollution laws on salvage yards but generally only when there's a complaint. "Basically, (the program) goes through all of our environmental regulations and kind of puts it all together for them."
Maj. Paul Steier of the DOT's Office of Motor Vehicle Enforcement said authorities "certainly would be in favor of increasing the professionalism and standards of being a licensed recycler. It's just good business practices."
If certification becomes a part of state law, "there'll be some folks who are recyclers now who may have to change some business practices," Steier said.
That is a key benefit to many salvage operators.
State and industry officials say many small junk dealers, some of whom call themselves hobbyists, do so without any real knowledge of the proper way to operate such a business. Small companies frequently transport junk cars down the highway without properly securing them or send vehicles to the crusher without ever seeing ownership papers, critics allege.
Most small operators don't have proper equipment to keep air-conditioner coolant and mercury light switches from damaging the environment, and critics say they flout local zoning laws both in how they dismantle vehicles and by posting illegal signs promising to pay "Cash for Junk Cars!"
Steier said bad operators technically are violating state law. But enforcement has mixed results.
"If there's somebody who's not in compliance, you can issue him a citation," Steier said. "But it's like if we issue a citation for speeding. Five minutes later, you could be driving down the road and speeding."
Tom Carney of the Jerry Carney and Son used auto parts store in Ames said the need for regulation is "more that everybody needs to abide by the same rules."
"As long as they're competing on a level playing field, I don't mind about the competition," Carney said. "For me, it's more about what needs to be done properly because that's what's best for the environment."
But Bart Linder doubts that the association's motives are that pure. "It's called 'Follow the money,' " said Linder, whose efforts to buy and sell junk cars have included ads in Spanish-language phone directories. "The big boys in the business, they don't want the competition. They don't want me to be competitive with them."
Competition can involve serious money, depending on the scrap steel market.
Swift, president of Iowa Automotive Recyclers, estimates that 40 or 50 small salvage operators buy and sell junk vehicles in Des Moines, compared with nine members of his association. On average, each of the small operators is responsible for scrapping one car a day, he estimates. Assuming a 3,000-pound car, for example, the small operators would have pocketed a collective $20,000 to $25,000 a day at the height of scrap steel prices last May.
By contrast, Trail's End, which normally crushes cars only after an 18-month wait to see whether they're needed for parts, was selling 30 truckloads of junked cars a month last summer. Swift estimates that a major drop in the market price of scrap steel - from $340 per ton last May to $80 in November, but back up to $120 in January - has cost his business an average of $100,000 a month.
Tough economic times eventually are expected to reawaken salvage entrepreneurs.
In a bad economy, "there's more demand for parts," said the DOT's Steier. "Naturally, when there's more of a demand, we see more people wanting to get into the business."
Linder said he agrees that certain standards should be followed in recycling vehicles. But he sees no reason why he should be required to buy equipment to do things he has no intention of doing. Linder said his business, unlike large salvage yards, generally involves little dismantling of the vehicle. He said he generally removes wheels and catalytic converters but sells the rest of the vehicle for scrap without bothering to remove radiators or drain vehicle fluids.
"I don't dump stuff on the ground," Linder said. "I'm a Christian, and as a Christian, I just don't think that the good Lord would approve of me doing it."
BY Jeff Eckhoff, http://www.desmoinesregister.com/article/20090128/BUSINESS/901280369/-1/ENT06
Thursday, January 29, 2009
Old airbags may see new use in car repairs
The insurance industry is considering permitting the reuse of certified undeployed airbags taken from recycled vehicles. The Automobile Recyclers Association said this would increase revenues for the recycling industry and simultaneously reduce repair costs for consumers, ensure that body shops have access to a key product and reduce insurance company costs by not having to purchase new OEM parts.
“We want to take quality parts off of total loss vehicles, verify them and re-introduce them into the market so that they do not go into landfills,” said Jim Watson, vice president of ABC Auto Parts. “For years we have been deploying airbags out in the field before shredding and crushing cars. Airbags are parts that can be safely reused to repair collision-damaged vehicles.”
Peter Byrne, director of Airbags Resources, said that as part of the ARA’s Airbag Protocol, there is a counter on the www.airbagresources.com website that records the number of hits enquiring about recycled airbags. The Protocol is a voluntary standard concerning training, inspection protocols and record keeping.
“More than 2,218,000 inquiries have been logged since August 2007,” he said. “The reuse of OEM non-deployed airbags is already a mainstream solution to cost-effective repair. Look at our branded ARAPro airbag parts – our best alternative to new OEM parts as they allow customers to lower parts costs dramatically, while maintaining quality. The market has recognized the benefits of using OEM recycled airbags in repairs as recyclers receive an electronic inquiry for an airbag once every 20 seconds.”
Linda Pitman, secretary treasurer of Amarillo, Texas-based Dulaney Auto Parts, said that the Airbag Protocol (AB) is a safeguard to the public that recycled airbags are safe to use.
“If the public agrees to use them and the insurance companies will agree, than the re-use can become an important revenue stream for automobile recyclers,” she said. “It’s difficult sometimes to get the insurance company or person fixing the vehicle to want to notify that person that a recycled part will be used. It’s an education process all the way.”
“I’ve never heard of an instance where a consumer has rejected one of our products if they are aware that this is an alternative that you can be pretty confident about,” said Byrne, whose firm worked closely with the ARA’s Airbag Committee in developing the protocol. “Unlike other aftermarket parts where you have to inspect these parts to make sure they conform to a given standard, undeployed OEM airbags manufactured by the OEM Tier 1 suppliers already meet all federal and car company standards.
“Our job is to make sure that in the process of recycling,” he added, “that they are not harmed, damaged or impacted in any way. The protocol establishes a set of standards and procedures to make sure that the extraction of the airbag from the vehicle is done in a consistent and proper manner, that the recycler handles the airbag in a safe and appropriate manner, that the airbag is inspected in a consistent manner and that it is stored and readied for shipment in a consistent manner.”
The key element is that all these steps are documented. Furthermore, every day the ARAPro database downloads the latest NHTSA Recall file via the VIN number to determine which airbags cannot be reused.
Special equipment is not required to remove airbags, which are attached by bolts to the steering column on the driver’s side and the crossbar beam on the passenger’s side.
Last July, Watson addressed the issue of using recycled airbags at the Collision Industry Conference in Scottsdale, Arizona.
“The Council of Motor Transportation Administrator’s study determined that it is economical and a safe alternative when proper care was taken to remove, store, catalogue, ship and install the airbag,” said Watson. “The General Accounting Office study said that recycled airbags can be a potentially safe use and an economical alternative to a new airbag as long as it is undamaged, properly handled and installed.”
In 2003, the Insurance Institute for Highway Traffic Safety identified three issues regarding recycled airbags. They are:
•They have to match the application.
•They cannot have suffered any water damage or have been submerged.
•Their use will not promote auto theft.
Watson stressed that the Airbag Protocol covers all three issues.
“We track every airbag and we have a record,” he said. “We verify who is removing it – we have proper training, regulations for storing and handling them appropriately, we are trained in hazmat shipping for all our drivers, we are using appropriate boxes for distribution, and we verify that these bags have not been submerged or part of a flooded vehicle.
“For the auto theft issue,” he added, “we believe that if there is more widespread use of the bags, then it would diminish because we would be putting quality airbags back into commerce, which would reduce the need for thefts. In the conclusion of their paper, while they stated that there are potential problems with salvaged airbags, it is a justifiable use for repair. It didn’t justify the non-use.”
“In all of the admonitions, especially from the OEM side,” said Byrne, “there has never been a study published or data from the OEMs to say why a recycled OEM airbag could not perform properly as it was designed. The publications from the insurance industry have been more middle-of-the-road because they acknowledge there are issues, but tacitly admit there is no evidence to discourage their use.”
He added that recycled airbags are matched to specific vehicle models, multiple copies of the inspection certificates are stored and that should a failure of an airbag occur, the item can be traced to the supplier.
“They always deploy as intended,” said Byrne. “Even the GM Bulletin has basically said that one of the issues that they are trying to get across is that ‘original is forever.’ We are confident our ARAPro airbags will perform as intended because they are designed to meet the OEM standards for quality, reliability, durability and safety.”
Technicians involved in airbag removal are required to take compulsory training and must score 100 percent to be certified.
“Other than the Insurance Company of British Columbia (ICBC) of Canada, we have small companies that are using them, whether they are in estimates or not,” he said. “I do sense the majors’ appreciation for the ARA’s efforts and Airbag Resources to create standards.”
Pitman agreed, stressing that education will win them over in the end. Watson recognizes that there are many competing interests regarding airbags and that education efforts will have to include body repair shops and consumers.
by Irwin Rapoport, American Recycler http://www.americanrecycler.com/0109/old.shtml
“We want to take quality parts off of total loss vehicles, verify them and re-introduce them into the market so that they do not go into landfills,” said Jim Watson, vice president of ABC Auto Parts. “For years we have been deploying airbags out in the field before shredding and crushing cars. Airbags are parts that can be safely reused to repair collision-damaged vehicles.”
Peter Byrne, director of Airbags Resources, said that as part of the ARA’s Airbag Protocol, there is a counter on the www.airbagresources.com website that records the number of hits enquiring about recycled airbags. The Protocol is a voluntary standard concerning training, inspection protocols and record keeping.
“More than 2,218,000 inquiries have been logged since August 2007,” he said. “The reuse of OEM non-deployed airbags is already a mainstream solution to cost-effective repair. Look at our branded ARAPro airbag parts – our best alternative to new OEM parts as they allow customers to lower parts costs dramatically, while maintaining quality. The market has recognized the benefits of using OEM recycled airbags in repairs as recyclers receive an electronic inquiry for an airbag once every 20 seconds.”
Linda Pitman, secretary treasurer of Amarillo, Texas-based Dulaney Auto Parts, said that the Airbag Protocol (AB) is a safeguard to the public that recycled airbags are safe to use.
“If the public agrees to use them and the insurance companies will agree, than the re-use can become an important revenue stream for automobile recyclers,” she said. “It’s difficult sometimes to get the insurance company or person fixing the vehicle to want to notify that person that a recycled part will be used. It’s an education process all the way.”
“I’ve never heard of an instance where a consumer has rejected one of our products if they are aware that this is an alternative that you can be pretty confident about,” said Byrne, whose firm worked closely with the ARA’s Airbag Committee in developing the protocol. “Unlike other aftermarket parts where you have to inspect these parts to make sure they conform to a given standard, undeployed OEM airbags manufactured by the OEM Tier 1 suppliers already meet all federal and car company standards.
“Our job is to make sure that in the process of recycling,” he added, “that they are not harmed, damaged or impacted in any way. The protocol establishes a set of standards and procedures to make sure that the extraction of the airbag from the vehicle is done in a consistent and proper manner, that the recycler handles the airbag in a safe and appropriate manner, that the airbag is inspected in a consistent manner and that it is stored and readied for shipment in a consistent manner.”
The key element is that all these steps are documented. Furthermore, every day the ARAPro database downloads the latest NHTSA Recall file via the VIN number to determine which airbags cannot be reused.
Special equipment is not required to remove airbags, which are attached by bolts to the steering column on the driver’s side and the crossbar beam on the passenger’s side.
Last July, Watson addressed the issue of using recycled airbags at the Collision Industry Conference in Scottsdale, Arizona.
“The Council of Motor Transportation Administrator’s study determined that it is economical and a safe alternative when proper care was taken to remove, store, catalogue, ship and install the airbag,” said Watson. “The General Accounting Office study said that recycled airbags can be a potentially safe use and an economical alternative to a new airbag as long as it is undamaged, properly handled and installed.”
In 2003, the Insurance Institute for Highway Traffic Safety identified three issues regarding recycled airbags. They are:
•They have to match the application.
•They cannot have suffered any water damage or have been submerged.
•Their use will not promote auto theft.
Watson stressed that the Airbag Protocol covers all three issues.
“We track every airbag and we have a record,” he said. “We verify who is removing it – we have proper training, regulations for storing and handling them appropriately, we are trained in hazmat shipping for all our drivers, we are using appropriate boxes for distribution, and we verify that these bags have not been submerged or part of a flooded vehicle.
“For the auto theft issue,” he added, “we believe that if there is more widespread use of the bags, then it would diminish because we would be putting quality airbags back into commerce, which would reduce the need for thefts. In the conclusion of their paper, while they stated that there are potential problems with salvaged airbags, it is a justifiable use for repair. It didn’t justify the non-use.”
“In all of the admonitions, especially from the OEM side,” said Byrne, “there has never been a study published or data from the OEMs to say why a recycled OEM airbag could not perform properly as it was designed. The publications from the insurance industry have been more middle-of-the-road because they acknowledge there are issues, but tacitly admit there is no evidence to discourage their use.”
He added that recycled airbags are matched to specific vehicle models, multiple copies of the inspection certificates are stored and that should a failure of an airbag occur, the item can be traced to the supplier.
“They always deploy as intended,” said Byrne. “Even the GM Bulletin has basically said that one of the issues that they are trying to get across is that ‘original is forever.’ We are confident our ARAPro airbags will perform as intended because they are designed to meet the OEM standards for quality, reliability, durability and safety.”
Technicians involved in airbag removal are required to take compulsory training and must score 100 percent to be certified.
“Other than the Insurance Company of British Columbia (ICBC) of Canada, we have small companies that are using them, whether they are in estimates or not,” he said. “I do sense the majors’ appreciation for the ARA’s efforts and Airbag Resources to create standards.”
Pitman agreed, stressing that education will win them over in the end. Watson recognizes that there are many competing interests regarding airbags and that education efforts will have to include body repair shops and consumers.
by Irwin Rapoport, American Recycler http://www.americanrecycler.com/0109/old.shtml
Saturday, December 20, 2008
BERR expresses “real concern” over ELV disposal
BERR (UK Department for Business Enterprise & Regulatory Reform) has expressed "real concern" over the proper disposal of scrap vehicles following the sharp fall in metal prices and claimed that the producer responsibility system is now being seriously called into action for the first time.
Under the End of Life Vehicle Regulations, producers are responsible for helping to fund the recycling of scrap vehicles, and must join one of two network providers - Autogreen and Cartakeback - who provide a network of authorised treatment facilities (ATFs) offering free take-back of ELVs.
End-of-life vehicles can be returned free of charge to any authorised treatment facility within the producer-funded networks
While vehicle manufacturers have had an easy ride in recent years, with the high value of metals making take-back a profitable option for both ATFs and the last owners of vehicles, the sharp decline in metals prices is likely to see them playing a larger part in subsidising the service.
In a statement, BERR said the drop in metals prices meant "the proper disposal of scrap vehicles is once again becoming a real concern - particularly in remote rural areas of the UK."
And, economics and business minister Ian Pearson said: "We know the scrap metal market is experiencing difficulties at the moment and it's precisely for these sorts of circumstances that the ELV Regulations were designed."
"It doesn't matter what the value of a scrap car currently is - under the requirements of the Regulations, automotive manufacturers have established networks of convenient facilities where vehicles can be returned at no cost to the last owner. They will ensure the car or van is properly treated and at least 85 per cent of it is recycled and put to new uses," he added.
While the producer responsibility system for ELVs has been in place since January 2007, Mr Pearson described the current situation as the first time that the free take-back option had been "seriously called into action".
"It's now more important than ever that people are aware of this service so we can minimise the potentially damaging impact of fluctuating metal prices on local authorities, who have a duty to collect abandoned vehicles," he added.
His comments come after vehicle dismantlers expressed concern that the drop in metals prices could trigger a "dramatic" increase in the number of abandoned vehicles.
Under the ELV Regulations 'free take-back' guarantee, ATFs within the networks must provide a free collection service for last owners of vehicles who live more than 30 miles from their nearest facility.
ATFs are also expected to issue a Certificate of Destruction confirming that a vehicle has been destroyed and informing the DVLA that the last owner's licensing responsibility had ended.
http://www.letsrecycle.com/do/ecco.py/view_item?listid=37&listcatid=217&listitemid=10817
Under the End of Life Vehicle Regulations, producers are responsible for helping to fund the recycling of scrap vehicles, and must join one of two network providers - Autogreen and Cartakeback - who provide a network of authorised treatment facilities (ATFs) offering free take-back of ELVs.
End-of-life vehicles can be returned free of charge to any authorised treatment facility within the producer-funded networks
While vehicle manufacturers have had an easy ride in recent years, with the high value of metals making take-back a profitable option for both ATFs and the last owners of vehicles, the sharp decline in metals prices is likely to see them playing a larger part in subsidising the service.
In a statement, BERR said the drop in metals prices meant "the proper disposal of scrap vehicles is once again becoming a real concern - particularly in remote rural areas of the UK."
And, economics and business minister Ian Pearson said: "We know the scrap metal market is experiencing difficulties at the moment and it's precisely for these sorts of circumstances that the ELV Regulations were designed."
"It doesn't matter what the value of a scrap car currently is - under the requirements of the Regulations, automotive manufacturers have established networks of convenient facilities where vehicles can be returned at no cost to the last owner. They will ensure the car or van is properly treated and at least 85 per cent of it is recycled and put to new uses," he added.
While the producer responsibility system for ELVs has been in place since January 2007, Mr Pearson described the current situation as the first time that the free take-back option had been "seriously called into action".
"It's now more important than ever that people are aware of this service so we can minimise the potentially damaging impact of fluctuating metal prices on local authorities, who have a duty to collect abandoned vehicles," he added.
His comments come after vehicle dismantlers expressed concern that the drop in metals prices could trigger a "dramatic" increase in the number of abandoned vehicles.
Under the ELV Regulations 'free take-back' guarantee, ATFs within the networks must provide a free collection service for last owners of vehicles who live more than 30 miles from their nearest facility.
ATFs are also expected to issue a Certificate of Destruction confirming that a vehicle has been destroyed and informing the DVLA that the last owner's licensing responsibility had ended.
http://www.letsrecycle.com/do/ecco.py/view_item?listid=37&listcatid=217&listitemid=10817
Warning of “dramatic” increase in abandoned cars
Vehicle dismantlers have warned that the major falls in metal prices in recent weeks could trigger a 'dramatic' increase in the number of cars left abandoned in the streets, writes Nick Mann.
More vehicles are already being abandoned on the streets following recent falls in metal prices. And, the price falls have prompted concerns that some companies contracted to councils to collect ELVs on bahalf of councils will not be able to honour their agreements.
But, there was good news for some car dismantlers, as Autogreen - one of two networks of treatment facilities allowing vehicle manufacturers to meet their recycling obligations under the ELV Directive - revealed it would forgo the charges it levies on its member facilities for producing Certificates of Destruction and logging them on its system, to help them through the difficult predicament.
In a statement released to letsrecycle.com, Autogreen said: "In light of the current economic climate and to further support its members in achievement of the regulatory 85% recycling target for ELV's, Autogreen has took the decision to assist its members, by offering a zero cost route to data reporting and assisted compliance, for all vehicles handled by those facilities associated with Autogreen."
This means that, from November 1, there will be no charge for facilities when they issue a Certificate of Destruction (CoD) and enter it onto the network's on-line reporting system.
And, the organisation confirmed that this change would apply to the issuing of CoDs for all vehicles and not just those manufactured by one of its contracted brands.
Abandoned
Speaking to letsrecycle.com today about the issue of an increase in abandoned vehicles, Richard Reynolds, the national contract manager for London-based car recycling firm Redcorn said: "It could go back to the bad old days when you see vehicles abandoned on the streets"
He revealed that his company, which holds contracts to collect abandoned and nuisance vehicles for 12 local authorities, was "already getting calls from councils about cars being left in car-parks," and claimed that "just after Christmas you're going to see it beginning to pile up".
In the past, he explained that the high cost of metals would have meant that those abandoned vehicles would instead have been taken to unlicensed car dismantlers and scrap metal dealers.
Mr Reynolds' sentiments were echoed by Duncan Wemyss, the secretary of the Motor Vehicle Dismantlers' Association.
He said that, while the End of Life Vehicles (ELV) Directive meant there was free take-back for all cars recycled through registered treatment facilities, "one can fairly assume we could start seeing an increase in the number of abandoned vehicles".
Value
The problem will come, and its probably there now, if the value we're able to get for the total metals from a vehicle comes down beyond the recovery cost of the work we do
Duncan Wemyss, MVDA
Mr Reynolds explained that the value of the ferrous metals contained within a car had fallen dramatically, from £120 earlier in the year to just £20 now, and added that "we anticipate that by Christmas it'll be zero per tonne".
He claimed that the fall in value could have a "catastrophic" effect on smaller dismantlers' operations, and in particular could jeopardise the contracts some dismantlers had signed with councils to collect and dispose of abandoned vehicles where, due to the high value of metals, they had agreed to pay the council to take them.
"If people have tendered to offer councils a certain amount of money for cars it could backfire," he said. "In particular if they're a one-man band and make all their money by taking cars to be dismantled.
"Some are going to have to go hand and glove back to councils and hand back the contracts."
Mr Reynolds added that, while some contractors would start to charge for collection and disposal of abandoned vehicles, "we're always in a position to be able to take vehicles off councils for zilch," but added that "we can't offer them money for them right now".
Critical
Mr Wemyss claimed that the critical point for vehicle recyclers would come when the value of non-ferrous metals and parts within cars also fell.
"The problem will come, and its probably there now, if the value we're able to get for the total metals from a vehicle comes down beyond the recovery cost of the work we do, that's where the fun starts," he said.
"Everybody looks at the ferrous price but we do regain value on catalytic converters and non-ferrous metals," he explained, adding that "its difficult to tell if that level's been breached," he added.
Spare parts
However, Mr Wemyss also explained that economic slowdown's effect on people's willingness to buy new cars could provide a plus point for car dismantlers in terms of spare parts sales.
"There's always the hope that people keep their cars longer and, in that sense, come to our sector for parts rather than buying them new," he said.
Mr Reynolds reported that Redcorn's "progressive" spare parts division was also providing a boost to the company's fortunes.
And, he added that the firm's other operations, such as its work for the DVLA with un-taxed vehicles, was compensating for the downturn in the value of metals from abandoned vehicles.
"If you're working for a council, the money you get back from doing work on fines balances out the cost of collecting abandoned vehicles," he said.
http://www.letsrecycle.com/do/ecco.py/view_item?listid=37&listcatid=352&listitemid=10584
More vehicles are already being abandoned on the streets following recent falls in metal prices. And, the price falls have prompted concerns that some companies contracted to councils to collect ELVs on bahalf of councils will not be able to honour their agreements.
But, there was good news for some car dismantlers, as Autogreen - one of two networks of treatment facilities allowing vehicle manufacturers to meet their recycling obligations under the ELV Directive - revealed it would forgo the charges it levies on its member facilities for producing Certificates of Destruction and logging them on its system, to help them through the difficult predicament.
In a statement released to letsrecycle.com, Autogreen said: "In light of the current economic climate and to further support its members in achievement of the regulatory 85% recycling target for ELV's, Autogreen has took the decision to assist its members, by offering a zero cost route to data reporting and assisted compliance, for all vehicles handled by those facilities associated with Autogreen."
This means that, from November 1, there will be no charge for facilities when they issue a Certificate of Destruction (CoD) and enter it onto the network's on-line reporting system.
And, the organisation confirmed that this change would apply to the issuing of CoDs for all vehicles and not just those manufactured by one of its contracted brands.
Abandoned
Speaking to letsrecycle.com today about the issue of an increase in abandoned vehicles, Richard Reynolds, the national contract manager for London-based car recycling firm Redcorn said: "It could go back to the bad old days when you see vehicles abandoned on the streets"
He revealed that his company, which holds contracts to collect abandoned and nuisance vehicles for 12 local authorities, was "already getting calls from councils about cars being left in car-parks," and claimed that "just after Christmas you're going to see it beginning to pile up".
In the past, he explained that the high cost of metals would have meant that those abandoned vehicles would instead have been taken to unlicensed car dismantlers and scrap metal dealers.
Mr Reynolds' sentiments were echoed by Duncan Wemyss, the secretary of the Motor Vehicle Dismantlers' Association.
He said that, while the End of Life Vehicles (ELV) Directive meant there was free take-back for all cars recycled through registered treatment facilities, "one can fairly assume we could start seeing an increase in the number of abandoned vehicles".
Value
The problem will come, and its probably there now, if the value we're able to get for the total metals from a vehicle comes down beyond the recovery cost of the work we do
Duncan Wemyss, MVDA
Mr Reynolds explained that the value of the ferrous metals contained within a car had fallen dramatically, from £120 earlier in the year to just £20 now, and added that "we anticipate that by Christmas it'll be zero per tonne".
He claimed that the fall in value could have a "catastrophic" effect on smaller dismantlers' operations, and in particular could jeopardise the contracts some dismantlers had signed with councils to collect and dispose of abandoned vehicles where, due to the high value of metals, they had agreed to pay the council to take them.
"If people have tendered to offer councils a certain amount of money for cars it could backfire," he said. "In particular if they're a one-man band and make all their money by taking cars to be dismantled.
"Some are going to have to go hand and glove back to councils and hand back the contracts."
Mr Reynolds added that, while some contractors would start to charge for collection and disposal of abandoned vehicles, "we're always in a position to be able to take vehicles off councils for zilch," but added that "we can't offer them money for them right now".
Critical
Mr Wemyss claimed that the critical point for vehicle recyclers would come when the value of non-ferrous metals and parts within cars also fell.
"The problem will come, and its probably there now, if the value we're able to get for the total metals from a vehicle comes down beyond the recovery cost of the work we do, that's where the fun starts," he said.
"Everybody looks at the ferrous price but we do regain value on catalytic converters and non-ferrous metals," he explained, adding that "its difficult to tell if that level's been breached," he added.
Spare parts
However, Mr Wemyss also explained that economic slowdown's effect on people's willingness to buy new cars could provide a plus point for car dismantlers in terms of spare parts sales.
"There's always the hope that people keep their cars longer and, in that sense, come to our sector for parts rather than buying them new," he said.
Mr Reynolds reported that Redcorn's "progressive" spare parts division was also providing a boost to the company's fortunes.
And, he added that the firm's other operations, such as its work for the DVLA with un-taxed vehicles, was compensating for the downturn in the value of metals from abandoned vehicles.
"If you're working for a council, the money you get back from doing work on fines balances out the cost of collecting abandoned vehicles," he said.
http://www.letsrecycle.com/do/ecco.py/view_item?listid=37&listcatid=352&listitemid=10584
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