News, Trends & Reports from the Automotive Recyclers Association

Nov 1, 2022 | Industry

Data Ownership and the Automotive Recycler

The Automotive Recyclers Association has always believed that auto recycler data is one of the most important assets of any recycler and recyclers should be diligent in protecting their rights with respect to their data. Recent controversies have again highlighted the importance of constant diligence. ARA leadership is aware of ongoing trends with respect to the use, access and rights associated with recyclers’ data and has consistently tried to inform its members of the importance of understanding how their data is being used and accessed. Accordingly, ARA wishes to reiterate some key principles auto recyclers should keep in mind when entering into any agreement or a service with any entity seeking access, use or other rights with respect to a recycler’s data:

• Recycler data belongs to the recyclers and is a valuable asset.

• Before entering into any contract or using a service that accesses or uses recycler data, recyclers should understand how their data will be used and shared.

• Recyclers should consider whether access to their data could be used against them or put them at a competitive disadvantage.

• Recyclers should determine whether their data and the use of their data will be monetized. If so, recyclers should consider being able to share in that monetization.

• Recyclers should consider amending current service agreements or contracts to include specific provisions protecting the ownership of their data and limiting the use of the data only for the specific purpose of the contract.

Although each recycler should seek their own legal advice and tailor any agreement to their own circumstances, the following is an example of the type of language that could provide some protection:

“Client’s data, transferred from or accessed through third party software will remain the property of the Client. We acknowledge that the Client’s data is confidential, sensitive, and of crucial competitive importance, and will only be accessed and used for the sole stated purpose of this product. We agree not to allow or permit Client’s data to be accessed, sold, aggregated, analyzed or used by or to any third party for any reason without the expressed knowledge and written permission of the Client.”

• Recyclers should seek legal and/or technical advice when being asked to share, sell, or provide access to their data. When presented with an agreement granting broad access or rights to recycler data, recyclers should not be hesitant to ask for amendments protecting their data and/or limiting the use of such data.

• In general, having a contract is better than not having a contract but a bad contract can be almost as bad. Accordingly, recyclers should ensure that there is some written agreement in place governing the use of their data, taking into consideration the items above and their own circumstances.

Ultimately, how each recycler decides to use, provide access to or sell its data is an independent business decision but those should be informed decisions made by taking into consideration the concepts above.

CONGRATULATIONS AWARD RECIPIENTS!

PRESIDENT’S AWARD

Jessica Andrews

LIFETIME ACHIEVEMENT AWARD

John A. Daurio, Sr.

LIFETIME ACHIEVEMENT AWARD

Gordon Middleton

STAR AWARD WINNERS:

Affiliate Chapter

FORS – Vehicle Recycling Forum, Poland

Member of the Year

Theresa Colbert

Certification Member of the Year

Yancey Auto Parts

Yancey Auto Parts — 2022 CAR Award Winner: Yancey Auto Parts in Perry, MO, with an additional location in Columbia, MO, was the recipient of the prestigious ARA CAR Award for 2022.
The 2021 recipient, Doug Reinert at Chuck’s Auto Salvage hand delivered the trophy to the Yancey’s team, along with Fran Reitman, Reitman Auto Parts, Melbourne, KY.
The prized trophy!

And the Winner of the Automotive Recycling Training Institute (ARTI) 50/50 Drawing Is …

Frank Walls, of Frankie’s Used

Auto Parts, Gettysburg, PA

New Seller Vetting Process for Airbag Sellers

The eBay Motors platform now requires all sellers of airbags to be an ARA Certified Auto Recycler (CAR) with a Recall Procedure in place. An ARA CAR or Gold Seal certified facility does not sell Recycled Original Equipment (ROE) auto parts that have safety recalls issued by an Original Equipment Manufacturer (OEM) for re-use or repair of another vehicle. Safety parts known to have recalls, such as airbags, are also VIN checked for recall at point-of-sale. Refer to ARA Certification standards for Recalls at https://aracertification.com/recalls to establish a recall policy at your facility.  Purchase and complete your CAR Record today!

WELCOME NEW AND RETURNING MEMBERS

541 Motorsports

A Solutions Auto Parts

A&B Motors

AH Parts Dismantlers

Auto & Equipment Specialist Auto Sales LLC (AES Corvette Parts)

Auto Hub Shop

Auto Japan, LLC

AZ Cycle Parts LLC

B & B Used Auto Parts

Bedford Recycling

Benchmark Auto Corp

Big Sam Auto Parts, Inc.

Cagles U-Pull-It

Contemporary Corvette

Cor-Auto

Cordova Auto Parts, Inc.

Direct Auto Remarketing, LLC

Discount Auto Used Parts

Dynamic Auto Parts

Eagle Auto Parts, Inc.

Earl and Son LLC

dba Lansdowne Motorsport

Edge Processes, Inc.

Expert Auto Wrecking

Expressive Auto Parts LLC

GarageMan

Green Light Used Auto Parts, Inc.

H&M Auto Parts

J & V Auto Parts

Land Auto Dismantling Inc.

LeeC Parts, Inc.

MD Motors

Mega Auto Care &

Wholesale, Inc.

Midwest Auto Parts Store, LLC

Mike’s Foreign Auto Parts

Mullins Auto Parts

Nelivan Investments LLC

dba Nelivan Auto

Newark Motor & Export

Novak Enterprises Inc

dba Norb’s Salvage

Pacific Motors

Parts Box Inc. – Belton

Parts Box Inc. – Englewood

Parts Box Inc. – Venice

Prestige Auto Parts

Pride Auto Wrecking

Prussian Motors

Royal Used Auto Parts

Spartan Auto Parts

Straight Six Auto Parts

The Parts Farm

The Parts Pros

US Auto – Sterling Heights, Inc.

US Auto – Wayne

Viking Used Auto Parts

What a Great Event!

By Sandy Blalock, ARA Executive Director

ARA was excited to welcome an overwhelming number of automotive recyclers and industry suppliers from around the world to the beautiful Walt Disney World Dolphin Resort on September 22-24th. So much is happening simultaneously to impact the way professional automotive recyclers do business and our theme this year spoke to that – Agents of Change. It is vital that the industry comes together to share knowledge, make valuable contacts, and discuss strategies that will help us all pursue excellence.

With more of the sessions geared towards recycler-to-recycler information sharing, ARA focused on the topics that you and your employees need to know. We had two recycler keynote sessions this year – Ryan Falco, Pat & Mike from Pam’s – and three self-service panel discussions. Session topics included the advantages of being an independent, brand marketing, creating a culture of accountability, building better trading groups, safety compliance, challenging sales in a bull market, and more!

Do not miss next year’s event! Mark Your CALENDARS for ARA’s 80th

Anniversary Convention and Expo in Kansas City, MO – October 12-14th.

Solving the Supply Issue

By Steve Fletcher, Managing Director of the Automotive Recyclers of Canada and the Executive Director of the Ontario Automotive Recyclers Association.

Recyclers have a unique opportunity to help collision repairers and insurers dealing with serious parts shortages. It used to be that insurers traditionally wanted recycled OEM parts, while collision repairers felt the profits they could make on these parts was minimal. Today’s shops however, have had to adjust their viewpoint, due to growing pressures to source only those parts needed for repairs while also keeping the length-of-rental (LOR) and severity down. What changed is that the cost of insurance rentals has increased from six to sixteen days. Because of the delay in receiving parts from overseas shippers, plus the cost of shipping itself has doubled and in some instances quadrupled, these salvage parts are a practical option for insurers and help keep the LOR costs down.

All of this has led to greater online awareness as Google and Facebook ad campaigns drive more business to the automotive recycling members, to the tune of website increases up to 300 percent. That’s great business for us, so take advantage of this while it lasts. Talk with your association and fellow recyclers to learn how they are capitalizing on OEM and aftermarket parts shortages. Supply chains will normalize soon enough, but this is a great time to build relationships, establish business credibility and ultimately steer you onto a path of longer-term, sustainable success. 

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