Automotive

Let’s Talk Recalls – Maximizing bounty for auto scrap and shredder recyclers

Contributed by KATIE STARK AND PAUL D’ADAMO

The good news for auto scrap and shredder customers is that they are not encumbered with “parts inventory” issues.


Vehicles arrive at your facility and trigger a very systematic process to minimize labor while maximizing profit on the vehicle’s journey to the baler or shredder. Our Takata Airbag Recovery Program fits best at the front end of the journey.

The airbag program consists of three steps:

1. Identification
2. Removal
3. Invoicing/packing/shipping

Did you know that our New Mobile Yard Airbag App (YAPP) eliminates all desktop interaction and printing? The YAPP has reduced our process to taking photos and marking the airbag with the last six digits of the VIN. Deployed airbags do not have to be removed, yet you get paid $15 per picture. The Bounty for Airbags to be removed is $55 for the driver side and $60 for the passenger side.

Identification

While we have a list of 22 makes, 144 models and 15 years of coverage (2001 to 2016), vehicles with defective Takata airbags must be identified by VIN. There are several ways we can help with this. First, we have an API which can be integrated into your front-end vehicle intake process. Second, the mobile YAPP has scanning capabilities. And third, we are working with industry providers to possibly integrate our API into existing systems.

Removal

We understand the need to keep the flow of material moving in a high-volume operation. A quarantine/removal area is established to divert the vehicles with the Takata airbags to an area where they can be handled quickly and efficiently. We estimate that 7 to 8 percent of your vehicle flow might have a Takata. An operation handling 100 whole vehicles per day will need a quarantine area with a capacity for 10 vehicles.

Invoicing/packing/shipping

The cart built into the YAPP allows management and the user to see current quantities and the dollar value at any time. In addition, Users can invoice from within the YAPP to signal RAS to prepare the BOL. RAS supplies all shipping materials; Hazmat label/box, antistatic bag and zip tie. Canadians get reimbursed for hazmat kit purchases. Freight pick up is arranged and paid for through the RAS Airbag Recovery Program. For high volume operations, we recommend shipping monthly to create a recurring revenue stream and keep the product moving.

Safety is a top priority within the auto recycling industry. You will be happy to hear that since the inception of the RAS Airbag Recovery Program in 2015, we have not been made aware of a single incident when an airbag has deployed. Since 2015, RAS has processed over 500K Takata airbags. One standard operating procedure is worthy of note: Once a vehicle is identified as having a Takata airbag, the vehicle should be placed in the Quarantine area and the battery removed immediately. Airbags can be removed the following morning.

One thing is for sure: Everything keeps changing, and RAS is continually trying to improve the tools we have and introduce new tools when it allows recyclers to #yankthatbag with the most streamlined process possible.

For more information on airbag recalls, call Paul the Recall Guy at 401-458-9080 or send an e-mail to pdadamo@coresupply.com. 

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