CONNECTion19th Year, No. 2, February 2009Official Publication of the Automotive Parts Remanufacturers Association

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From the President .............................2Auto Electric Corner .............................4HDRG Summit ....................................6New Members ....................................8Electrical Clinic ................................. 12Aftermarket Upfront ........................... 14Reman World ................................... 17Tax Edge .......................................... 20What's New ...................................... 21Classifieds ....................................... 22Advertisers ....................................... 23

INSIDE February 16, 2009

HEAVY DUTY REMANUFACTURINGGROUP SUMMITOrlando, Florida

February 16-19, 2009HEAVY DUTY AFTERMARKET WEEK

Orlando, Florida

April 24-25, 2009ELECTRICAL CLINIC

Toronto, Ontario, CanadaTour: Litens Automotive Group, Dixie Electric,

Canadian Starter Drive, D & V Electronics

INDUSTRY CALENDAR

What is going on with the economy? As aprivate equity group and financial servicescompany, we are constantly analyzing andseeking to understand the currenteconomic environment. It�s a hot topic,followed only by the hottest topic � Howwill this impact me? Unfortunately, wedon�t have a crystal ball, but we do knowthe following:

� U.S. consumers borrowed too muchmoney and U.S. financial institutionsoverleveraged themselves (particu-larly as it related to the residential andcommercial real estate industries), and

APRA Joins with SEMAin Opposing Federal�Cash for Clunkers�ProgramProgram is currently beingconsidered for inclusion ineconomic stimulus package

APRA has issued a statement opposingany efforts to include a nationwide �Cashfor Clunkers� program in the economicstimulus package currently being consid-ered in Washington.

In its statement APRA President Bill Gagerstated, �Cash for Clunkers would usetaxpayer dollars to purchase and crusholder vehicles into blocks of scrap metal,which will remove valuable cores from themarket for remanufacturing and willdeprive the owners of older cars of aneconomical source of replacement parts.�

�These clunker programs do not considerin their calculations the life cycle of theremanufacturing process and the exten-sion of product life that takes place.Clunker legislation does more harm to theenvironment and is counterproductive tothe whole idea of repair, reuse,remanufacturing and recycling,� addedGager.

APRA is pleased to join with the SpecialtyEquipment Market Association (SEMA)and other aftermarket associations inopposing this scrappage proposal andencourages Congress to leave �Cash forClunkers� out of the economic stimuluspackage currently being considered.

Below is a copy of the letter APRA'sPresident, Bill Gager, sent to Congress:

During the hearings held recently on theneed for assistance for American automo-bile manufacturers, one idea the manufac-turers proposed would lead to morenegative consequences than benefits.That idea is to provide cash or tax creditsfor the scrappage of older vehicles.Adoption of a vehicle scrappage programis bad policy because it is anti-environ-mental, contrary to the interest of smallbusinesses and does little or nothing topromote new car sales.

I am the President of the Automotive PartsRemanufacturers Association (APRA).APRA�s members remanufacture usedvehicle parts so that they may be reused.These parts keep vehicles running for

the process of deleveraging will bepainful;

� Consumer spending, the driver of 2/3of the U.S. economy, has significantlydeclined and analysts are forecastingmore weakness;

� The real estate doldrums continueand most homes have lost between10% and 40% of their value;

� The S&P Index is down over 40%from its highs; and,

� We are in a recession.

It sounds pretty bad, and it is. Havingworked closely for many years with smallto mid-sized businesses, we maintained abullish position on the economy untilSeptember when we first started to see thebroad appearances of year-over-yeardeclines in company performance. Thishas continued through the end of 2008,and our impression, both from ourinteractions at the International Big RShow which we attended as an APRAmember, and in our everyday dealings withcompanies across many industries and

Understanding Your Financial OpportunitiesHow the Economic Environment Affects the Value of Your Businessby Will Burnett - Partner, Owner Resource Group - wburnett@orgroup.com

Change has been a constant at ValleyTruck Parts in Fresno and Dinuba,California. Larry Garabedian is the secondgeneration to run the company, whichstarted in 1948. His business philosophyis that you �should diversify your productofferings so that you can always fill yourcustomer needs in any economic condi-tion.�

Garabedian believes it is dangerous to getlocked into �one thing.� He believes youshould �always continue to improve yourprocesses to increase efficiency.�

He says Valley Truck Parts will sellcustomers multiple grades of product.�For example, if a guy wants to buy anengine, transmission, differential, we�ll sellit to them in three or four different waysdepending on what the customers� goingto want,� explained Garabedian. �We�ll sell

A Constant State of ChangeA Profile of Larry Garabedian and Valley Truck Partsby Gary McCoy

continued on page 23

it as a core, if hewants to build ithimself or we�llsell it as anuninspectedpull-out, we�llsell it as aninspected usedpart, or we�ll sellit as a full blownrebuilt.�

He said ValleyTruck Parts hasnot tried to�pigeonhole thebusiness intoone thing.�Garabedian saidthey made that mistake in the early �90swhen their revenue dropped in half due tothe Asian financial crisis that severely

affected their export business.

His avoidance of a �one thing� mentalityhas the company offering many differentthings, including used parts, new parts,heavy duty diesel engines, transmissionsand differentials, truck sales, service andrepair, scrap iron and exports of machinery,diesel engines and generators.

�And by doing all those different things,�said Garabedian, �when one thing is slowthe other part of the business picks it up.When one thing is bad you have some-thing else to fill in.�

How it StartedValley Truck Parts looks much differentthan the company that was launched by

continued on page 3continued on page 6

Lisa and Larry Garabedian, Valley Truck Parts

Page 2 / www.BigRShow.com APRA GLOBAL CONNECTION February 2009

FROM THE PRESIDENT by Bill Gager

The APRA Global Connection

APRA Phone: 703-968-2772 � APRA Fax: 703-968-2878Editor: Kirsten Kase / kase@buyreman.com / Ph: 703-968-2772, ext. 108Director of Advertising and Marketing: Morris Spector / mspector@aol.com / Ph: 203-288-1234

President: William C. Gager / gager@buyreman.com / Ph: 703-968-2772, ext. 103Senior Vice President: Jeanie Magathan / magathan@buyreman.com / Ph: 703-968-2772, ext. 104Executive Assistant: Marlene Koskinas / marlenek@buyreman.com / Ph: 703-968-2772, ext. 105Financial Services Director: Teresa Giroux / giroux@buyreman.com / Ph: 703-968-2772, ext. 116Special Projects Director: Kathy Olson / olson@buyreman.com / Ph: 703-968-2772, ext. 117Chief Technical Officer: Mark Kothe / kothe@buyreman.com / Ph: 810-881-0018Technical Service Assistant: Bill Vernier / vernier@buyreman.com / Ph: 810-881-0018Contributing Writer: Jim Madill / madill@buyreman.com

Pan American Office: Sergio Nogueira / mexico@buyreman.com / Ph: 011 52 55 5295 1263 / Fax: 011 5255 5295 4187 / Bosque De Quiroga 100 Oficina 3 / Bosques De La Herradura / Huixguilacan 52783 MEXICOEuropean Office: Fernand J. Weiland / fernand.weiland@netcolgne.de / Ph: 011 49 22303-2 55 77 / Fax: 01149 2203-29 29 84 / Forsbach Strasse 13 / 51145 Koln, Germany

Technical, Management and Association News from the Automotive Parts Remanufacturers Association

Send All News & Articles To: APRA, Attn: Kirsten Kase, 4215 Lafayette Center Drive, Suite 3, Chantilly, VA20151-1243 / kase@buyreman.com

COPYRIGHT, 2009 / AUTOMOTIVE PARTS REMANUFACTURERS ASSOCPrinted by: Gannett Offset, 6883 Commercial Dr., Springfield, VA 22159The APRA Global Connection newspaper is published as a membership service by the APRA. The opinions expressed inthe articles in this newspaper are those of the author of the articles and not the publisher. While every reasonable attempthas been made to assure that the information in this newspaper is accurate, the publisher assumes no responsibility forany omissions or errors, nor for the application of any advice or suggestions in any particular situation. Due to spacelimitations, all items published are subject to abridgement. Unsolicited items will not be returned. The APRA GloballConnection newspaper subscription rates are $15 for one year, or $25 for two years.

APRA EXECUTIVE COMMITTEEChairman: Sandra Galvin Standley � First Vice Chairman: George DavisSecond Vice Chairman: Gary Phillips � Treasurer: Dennis Jacinto � Secretary: Nick StaubImmediate Past Chairman: Peter Bain � Past Chairman: Paul SchuckManufacturer Supplier Rep.: Jerry Mariam � Chairman, Past Chairman's Committee: Mike Hill

Bill Gager, APRA President

In Memory of Mike HillIt is with great sorrow and a heavy heartthat I let you know that Mike Hill'scourageous battle with cancer is over. Hepassed away on the evening of January22nd. Our hearts and prayers are with hiswife Kathy, his family, and employees.Mike was true friend, and had a sense ofhumor that kept us all smiling. His loss willbe felt by all. Mike served as APRAChairman in 2006 and was President ofPrecision Rebuilders in St. Clair, Missouri.

Bailout Versus Tax CreditAPRA has tried several times in the past toget a tax credit for the purchase ofequipment used in remanufacturing�in1999, 2001 and 2008.

The current economic situation, a newCongress, and a new Administration maybe the right time for us to succeed. Wearen't looking for a bailout like so many arein Washington; we are looking for a 25%tax credit. Not only does this make goodeconomic sense, it also promotes environ-mental goals, such as reuse, recycling andremanufacturing.

Following this column is a copy of theletter I wrote to all members of the Houseof Representatives, where tax bills

originate. So please, read the letter belowand contact your member of the Houseand let them know you want this legisla-tion introduced and passed.

The current economic crisis demands thatbusiness and the Federal governmentwork together to find the best methods tostimulate the economy. Bailouts anddirect government funding may have theirplace when nothing else will work, butlong term solutions must allow industriesand individual companies to choose howbest to increase their productivity andprovide the goods and services which theAmerican consumer requires. Oneimportant way to stimulate investment isto give tax credits for the purchase of newcapital goods and machines. Suchcredits make good economic sense andare even better if they promote environ-mental goals, such as reuse and recy-cling. That is why I am writing to ask youto support a tax credit for the purchase ofequipment used to recycle orremanufacture goods.

I am the President of the Automotive PartsRemanufacturers Association (APRA).APRA�s 1,000 members remanufactureused vehicle parts so that they may begiven another life. These parts keep manyheavy-duty trucks, construction equip-ment, fire trucks, off road vehicles, andagricultural equipment around for manyyears by extending their useful life. Theykeep vehicles running for those Ameri-cans of lesser means, such as the poor, theelderly, students and others, who cannotafford the cost of new parts. Vehicle partsremanufacturing dates from the earlyyears of the automotive era and is one ofthe original �green� industries. Byremanufacturing used parts our membersextend both the useful life of the parts andthe vehicle on which they are used,reduce the amount of waste that flowsinto our landfills and salvage most of theraw materials and energy that was usedto create the original part. Because itsaves more of the labor, the capital, andenergy that went into fabricating theoriginal part, remanufacturing is

�environmentally superior� to merelyrecycling a part to salvage its metalcomponents.

To remanufacture a product, theremanufacturer takes a product whichwas previously used but is no longerworking (called a core), disassembles it,cleans it, regrinds or otherwise refinishesits components as necessary, replaces anyunrepairable components, and thenreassembles and tests the finishedproduct. Properly remanufacturing avehicle part involves not only goodtraining but expensive equipment toperform the sorting, grinding andrefinishing tasks necessary. Because mostremanufacturers are small businesses,purchasing and maintaining the properequipment is a vital but expensive part ofthe business. Assistance with acquiringand replacing such equipment in the formof a tax credit will permitremanufacturers to produce better andlonger lasting products.

Moreover, the American remanufacturingindustry is currently beset with economicproblems due to the influx of inexpensivenew parts from Asia and elsewhere.Because of the common perception thatnew is always better than used, mostconsumers will purchase a new automo-bile part instead of a remanufactured oneif the prices are comparable. Becauseproducing new parts in Asia and trans-porting them to the U.S. is very inexpen-sive and often subsidized, many newvehicle parts manufactured abroad sellfor less than what a remanufacturer mustcharge for its parts to make a profit. Evenknowledge of the potential for the foreignnew parts to be of inferior quality is notenough to replace the need of manyconsumers to find the lowest cost alterna-tive.

Providing a tax credit will allow Ameri-can remanufacturers to compete withthese cheaper foreign products.

In March 2008, APRA assisted in theintroduction of a Recycling/

Remanufacturing Tax Credit bill, H.R.5659. The bill received favorableattention but, due to the press of otherbusiness, no action was taken on it.Because the goals of the bill fit soperfectly in the environmental andeconomic goals of the new administra-tion, we are seeking support for itsreintroduction in the new Congress.

If you have an interest in being a sponsorof a similar bill or understanding thebenefits of remanufacturing, I would behappy to meet with you or your staff toprovide more information.

Last Call for the HDRG SummitThe 3rd Annual Heavy DutyRemanufacturing Group Summit isscheduled for February 16th in Orlando,Florida just before Heavy Duty Aftermar-ket Week. The program details appear onpage 6 of this issue. As you can tell, it ispacked with some leading edge technol-ogy discussions. So plan on attendingnow and drop more dollars to your bottomline.

Cash for ClunkersOn the front page of this issue you'll see aletter that I sent to the 535 members of theU.S. Senate and House of Representativesdetailing APRA's objections to a �Cash forClunkers� proposal that has been intro-duced by several members of the Senateand the House.

This legislation seems very idealistic andgood, like motherhood and apple pie.

But in reality it is a lousy piece of legisla-tion that hurts our remanufacturingindustry by removing cores from themarketplace as well as potential repairsand parts sales to keep these vehicles onthe road.

This legislation is really anti-green, anti-small business, and anti-consumer.

So please, take the time to read my letterand then visit AAIA's special website tovoice your objections at:

February 2009 APRA GLOBAL CONNECTION www.apra.org / Page 3

those Americans of lesser means, such asthe poor, the elderly, students and others,who cannot afford the cost of new parts.Vehicle parts remanufacturing dates fromthe early years of the automotive era andis one of the original �green� industries.By remanufacturing used parts ourmembers extend both the useful life of theparts and the vehicle on which they areused, reduce the amount of waste thatflows into our landfills and salvage mostof the raw materials and energy that wasused to create the original part. Becauseit saves more of the effort and energy thatwent into fabricating the original part,remanufacturing is �environmentallysuperior� to merely recycling a part tosalvage its metal components.

Parts remanufacturers do not simplyclean up and resell a used part withouttaking steps to insure that it is properlyworking. In accordance with FederalTrade Commission regulations, before apart can be labeled and sold asremanufactured it must be disassembled,cleaned, examined for wear and defects,broken or missing components must bereplaced, other working parts must bereground, rewound or otherwise refur-bished, and the part must be tested afterbeing reassembled. In most casesremanufactured parts are as good as newones, and sometimes better becauseoriginal manufacturing flaws can befixed.

APRA members are small businessesranging from 1 or 2 man shops up to a fewcompanies with 500 or more employees.The parts that remanufacturers producealso supply other small businesses, suchas independent vehicle repair facilities,service stations, fleet repair shops andsmall vehicle parts dealers. All of thesebusinesses are suffering in this time ofeconomic crisis. Any systematic effort to

remove older vehicles from the fleet,including those operating efficiently andcleanly, will severely damage the liveli-hood of these businesses.

Vehicle scrappage has been promoted inthe past as a means to get older, morepolluting vehicles off the road. Eventhough scrappage or �clunker� lawshave been advocated for well over 20years, very few scrappage programs haveactually been undertaken, and no onehas been able to demonstrate that theyhave significantly reduced the emissionsfrom motor vehicles or that air pollutionhas been positively affected. Moreover,because engines produced over the last10-15 years were required to be muchcleaner than those produced before thattime, most of the older vehicles onAmerican roads today operate verycleanly and efficiently.

Therefore, scrappage is not an environ-mental solution�if it ever was.

Claims that scrappage would spur thesale of new vehicles are also withoutmerit. Most of the older cars in Americaare owned by the poor, the disadvan-taged, the elderly and the young�largelybecause they cannot afford the cost of anew vehicle. To offer these groups a fewdollars in cash or a tax credit will neithermotivate them to purchase a new vehiclenor give them the ability to afford one. In

http://capwiz.com/aftermarket/utr/2/?a=12399806&i=90827562&c=

Face-to-Face MeetingsAs you know there is really no substitutefor face-to-face meetings. These network-ing opportunities are important to thesurvival of your business. APRA isbeginning its schedule of Divisionmeetings starting with the HDRG Summitin Orlando. We have a high-poweredgroup of presenters but also there is theopportunity for you to network and learnfrom other attendees as well.

We've also scheduled the Electronic &Mechatronic Clinic, the Heavy DutyTransmission Clinic, the Electrical Clinicand a few more are waiting to be con-firmed.

Being GreenDuring the AAPEX Show in Las Vegas onNovember 5th, AAIA devoted a portion oftheir annual Town Hall meeting to greenvehicle technology and how it is creatingan opportunity for the aftermarket.

Everything that is green is additionalmoney and the future of the aftermarket.Vehicles will be more fuel efficient andhave all sorts of efficient features likedirect fuel injection, electronic powersteering, variable valve train and continu-ously variable transmissions (CVT). Greenpowertrains will continue to develop asCAFE standards mandate 35 mpg in 2010.And, hybrids will continue to evolve andbecome even more efficient.

The message from Frank Ordonez ofDelphi was, �Green technology is newcontent. Put it in your warehouse and sellit.� I'd like to add that all remanufacturersshould be saying this to their customers.Afterall, there is nothing more green thanremanufactured parts. Convince yourcustomers to become �green� by promot-ing reman instead of new.

Congratulations to Steve SundayOur congratulations to APRA memberSteve Sunday of Sunair Products in FortWorth, Texas, who has been elected to theMobile Air Conditioning Society (MACS)Board of Directors.

Did You Know...I'm amazed how many of our suppliermembers fail to take advantage of a freeprogram we offer. Maybe only 15 compa-nies utilize this on a fairly regular basis�and that's our �What's New� productpromotion.

APRA features new products in both ourweekly e-Connection electronic newsletterand our monthly Global Connectionnewspaper. Collectively, these twopublications reach more than 18,000people worldwide.

To take advantage of this service, all youneed to do is email your press releases toAPRA's editor, Kirsten Kase at

kase@buyreman.com, then sit back andenjoy the publicity and the new sales!

New Growth Coming?Many aftermarket experts are predictingsome great growth for the industry as aresult of the number of car dealerships thathave closed around the country. This willresult in even more consumers going tothe �independents� to get their carsrepaired.

As a remanufacturer, you should be evenmore alert to these new opportunities forsales and stay plugged in to all yourcurrent customers.

�For those who are concerned only aboutwhat you remanufactured last year or thisyear, the future is DIM,� one aftermarketexpert stated. �Look at where your marketis going and be prepared.� !

fact, they are most likely to use any cashor credit towards the cost of purchasinganother older vehicle.

However, reducing the number of oldervehicles on the road would adverselyaffect the small businesses who repair andservice these vehicles, the small busi-nesses that support them and employeesof both. As previously noted, amongthose most affected are independentrepair shops, service station garages,specialty repair shops, replacement partsmanufacturers, specialty part manufactur-ers, parts stores, distributors and ourmembers, parts remanufacturers. Noprogram should be adopted if it wouldcause harm to these small businesses withso little actual benefit to the economy.

Scrapping older vehicles sends the wrongmessage. It promotes the economicinterests of the big vehicle manufacturersover those of the small businesses thatmaintain and service those vehicles. Itsends the wrong environmental messagebecause it tells Americans that it is allright to throw away a used product thatstill has considerable useful life tosupport the sale of new ones. And itpurports to provide a solution to theautomobile manufacturers problemswithout addressing the root causes ofthose problems. It is a bad idea � period.!

Cash for Clunkerscontinued from page 1

Page 4 / www.BigRShow.com APRA GLOBAL CONNECTION February 2009

by Mohammad Samii, Sammy's Auto-Electric Service, Inc., ASE, SAE

AUTO ELECTRIC CORNER

Mohammad Samii

The Interna-tional Automo-tiveTechnician�sNetwork(i-ATN) had arecent polltitled: �What areyour businessexpectationsfor 2009?� Ofover 2,600

responses, this was the summary:

� Dramatic increase ....... 16.9%� Slight increase ........... 46.3%� Same as last year ........ 17.6%� Slight decline ............. 13.5%� Dramatic decline .......... 5.8%

Whatever you make out of it, the generalconsensus seems to be that well over 2/3think business will hold up with a slight tomoderate increase. If true, that would begood news for the automotive aftermarket,and for us in electrical rebuilding, which isa part of the overall group.

Another factor worth mentioning is thatthe cost of complete units from Asia(mainly China) which has affectedelectrical rebuilding, may be subject to a

noticeable increase because of manyeconomic factors. Given the rise intransportation costs and the fact thatscrap materials are highly devalued, thereis a possibility for electrical rebuilding tomake an unexpected but gradual turn-around and again become a viablebusiness.

So, with hopes of an economic recoveryand a more favorable market to competefairly, let�s wish for a better businessenvironment and improvements in thisNew Year and new era.

Electricity and Water�a Bad MixSince we had two vehicles last month (onthe same day) that had developedelectrical glitches caused by waterintrusion, I thought it was worth writingabout.

The first vehicle was a 2002 Ford F-150truck that the A/C control head and theblower motor stayed on, even with theignition turned off and the key pulled out,this was causing a battery run down.

A thorough check of the system andeliminating the possibility of the ignitionswitch malfunction showed we had powerto the A/C control head and consequentlythe blower relay was also powered at all

times. So when the key was off, the batterywas being drained and the truck would notstart when it sat overnight.

A little search of the TSB�s and i-ATNarchives showed there have been someinstances when water could leak inthrough the windshield seal and therunners alongside the cab and causeproblems.

We removed the under-dash fuse box,which also contains the GEM (GenericElectronic Module)�Ford�s name for theBCM. Once the fuse box was removed anddismantled, we noticed it was clearlydrenched in water. Removing the GEM andvisually inspecting it did not show anyobvious problem on the circuit board. Thefuse box was pried partially open. With theuse of a blowgun and shop�s air, we triedour best to dry it out and left it aside for aday to air out the moisture.

The next day it was assembled andinstalled. A functional test showed all wasfine and the drain had disappeared. A talkwith our local Ford dealer suggested thatfor a proper repair we would need toreplace the fuse box, the GEM (whichwould need reprogramming) and thewindshield would need to be sealed by anauto glass specialist.

In addition to the cost of the part andlabor, an added dilemma was that no localauto glass company guarantees that thewindshield would not break during thereseal procedure! But without sealing thecause of the leak, there would be nowarranty that it wouldn't happen again.We discussed all of this with the customer,who accepted to take the vehicle as is, andwe charged him for our time.

A side note: When checking for parasiticdrain on Fords and most new cars, bepatient! Initially it will show close to 200ma drain, but after 30 minutes or so whenthe entire modules go to sleep, it will dropto a very low (about 15 ma) and acceptablelevel.

The second vehicle was a 1999 OldsBravada whose battery was completelydead even after a full charge!

After the vehicle was towed in (on a flatbed due to All-Trac transmission), weinspected the battery, which was badly inneed of a replacement. A new battery andcleaning the badly corroded cable endsrestored the power but it still didn't crank.The security light stayed off and it didn'tseem that we were having a security (anti-theft) issue.

While checking to see if we were gettingany power to the starter�s �S� terminal, itwas oddly noticed that this post wasstaying hot all the time, even with the keyoff the ignition switch!

A call to the customer was made, and shesaid her problem with the vehicle startedafter she had taken it through an automaticcar wash! Realizing the engine compart-ment fuse box cover was missing, that wasa good lead toward the cause of theproblem. Once the starter relay was pulledout, there was no power to the �S�terminal. Obviously high-pressure waterhad soaked up the fuse box, seeping intothe relay and had rusted and shorted thecontacts, which consequently had alsodestroyed the starter by keeping itengaged.

A new OE relay ($42) and a reman startertook care of the starting problem. We alsoordered a cover for the fuse box and awarning was given to the owner about thedubious condition of the other relays thatmight have been affected by water, thesame way the starter relay had.

Blowing Fuel Pump FuseAn occasional customer of ours who ownsan automotive machine shop and whom Ihad not heard from in years called recently.He was having an unusual problem withhis 1997 Plymouth Breeze which hecouldn't figure out. He explained that anytime he turned the ignition switch to thestart position the fuel pump fuse wouldblow and the engine would stop cranking.

Since he also mentioned they had replacedthe starter recently (purchased elsewhere),I did not volunteer too much information.A quick look at the schematic (this is oneof those cases the AutoElectricPro.com isinvaluable) suggested there could be aproblem in the starter. I told him to removethe starter and bring it in for inspection�which is what he wanted to do all along.

The Plymouth Breeze is a twin sister of theDodge Neon, but the 17560 starter theybrought me looked different. It was anaftermarket version, made around a clonedMitsubishi PMGR starter with modified DEhousing that fit the application.

A quick check of the starter showed thesolenoid to be defective and pegging themeter well into 50 amps before it startedspinning. The diagram clearly showed thestarter relay input shares the same circuitwith the fuel pump relay input and oncethe fuse blows, there is no more crank orstart.

Figure 1 - Burned Solenoid Coil

February 2009 APRA GLOBAL CONNECTION www.apra.org / Page 5

NewAddress

Figure 4 - Modified IAR (2-G) Ford Alternator

This was explained to our customer, and he decided toforgo his warranty on that cold frozen day, and purchasedone of our starters, which are rebuilt from original Boschcores. A subsequent call informed me the starter took careof the problem and he was happy with the outcome. Laterwhen I took the solenoid apart, I could smell and visiblysee the scorched coil. (Figure 1).

The point is, don't categorically dismiss customer callswhen they complain about something unusual�theycould be right! And also watch for the signs of a newlyreplaced starter, alternator, etc., as there are always somechances of malfunction, or that the replacement was notneeded and the problem laid somewhere else.

Drive Clearance and Shift ForksOne of the subjects Robbie Sullivan of Accumax Inc.discussed during APRA�s �Thrive� Electrical Clinic in LasVegas regarded anomalies of certain aftermarket shiftforks, and the problem they create when installed with anOE-type solenoid on 35-MT starter.

Obviously there are certain replacement forks in theaftermarket that do not match the OE measurements. TheOE-type fork measures 4.585� and some aftermarketreplacements measure 4.485� or less (Figure 2). Oncethese forks are used with OE type solenoids, then thedrive-to-stop collar clearance will change enough tocreate a clicking problem, or worse, a pre-engagementarmature spin that would cause milling and ruin theflywheel.

configuration is a little (or a lot) different from the norm.The alternator shown in Figure 4 is one of those cases,which seems be a cross between a 2 and a 3-G alterna-tor�thus a 2.5-G.�in my way of thinking!

To overcome the problem, Accumax has introduced the10A-D951 solenoid which has 4 elongated mountingholes to allow adjustment of the solenoid to properlyallow the drive to stop-collar clearance to compensate forthe length difference.

The original version of the solenoid is also available(10A-d591OE) that has only 2 elongated mounting holes(Figure 3).

Figure 2 - Measuring Differences in Shift Forks(Photo courtesy of Accumax, Inc.)

Figure 3 - Solenoid With and WithoutElongated Mounting Holes

Ford 2.5-G AlternatorAt times a rebuilder may come across units that seemunusual, or have been modified in a way so that their

The unit was from a fuel truck used in the local airport foraircraft refueling. The tag on the alternator indicated itwas made/modified by Wis-Con Total Power (nowWisconsin Motors LLC). Basically it is a Ford IAR (2-G)alternator that has been modified with an insulated outputpost on the SRE frame and a wiring harness that attachesthe B-B-S plug to the output stud and to the regulator.The �A� wire (source-sense) and �S� loop is also builtinto this wiring harness and all it has left is a plug-in thatcomes from the cluster for the warning light to activatethe alternator. The output is from the insulated stud to thebattery�s positive post via the fusible links

They had two such trucks. We rebuilt one of thesealternators and changed the second one with a 3-G withappropriate wiring loom and plug. It had worked fine for along time until they replaced both fuel trucks with newer,diesel models!

APRA Electrical ClinicA lot of effort has already been made for the APRAElectrical Clinic in Toronto, Canada scheduled for thisApril. A lineup of speakers and subjects has been pickedto make this session an informative one for the smallerand hands-on rebuilders, along with a RoundtableDiscussion that is dedicated to answering questions (seepage 12 for seminar descriptions). I look forward toseeing many of my colleagues and friends at this clinic.Until then, keep up the good work. !

Mohammad Samii can be reached at 217-398-3864, oremail to samii@buyrman.com, or toms.@remanforums.com

Automotive Parts Remanufacturers Associationwww.apra.org

t h r i v e

keeping it greenwhile staying in the black

Page 6 / www.BigRShow.com APRA GLOBAL CONNECTION February 2009

Registration Cancellation Policies: Registration cancellations received prior to February 1, 2009 entitle registrant to afull refund of APRA Registration fee. Registration cancellations after that date are subject to a 25% processing charge.

NO REFUNDS will be made unless written request is received by February 26, 2009. Refunds take up to 4 weeks.

Hotel Reservations: $215/night. Visit www.hdaw.org to make your hotel reservations at the Rosen Centre Hotelor call the hotel directly at 800-204-7234 and mention you are attending HDAW events.

Return to APRA 1) Fax: 703-968-2878 or 2) Mail: 4215 Lafayette Center Drive, Suite 3, Chantilly, VA 20151-1243

Register Early and SAVE! Early Bird Fee After 1/15/09

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GRAND TOTAL $

HDRG Summit Registration Fee: Includes coffee breaks, Awards luncheon and all related meeting materials.

*Held prior to HEAVY DUTY AFTERMARKET WEEK in Orlando

3rd Annual Heavy DutyRemanufacturing Group Summit

February 16, 2009Rosen Centre Hotel � Orlando, Florida

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9:00 am � 9:15 amWelcome, Introductions and OpeningRemarks, Sandra Galvin Standley, APRAChairman

9:15 am � 10:00 am�Opportunities, Challenges and the GreenOutlook for the HD Remanufacturer�Bruce Plaxton, President, BGP MarketingSolutions, Schaumburg, IL

10:00 am � 10:15 amRefreshment Break - Sponsored by OwnerResource Group of Austin, Texas

10:15 am � 10:30 am�Regulation of Heavy Duty: Where WeAre and Where the New Administration isLikely to Take Us�Mike Conlon, APRA Legal Counsel,Washington, DC

10:30 am � 11:30 am�Diesel Fuel Injection: Service &Remanufacturing�Michael Rayne, Delphi Diesel Systems,Ltd., United Kingdom

11:30 am � 11:50 am�Vertical Systems BPM2 Product�Sally Allen, Vertical Systems, South Bend,IN

11:50 am � 1:15 pm�Remanufacturer of the Year� AwardsLuncheon

1:20 pm � 2:05 pm�Future Energy Products/Technologies/Systems�

� Alan C. Lesesky, President, VehicleEnhancement Systems, Rock Hill, SC

� John R. Dabels, Co-founder, CEO,EV Power Systems, Inc., Rock Hill,SC

2:05 pm � 3:05 pmPanel Discussion: �HD EngineRemanufacturers: Successful Strategies forthe Future�Moderator: James Madill, MadillContract Marketing, Rockford, MI

� David Bianchi, Vice President Sales,B & G Machine, Seattle, WA

� Steve Gettlefinger, President,Republic Diesel, Louisville, KY

� Lee Menke, Founder, R&R Engineand Machine, Akron, OH

3:05 pm � 3:20 pmRefreshment Break - Sponsored by OwnerResource Group of Austin, Texas

3:20 pm � 4:30 pm�Logic of Engine Electronics� - Electronics& Diagnostics to ensure the ProperOperation of the Engine & DrivetrainSystemsMike Koehler, Koehler Consulting,Highland, CA (Speaking courtesy ofIPD)

4:30 pm � 4:45 pm Closing Remarks

Heavy Duty Remanufacturing Group SummitFebruary 16, 2009Rosen Centre Hotel � Orlando, Florida

Larry�s father, Vaughn, more than 60 yearsago. �We started out in the haulingbusiness, not the truck parts business,�said Garabedian. He said Valley TruckParts made the change toward the partsbusiness in the �60s, after his fatherwrecked a truck and ended up selling partsfrom it.

Like many who grew up in a familybusiness, Garabedian got his startsweeping �dirt� floors at the company.That was when Valley Truck Parts was stillat their original, 10 acre location in Dinuba.

Garabedian received his business degreefrom Fresno State University in 1977 andhad planned to go to work for IBM in thecomputer business. But he changed hismind at the last minute and decided to joinhis father in the truck parts business.

�At that time we were just a wrecking yardwith six or seven employees,� Garabedianfondly recalls. Annual sales at the timewere about $400,000, as they only soldused truck parts and scrap. WhileGarabedian�s father continued to work inthe business almost till the time of hisdeath in 2005, he took over the day-to-dayrunning of the business in the mid-�80s.

He says the �big change� in their business

Valley Truck Partscontinued from page 1

continued on page 7

February 2009 APRA GLOBAL CONNECTION www.apra.org / Page 7

occurred in 1991 when he got a call to visitthe local Kenworth branch in Fresno thatwas closing. �It was simply to see if theremight be anything I might want topurchase.�

Garabedian recalls going to the propertyand �by the time I left I had boughteverything.� The purchase of the assetsincluded all the equipment and the parts.

�I didn�t buy the property but I knew thelandlord, who was a friend of my dad�s, soI renegotiated the lease,� said Garabedian.�And the next day we were in businessand that was our first location in Fresno.�

Quickly outgrowing the space, ValleyTruck Parts did not stay in that locationfor long. Garabedian purchased a 15-acreparcel of land just off the I-99 freeway inFresno in 1995. Their current headquartersopened in 1996 with 40,000 sq. feet ofwarehouse, shop and office space. Retailsales are handled from the Fresno location,along with parts rebuilding. The originalDinuba location is still used by ValleyTruck Parts for used parts, wrecking, andthe company�s export business which isprimarily to Asia and Mexico.

Valley Truck Parts is an integral part of theGarabedian family. Larry�s wife, Lisa, doespayroll for the company. His daughter,Taylor, is a part-time receptionist for thecompany and his son, Brian, a fireman,works part-time at the yard in Dinuba onhis days off.

Growing ForwardDespite the challenges of the economyand a softer truck market, Garabedian said2007 was Valley Truck�s best year ever and2008 was off less than 4.5 percent. He says2008 represented the only year thecompany hasn�t grown.

He says in 2008 nothing dramatically �felloff,� it was simply a matter of sales being alittle bit lower in all the categories they dobusiness in. He says the good news isnone of his business units is gone.

One major change they embarked uponlast year was altering their transmissionand differential program. Instead of doingthe work themselves, they contracted withWeller Truck Parts in 2008 to be one oftheir West coast distributors for remanproducts.

�We no longer offer Valley Truck Partsrebuilt units and now offer Weller rebuiltwith nationwide delivery and warranty,�Garabedian explained.

What sparked the change? �We decidedthat we wanted to focus on other things,because rebuilding units consumed a lotof energy and a lot of warehouse space.

�As a wrecking yard we generate our owncores and rarely buy any from the outsidemarket,� said Garabedian, �because wegenerate our own cores by buying usedtrucks.�

Before he made the change to Weller,Garabedian said export customers wouldcome in to buy cores. Unfortunately, hehad to turn most of them away because heneeded the cores for his own rebuildingbusiness. Because of the change,Garabedian is now able to sell more coresand used products.

�The only downside is we�ve given up awhole lot of profit, because we made more

profit when we were rebuild-ing our own,� he stated.�We�ve given up 30 pluspoints in profit, but we�vepicked it up by selling moreused units and cores.�

Plus he says it has openedup shop space which hasallowed Valley Truck Parts toadd more service bays to dorepair work. �If you look ateverything as a whole, it�sincreased our business andhas been a really good fit forus.�

Challenges and OpportunitiesWhen asked what he likes most about theremanufacturing industry, Garabedian said�It is always changing and it forces you tobe proactive in managing your company.As difficult as it can be sometimes, I stillreally enjoy what we do and have fun withthe challenge.�

Admitting to being a �very competitiveperson,� he believes �if you can make it inthese kinds of times you must be doingsomething right.�

The newest challenge is the January 1,2009 enactment of regulations by theCalifornia Air Resources Board (CARB)that mandates the removal of older trucksfrom the road. Garabedian said a majorimpact of the law is that trucks built priorto 1994 will be mandated off the road by2011. Although Garabedian said there issome ambiguity in the regulations. So it isnot a �hard and fast� rule, which makes itdifficult to plan for the future.

He said the uncertainty about the rulingcaused a lot of people to do nothing in2008, because they didn�t want to sinkmoney into an older truck that could soonbe mandated off the road. But now that theruling has been enacted, Garabedian saidhis product offerings in 2009 will changeas a result.

Ever the optimist, he believes the rulingwill create opportunities by positioningValley Truck Parts as the supplier that isaware of the issues and that �can offersolutions to our customers as to how theycan economically deal with the mandates.�Much of the trucking industry and theagriculture sector in California wereopposed to the new regulations, citing theeconomic downturn and high gas prices inthe past year.

Lessons Learned and Keys toSuccessWhen asked about lessons learned alongthe way and the keys to success,Garabedian returns to the theme ofconstant change.

�It is mandatory to keep up with changeand to always try to stay ahead of thecurve,� he explains. �The rebuildingindustry can change quickly and you haveto be able to adapt immediately. Pay

attention to what your customers wantand not to what you want to sell. Alwaysplan your strategy on how you can besthelp your customers solve their problemsand the business will come.�

Garabedian feels that technology is one ofthe key ways to keep up with change.�The technology available today is vastlydifferent than it was just five years ago,�he said. �Computers are faster, handhelddevices are less expensive�you�ve got alot more options when it comes tostreamlining and automating your busi-ness. That�s where you have to focus,because every time you can increaseefficiency it goes right to your bottom line.And that�s the easiest way to maintainprofitability.�

At the time this article was written, ValleyTruck Parts was about to unveil its newlyredesigned website at valtruck.com.Garabedian says the new site will feature100 percent of their used, rebuilt andreconditioned parts and provide userswith �real-time� inventory availability. Plusthe site will include multiple pictures ofeach part and provide customers withmuch more accurate descriptions.

�The website will be 500 percent betterthan what we have now,� said Garabedian.

Parting WisdomIn parting words of wisdom, Garabedianforcefully says, �Don�t be afraid to makechanges. That�s the absolute biggest one.Don�t be afraid to rock the boat and trynew ideas. Always, always, alwayscontinue to improve.

�You don�t have to make drastic changeseach year, because that would be counter-productive. But you should always makesubtle changes. To me that�s the key.�

And he adds, regarding change, that hedemands from his employees that theychallenge his ideas and come up with theirown.

�I expect my employees to tell me whenI�m wrong,� he says. �I tell them: �If I havean idea that you anticipate a flaw in or youhave a better idea you have to tell me.� Wejust make that standard procedure aroundhere.�

It�s all part of the constant changeenvironment that Garabedian promotesand lives out in his day-to-day businesslife. !

Gary McCoy is the president of FairwayCommunications, a public relations andmarketing communications firm with aprimary focus on the automotive andheavy duty aftermarket. He is responsiblefor helping market and promote theGlobal Automotive AftermarketSymposium and the Aftermarket eForum.In addition, he is the public relationsdirector for The Marx Group. He can bereached atgmccoy@fairwaycommunications.com.

Inside the warehouse at Valley Truck Partsin Fresno, California.

A retail showroom is part of Valley Truck Parts 40,000 sq. foot building in Fresno.

Page 8 / www.BigRShow.com APRA GLOBAL CONNECTION February 2009

Automotive Parts Remanufacturers AssociationMembership Application North America

Please complete the ANNUAL DUES & LISTING sections for your company type below.This is how your company will be identified for all APRA purposes (i.e. publications, clinics, conventions)

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NOTE: Pay full ANNUAL DUESregardless of time of year you applyfor membership. Your dues will bepro-rated by quarters in yoursecond year of membership.

Contributions or gifts to APRA arenot tax-deductible as charitablecontributions. However, they maybe tax-deductible as ordinary andnecessary business expenses.

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This membership does not apply tocompany sales personnel. You must be anauthorized rep. of 2 or more manufacturers

engaged in the automotive aftermarket.

List manufacturers you REPRESENT:

A/CBrakeH.D. BrakeClutchCV & RacksElectricalElectronic & MechatronicVolume TransmissionH.D. Transmission

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APRA CongratulatesLisa Jackson as theNext Administrator ofEPAAPRA extends congratulations to LisaJackson who will become the next Admin-istrator of the U. S. EnvironmentalProtection Agency.

�On behalf of APRA and the nation�sentire remanufacturing industry, wecongratulate you on your appointment tolead the U.S. Environmental ProtectionAgency,� stated APRA President, WilliamGager.

�Remanufacturing is the ultimate form ofrecycling and saves vast amounts ofenergy, natural resources, reduces airpollution and keeps material from endingup in landfills. And, more recently, ourindustry has been recognized as one thatplays a major part in reducing greenhousegas emissions. Remanufacturing is also anengine of job creation because it is a laborintensive industry,� added Gager.

As an industry, APRA is fully committedto working with Jackson and the staff atEPA to support a remanufacturing agendathat will:

� Enact policies that strengthen allsegments of the remanufacturingcommunity especially the biggestsegment�automotive and truck parts.

� Establish and facilitate tradepolicies that promote the export ofremanufactured parts by US compa-nies.

� Recognize the major part that ourindustry can play in reducinggreenhouse gas emissions andmaking American manufacturing moreenergy and material efficient. #

A & J Transport, Inc.Alan ReynoldsHalcott Center, NYSponsored by Bill Vernier

A.A. Advanced Inc.Ted AbtBristol, PASponsored by Dennis Jacinto

A.S.I. RebuildersNathan UngerAbbotsford, BC, CanadaSponsored by Dennis Jacinto

The Battery ExchangeGlen HoffmanAbbotsford, BC, CanadaSponsored by Dennis Jacinto

Jim's Auto ElectricJim CarmanAbbotsford, BC, CanadaSponsored by Dennis Jacinto

Mitchell EnterpriseMike MitchellRochester, WASponsored by Dennis Jacinto

RECRO, Ltd.Raimonds AploksCesis, Latvia, EuropeSponsored by Fernand Weiland

TYC/Genera CorporationJoe KaoLa Palma, CASponsored by Bill Gager #

Let us know if there hasbeen a change ofinformation regardingyour company. Newaddress, new employees,new emails...Send your changes to:Marlene Koskinas, APRA, 4215 LafayetteCenter Drive, Suite 3, Chantilly, VA 20151-1243; Fax 703-968-2878or email marlenek@buyreman.com

Moving?

February 2009 APRA GLOBAL CONNECTION www.apra.org / Page 9

MARKETING

Tom Marx

Tom Marx, President and CEO of The Marx Group, is wellknown throughout the aftermarket for marketing insights andstrategies. To receive his monthly marketing newsletter pleasesubscribe at www.themarxgrp.com/email_signup.html .

Put YourAnalytics toWork: Part 2

In our last issue of Catalystwe discussed how visitorsinteract with your website.This month's question is:How did they get there?Google Analytics hasvarious ways of showing you the path that readers takefrom one site to the next. We will examine a few ways tointerpret Google Analytics reports and then providesuggestions of what to do with your findings.

They came from where?Have you ever wondered how your website visitorsfound you? Do you wonder if your online web bannersare actually bringing in visitors? You can easily determinethis by viewing the "Referring Sites" report. This reportlists the sites your visitors left before arriving at your site.Take the time to examine each referring site and look forthe following:

� What type of site is this? Is it a directory, someone'sblog, an online forum, etc?

� Did it come from a site where you have an onlinebanner displayed?

� Is this site in your industry?� If it was from a blog or forum, is the context in which

your site is linked and mentioned good or bad?� Are you surprised?

With the popularity of blogging and participation inonline forum discussions, examining what's being saidcan help you determine your company's or product'sreputation in the online world. This will either show youthat you have managed to create a great brand, or thatpossibly there needs to be some damage control. Areyour current online banner placements or ads bringing invisitors? If they are not, consider a redesign, remessagingor repositioning. It might even be time to either cancel theplacement or place additional ads on some of those sitesthat DO generate visitors.

Because your best referral sources are your customers,consider sending a quick message to the blogger or theorganization that linked your site to their webpage or blogentry. Did they absolutely love your product? If they did,consider giving them free product in exchange of postinganother blog entry or providing you with a testimonial oradditional feedback.

Actions speak louder than words.After reading article after article about doing basic SEO toyour website and spending hours choosing the perfectkeywords, there is still the question - is it working? Wellthere is good news - whether or not your efforts areworking is actually traceable.

The �Keywords Report� in Google Analytics will showthat picking the �perfect keywords� doesn't always helpunless they actually bring in visitors. Review the report.It might lead to a reconsideration of your initial keywordsor it might just show you that the time spent deliberatingover which keywords to pick was well worth it.

The report will help you determine trends. Are therecertain products or services that are specifically beingsearched? How did they phrase the keyword searchterms? Test their search yourself and see how far downthe first or second page your site appears when searchingthat exact keyword or phrase. Are your visitors willing to

search through four (or more) pages of results? Who waslisted as well in this search? How can you get your sitehigher on the results list?

Now that you have read your reports, do some brain-storming with your team. Be bold and do some tests. Youcan't get results without testing. As you get better atdetermining where your visitors are coming from and why,your ads and banner placements will become more andmore effective. You'll also bring much more power to yourSEO process. Adopt Google Analytics as one of yoursales and marketing tools today. !

Automotive PartsRemanufacturers Association

Join APRA Today!

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R. L. Polk & Co. is thecorporate sponsor of theGlobal AutomotiveAftermarket Symposium.

Presented By:

Supported by: AftermarketNews.com AftermarketBusiness, APRA Global Connection, Automotive Week,Brake & Front End, Counterman, Import Car, JobberNews, Motor, Motor Age, Parts & People, Tire Review,Tomorrow’s Technician, Underhood Service

The 2009 Symposium is scheduled for Wednesday, May 6, and Thursday, May 7 atthe Hyatt Regency O’Hare in Chicago. Save $200 when you register by March 20.

“At GAAS we gain a better understandingof the challenges from all the channelpartners that we do business with.”Rusty Bishop, CEO, Federated Auto Parts

“Being there (at the Global Symposium)allows you to obtain information andvalue that I have not found in othervenues around the industry.”Richard Roy, President & CEO, UniSelect, Inc.

“The best reason for why I go to theSymposium is because of the fresh

ideas I always get there that help meimprove my business.”

Scott Webb, Senior Vice President, Pep Boys

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Strauss, Bob Richardson, The

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Heard Enough Bad News Lately?The truth behind all of the bad economic newsby Jim Gregory

The bad news about our economy is everywhere you turnthese days. Bailouts, bankruptcies, and foreclosuresdominate our headlines. Major retailers are closinghundreds of locations or liquidating altogether. As of thiswriting, at least one major investment firm had set a targetof $0 for GM stock�essentially predicting a shareholderwipeout.

You may find it hard to believe, but these are times whenmany other businesses would rather be in our shoes. Didyou know that the automotive mechanical repair businesshas historically thrived in a slow economy?

But your business hasn�t exactly been thriving lately�right? Keep in mind that our customers are going throughquite a shock. They are watching the government bail outU.S. financial companies, which hasn�t happened sincethe 1930s. The media is pummeling them with compari-sons between today�s economy and the Great Depres-sion. They have just gone through a divisive election,where both candidates constantly reminded them whatmiserable shape we�re in.

Let�s take a lesson from that little boy who excitedly dugthrough the pile of horse manure. (�There must be a pony

in here somewhere!�) At least some of this bad newsdeserves a reality check ...

Bad news: This has turned into a global recession. Realitycheck: That�s true, but not all bad. The U.S. economy ledthe way to this recession, which drove a �weak dollar�policy from our central bank. That weak dollar had a lot todo with the sharp rise in American oil prices. As othereconomies have weakened lately, the dollar has strength-ened against foreign currencies, and American oil priceshave fallen. And as the world�s economy slows down,demand for oil falls and gas prices have dropped faster.

Bad news: At least half our customers are worried abouttheir personal financial condition. Reality check: In fact, arecent Wall Street Journal poll put the number at 56percent of Americans � and that was before the �creditcrisis.� Look at it this way: our customers� cars rank rightbehind their homes in value. They cannot afford to losethis valuable asset, their primary mode of transportation!

Bad news: 2008 auto sales are down more than 20 percent,and 2009 sales are projected to be worse. Reality check: Ifyou�re in the auto repair business, this is obviously goodnews. This year will be at least a 15-year low for new autosales. The average vehicle on American roads is nowmore than 10 years old, for the first time ever!

Bad news: Car loans are being denied to applicants with a

650 credit score. Reality check: True, and it works for us.Even if your customers want to buy a new car, most ofthem cannot get a car loan.

Bad news: An estimated 700 U.S. auto dealerships willclose in 2008. Reality check: We all know the answer tothis one.

None of us believes the winter of 2008-09 will be easy.This recession could last well into and even beyond 2009.But let�s stay focused on the importance of our roles inour customers� daily lives.

And, like that little boy, keep digging. #

About the author: Jim Gregory is a board member ofASA-Colorado and the owner of Station AutomotiveServices, with three mechanical repair shops in Denver.He can be reached at j.l.gregory@earthlink.net.

Reprinted with the permission of AutoInc., the officialpublication of the Automotive Service Association(ASA).

geographies, these declines seem poised to continue intomuch of 2009. But with all this bad news, there is somegood news out there � these are the times when strongcompanies get stronger and new opportunities emergequickly.

What does this mean for you?There is a lot of talk about the demise of Wall Street.Many of our colleagues at Wall Street firms fear that WallStreet will never be the same. This may be true, but morelikely it will end up being the same old Wall Street tenyears from now � just more regulated. Fortunately formany of the readers of this article, you�ve never had todirectly deal with Wall Street to support your businesses(although every time we buy or sell a home, finance avehicle or use credit in anyway, we benefit from thebreadth and depth of U.S. capital markets, largely createdby Wall Street). So what does this mean for you and yourbusiness?

� Your business is almost undoubtedly worth lesstoday than it was last year. We travel the countrygiving presentations on valuation. It�s one of themore complicated topics to cover. The bottom line isthat almost every asset class � stocks, real estate,and small to medium-sized private businesses � havegone down in value between 10% and 40% from theirhighs. If you plan to raise money or sell yourbusiness, reset either your expectations, yourapproach, or your time horizon.

� Lenders are still lending to good companies. Yes, themedia often make it sound like the sky is falling, andthere are no lenders out there. This is not true.Lenders have become very conservative, more thanthey have been since at least 2002, but they are stilllending. Local and regional banks, who were not asheavily exposed, continue to lend to good companies(see the November 11th Wall Street Journal articleentitled �Small Firms Get Local Loans�). We recentlysecured a $4 million cash flow-based loan for acompany. In 2002 almost no one could get a cashflow-based loan. The interest rate for this loan wasalmost 3.50% higher than rates were last year, and itis likely borrowing rates will remain high for a while.Nonetheless, lenders are still lending to goodcompanies.

Financial Opportunitiescontinued from page 1

continued on page 11

February 2009 APRA GLOBAL CONNECTION www.apra.org / Page 11

� Private equity companies have lots ofmoney to invest. According to theDow Jones Private Equity Analystnewsletter, through the first ninemonths of 2007, private equity firmsraised $200.4 billion. For the first ninemonths of 2008, private equity firmsraised $222.6 billion � an 11%increase. These firms are looking forways to invest this capital and haveplenty sitting in their coffers forcompanies seeking capital. Likelenders, however, they know valua-tions are down. They are beingselective and prudent, looking for thebest opportunities with reasonableterms. If your competitor sold to aprivate equity firm 18 months ago for8.5x EBITDA, the same firm wouldprobably pay between 5.5x and 6.0xEBITDA for that same companytoday.

What should you do?Here is the good news. Even in thesechallenging economic times, you can takeactions to either increase the value of yourbusiness or make smart decisions aroundthe sale of your business. Unlike the realestate market where there simply are fewinterested buyers or lenders, this is not thecase for companies. Most of the optionsyou had available to you twelve monthsago are still available, they are simply moreexpensive.

Nonetheless, there may still be goodoptions for you. For instance, if there is acompetitor you can acquire today atbargain prices, your debt and equity maycost more, but once the economy recoversyou will have potentially made a greatfinancial decision. Similarly, if you wantedto sell and are now thinking of riding itout, you could end up in the same placefor less work and with less risk. Forexample, waiting for your companyvaluation to return to recent peaks couldtake another 3 to 7 years. If you soldtoday, even at a reduced price, andinvested the proceeds in the S&P index,and the index went from 900 back up to1500 over the next 3 to 7 years (not toomuch of a stretch), you would enjoy thesame increase in net worth while having adiversified portfolio and liquidity.At the very least, the prudent move inthese uncertain times is to regroup andevaluate your personal and businessobjectives:

� Set a strategy to improve yourbusiness for the future. There areseveral actions you can take toincrease the value of your business.These include reducing your cus-tomer concentration, expanding intogrowth industries, launching newproduct lines, increasing research anddevelopment, and gaining marketshare (organically or through acquisi-tion, especially when competitors arestruggling). All are viable methods ofincreasing your business� worth in the

eyes of the financial community. Eventhough it will be more costly todaythan it would have been yesterday, ifcompelling opportunities arise toacquire a company, expand a productline or diversify your customer base,you should attempt to do so. Withsmart decision making and goodfinancial partners, you can takeadvantage of rare opportunities.Doing so is important because youwill increase the value of yourcompany over the long-run.

� Continue to pursue your goals. Eventhough these are tough financialtimes, continue to pursue the goalsyou laid out for your business.Maybe your business is growing, andyou need capital to expand, but bankdebt has been hard to come by, andyou are unwilling or unable to put upthe personal guarantee that the banksrequire. As a business owner, youhave recognized an opportunity andyou should seize it. Whether youneed to add working capital or make amaterial investment in equipment or afacility, there are investors (beyondthe banks) that will provide growthcapital for businesses that want toexpand, helping your business growwhile reducing your personal risk.

Another situation may be that youplanned to sell your business, but nowyou are not sure what to do. You�veworked hard all your life, and you�re

simply ready to reward yourself. Let�s faceit, most people started a business to makemoney, and the greatest financial reward isusually in selling the business. If you areready to pay yourself back for all the timeand money, heart and soul that youinvested in your company, selling yourbusiness will help you realize the results ofall that you invested in your business.

As we noted above, every asset class hasdeclined and the decision an owner needsto make right now is whether you wouldrather sell the business, have the cash,and diversify your personal risk, or wouldyou prefer to keep control of yourbusiness and see what happens whenbusiness conditions and valuationsimprove. For a compromise of the two,keep reading � you may be able to�double-dip.�

Where Can You Turn?Many business owners don�t knowexactly where to turn to assist them inobtaining capital or making these types offinancial decisions. Fortunately, you havemany options, and each has benefits.Private equity is one way to go. Thebenefits of private equity are that theprocess is quiet and highly confidential,relatively less invasive to your business,fast when compared with other options,and private equity investors usually payfair valuations for good businesses. Inaddition, they offer resources that can

continued on page 18

Financial Opportunitiescontinued from page 10

Lester_0209.indd 1 1/22/2009 11:36:32 AM

Page 12 / www.BigRShow.com APRA GLOBAL CONNECTION February 2009

APRA MEMBER �Full� Registration Fee (BEST VALUE!): $145 (U.S.) in advance; $155 (U.S.) at the door.Includes Friday�s Plant Tours and Transportation, Friday Reception (open to everyone � cash bar), all Saturday Workshops, SaturdayLunch, coffee breaks, all meeting materials, and admittance to Saturday�s �MINI EXPO.�

NON-MEMBER �Full� Registration Fee: $170 (U.S.) per person in advance; $180 per person at the door.

APRA MEMBER �Saturday Only� Registration Fee: $115 (U.S.) in advance; $125 (U.S.) at the door.Includes Saturday�s workshops, admittance to Saturday�s �MINI EXPO,� coffee breaks & lunch. Does not include Friday�s Plant Tours.Badges will be available for pick-up Saturday morning.

NON-MEMBER �Saturday Only� Registration Fee: $140 (U.S.) per person in advance; $150 (U.S.) at the door.

APRA Supplier Member �Expo� Table: $95 (U.S.) per tableLimited number of tables available. First come, first served. All company personnel must register � either �Full� Registration or �SaturdayOnly� Registration. Literature and small parts only � these are not exhibit booths. No electricity available! You must hand carry yourdisplay and set up in less than 30 minutes.

Registration Cancellations must be received by APRA no later than 4/17/09 to qualify for a full refund. Cancellations after that date will be subjectto a 20% processing fee. No refunds will be made unless written request is received by 4/30/09. Refunds take up to 4 weeks to process.

Hotel Reservations: The Holiday Inn Toronto Airport � East Hotel is offering attendees a special, discounted room rate of only $115 single/double(CDA). To reserve your room, call the hotel�s Reservation Desk at 1-800-491-4656 or 1-416-240-7511 and mention you are attending the APRA

Electrical Clinic to receive the discounted room rate. Reservations MUST BE NO LATER THAN MARCH 27TH.Hotel cancellations must be made directly with the Holiday Inn Toronto Airport � East Hotel.

Return to APRA 1) Fax: 703-968-2878 or 2) Mail: 4215 Lafayette Center Drive, Suite 3, Chantilly, VA 20151-1243

Name: Email:

Company:

Address:

City: State/Province: Zip/Postal Code:

Country: Phone: Fax:

Additional attendees from same company:

Name: Email:

Name: Email:

Attendees

Full Sat Only Table

Circle Registration Type

Circle Registration Type

Payment

FULL Registration $145 U.S. x number of people $170 U.S. x number of people

SATURDAY ONLY Registration $115 U.S. x number of people $140 U.S. x number of people

Supplier Table $95 U.S. per table Not available to non-members

GRAND TOTAL $

APRA Member Non-Member Total

Full Sat Only

Full Sat Only

2009 Electrical ClinicApril 24 & 25, 2009 / The Holiday Inn Toronto Airport - East

600 Dixon Road, Toronto, Ontario, Canada

Paid by: ! Check (Make checks payable to APRA in U.S funds.)Charge my: ! Visa ! MasterCard ! American Express

Card No. Exp. Date

Print Cardholder�s Name Signature

The Holiday Inn Toronto Airport - East / 600 Dixon Road, Toronto, Ontario, Canada2009 Electrical Clinic / April 24 - 25

FRIDAY, APRIL 24, 20097:00 a.m. � 8:00 a.m.Registration in Hotel�s Lobby

8:00 a.m.Motor coach departs for plant tours.

8:30 a.m. � 9:45 a.m.Arrive at Dixie Electric and tour plant.

9:45 a.m.Depart Dixie Electric and Travel to LitensAutomotive

10:00 a.m. � 11:15 a.m.Arrive at Litens and tour plant.

11:15 a.m.Depart Litens and Travel to CSD

Noon � 1:15 p.m.Arrive at CSD and tour plant.

1:15 p.m.Depart CSD and Travel to D & V Electron-ics

1:30 p.m. � 4:00 p.m.Arrive at D & V Electronics, Lunch andPlant Tour

4:00 p.m.Depart D & V Electronics and Travel backto Holiday Inn

4:30 p.m.Arrive at the Holiday Inn Toronto Airport -East

5:00 p.m. � 6:00 p.m.APRA Electrical Board of GovernorsMeeting

6:00 p.m. � 7:00 p.m.�Welcome to Toronto� Reception. Open toeveryone, cash bar.

SATURDAY, APRIL 25, 20098:00 a.m.Registration

8:00 a.m. � 8:30 a.m.Supplier Set-Up for the MINI �ELECTRI-CAL EXPO.� All APRA Supplier Membersare invited to have a table at only $95(U.S.)

The Expo will be open from 8:30 a.m. � 5:00p.m. in the meeting room and during thea.m. and p.m. coffee breaks, as well asbefore, during and after lunch. A limitednumber of tables are available, and will beassigned on a first come, first servedbasis. Only one table per company. Allcompany personnel must register�either�full� registration or �Saturday Only�registration. Literature and small partsonly�these are not exhibit booths. Noelectricity will be available! You must handcarry your display and set up in less than30 minutes.

8:30 � 8:45 a.m.�Opening Remarks and Introductions,Plant Host Appreciations,� Dan Smith,APRA Electrical Division Chairman

8:45 a.m. � 10:15 a.m.�Advances in Modern Charging StartingSystems,� Mohammad Samii

10:15 a.m. � 10:30 a.m.Refreshment Break and visit the MINIEXPOSITION

10:30 a.m. � 12:00 noon�Running Today�s Auto Electric Busi-ness,� Eli Melnik

12:00 noon � 1:30 p.m.Group Luncheon and Mini Exposition

1:30 p.m. � 2:30 p.m.�Rebuilding Techniques for Newer Startersand Alternators,� Mohammad Samii

2:45 p.m. � 3:15 p.m.�Litens IDP,� Al Steadman

3:15 p.m. � 3:30 p.m.Refreshment Break and visit the MINIEXPOSITION

3:30 p.m. � 4:00 p.m.�KwikFinder Web Catalog,� DennisJacinto

4:00 p.m. � 5:00 p.m.�Roundtable Discussion, Q & A,� DennisJacinto & Dan Smith

5:00 p.m.Closing Remarks, Dan Smith

February 2009 APRA GLOBAL CONNECTION www.apra.org / Page 13

Hotel Accommodations: The HolidayInn Toronto Airport East is offeringElectrical Clinic attendees a special,discounted room rate of only $115 (CDA)single/double. To reserve your room, callthe Holiday Inn�s Reservation Desk at 1-800-491-4656 or 1-416-240-7511 andmention you are attending the APRAElectrical Clinic to receive the special rate.Hotel reservations must be made no laterthan March 27th to guarantee thisdiscounted room rate. Hotel cancellationsmust be made directly with the Holiday InnToronto Airport East Hotel.

Clinic Registration: Return to APRAby fax at 703-968-2878 or mail APRA, 4215Lafayette Center Drive, Suite 3, Chantilly,VA, 20151-1243. Registration cancellationsmust be received by APRA no later thanApril 16, 2009 for a full refund. Cancella-tions after that date will be subject to a20% processing fee. No refunds will bemade unless written request is received byApril 30, 2009. Refunds take up to 4 weeksto process.

Getting to the hotel: The Holiday InnToronto Airport East offers a complimen-tary shuttle service to and from theToronto Airport.

Any Questions? Call APRA at 703-968-2772.

2009 Electrical Seminars

� Advances in Modern ChargingStarting Systems: In Part-1 of hispresentation, Mohammad Samiiexplains trends in automotiveelectronics that affects charging/starting systems where rebuildersshould be aware of the compatibilityof parts they use with the vehicleelectronics. Subjects such as data BusCommunication, PCM activation,monitor and control of the chargingsystems, operation of more moderncomputer-controlled systems, and thelatest in Ford, Chrysler, as well asGM�s RVC charging system and DR-44G alternator will be explained insome details.

� Running Today�s Auto ElectricBusiness: Eli Melnick, owner ofToronto�based company Start AutoElectric, shares his experiences inmanaging his auto electric businessthat in addition to rebuilding alsodoes on-vehicle electrical andelectronic service. Sharing histechnical and management expertise,Eli will explain how rebuilders can usetheir knowledge of the electricalsystem to make sure end-users oftheir products reduce warrantyreturns by emphasizing properdiagnostic techniques and avoidpitfalls.

� Rebuilding Techniques forNewer Starters and Alternators:In Part-II of his presentation,Mohammad Samii will discussrebuilding tips for newer Valeo,Bosch, Denso SC units that arefinding their way into the rebuildingbusiness. Also details of replacingslip-rings for many Ford, Delco andBosch alternators will be presented ina pictorial presentation.

� Litens IDP: Allen Steadman ofLitens, Inc. will present a short butimportant seminar to familiarize therebuilders with the concept and use ofthe IDP�s (Isolating Decoupler Pulley)that mistakenly are known as clutchpulleys by rebuilders. With the use ofactive video�s, Allen will show theoperation and design concept ofIDP�s, and will explain why it isimportant that such devices be indeedreplaced with OE design which hiscompany provides to automakers aswell as aftermarket rebuilders.

� KwikFinder Web Catalog: PastChairman of the APRA�s ElectricalDivision, Dennis Jacinto will presentdetails of universally popularKwikFinder web-based LesterCatalog. Dennis will show how with afew easy strokes of the keyboard, theunit applications along with thepictures and parts break-down of theunits can be accessed, and how easily

it can cross-reference units andservice parts from many suppliers.

� Roundtable Discussion, Q & A:The day will continue on with around-table and Q and A session,moderated by Dennis Jacinto thatwith the help of Dan Smith, APRA�scurrent Chairman of the ElectricalDivision will take questions from theaudience and discuss rebuildingissues. Attendees are encouraged tobring questions and ask the panel forhelp. This session is planned to beinteractive where all attendees canparticipate and share their experi-ences. !

Through a special alliance with

we are able to bring you theircatalog online at the special

APRA member price of $245 ($50 off).

Get instant access to all thespecifications and bill of materials

as well as pictures for mostalternators and starters.

Lester Catalog

www.kwikfinder.net

VRH2009-107, 14.4-V Set PointFor Mitsubishi on Subaru

O.E. Units: A2TB2891, A2TB2991Lester Unit Sales Ref: 13820, 13889

VRPR2765 14.6-V Set PointFor Valeo on General Motors

Reference Lester Sales 11047, 11069,11144, 11145, 11147, 13865, 13866,

13938, 13944

VRPR6366 14.8-V Set PointFor Valeo on GM Passanger Vans

OE A13I194Reference Lester Sales 13720

VRH2000-52 14.2-V Set PointFor Kia on Kia

OE OK012-18-300, OK241-18-300Reference Lester Sales 13862, 13863

VRH2000-62 14.3-V Set PointFor Hitachi On Honda, Isuzu,

Infiniti, Nissan and SubaruOE LR190-744, LR190-761, LR1110-712Reference Lester Sales 13825, 13900

VRH2009-89, 14.3-V Set PointFor Mando on Hyundai and KIA

OE AB195126, AB195141,Reference Lester Sales 11001, 1378

VRB394 Liquid Cooled, 14.5-V Set PointFor Bosch on BMW, OE 0-122-0AA-090,

0-122-0AA-160, 0-122-0AA-IJ0Reference Lester Sales 11078, 13815,

13976

VRB257 Liquid Cooled, 14.5-V Set PointFor Bosch on Mercedes Benz w/ORC Pulley

OE 0-122-0AA-0B0, 0-122-0AA-0R0, 0-122-0AA-1A0

Reference Lester Sales 22952

Authorized Distributors for REGITAR-USA: ACE Mideastern Warehouse NC, Barsanco Inc. MI, D&L Auto and Marine FL, Holcombe Armature Co. GA, Magna System PA, Nashville Distribution Center TN, R and R Regulator IN, RCP Inc CN, Superior Distribution Centers CA, Wagner Alternators and Supplies CA, Zorko’s PA.

www.regitar.com • 334-244-1885 • Toll Free: 877-734-4827 • Fax: 334-244-1901 • Email: info@regitar.com

Get Moving Fast With High-Quality Auto Parts From

Page 14 / www.BigRShow.com APRA GLOBAL CONNECTION February 2009

If you have company news that you'd like to share with the industry, please send it to: APRA, Kirsten Kase, 4215 Lafayette Center Drive, Suite 3, Chantilly VA 20151-1243; Fax: 703-968-2878; E-Mail: kase@BuyReman.com.

AFTERMARKET UPFRONT

Champion PartsAcquires TurbochargerAssets of TurbomotiveInc.CPI Holdings, a subsidiary of CashTechnologies, has acquired certainturbocharger technology assets ofTurbomotive Inc. for $1.75million.

CPI, which does business as ChampionParts, is a nationally known supplier offuel system components to auto partsretailers throughout the U.S. The companywill integrate the turbocharger productsinto its product lineup under the brandnameChampion Performance. Thecompany intends to manufacture theturbochargers in its 210,000 square footfacility in Hope,Ark., and distribute themto its retail customers, which representmore than 15,000 retail stores in the U.S.The products will also be marketed toforeign distributors and vehicle manufac-turers.

The assets acquired consist of patents,purchase orders, manufacturing pro-cesses, other intellectual property andtooling. CPI also intends to hire theTurbomotive principals, including

company founder Robert McKeirnan, toassist in manufacturing and development.

Jerry Bragiel, president of CPI Holdings,stated, �We�re very pleased to completethis acquisition. The auto parts marketperforms uncommonlywell in a difficulteconomy as people repair rather thanreplace their vehicles. Turbochargers havebecome the most important fuel efficiencyproducts in the automotive world today.They wear out under normal use and mustperiodically be replaced. As the populationof turbocharged vehicles past theirwarranty period surges in coming years,Champion will be positioned to deliver asuperior replacement product through itsextensive retail relationships.We believeturbo sales will exceed revenues from thecompany�s other product segments withina few years.�Source: aftermarketNews

Remy ReceivesLeadership AwardTheRemyElectricalAftermarket unit ofRemy International, Inc. received the 2008Market LeadershipAward for the NorthAmerican starters and alternators categoryfrom respected global research

consultancy Frost & Sullivan.The Frost & SullivanMarket LeadershipAward was presented in recognition ofRemy�s aggressive market share and salesgrowth in the new and remanufacturedstarter and alternator segments, thecompany�s industry-leading coverage oflate-model domestic and import vehicles,and the significant increase in awarenessand preference for premiumRemy® brandproducts.

�Remy�s product offerings combine highquality, price consciousness, and superiorbranding and promotion for distributors,�says Avijit Ghosh, industry manager, Frost& Sullivan. �This has consistently earnedthe company the strongest brand recogni-tion over the past five years. This trans-lates to customer loyalty.�

In addition to Remy�s growing share of therotating electrical category, Frost &Sullivan cited the company�s continuinginvestment in new technology in theoriginal equipment and aftermarket sectorsas important criteria for the award. Remy�scommitment to technology has positionedthe company as a leading global manufac-turer of hybrid powertrain solutions for theoriginal equipment market. The company�sinvolvement in research and developmentof hybrids uniquely positions the RemyElectricalAftermarket division to offerremanufactured hybrid motors to aftermar-ket customers when the growing fleet ofhybrid vehicles reach prime service age.

Remy�s commitment to technical andtraining support also was highlighted as akey factor in the Market LeadershipAward. Remy helps its aftermarketcustomers capture new sales and serviceopportunities through world-class on-sitetechnical training and a full range ofrelated support services.

�Everything we do is designed to supportthe long-term success of our aftermarketdistribution partners, professionalinstallers and do-it-yourselfers who relyon Remy every day to deliver consistentlysuperior remanufactured units,� says JaySanchez, president, RemyElectricalAftermarket. �This important awardunderscores the value of the Remy brandand the company�s commitment to qualityand value. By selecting Remy, customerscan be sure they will receive the bestsolution for any vehicle, be it a domesticor importmodel.�

Remy�s reputation as the engineeringpowerhouse in the rotating electricalcategory is reflected in the performance ofthe company�s alternators and starters,whichmirror the fit, performance andreliability of OE products. Being one ofthe world�s largest producers of OE andaftermarket products, Remy is committed

to delivering an OE experience throughevery unit that carries the Remy name.Remy alternators and starters areremanufactured from top-quality cores andfeature superior replacement components.Remy�s line of new alternators and startersmeets the most stringent OE specificationsand features Remy�s proprietary technolo-gies and premium-grade internal compo-nents.

Remy International, Inc. is a leadingmanufacturer, remanufacturer and distribu-tor of Delco Remy® brand heavy-dutysystems and Remy® brand light- andmedium-duty starters and alternators,locomotive products and hybrid powertechnology. For more information, visitRemy online.Source: Aftermarket Business

SRC Responds to BushAuto Bailoutby Jennifer Denman, Ozarks First -Springfield, MOPresident Bush recently announced arescue plan tomake $13.4 billion in federalloans available immediately to GeneralMotors and Chrysler. This may sound likegood news, but one Springfield companyremains skeptical.

We first told you about SpringfieldRemanufacturing Company - or SRC -about a month ago. A portion of thecompany remanufactures engines forGeneralMotors. SRCCEO Jack Stack sayshe listened to President Bush, and thinksthis is a patch, not solving any of hiscurrent problems.

�By giving the auto companies a chanceto restructure we will shield theAmericanpeople from a harsh economic blow. Avulnerable time,� says Bush.

A number of those people Bush is talkingabout are in Springfield, working at placeslike the Springfield RemanufacturingCompany, but Stack isn't feeling saved bythis rescue plan.

�What I couldn't figure out is how are theygoing to move the finished cars if peopleare afraid they wont be able to getwarranties and parts,� says Stack.

Last month, SRCmovedmany of itsemployees to short weeks, but now thingsare getting worse. To prevent layoffs,Stack is initiating �Operation: Save Jobs,�outlined in an internal e-mail sent toemployees.

�We've asked for voluntary furloughs,� hesays. �We've asked people if they want totake a 13 week leave and we pay them$3,500 to $5,000 dollars to get themthrough a 13 week period. Fifty-four

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February 2009 APRA GLOBAL CONNECTION www.apra.org / Page 15

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people took the voluntary leave. The rest of the nearly150 automotive workers are getting transferred to otherdepartments in the company.

Stack says the SRC automotive department lost $250,000in December and expects to lose the same in January. Ifafter the 13 weeks the demand for product doesn'timprove, layoffs are a painful option, and still his lastresort. �You have to figure out how to project hope,� saysStack.

General Motors the company that SRC makes supplies forcommented that because of this rescue plan the futurelooks bright, it says a plan will be put together at thispoint which doesn't include bankruptcy.

Of course the waiting game continues for all of themanufacturing companies similar to SRC.

The Aftermarket Business 2008�Top 40 Auto Chain Report�Show Continuation of AutomotiveAftermarket ConsolidationAdvanstar Communications, a leading provider ofintegrated media solutions to the automotive aftermarket,off-road, and powersports industries, has released theresults of the Aftermarket Business magazine 2008 �Top40 Auto Chain Report� which showed continued industryconsolidation in the automotive aftermarket. Accordingto Krista McNamara, managing editor, AftermarketBusiness, of the 40 auto chains listed, just less than half�18 companies�reported growth through 2008.

�Our report confirms the consolidation fever that hasbeen rampant in the industry over the past 10 years,� saidMcNamara. �It looks to be a challenging year in 2009, soconsolidation activity is likely to continue.�

Springfield, Missouri-based O�Reilly Auto Parts reportedthe largest growth at 78.5 percent, mainly due to theiracquisition of CSK Auto in the spring of 2008. Tencompanies reported remaining the same size compared tolast year, while 11 saw declines in store counts. WMAutomotive, located in Fort Worth, Texas, reported thelargest decline at 10.5 percent.

While changes have been rampant throughout theindustry, AutoZone and Advance Auto Parts continue toremain the leading auto parts chains. AutoZone hasgrown from more than 2,650 stores in 1999 to 4,092 thisyear, while Advance Auto Parts has grown during thesame period from 2,325 stores to 3,352.

With its acquisition of CSK Auto, O�Reilly Auto Partssolidified its third place ranking on the AftermarketBusiness list with 3,267 stores. In addition, General PartsInternational, Inc., which goes to market at CARQUEST isthe fourth largest auto parts chain with 1,674 stores andGenuine Parts Company which goes to market as NAPA,rounds out the top five with 1,085 stores.

The �Top 40 Auto Chain Report� will be published in theJanuary issue of Aftermarket Business. To view the fullreport, visit www.AftermarketBusiness.com/Top40.

Recaptured Energy Technolo-gies Launches New Web Site�Our website is designed to convey our dedication toincreasing energy efficiency and reducing the carbonfootprint of fleet and transit vehicles,� said Sam Jones,president of Recaptured Energy Technologies. �Duringthese challenging economic times, the site provides

decision makers with a resource when consideringoptions to reduce fuel consumption and save money.�

The site features in-depth information about thecompany�s new hydraulic braking and propulsion systemfor fleet, commercial and transit vehicles that can beretrofitted to existing vehicles. Detailed charts anddiagrams explain how Recaptured Energy Technologiescan help municipalities and organizations save money byproviding energy solutions.

In addition, the new website provides information aboutthe company�s consulting services. Recaptured Energycan conduct the testing and analysis necessary for fleetmanagers to best utilize their vehicle assets, maximize fueleconomy and improve overall rate of return.Source: aftermarketNews

Tschetter Joins CertifiedTransmissionPeter Fink, President of Certified Transmission of Omaha,announced that Thorn Tschetter will join the company asthe Director of Marketing and Dealer Development.�Thom's 30 years of transmission business leadershipcombined with his notoriety as a management speaker,

consultant, and author made him my No. 1 choice,� Finksaid. As a consultant to Certified, Tschetter helpedimplement and update systems and procedures forestablishing and maintaining a team culture.

CORRECTIONIn the December Global Connection we reported on thepassing of Bill Kitching. In this notice we erroneouslystated that he was with Walker Products, when in fact Billwas the co-founder of GB Remanufacturing with his son,Michael. We apologize for this error. !

www.carcare.org

APRA is a proud sponsor of the�Be Car Care Aware� campaign

Page 16 / www.BigRShow.com APRA GLOBAL CONNECTION February 2009

During the 2008 International Big R Showin Las Vegas, the Electronic &Mechatronics (E&M) Division of APRAheld a clinic designed to benefit thoseinterested in the future of remanufacturingnew technologies for power steering,braking, engine management and electrical.

During the clinic Fernand Weiland, co-chairman of the division, moderated apanel discussion on how theremanufacturing of starters and alternatorswill change with the advent of hybrid andelectric vehicles. The panelists includedVoiko Loukanov (D&V Electronics), AlanMelton (Amfor) and Joseph Kripli (FlightSystems Electronics Group).

Future hybrid and electrical cars will beequipped with electrical machines whichwill differ significantly from the currentstarter-motors and generators/alternators.Their electrical power will range from 5KW up to 100 KW and their voltage willrange from 100 to 300 Volts. Theseperformances are much higher than whatelectrical remanufacturers usually handle!

Question to the Panel: To what extent willthe remanufacturing process changeunder these new conditions?The way to handle these units will besimilar to current rotating machinetechnology. However, the challenge will behow to test these new technologies. The

Changes in Automotive Electronics Due to the Advent of Hybrid and Electric Vehicles300 Volts will also be a challenge and theremanufacturer needs to take measuresnecessary to prevent potential accidents.

These new machines will be controlled byan external controller and a power supplyunit (inverter) which transforms the DCbattery current into the AC currentrequired to run the electrical motor.

Question to the Panel: To what extent willthese electronic units and inverters affectthe remanufacturer who is mainly used tohandling mechanical and electricalcomponents?Remanufacturers should not be afraid ofthese new technologies, they are manage-able. However they should be aware of thesafety side of the processes. The goodnews is that remanufacturers of alternatorsare already starting the learning processdue to the evolving complex chargingsystems they are faced with! One attendeeasked if remanufacturers would getreplacement components for these newdesigns. The answer was that if there is ademand, their will be an offer. Testequipment suppliers like D & V alreadyhave the equipment needed and compo-nents suppliers will follow.

To test these high power machines andinverters, and to verify their components,new and probably expensive test machineswill be required.

Question to the Panel: Willremanufacturers be in a position to copewith these new investments? Will thepotential parts proliferation and volumesbe so great that it will be difficult to makethe business profitable? Do you believethat only big remanufacturers will beable to cope with these challenges orhigh barriers?This new business, like any new business,will bear some risk, but also opportunitiesfor those who will embrace the newtechnologies. It is not only for bigremanufactures. The investment requiredfor starting to remanufacture combinedstarter-generators and similar types will bein the area of $60,000. The number ofhybrid vehicles currently in use isrelatively small, but the number willsteadily grow over the coming years!

At this juncture it is difficult to predictwhen remanufacturing for these units willstart and what impact they will have onour businesses.

Question to the Panel: Do you believethat electrical remanufacturers haveample time to prepare for this change-over or do you believe they should makethemselves familiar with the new systemsimmediately.

Core brokers should already start to lookat the products now. For them it will be an

upfront investment since the reman cyclehas not yet started. OEM remanufacturersare already looking at remanufacturingthese new machines, so smart independentremanufactures should also start to look atit and prepare for the change. Start withHonda applications, which are easier thenthe Toyota Prius!

We are aware that all mechanical, electricaland hydraulic components (brakes,steering, pumps, compressors, etc.) willchange over time and becomemechatronics units.

Question to the Panel: Do you see a futureopportunity for electricalremanufacturers to remanufacture thesmaller electrical motors or actuatorswhich are part of these new mechatronicsystems?

Current models are already full of electri-cal actuators and small motors. Hybridcars will have even more. For example,systems like ABS or automatic transmis-sions have many solenoids and valves,and around the engines there also quite afew actuators, like air flow meters, exhaustvalves, etc. Not every actuator, solenoid,motor, etc., may be remanufacturable butthe volume is so big that certain expensivecomponents will present a real opportunityfor smart remanufacturers! !

Recruit a member.Advance your industry.

You value your APRA membership. Share your membershipexperience with your colleagues in the industry. Like you, theyalso want to sharpen their skills, overcome challenges, andlink up with other professionals. By recruiting just one member,you help build the networking opportunities for all of us.Call Bill Gager at APRA Headquarters �703.968.2772, x103.

HOLGER CHRISTIANSEN GROUP

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REMAN WORLDTerre Haute City Council Votesin Favor of tax abatementby Arthur Foulkes, The Tribune-Star, Terre Haute, INThe Terre Haute City Council voted Monday night infavor of a 10-year tax abatement for manufacturingequipment at GEEngine Services-Tri-Remanufacturing inTerre Haute.

The personal property abatement is on a $500,000 piece ofequipment used to repair aircraft parts, according to thecompany�s petition for the abatement.

Tri-Remanufacturing employs 98 people in Terre Hautewith a payroll of nearly $4.5million. The equipmentcovered by the abatement will create five new full-timejobs paying more than $14 per hour, according to com-pany officials.

�Facilities of this kind, where [a company has] more thanone plant across the country, either the company keepsinvesting in them and they grow, or they die,� Britton toldthe council. �If they die, you don�t just lose five jobswe�re not going to get if we don�t do this project, youlose the [existing] jobs [at the facility] we have now,� hesaid.

Britton, in response to a question from Councilman NormLoudermilk, D-3rd, said Tri-Remanufacturingwould notinvest in the equipment without the abatement. Thecompany, located at 3390 Locust St., will save $38,560 inpersonal property taxes over 10 years through theabatement, according to the abatement petition.

Loudermilk said Indiana law does not provide many toolsfor local governments to encourage business investment.�Essentially, Indiana is just not really friendly when itcomes to that kind of stuff,� Loudermilk said. �Until thestate law changes � the best thing we can do is to givean abatement,� he said.

Hospitals Benefit fromRemanufacturing Initiativeswith More Than $138 Millionin Savings in 2008Ascent Healthcare Solutions announced that theirhospital partners eliminated 4,300,000 pounds (2,150 tons)from local landfills, and realized a record $138,142,000 insupply cost and waste savings in 2008 related toremanufacturing/reprocessing of medical devices. Supplycost savings are up 27% since last year. Many of thesehospitals have adopted remanufacturing and reprocess-ing of medical devices as the cornerstone of theirsustainability initiatives because it is a sensible way tohave a direct impact on cost savings and environmentalstewardship. Savings realized by reprocessing/remanufacturing can be reallocated to increase thenumber of nurses on staff or reinvested in medicalequipment, ultimately resulting in improved patient care.

The nation�s largest hospitals are finding out how easy itis to �go green,� leveraging remanufacturing and repro-cessing programs as key components of theirsustainability initiatives - and the benefits are immediateand high impact. The savings realized through theseprograms makes it easier for hospitals to use theirresources more effectively, and to do the right thing forthe environment and their patients.

J. Michael Jones, Director of Clinical Education andSustainability, Healthtrust Purchasing Group, stated,�Providers are waking up to the fact that healthcare

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delivery is one of the largest contributors of waste in theU.S. There are successful strategies available which makeit possible for hospitals to be both patient care focusedand responsible stewards of our environment. Amongthese, remanufacturing and reprocessing stand out asremarkably impactful, representing a newmodel forsustainability in healthcare.�

While the nation and the U.S. government are scrutinizingthe nation�s healthcare delivery system and looking forways to improve it, increasing numbers of hospitals andsurgical centers are taking actions to make a differencenow. In 2008 alone,Ascent�s customers increased theirutilization of medical device remanufacturing/reprocess-ing programs by 20%, according to John Grotting,Ascent�s CEO. Ascent expects to see this trend continuein 2009 as more and more hospitals, group purchasingorganizations and integrated delivery networks discoverremanufacturing/reprocessing as the single mostimpactful sustainability initiative for revolutionizingresource planning and decision making. �Hospitals are

already responding to economic conditions by pursuingAscent�s programs more vigorously and relying on theresults to enhance their survivability,� stated Grotting.

Ascent�s remanufacturing/reprocessing programs cover86 FDA510(k) clearedmedical device products, withmorecurrently in development. During the past 20 yearsAscent�s customers have collectively reduced in excessof $1 billion in supply costs, and eliminated an estimated24 million pounds of waste using Ascent�s reprocessed/remanufactured devices.

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help you build, grow and improve yourbusiness. Lastly, some private equityfirms offer business owners the opportu-nity to double-dip, that is, to cash outsome of your ownership while maintaininga significant stake going forward.Hiring a regional investment bank isanother option. They provide world class(but expensive) business advice onvaluations and will �package� yourbusiness for sale by performing high leveldiligence. Investment banks will broadlymarket your business to all possible orlikely parties, which should result in thehighest possible price.

Business brokers and small investmentbanks also assist with packaging thebusiness and will provide professionalguidance on valuation expectations.Different from investment banks, theowner can usually maintain more controlover the process.

Deciding where to turn can be difficult, butthe most important thing to rememberwhen choosing a financial partner is that,no matter the path you take, you are theexpert as it relates to your business � somake sure you partner with someone wholistens to you and your business.

When Should I Make a Move?If, despite the current environment, anopportunity arises and you think you

might be ready to sell your business orseek investors, timing is critical. Anyfinancial process takes time and prepara-tion, and it is better to be ahead of thecurve than behind it. For instance, findinga lender or financial partner to supportyour business can easily take 2 to 6months. Similarly, selling your businesscan be a 3 to 12 month endeavor (and wehave heard of much longer periods). Withany financial decision there are situations,specific to your business, when it is agood idea to sell or seek investment, andsituations when it is not. There are plentyof instances when it does make perfectsense:

� If your company is demonstratingstrong growth, then supporting thatgrowth often requires capital. Inmany instances it makes sense toobtain outside money to accelerateyour growth.

� Sometimes significant opportunityexists, but it is costly and risky toundertake. In this case, obtainingoutside capital to share the risk maybe preferred.

� It also may be prudent to sell if yourcompany is undergoing generationalchanges and there are no apparentheirs for the business. Tax planningoften plays a large role in thesesituations.

� Likewise, it sounds obvious, but ifyour business is worth a lot, then itmight make sense to sell. Mostpeople started a business to makemoney. Remember, with privateequity, the option of double-dippingcan be quite attractive.

� Or maybe it�s just time to slow down.Owning a business is not a job, but alifestyle, and there comes a pointwhen slowing down is warranted ordesired. This is a perfectly goodreason to seek a buyer for yourbusiness.

On the other hand, there are, of course,good reasons to hold off on selling yourcompany.

� If you have new big contracts comingthrough the pipeline, or you expectother positive events to significantlyimpact your company�s value whenthey materialize, then it�s often best towait.

� If your business is having financialdifficulty because your industry isunder attack from foreign competitionor regulation, or you have a signifi-cant product or liability issue, or youhave unprofitable contracts comingthrough the pipeline, or you haverecently lost key management/salespeople, it may be best to getyour business back in shape beforeseeking an investor.

We have been asked on more than onceoccasion if a company can still be sold orget money if their performance is down.The simple answer is yes. Lenders andinvestors understand this is a challengingmarket. As a result they look to thehistorical performance, defensibility ofproduct lines, and strength of managementwhen making their decisions. Like we saidearlier, good companies can still get capital- it is simply more expensive today. If youare in a position to take steps now toimprove your business, it will significantlybenefit you when it comes time to seekinvestors or sell your business.

If You�re ReadyIf you think you�re ready to seek aninvestor, Owner Resource Group is aunique and comprehensive financialpartner. Owner Resource Group is aprivate equity and financial servicescompany that specializes in supportingsmall to mid-sized businesses. Our focusis on helping business owners to quietlyobtain capital or sell their businesswithout having to go through an overlycumbersome process. We take a value-added approach in partnering withcompanies and have developed a set ofunique resources that we offer to businessowners and management teams in support-ing your financial objectives in a friendlyand transparent manner.

Because business owners deserve to haveoptions, we support company�s financial

objectives through two channels. OurPrivate Equity group makes direct invest-ments in businesses that fit our invest-ment philosophy and criteria. And wecreated the ORG Financial Network, agroup of trusted, proven financial institu-tions that, collectively, have broaderinvestment parameters than our own, toprovide business owners even greateraccess to capital. Through the network,we refer businesses that are outside of ourdirect private equity investment criteria.One final note if you�re thinking of sellingyour business. In our experience, manybusinesses have a great management teamthat would be interested in taking over thebusiness. As the owner, you�d prefer thecomfort of selling the business to thosemanagers, but they don�t have the moneyto buy the business from you. ORG has asolution that sets us apart from nearly allother private equity firms. Through ourExecutive Ownership Plan�, yourmanagement team has a clear path toowning the business.

The Executive Ownership Plan� is aproprietary financial structure that givesyour management team the ability to addto their initial ownership stakes in order totake full ownership from us following theachievement of a set of pre-determinedlong-term metrics. This way, the businessis free from the uncertainty that it may be�flipped� to a new buyer after a certain timeperiod, as most other private equity firmsrequire. In addition, it allows for thebusiness to be confidently operated bythe management team, as owners, whendealing with employees, vendors andcustomers. The program is flexible andcustomized to each business situation sothat management can achieve theirownership goals.

We�ll leave you with this. The bottom lineis that you are the expert, and know what�sbest for your business. Even thoughthese are challenging times, you shouldcontinue to seek and take advantage oflong-term opportunities for your business.In times like these, there will be many. Ifyour strategy requires additional capital,find an investor that embraces yourobjectives, and is willing to partner withyou to help you achieve your goals. !

Financial Opportunitiescontinued from page 11

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February 2009 APRA GLOBAL CONNECTION www.apra.org /Page 19

MARKETRENDSMarket Trendsby Bob Garino, Director of CommoditiesInstitute of Scrap Recycling Industries, Inc.

Aluminum: For all themajor globally traded commoditiesand equities, the fourth quarter brought fast-decliningprices, and aluminumwas no exception. Up to that time,LME prices for the light metal held within a relativelynarrow band, finally succumbing to heavy exchange-related selling and substantial inventory increases in thefinal months of 2008. Prices dropped below 70 cents apound in early December, more than 50 percent lower thanits all-time high set in July.Aluminum's fundamental priceoutlook in the near term suggests little upside potential,with most 2009 forecasts well below themetal's 11-month2008 cash average of $1.20 a pound.

Copper:The redmetal's bumpy ride in 2008 broughttransacted prices above $4 a pound in July, followed by afreefall to about $1.40 in December, a level last seenmorethan three-and-a-half years ago. By early December,Comex cash copper had dropped 55 percent from year-end2007. Though producers have responded by reducingnew supply, uncertain demand prospects tied to theglobal economic recession and mounting inventorieshave tempered the metal's outlook for most of 2009.Forecasts point to an average price below $1.90 a poundfor the year.

Iron and Steel:Due to lower end-use steel demand and,consequently, an almost complete absence of freshfourth-quarter ferrous scrap buying, domestic mills haveseen finished steel prices plummet more than 50 percentfrom their summer peak. Likewise, ferrous scrap valuesliterally plunged in the fourth quarter despite December's

surprising uptick. The outlook hints at only a modestrecovery for the industry in early 2009. Both analysts andmarket participants wonder whether there is enoughdomestic and global strength to prevent market softnessfrom returning as early as the second quarter.

Lead: LME lead prices showed the second-largest year-to-date decline (behind nickel) in the end-December 2007to early December 2008 period, with the decrease figuredat just over 60 percent. Though the lead market looksterribly depressed, the global fundamentals offer someencouragement compared with other base metals. LMEinventories, for example, are lower compared with stocksat the end of 2007. Chinese output also is expected to belower this year, and consumption is forecast to benefitfrom growth in the replacement battery market. Neverthe-less, predictions see lead averaging in the low-70 centsthis year, well below the averages in 2007 and 2008.

Nickel and Stainless Steel: The anticipated second-half2008 global demand rebound in the all-important stainlesssteel sector never materialized, which kept nickel prices onthe negative slope that analysts traced back to the firstquarter of last year. Second-half fundamentals confirmedlow demand and rising aboveground nickel inventories.LME nickel prices fell significantly in the fourth quarter,with the cash tag around $4.10 a pound in early December,down 65 percent, making nickel the worst performer onthe LME in 2008. For 2009, price forecasts range from justunder $5 a pound to a high of $7.67, with the mode at $5and the mean LME cash price at $5.52, based on ISRIcalculations.

Zinc: LME zinc was the price laggard for most of 2008,with monthly averages well below its 2007 cash average

of $1.47 a pound. Prices slipped 52 percent over thecourse of the year, trading under 50 cents a pound in earlyDecember. LME inventories, meanwhile, continued tomount, more than doubling. With prices at or nearproduction costs, zinc's near-term fortunes rely on anaggressive supply-side response. Analysts believe thatproducers are likely to respond, but prices will be slow torebound. Zinc's 2009 price predictions call for an averagein the low-60-cent range.

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Page 20 / www.BigRShow.com APRA GLOBAL CONNECTION February 2009

TAX EDGE by Irving L. Blackman

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We manufacture bearings for automotive alternators, starters and A/C compressors under our ISO TS16949:2002 registered quality system. All bearings are available for immediate shipment from our U.S. distribution center.Please contact us today.

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Irv Didn't Invent Taxes, Just 227Ways to Beat Them�Legally!Would you believe just the basic tax law�the InternalRevenue Code and the regulations�have about 50,000pages (small print). Complex! Changes abound! Most ofall, no logical, organized theme!

Then there�s a constant stream of IRS rulings and caselaw. No one person can know it all�certainly not thegeniuses in Congress that pass the law�or the IRS thatis the designated driver to enforce it.

There are three main ways the federal tax law picks yourpocket and becomes your legal partner: first, by taking aportion of your income in two ways� (1) payroll taxesand (2) income tax and finally, a huge slice of your wealthvia (3) the estate tax. Outrageous!

The purpose of this article is to show you how to fightback. One day, just for fun, we (four tax guys) started tocount the ways to legally get around paying the threetaxes listed. We were just getting warmed up, got to 227and simply stopped.

Following are five of the dozens of tax-saving areas thatcome up most often, are not known by most professionalsor prevent the biggest loss of your money to the IRS orothers. All examples are of real-life taxpayers and readersof this column who asked for help.

A. Payroll taxes. This money-stealing parasite is persis-tent and expensive: in 2009 $16,404 to the taxman (em-ployer and employee share) on your first $106,800 ofearnings. That�s a scandalous 9.76%. Earnings above$106,800 (there is no limit) pay an additional 2.9%. Hereare the three most common lose-payroll taxes-to-the-IRSmistakes: (1) Joe (the owner of an S corporation) taxes alarge salary (often $500,000 or more) and takes a hugebonus at year end (to bring profits down). A dividend(tax-free if you are an S corporation) instead of compensa-tion, would save a bundle of unnecessary payroll taxesand cost not one penny more in income taxes. (2) Wives(and often moms) of the owner taking a salary (eitherdon�t work or way overpaid). Much better taxwise to give

�em a gift. (3) Operating a business as an LLC, whichmakes all income to owner(s) subject to payroll taxes� ano, no. Fortunately, there is a way out of this payroll taxtrap.

A check of our consulting files over the past three yearsrevealed 11 different ways to save $10,000 or more peryear on payroll taxes per reader/client.

B. Asset Protection. In a heartbeat your family wealth(including your business) can be depleted, even de-stroyed, by a lawsuit.

For your business, the core strategy is to keep yourbusiness thin: Only keep those assets�typically,necessary cash, inventory and receivables�needed foroperations in your business. Here are the basics sub-strategies: (1) Elect S corporation status; (2) Any new realestate or expensive equipment (include the little stuff if itadds up) should be owned by you (via separate LLCs)and leased to your operating company. (3) Never, I meanNEVER, own delivery vehicles in your operating com-pany. Put the vehicles into a separate corporation, LLC orjust put your best entrepreneur-type driver in businessand rent your old vehicles.

The sad fact is we can�t protect the assets inside of youroperating company. That�s why the above precautions.But we can protect you (and your spouse). We do itautomatically, without additional cost, as part of yourestate plan. All of your significant assets are simplyretitled using typical lifetime planning documents�like afamily limited partnership, LLCs and appropriate trusts�to protect your assets.

C. Life insurance, whether owned by you (or yourspouse or kids), your business or some kind of trust. Youare about to be delighted by what you read. Sorry, someof you will be horrified.

Part of every estate plan we do is to have an insuranceexpert analyze all existing life insurance policies on you,your spouse and fellow business owners (stockholders orpartners). Let�s start with the three critical issues concern-ing life insurance: (1) premium cost, (2) the death benefit

and (3) the tax (usually the estate tax) due at death on thebenefit.

Over the 45+ years that I have dedicated my practice tothe estate planning area, we (me, an insurance expert and,when necessary, a lawyer with insurance expertise) havelooked at over 1,000 insurance portfolios. Only four timesdid we find everything perfect. All the rest of the times(except when the insured was no longer insurablebecause of health issues), we were able to modify theinsurance plans and save premiums (on average about$30,000 per year) or increase the death benefit (from$500,000 to as high as $11 million) without additionalpremium costs. Following are the most common situationsthat always delight our clients (if the FACTS fit or areclose to your situation, make sure to read the RESULTS).

1. FACTS: A cash surrender value over $200,000 on apolicy that is 9 years old or older can be single life orsecond-to-die. (RESULT: Significantly more deathbenefit for same premium cost or significantlyreduced premium cost for same death benefit)

2. FACTS: You (the husband) are 55 years old (or older),worth $5 million (or more), and have insurance onyour life only. (RESULT: You are wasting premiumdollars� second-to-die coverage with your wife willtypically give you the same death benefit for about35% less premium cost.)

3. FACTS: You have $400,000 (or more) in a qualifiedplan (probably a 401(k) or IRA), which is subject to adouble tax (income & estate) of up to 73% to the IRS.(RESULT: On average, you can turn every $270,000 ofafter-tax dollars into $3 million to $5 million (tax-free),depending on your age and health� works forsecond-to-die or single life.

4. FACTS: You are worth $10 million to $40 million (ormore). (RESULT: You can buy $10 to $40 million of[single life or second-to-die] coverage with no out ofpocket premium cost.)

A simple fact: Over 99% of the time a second opinion ofyour insurance situation, followed by proper planning,will save you significant premium dollars, increase thedeath benefit and/or make the insurance proceeds tax free.Be smart. Get a second opinion.

D. Your business and your business kids (essentiallybusiness succession). Here are the goals the typicalbusiness owner with kids in the business gives me:

1. Transfer the business to my kid(s) so I and my kid(s)don�t get killed by taxes.

2. Show me how to treat my nonbusiness kids fairly.3. Make sure I stay in control of my business for as

long as I live.4. Make sure the company stock stays in the family

(never goes to a kid�s ex-spouse).

Every one of the above goals is easily accomplished. Wehave done it hundreds of times. And best of all, thebusiness can be transferred tax-free: no income tax, gifttax or estate tax for the owner or the kids.

E. Estate plan. A proper estate plan is actually two plans:a lifetime plan and a death plan. The plans are designed tocover every significant tax-saving possibility (many morethan 227 ways)� from the minute the lifetime plan iscreated until you get hit by the final bus (covered by thedeath plan)� and yes, even after you�re gone.

The above is only the tip of the iceberg in don�t-lose-taxes-to-the-IRS planning. Want to learn more? Browsemy website: www.taxsecretsofthewealthy.com. Or in ahurry, call me (847-674-5295). !

February 2009 APRA GLOBAL CONNECTION www.apra.org / Page 21

REMAN AROUND THE WORLDPlease send new product announcements to: kase@BuyReman.com or mail/fax it to Kirsten Kase, APRA, 4215 Lafayette Center Drive, Suite 3, Chantilly, VA 20151-1243; Fax: 540-341-7682

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Experience remanufacturing processes on a grand scale as we tour the JasperEngines and Transmissionns plant in Crawford County, Indiana.Nobody understands better the fine points of selling and installing remanufacturedunits than Jasper’s factory training staff. After our plant tour, we return to Louisvillefor this valuable session designed for rebuilding shops and installers alike. A look at the issues and procedures that make outsourcing units easy and profitable.Tour requires pre-registration and includes bus transportation.

Hybrid-vehicle service withspecial emphasis on powertrain issues.

Improve your brake-repair expertise

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JASPER Has New GM Diffs,While They LastJasper Engines & Transmissions has in stock approxi-mately 800 brand new GM differentials for late-modelapplications.

These surplus units, purchased from American AxleManufacturing, are for 2008-2009 Chevy/GMC 1/2 tonpickups, Chevy Colorado/GMC Canyon pickups, andHummer H3 sport utility vehicles.

�These units are bolt-in ready,� says Dan Douglas,JASPER Differential Division Manager. �They are loadedwith new drum brakes, new axles, and even full of fluid.Some of the Colorado/Canyon and Hummer differentialsare even equipped with disc brakes.�

Each of these differentials would be covered underJASPER�s three year, 100,000 mile nationwide warranty.Please call Jasper Engines & Transmissions at 1-800-827-7455 for pricing and availability.

Vensel Enterprises Introducesthe Latest Clutch and DecouplingPulley ToolThe W558-1901 Clutch Pulley Tool is designed for thelatest model clutch pulley�s with internal splines havingan OD of 0.540" or 13.70mm. You can see this tool onlineat www.venselenterprises.com in the Tool Section of theOnline Catalog on page 291. Feel free to contact Richard,Barb or Sandy @ 800-662-6099 or vensel7@comcast.net ifyou have any questions or need more information.

New from REGITAR-USANew for Mando Alternators

� RM-132, Rectifier for Mando AB180128, ReferenceLester Alternator Sales 13839. On 2000-2002 Accentand Elantra, 2007 Tucson, Sportage, Spectra andTiburon.

� RM-133, Rectifier for Mando AB195126, ReferenceLester Alternator Sales 13783. On 1999-2003 HyundaiSonata, 2001-2003 Magentis and Optima.

� RM-141, Rectifier for Mando AB195116, ReferenceLester Alternator Sales 13728. On 1999 Sonata

� RM-144, Rectifier for Mando AB112145, ReferenceLester alternator Sales 13967. On 2003-2006 KIASedona

Durofix Power ToolsThe More Group, parent company of REGITAR-USA,manufactures all Durofix brand Power Tools. Durofix ismanufactured under Environmental Management Systemsand complies with ISO14001 certification.

At the beginning of the twenty first century, many worldgovernments became aware that in order to help protectthe worlds environment, things had to change. In 2003, tohelp achieve sustainable development changes, theEuropean Union published the WEEE and RoHS direc-tives, which advise that all electrical and electronicequipment imported into the EU be more environmentallyfriendly (recyclable, non-hazardous substance contentand etc.)

Our efforts:� August 2005, DUROFIX Power Tools complies

WEEE(2002/96/EC).� July 2006, DUROFIX Power Tools comply with

RoHS(2002/95/EC) and eliminates the use of the six

classified hazardous substances including: Lead,Cadmium, Mercury, Hexavalent Chromium, Polybro-minated Biphenyis, and Polybrominated DiphenylEthers.

� July 2007, All automotive products (exported toEuropean Union) comply with ELV(2000/53/EC).

All Durofix Power Tools can be seen at www.durofix.comSelected Sales Literature and Catalogs available, contactCustomer Service in Alabama USA, phone (334) 244-1885,FAX (334) 244-1901 or email info@regitar.com

For Mitsubishi and Denso Alternators:� RM-164 Rectifier and VRH2009-79 Regulator for

Mitsubishi A3TA4298, ME203564, Lester AlternatorSales Reference 23306 on Mitsubishi Pajero

� RI-34 Rectifier for Denso 105A, 130A and 140A

102211-8650, 101211-8640, 102211-8660 on VauxhallVectra 2004 and newer, Lester Alternator SalesNumber 23807, 23809

See www.regitar.com or, contact Customer Service inAlabama USA, phone (334) 244-1885, FAX (334) 244-1901or email info@regitar.com

WAI Introduces Electronics forDelco 5SI MarineD840: Regulator for Delco Korea 5SIReplaces: 271840Units: 19020703, 19020706; Merc Marine 875285T1,881248T, 889955Lester: 8470

continued on page 22

Page 22 / www.BigRShow.com APRA GLOBAL CONNECTION February 2009

Where is all the used equipment?We have it, know where it is, or will find itfor you. Save 50% - 90%. Quality Equip-ment Sales, Jerry or George (888) 419-4192,sales@qequipment.com,www.qequipment.com. What surplusequipment would you like to sell?

Alternator and Starter Testers. JimcoTB700 and Minitune OT900 7-1/2 hpovariable speed alternator testers. IPMOT711 digital starter testers, somecomputerized. IPM OT0705 heavy dutystarter tester. Or take your choice of manyother sizes and brands. Quality EquipmentSales, Jerry or George (888) 419-4192,sales@qequipment.com,www.qequipment.com.

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CLASSIFIED

Magneto Tester, CrumblissSolenoid Tester, Armature Analyzer,Wave Solder Machine. Jerry orGeorge 888-419-4192,sales@qequipment.com,www.qequipment.com.

Good used flywheel grinder. Call Fil-Mor Automotive and Clutch Products at(416) 759-2245 or fax (416) 759-5890.

Texas shop has opening forRebuilder. Mostly heavy duty starters,alternators and DC motors. Fax name andphone number to (817) 303-6706.

I have 25 years experience inremanufacturing and 35 yearstechnical experience in automaticand standard transmissions andtransfer cases. I can bring this experi-ence to your company and improve notonly the Quality Control of your products,help design or improve a successfultraining program, but improve the produc-tion system as well. References available.Please send inquires to Kirsten Kase,APRA Editor at kase@buyreman.com orfax 540-341-7682.

WANTED

BUSINESS FOR SALE

MAIL TO: APRA, Global Connection, 4215 Lafayette Center Drive, Suite 3, Chantilly, VA 20151-1243(703) 968-2772, ext. 108 � FAX (703) 968-2878 � e-mail kase@buyreman.com

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!!!!!March 2009 !!!!!April 2009 !!!!!May 2009 !!!!! June 2009 ! ! ! ! ! July 2009 ! ! ! ! ! Aug 2009

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Classified Advertisement

FOR SALE BUSINESS OPPORTUNITY

Buying � Partnership Auto ElectricalRepair Business. Interested in buyingor establishing partnership in an auto-electrical repair business in the Marylandand Northern Virginia areas. Please contactKirsten Kase, APRA Editor atkase@buyreman.com or fax 540-341-7682.

Improving your Business. You mustrun cost effective operations to succeed intoday�s global economy. We can help youincrease productivity; reduce space,inventories and total costs, while improv-ing safety, quality and delivery byimplementing Lean, Six Sigma, and overalloperation�s management solutions.Contact us for a confidential evaluation.Please contact Kirsten Kase, APRA Editorat kase@buyreman.com or fax 540-341-7682. !

SERVICES

PIC: 240-6317� A-Circuit, Volt Set 14.4V� S-I Terminals� Lamp Activated� Companion Rectifier DR8410

D850: Regulator for Delco Korea 5SIReplaces: 271850Units: 19020704, 19020707; Merc Marine875286A1, 881247A1, 889956Lester: 8471PIC: 240-6318

� A-Circuit, Volt Set 14.4V� S-I Terminals� Lamp Activated� Companion Rectifier DR8410

DR8410: Rectifier for Delco Korea5SIUnits: 19020703, 19020704, 19020706,19020707; Merc Marine 875285T1,875286A1, 881247A1, 881248T, 889955,889956Lester: 8470, 8471; PIC: 240-6317, 6318

� 92mm OD� With Diode Trio� M6-1.0 B+ Terminal� 8-40A Avalanche Diodes (24-29V)� Companion regulators D840 (271840),

D850 (271850)

DENSO Develops Plant-derived Resin RadiatorTankDENSO Corporation announced that it hasdeveloped a plant-derived resin radiatortank using an organic compound derivedfrom castor-oil tree*. DENSO will startmass-producing this new product inSpring of 2009 for vehicles sold worldwide.

�In addition to increasing installations ofthe new radiator tank to more vehicles,DENSO aims to incorporate the new resininto a wide range of products in an effortto reduce the use of limited oil resources,reduce CO2 emissions during a product�slife cycle and help prevent global warm-ing,� said Akio Shikamura, managingofficer responsible for DENSO's ThermalSystems Business Group.

The plant-derived resin, which DENSOjointly developed with DuPont KabushikiKaisha, is produced by a chemical reactionbetween two organic compounds that arederived from castor-oil tree and petroleum.An additive, such as glass fiber, is thenadded to the substance to produce theresin.

Plant-derived ingredient comprises about40 percent of the eco-friendly resin. Sinceengine compartment components, such asthe radiator tank need to be extremely heatresistant and durable, it was previouslydifficult to develop a resin with a highpercentage of plant-derived ingredient.

Compared to conventional products, thenew radiator tank releases less carbondioxide (CO2) emissions into the atmo-

What's Newcontinued from page 21

HELP WANTED

POSITION WANTED

Heavy Duty Remanufacturing Groupwww.hdrg.org

February 2009 APRA GLOBAL CONNECTION www.apra.org /Page 23

Alltech Distributors (www.dcalltech.com) ................................ 23Boston Auto Electric (www.bostonautoelectric.com) .............. 19BPS (www.bpsparts.com) ............................................................. 4C. C. Battery Co. Inc. (www.ccbattery.com) ............................. 14FMT Inc. .................................................................................... 17GAAS (www.www.globalsymposium.org) ..................................... 9Heavy Duty Aftermarket Week (www.hdaw.org) .................... 19J & N Auto Electric, Inc. (www.jnelectric.com) .......................... 5Lester Catalog (www.lestercatalog.com) .................................. 11PAACE Automecanika ............................................................. 15Perfect Fit Industries (www.pfibearings.com) ......................... 20Phoenix Automotive Core (www.phxautocores.com) ............ 19Process Cleaning Magazine (www.processcleaning.com) ..... 18RCP, Inc. (www.rcpcanada.com) ............................................... 24Regitar U.S.A., Inc. (www.regitar.com) ..................................... 13Romaine Electric (www.romaineelectric.com) ............................ 3Showpower (www.showpowerexpo.com) ................................ 21TransTec (www.transtec.com) ..................................................... 23Westport Machine Works (www.westportproducts.com) ....... 19

ADVERTISERSsphere during its life cycle because it is partially madefrommaterial extracted from plants, which absorb CO2through the photosynthesis process. The new productalso helps conserve oil, a fossil fuel which is beingdepleted.

Generally, the cost increases for on-board devices thatneed to be resistant to calcium-chloride, which is con-tained in large amounts in snow-melting agents dispensedon the road in many colder regions. The newly developedradiator tank is more than seven times more resistant tocalcium chloride and can be produced at lower costcompared to conventional products designed for coldregions.

* Castor-oil tree: A plant of the euphorbiaceae (spurge)family. Castor oil is extracted from castor beanseeds.*The radiator tank is the top and bottom part of theradiator.

SuperFlow Introduces NewPremier Transmission TesterSuperShifter, a revolutionary tester/controller thatcombines years of transmission testing experience andstate-of-the art electronics into an easy-to-operate hand-held diagnostic tool for today�s modern transmissions, isnow available from SuperFlowTechnologies Group.

The SuperFlow SuperShifter is designed for in-vehicle useand a proven time- and money-saving tool for automotiveprofessionals, enabling them to shift automatic transmis-sions in the same manner as the vehicle computer. TheSuperShifter automatically displays pressure and PRNDLswitch status, temperature and speed sensor information.It displays solenoid names and impedances to helpoperators determine whether or not test results are withinspec. It eliminates the need for an ohmmeter or pages ofreference tables and data sheets. Plus, it also works withdyno, valve body or solenoid testing equipment.

The simple, intuitive hand-held tool uses sophisticatedlogic to mimic OEM shift strategies and manipulate up to12 solenoids simultaneously to prove out moderntransmissions like the 5R55N/S/W, 45RFE, 4F27E, 5R110Wand dozens more. Each solenoid channel has the ability tosource or sync up to three amps, and can be configuredfor �high-side� or �low-side� drive.

Components are housed in robust, impact-resistant,environmentally protected enclosure. Cables and tests areavailable for literally hundreds of car models, foreign anddomestic. Additional options include: embeddedBluetooth connectivity; the ability to save to USP drivesfor post-processing, graphing and reporting; plusmonitoring and recording of ECU transmission commandsand ODB II data.

The USmilitary is now using the SuperShifter in mainte-nance facilities around the world. For more information ortechnical consultation, call 888-442-554 or log on towww.superflow.com.

Remanufacturing �The Ultimate Form of Recycling

AutomotivePartsRemanufacturersAssociation

Have a Business Card?Put It To Good Use!

1x $200 / 6x $600 / 12x $960*APRAMember Rates

Contact Morris Spector for detailsMSpector@aol.com

Milan, Ohio 44846 U.S.A.Toll-Free: 800/852-0340 • T: +1 419/499-2502 • Fax: +1 419/499-2289 • Web: www.TransTec.com

Heavy-Duty Kits• The world’s most extensive

line of domestic, importand heavy-duty powersteering kits.

Pump Seal Kits• First to market with

rebuild kits for new models.

Rack & Pinion Kits• Manufacturing quality

power steering kitssince 1978.

Gear Seal Kits• Known for high

performance deliveryand service.

The Best SellingPower Steering Seal Kits in the World.

Page 24 / www.BigRShow.com APRA GLOBAL CONNECTION February 2009

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