Automotive Recycling Industry Overview

1

• Automotive Recycling Industry Overview
• A Presentation of the
• Automotive Recyclers Association

2
The Automotive Recycling Industry

• Estimated 8,267 vehicle recycling operations
  around the country
• Employing some 103,108 people
• Total Revenue 10 Billion
• Total Annual Payroll 3.3 Billion

3
Automotive Recycling Stats

• Recycling vehicles provides enough steel to
  produce almost 13 million new vehicles.
• Saves an estimated 85 million barrels of oil a
  year, that would have been used in the
  manufacturing of new or replacement parts.
• Automotive recyclers provide wholesale and retail
  customers quality parts that sell for up to 50
  less than the comparable new parts.

4
Automotive Recyclers Association

• Association has been in existence for over 65
  years
• Representing over 4,500 recycling facilities
  through direct and affiliated membership in the
  U.S. and other countries around the world
• Founder of Automotive Recycling Certification
  Programs for Environmental Protection Quality
  Business Standards

5

• Motor Vehicle Fact Figures
• Vehicles Retired from Use
• 2006 - 12,008,000

6

• Where are End-of-Life Vehicles Going?
• Automotive Recyclers 7.0 million
• Scrap Processors 1.8 million
• Stolen/Non Recovered 1.7 million
• Sold to Foreign Buyers/Exported 1.5 million

7
Going Green

• The automotive recycling industry plays a
  necessary and crucial role in the efficient,
  ecological disposal of inoperable motor vehicles.
  Although sometimes known as auto salvage dealers,
  professional automotive recyclers deal strictly
  in the recycling of motor vehicles.
• Automotive recycling serves a vital role in
  preserving natural resources and reducing the
  demand for scarce landfill space. Automotive
  recycling also plays an important role in
  reducing air and water pollution, and solid waste
  generation. Automotive recyclers must abide by
  stringent local and national regulations on
  dealing with waste generated by salvaged
  automobiles. Many individual automotive recyclers
  have also instituted their own unique programs to
  further reduce the potential effects of harmful
  materials to their businesses and communities.

8

• Reuse is Recycling
• With recycled OEM parts making up only
  12-percent of the parts being utilized in the
  repair of collision vehicles, there is room for
  substantial growth here.

9

• Quantity Of Carbon Dioxide Reduction in Recycling
  Car Parts

10

• Quantity Of Carbon Dioxide Reduction in Recycling
  Car Parts

11

• ARA Certified Automotive
• Recycler Program
• Partnered with the U.S. EPAs National
  Partnership for Environmental Priorities (NPEP)
  for mercury switch removal.
• Audits CAR members annually for environmental
  compliance, safety and general business
  standards.
• Produces guidelines for the safe and responsible
  dismantling of automobiles and salvaging of
  quality used automotive parts.

12

• ARA CAR Gold Seal Program
• The Gold Seal program produces standards for
  quality customer service and used automotive
  parts for the automotive recycling industry.
• Members must use the ARA parts grading system
  when inventorying all parts.
• Minimum warranties required on recycled parts.
• Members are monitored and are to maintain a
  standardized level of customer service in 10
  different categories.
• All Gold Seal members must be Certified
  Automotive Recyclers in good standing, certified
  for environmental compliance.

13

• Automotive Recycling Awareness Public Outreach
• Automotive Recycling Magazine
• Industry Insider E-Newsletter
• Website a-r-a.org
• Environmental Compliance for Automotive Recyclers
  (ECAR) Center
• Grassroots Efforts Cross Industry Collaboration

14

• Environmental Compliance for
• Automotive Recyclers
• ECAR Center
• Established by ARA In 1999
• Interactive site by industry for industry
• Detailed compliance information all 50 states
• Best management practices
• Pollution control and prevention
• Compliance with environmental regulations

15

• ECAR Center

16

• ECAR Center Fact Sheets

17

• National Vehicle Mercury Switch Removal Program
• NVMSRP Steering Committee met on July 24, 2008
• NVMSRP Subcommittee - Implementation Fund
  Coordination Committee, announced that payment
  for
• mercury convenience light switches is increased
  from 1 to 4 and
• Anti-lock brake system assemblies (that contain
  mercury switches) from 3 to 6.
• By the end of July 2008, over 6,700 participants
  have recovered more than 1.4 million mercury
  switches, preventing in excess of 3,100 lbs of
  mercury from entering the environment.

18

• Automotive Recyclers Association
• 3975 Fair Ridge Drive, Suite 20-N
• Fairfax, VA 22033
• [phone]
• www.a-r-a.org