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2019 Ford Explorer 1919 Ford Model T Van Bergen & Greener Company remanufacturing auto parts from 1919 to 2019 APRA SALUTES ITS OLDEST MEMBER USA E-COMMERCE MARKET GROWS May Exceed $12 Billion In 2019 TARIFFS–Effects On Auto Parts Suppliers RECYCLING–Exhaust Aftertreatment Parts TECHSwitches, Relays and Solenoids MARCH • 2019 THE OFFICIAL PUBLICATION OF THE AUTOMOTIVE PARTS REMANUFACTURERS ASSOCIATION

APRA SALUTES ITS OLDEST MEMBER...1919 Ford Model T 2019 Ford Explorer Van Bergen & Greener Company remanufacturing auto parts from 1919 to 2019 APRA SALUTES ITS OLDEST MEMBER USA E-COMMERCE

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  • 2019 Ford Explorer1919 Ford Model T

    Van Bergen & Greener Companyremanufacturing auto parts from 1919 to 2019

    APRA SALUTES ITS OLDEST MEMBER

    USA E-COMMERCE MARKET GROWS May Exceed $12 Billion In 2019

    TARIFFS–Effects On Auto Parts Suppliers

    RECYCLING–Exhaust Aftertreatment Parts

    TECH–Switches, Relays and Solenoids

    MARCH • 2019THE OFFICIAL PUBLICATION OF THE AUTOMOTIVE PARTS REMANUFACTURERS ASSOCIATION

  • 2 • MARCH 2019 • REMAN CONNECTION • www.apra.org

    Busy, BusySorry for the absence of our Magazine, but we have been restructuring it and making significant improvements in content and layout. I think you will find it more informative than in the past and a better representation of the remanufacturing industry. Please send me your comments if you like it or not. A lot has happened since we last published, some major acquisitions have occurred in the industry, our government has shaken some things up (Tariffs and NAFTA), and we have lost a few friends along the way (Charlie Schwartz and Salvador Munoz to name a couple—RIP).

    The Remanufacturing Industry and its outlook remain strong. People are talking about a potential downturn in the economy, and they ask me if I am concerned for our industry. I explain to them the Remanufacturing Industry is extremely fortunate that it somewhat works in the past. We work with hindsight, because the products we remanufacture don’t “really” start peaking until year 7 to 12 of the vehicle’s life. The average age of vehicles in the USA is 11.5 years old. So if you look at what I like to call our “Crystal Ball” (see the chart below), you can see that the dip from 2009-2010 has entered the Remanufacturing Industries’ “sweet spot”, and we are holding steady. Then look as the volume swings up steadily through 2018, and you can see we have some good years coming at us because of the sheer volume. I think there is some good growth moving forward.

    Let’s talk a little bit about the long range future. We read a lot about the growth of Electric Vehicles. I just read an article about how China is producing over twice the number of Electric Vehicles that USA and Europe are producing domestically. Here’s another fact. Every new Volvo car introduced in 2019 will be Electrified, either by battery or as a hybrid. Think about that—this is what’s coming down the road. As a society, I believe there will be a push for more Electrification in the USA simply from global pressure. As business people, we need to think about how we will tackle these challenges as a new range of products enters the market. Don’t get me wrong, we will still see a large percentage of traditional remanufacturing, but the future is coming, and CHANGE is coming with it.

    So put your thinking caps on, because there are going to be some great opportunities for Remanufacturers simply because of the price (cost) of these Electric components. I smell margin! I always welcome response or rebuttal to my comments at [email protected]

    Respectfully, Joe Kripli

    INDUSTRY CALENDAR

    Kripli’s Corner Contents

    Advertisers

    Joe Kripli

    COPYRIGHT 2019/AUTOMOTIVE PARTS REMANUFACTURERS ASSOCIATION. The APRA Reman Connection is published as a membership service by the APRA. The opinions expressed in the articles in this publication are those of the author of the articles and not the publisher. While every reasonable attempt has been made to assure that the information in this publication is accurate, the publisher assumes no responsibility for any omissions or errors, nor for the application of any advice or suggestions in any particular situation. Due to space limitations, all items published are subject to abridgment. Unsolicited items will not be returned.

    Kripli’s Corner ......................................2Industry Calendar ...............................2Spotlight–Van Bergen & Greener ......4Current State Of Freight .....................6In Memoriam–Charles P. Schwartz ...7The Effects Of Tariffs ...........................8Switches, Relays & Solenoids .............11Industry Analysis .................................18Recycling Exhaust Parts ......................20Protect Yourself–Asbestos Lawsuits ..22Transmissions–Two Situations ..........25

    BPS Cores, Inc ......................................3Big-R Show ...........................................3PartRef ..................................................5Alans-Renew CNC Machining ..........10WAIglobal .............................................14ReMaTec 2019 ......................................15APRA Savings Programs ....................16Reman Day ...........................................17G-Cor Automotive Group ..................23INA PAACE Automechanika .............24RAS Cores.............................................28

    The APRA REMAN Connection Volume 29, Number 1Office Contact:Phone: (703) 968-2772FAX: (703) 968-2772Email: [email protected]

    President:Joe Kripli - [email protected]

    Chairman:Tom Dunn - [email protected]

    ERA Expo 2019April 4–7, 2019Springfield, Missouri

    ReMaTec 2019June 23–25, 2019Amsterdam

    INA PAACE AutomechanikaJuly 10–12, 2019Centro Citibanamex, Mexico City, Mexico

    APRA Big-R ShowNovember 1–2, 2019Las Vegas, Nevada, USA

  • This year’s Big-R Show will truly be an international show with guests and exhibitors from around the globe! Attendees will be coming to find new products and learn the newest technology. If you are a supplier, don’t miss this opportunity to showcase your company, products and services.

    Las Vegas advantages:• Increased attendance—surveys show an average 8%

    increase in floor traffic when shows are held in Las Vegas.• Convenience—a one-stop event with exhibition, seminars

    and sleep-rooms all under one roof.• Location—McCarran International Airport is conveniently

    located just two miles from Las Vegas Boulevard and 3.5 miles from the Las Vegas Convention Center.

    • Air Service—With more than 950 inbound and outbound flights per day and nonstop service from more than 130 U.S. and international cities, Las Vegas is easy on your time and budget.

    • Weather—Las Vegas averages 320 days of sunshine per year and averages less than five inches of precipitation annually. This warm, dry climate is attractive for meetings throughout the year.

    PLAN NOW TO ATTEND!

    NOVEMBER�1–NOVEMBER�2CAESARS�PALACELAS�VEGAS

    The�2019�Big-R�Show�will�be�held�in�conjunction�with�the�ATRA�Powertrain�Expo�at�Caesars�Palace,�Las�Vegas,�Nevada

    The�Automotive�Parts�Remanufacturers�Association�announces�the

    EXHIBITORS: Booths are available.�Reserve yours now!

    You�can�view�the�floor�plan�and�purchase�your�booth�online�at:www.apra.org

    More�info:����[email protected]

    INTERNATIONAL

    The World of RemanufacturingBIGR Show 2019

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 3

  • The Van Bergen & Greener Company has been an American automotive parts re-manufacturer for the last 100 years! Today, it is the only USA manufacturer of starter drives and starter drive components. Founded in 1919, this company, based in Chicago, has played an important role in the formation and the history of APRA, the Automotive Parts Remanufacturers Association. Here is how they came together.

    One of the rebuilding industry pioneers, George Marquardt, worked as a manufacturers’ agent for several automotive parts companies in Illinois and Indiana. In 1925, he added the line of Van Bergen & Greener rebuilt starter drives. (They were one of the original rebuilders in that field.) In 1927, Marquardt joined in partnership with William R. Weldon, who was also an agent selling the Van Bergen & Greener line.

    It was in 1937 that the two partners bought the Van Bergen & Greener Co. after Van Bergen was killed in an automobile accident. Marquardt became the company president and held that position until he retired in 1954, when he sold his share of the business to his partner, W. R. Weldon.

    It was in California in the early 1940s when a group of automotive parts rebuilders, led by Ralph A. Van Alen, formed a small organization to help each other out. They called it Automotive Parts Rebuilders Association. APRA was first incorporated with the help of H. P. Lester (of catalog fame), and H. A. Henderson.

    When the U.S. became involved in World War II, automotive parts production was curtailed. The nation’s raw materials were needed for the war effort. Automotive parts rebuilders were suddenly seen as the solution to the new-parts shortage which caused a transportation crisis. Van Alen traveled the country as a one-man evangelist, attracting rebuilders to his relatively local organization. During the war, sole-proprietor rebuilding shops grew to become large factories, providing rebuilt automotive parts to keep vehicles running. They were needed to transport people and

    war materials across the country.By the end of World War II, many of

    the major auto parts rebuilders, including Van Bergen & Greener, realized that their original association needed to be reorganized to take them into the post-war economy. What had grown out of a wartime need, had now become an American peacetime necessity. The rebuilding industry leaders met in Chicago in 1946 and founded the “national” APRA! George Marquardt, president of Van Bergen & Greener, was elected the first president of the new APRA. A staff of officers and a board of directors were chosen to assist him and to write a new constitution and by-laws.

    MEMBER SPOTLIGHT: VAN BERGEN & GREENER100 Years of Reman and Innovation

    By Betsy Grueninger

    William Weldon rebuilt these inertia friction drives for Bendix, to Bendix specifications over 50 years ago.

    At the 1957 convention these two rebuilders, W. G. Weldon (left), Van Bergen & Greener, Co., and J. W. Harper, Lee Electric Co., enjoyed the hospitality of Miss APRA.

    At the 1958 convention, APRA President, Bill Weldon (right) receives an advertising award. Van Bergen & Greener won 1st place for companies with less than 25 employees

    Left-to-Right: Three generations of Weldons —William R., William G., Paul

    4 • MARCH 2019 • REMAN CONNECTION • www.apra.org

  • For the past 70-plus years, the Van Bergen & Greener Co., led by the Weldon family, has given continuous support to the APRA. William R. Weldon headed the company since 1954. He was followed by his son, William G. Weldon, who also served as the president of APRA from 1957-1958. Upon his death in 1988, his wife Patricia Butler Weldon became the CEO of the company. In 1992, she was honored for her service to the industry by the Automotive Parts Rebuilders Association. The company moved from Chicago to Maywood, Illinois in 1985, where her son, Paul Weldon, is the now the current head of Van Bergen & Greener. He is the third-generation owner of this family-run business. Paul served as APRA president from 1988-1989.

    Paul Weldon, a mechanical engineer, uses his knowledge of metallurgy and mechanical innovations to continue to improve the quality of their new manufactured starter drives, remanufactured starter drives, drive components and solenoids. He has created

    a durable spragg-clutch starter drive which has been a great boon to Harley Davidson motorcycle owners. Never being satisfied with past successes, Weldon strives to innovate, adapt and improve everything they produce—from starter drives to solenoids to clutch pulleys. They aim for perfection of fit and materials.

    Weldon says he has been given a wonderful legacy from prior generations: Industry, Integrity, and Innovation. His grandfather taught him the value of hard work, his father personified “a man’s word is his bond”, and his mother demonstrated perseverance and achievement. Weldon adds his own legacy to the list ... “The E in CEO stands for Energy and Enjoy! Work is fun when you enjoy what you do!”

    APRA is proud to acknowledge the loyalty and support of the Weldon family, and we wish Van Bergen and Greener continued success for the next 100 years!

    Harley Davidson motorcycles have a slippage problem with the OE Denso starter drive. Paul Weldon saw the need and created the solution—a spragg-clutch starter drive. This made-in-America starter drive has earned high praise from Harley owners around the globe.

    Van Bergen and Greener proudly labels their “Made-in-Amerca” products with the American flag.

    The first APRA logo design, created in the 1940s, is the one that Van Bergen & Greener would have displayed during that era.

    r

    VAN BERGEN & GREENER ... continued

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 5

  • These past couple of years, I have taken numerous tours of various carrier terminals: FedEx, UPS, Holland, R&L, YRC plus a handful of micro-regional terminals.

    For the most part, they are operating in many of the same ways they have in the past. But due to the fact that their volumes are so high, they have put new processes and technologies in place to streamline their operations and optimize profitability.

    Five years ago, only a fraction of their forklifts had certified scales on them. Today it is rare to tour a national carrier terminal where 100% of their equipment does not have certified scales onboard. They have also invested in laser scanners and have internal directives to spot-check 8-12% of all freight for re-weigh and re-class issues. If their computer recognizes your company as a “repeat offender”, your freight will be flagged for inspections every time.

    This is important to know and share with others, because the last thing you want to do is call your own customer to advise them that you’ll be sending a second invoice for freight charges that have been added after you have already delivered your product.

    We will never be able to change this bean-counter mentality within any of these large carrier companies, but there are a number of things we can do to proactively derail these penalties and avoid unforeseen re-bill charges.

    Accuracy is Key

    For starters—the devil is in the details, and accuracy is the key.

    It would be a good move to advise your sales pros, estimators and shipping personnel of the current shipping environment and give them all a heads up that all profit on any given sale can immediately be lost with a single re-weigh, re-class or accessorial re-bill.

    Invest in a Certified Scale

    If you don’t already have a certified

    freight scale, then it’s time to seriously consider getting one.

    Carriers are challenging your weights with certified scales, so you need to put yourself on an even playing field with them and defend your documented weights.

    You can invest in a simple pallet jack with an onboard scale for less than $1500.00, or you can purchase a more advanced 1 x 5000 floor scale that handles a single skid of up to 5000 lbs. It costs less than $3000.00 installed and calibrated.

    Most companies report that payback on this investment is between six weeks and six months. But more importantly, when you attach documentation of weight from a certified scale, it allows us to better defend you and sends a clear message to the carrier that they should go pick on someone else.

    Know Your Specific Freight Classes

    It’s also important that everyone involved in the quoting, shipping and payment functions knows your freight classes and can easily flag exceptions.

    Send your freight sales rep a roster of your key commodities, and ask them to send you their corresponding freight classes as per the National Motor Freight Classification catalog. If you are using their TMS (transportation management system) mandate that they enter these class codes in your system so they are hard-wired for your shipments.

    If you e-mail me at [email protected] I will be more than happy to send you a roster of the current NMFC freight classification codes and get you set up on our online TMS platform with your class codes hard-wired so you can avoid costly mistakes.

    Use Google Maps Satellite View to Verify Delivery Points

    One of the most common re-bill scenarios is for accessorial fees like, inside deliveries, limited access deliveries and residential deliveries. You might think you did your due diligence, but accessorial

    charges run case-by case and carrier-by-carrier. There are even terminals within the same carrier companies that enforce these rules differently.

    You need to tell your staff that it is imperative they use Google Maps satellite -view or another like mapping function, so

    THE CURRENT STATE OF FREIGHT:Tips To Help Manage Your Freight Costs

    By Steven P. Haas

    Pallet jack with scale

    Pallet-size floor scale

    This loading dock, as revealed by Google Maps, may have limited access.

    6 • MARCH 2019 • REMAN CONNECTION • www.apra.org

  • they can get a visual of the delivery facility before estimating or processing a shipment.

    If you don’t use this proactive measure, you run the risk of being re-billed with dramatic increases due to changes in accessorial fees. The photo on the previous page shows a loading dock, but it suggests that this may be a limited access facility.

    Continuously Evaluate Carriers, Rates and Performance

    Don’t ever limit your resources to just one carrier.

    If your carrier rep knows that they are your exclusive carrier, they will slowly but cautiously ease your rates up. Have your shipping manager arrive at a core-four carrier mix, and insist that they evaluate pricing on a frequent and regular basis.

    If you are a larger shipper with dozens of daily shipments, you need to evaluate your truckload, LTL and small package activity by circulating a formal RFP on a bi-annual basis.

    During this process, you’ll want to

    request fixed and firm performance ratios. Question and negotiate:

    • rates• accessorial charges• insurance charges• packaging• claims resolution processesA great shipping partner will be

    completely transparent during this process and will surrender the small stuff in exchange for a long-term relationship.

    Don’t Ever Be Afraid to Contest Dramatic Billing Changes

    And finally, don’t ever be afraid to ask your rep to contest ridiculous billing changes.

    A good rep will be on your side—a great rep will go to serious battle for you. If you are a remanufacturing facility shipping with your association’s freight program, they will have more than enough information to help the carrier in question see the much larger picture.

    You work very hard for your money and

    to guard and grow your business. You need to get your people thinking proactively to protect what you’ve worked so hard to earn!

    About the Author

    Steven P. Haas is a board certified marketing consultant, a seasoned sales professional and an Association Accounts Representative for DLS Worldwide. He oversees the remanufacturing program for DLS Worldwide and has negotiated special freight rates and carrier concessions for the remanufacturing industry shippers.

    DLS Worldwide has a new user interface with a comprehensive carrier mix and a zero-deductible, full-coverage, all-risk insurance option. You can contact Mr. Haas at 612-296-1806 to request access to this program and platform.

    r

    STATE OF FREIGHT ... continued

    IN MEMORIAM

    CHARLES P. SCHWARTZ, JR., Former APRA Chairman, Dies At 91

    Charles P. Schwartz, Jr., 91, a lifelong resident of Chicago, died March 17, 2019 of complications of Alzheimer’s disease. He is survived by Susan H. Schwartz, his wife of 42 years; four children, and eight grandchildren.

    Charlie, as he preferred to be called, took the helm of Champion Parts Rebuilders in 1975 (then based in Oakbrook, Illinois), serving as its president and chairman until his retirement in 1992. Under his leadership, the company became the largest in the field, expanding to 10 plants, with a work force of approximately 2,500 people.

    He was active in many industry organizations. Among them were APRA (where he served as Chairman in 1993), Automotive Sales Council and the Society of Automotive Engineers. A lawyer by training (Harvard Law 1950) with investment banking expertise, Charlie could be found testifying on Capitol Hill as well as promoting the idea of auto parts recycling to financiers and the press.

    “He had a most eclectic personality,” said his wife Susan, “with a wide ranging intellect and a wonderful sense of humor. He loved the Rebuilt Parts Industry. ‘We turn junk into gold,’ he liked to say.”

    The family would appreciate memorials in his honor be made to Friends of the Parks, 312-857-2757.

    Charles P. Schwartz, Jr. 1927–2019

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 7

  • Auto parts represent a significant part of the $200 billion worth of Chinese goods that are now under tariff. So what happens to the global auto parts supply chain if the tariffs continue for a protracted period … ?

    At the end of September, the Trump administration began to impose Section 301 tariffs on billions of dollars of Chinese-sourced auto parts, an initial 10% duty that will increase to 25% on January 1, 2019. This action impacts thousands of companies, threatens hundreds of thousands of American jobs and wreaks havoc on the global supply chain that supports an enormous industry. The steep import duties affect everything from shipping lanes to auto repair shops, with increased costs being passed up and down the chain.

    Washington is also examining an additional 25% tariff on imported vehicles and auto parts the Trump administration has threatened under the guise of national security. These Section 232 tariffs are similar to the duties the administration levied on steel and aluminum earlier this year. And Trump is threatening to slap duties on all Chinese imports that have so far avoided tariffs.

    Uncertainty in the Supply Chain

    “Probably the hugest uncertainty is how to build your supply chain, because no one really knows how this will play out in the future or when these tariffs will begin or end,” said Aaron Lowe, senior vice president of regulatory and government affairs at the Auto Care Association, the trade group that represents the aftermarket auto parts industry.

    Auto parts represent a significant portion of the $200 billion worth of Chinese goods Trump slapped tariffs

    on. Last year, the U.S. imported almost $13 billion worth of Chinese auto parts, although not all are subject to the new duties.

    Some auto parts suppliers have been caught out already. Lowe cited one importer of cabin air filters. When the shipment left China, there were no

    extraordinary duties. By the time the ship

    reached the U.S., the tariffs had already gone into effect, costing the company “a huge amount of money,” he said.

    According to automotive parts industry consultant Steve Hughes, the lead-time for a Chinese manufacturer to produce a particular part typically takes anywhere from 90 to 120 days from receipt of order. Add to that time two weeks for the goods to cross the Pacific, plus several days for transit from a terminal to a warehouse or facility. “With an aftermarket company, you’re hoping you can get three turns of your inventory in a year,” Hughes said.

    A steep rise in container shipping rates across the Pacific has already hurt auto parts importers, as it has importers of many other goods from China. The cost of shipping a container from China to the

    U.S. has doubled since the end of April 2018. That’s because demand for space on container lines skyrocketed. There was a rush to bring products into the U.S. and stock up on inventory to gain both a price and strategic advantage over competitors. Importers of various goods anticipated Trump tariffs and wanted to beat the White House to the punch. What’s more, some importers report being bumped off ships if they refused to pay spot rates,

    even if they had contracted for a cheaper rate. Ships, in turn,

    claim capacity issues have prevented them from carrying all the containers

    lined up for shipment.“There is a lot of disruption

    and product flow and how it comes in,” said Lowe. “I

    don’t know how you even plan for something like that because

    there’s so much uncertainty.”“Global supply chains are

    extremely complex,” added Jonathan Gold, vice president of supply chain

    and customs policy at the National Retail Federation. “You can’t turn them on and off like a light switch.”

    The automotive industry now encompasses one of the most sophisticated and complicated supply chains on earth, with semi-finished goods, components and raw materials all crisscrossing the globe for production, assembly and distribution. Timeliness and quality are both absolutely essential. A missed delivery to a vehicle manufacturer can mean an entire assembly line is shut down. “That’s very critical and very costly to the vendor, because they assume it’s your fault because you’re late,” said Hughes, a more than 40-year industry veteran. “At my old company, we would have to fly product in if our vendor was late just so we could make sure we wouldn’t stop the production line.”

    According to Hughes, vehicle manufacturers need upwards of five years to develop a single vendor necessary for

    EFFECTS OF THE TARIFFS:Auto Parts Suppliers Already Experiencing Disruption

    By Matt Miller

    8 • MARCH 2019 • REMAN CONNECTION • www.apra.org

  • highly exacting standards, manufacturing prowess and capacity. It would take five to ten years to bring back onshore the auto parts industry, with investment requirements that would total hundreds of millions of dollars, he estimates. By the end of this process, the cost to the consumer would double or triple, he believes.

    “That the administration is giving our industry 90 days to change our supply chain before they institute a 25% tariff is absolutely and utterly ridiculous,” said Hughes, the president and CEO of Los Angeles-based HCS International.

    Reshoring and Retooling

    The Auto Care Association cites brake rotors as an example. Approximately 2,600 different brake rotors are needed to service America’s used cars. Offshore manufacturers have made these aftermarket parts since the 1990s, said Hughes. China now produces some 80% of aftermarket brake rotors, which are manufactured to extremely high standards. “There are many quality Chinese suppliers that companies have grown to depend on,” said Lowe. “It would be nearly impossible for that to come back to this country any time in the near future.”

    So-called “reshoring” this product to the U.S. “could take up to 10 years and would require a significant financial investment to retool each individual part,” the association said in a September letter to the U.S. Trade Representative. “We’re not even sure the casting foundries in the U.S. have the capacity to support the demand.”

    It would be an extremely costly undertaking for the industry. As Hughes explained, brake rotor manufacturers must carry the cost of retooling. “U.S. steel companies do not make the tooling on their own dime. They require the customer to do that,” he said, citing a

    study he conducted for the association in which he estimated the cost to each brake rotor manufacturer would be $50 million to $60 million.

    Moving from China to another country, notably Mexico, is a slightly more realistic option for suppliers, but would still take years to accomplish. “The problem is finding companies with a certain expertise and the ability to produce quality products. In some areas, it’s probably easier than others. With brake rotors, it’s extremely difficult to move and still maintain the quality you need. You can’t just pack up and move,” said Lowe.

    It’s also uncertain how the new trade agreement with Mexico and Canada, with enhanced content requirements, will impact this whole supply chain.

    Over the years, the auto parts industry has become more and more a commodity-type business, Hughes said, with heightened competition and ever-tighter profit margins. Suppliers aren’t

    capable of absorbing the cost of the additional tariffs and will pass along price increases, which will cascade down the distribution stream.

    Hughes also stressed that a 25% tariff translates into a cumulative effect that results in a much steeper product end-price. “Each level of distribution is going to mark it up appropriately. When it gets to the consumer, it’s not 25%. It could be a 50 or 60% tariff,” he said.

    “We’re already seeing surcharges on products made of steel,” Lowe added.

    Higher costs mean consumers will be more likely to defer maintenance. Lower demand will impact auto supply stores, mechanics, distribution centers, logistics providers, the entire gamut of

    downstream providers, warned both Hughes and Lowe.

    “That will have a significant impact throughout the entire supply chain and impact a lot of different folks in a lot of different ways,” said Gold.

    The Long Term Impacts of Tariffs

    Even auto parts manufacturers who don’t depend entirely on China for products are feeling the pinch. Take, for example, HUSCO International, a Wisconsin-based company that makes hydraulic and electromechanical components used in off-road heavy equipment and in vehicles such as the Mercedes Benz. The company has manufacturing facilities in the U.S. and England, as well as in Shanghai. The new tariffs are costing the company about $1 million a month, according to Austin Ramirez, the company’s president and CEO.

    “The impact of the tariffs for us isn’t so much on HUSCO products coming

    across borders, it’s on our supply chain,” said Ramirez, on the Wisconsin Manufacturers & Commerce site. “Roughly a third of the components we use in our North

    American plants come from suppliers in China.”

    Ramirez added that “right now we have an incentive not to manufacture products in the U.S. that require Chinese supplied content. If these tariffs stay in place for a long time, we’ll see jobs move outside the U.S. to non-Chinese countries.” Japanese and European suppliers, he said, could grab business away from American companies such as his.

    This article was original published in the American Journal of Transportation #676. www.ajot.com

    r

    EFFECTS OF TARIFFS ... continued

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 9

  • Alans-ReNew Utilizes

    State- of-the-art CNC Industrial

    Component Machining Centers

    Our largest RMC V60

    shown here.

    Specializing In Precision Repair Of

    Industrial Transmission And Differential Cases

    At Alans-ReNew CNC Machining we specialize in upgrading older castings to current designs by taking older version components and creating a new updated version.

    Alans-Renew CNC Machining 2497 Burlingame Ave SW | Grand Rapids, MI 49509 Phone: 616.534.3371 | Fax: 616.534.4931 | Email: [email protected]

    Fuller Transmission Case Machining a 710 CAS

    into a 18913.

    RD 20145 Side Bearing Repair,

    Pinion and Output Shaft Repair.

    Fuller FRO Transmission Case Machining FRO into Pump Case.

    Since 1975

    10 • MARCH 2019 • REMAN CONNECTION • www.apra.org

  • Any device that incorporates a coil has the capacity to discharge high voltage each time current is removed from that coil. That discharge occurs, because the coil’s magnetic field is actually a form of stored energy.

    As current begins to flow through any coil, there is a resistance to the inevitably formed magnetic field. That resistance comes in the form of induced reverse voltage in the coil, which acts in addition to the coil’s physical electrical resistance. This brief period of field formation is sometimes referred to as “charging” the coil. Once charged and in a constant state with current flowing, the coil’s magnetic field will resist any further changes, including its collapse when current flow is stopped.

    The magnitude of that stored energy is determined by the strength of the field itself, measured in lines of flux, and the medium through which the flux lines pass. The iron core, present in all relays and solenoids, will store much more energy than a coil without a core.

    The instant that current to the coil is switched off, the magnetic field collapses. As it does, its stored energy is induced, as electric current, back into the coil’s winding, in the same polarity as the circuit that charged the coil. But because that circuit is now open, or in the process of opening, there is no longer a battery to absorb that energy or to limit its voltage. The energy becomes what is a called a “transient” or a “spike” with a potential voltage many times higher than the coil’s original voltage. In a 12-volt circuit without suppression, transients as high as 1,500 volts have been recorded.

    In today’s world, nearly every function throughout any vehicle is under the control of an electronic circuit. It is for this reason that circuit protection has become more important than ever. The unintended introduction of stray voltage can cause damage to modules or corrupt the data they are using. Electronic controls are not limited to just cars and trucks. They have

    been finding their way into all types of equipment, large and small.

    Contact-arcing, which is something completely different, was discussed in depth in a previous issue. The intensity of arcing and its effects on contacts are dependent upon the type and magnitude of the load itself. This article will discuss the ways in which diodes, resistors, capacitors and other devices can be used in relays to limit the possible damage from transient voltage or to reduce the effects of arcing.

    Coil-Induced Transients

    The methods and devices used for suppressing coil-discharge transients are designed primarily to prevent or limit forward-voltage from being fed back into the switching circuit. Today, many relays are switched by an electronic module on the ground side of the circuit. Typically, suppression devices are connected in parallel with the coil as shown in the diagram (see Figure 1).

    Resistors or diodes are the most economical solutions for suppressing short bursts of high voltage. They both work in basically the same way, by providing an alternate path of lower resistance for the transient voltage, which causes it to flow in a loop circuit until it dissipates. However, it should be noted that either of these solutions comes with a trade-off. They extend the relay’s drop-out time. Drop-out time affects the velocity of the relay’s armature as it returns to its at-rest position. Increasing the drop-out time, decreases the speed at which the contacts separate, which increases arc intensity and the chances of the contacts welding.

    Resistors – Many small automotive relays utilize a resistor (see Figures 2 and 3) to provide an alternative safe path to dissipate transients. Its resistance value must be at least several times greater than the relay’s coil. A lower resistance will do a

    SWITCHES, RELAYS & SOLENOIDS—PART 4Methods of Suppressing Arcing and Transient Voltage

    By Wes Grueninger, Sr. and Bob Thomas

    RED ARROWS SHOW TRANSIENTDISSIPATION LOOP

    RESISTOR

    B+

    B–

    LOAD

    B+

    COIL

    Figure 1—This arrangement allows the suppression device to circulate transient voltage in a loop until it dissipates.

    Figure 2—This Denso relay, found in many Toyota applications, uses an 820-ohm resistor to clamp transients. It is connected across the coil’s terminals.

    Figure 3—This cube relay also uses a resistor, but with a value of 680 ohms.

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 11

  • better job of clamping the transient, but it will extend the drop-out time. A higher resistance value will minimize drop-out time, but it will allow more transient voltage to escape into the system.

    Diodes – A diode provides the best protection, because all voltage above the diode’s normal voltage-drop of 0.7 volts will be dissipated in the loop circuit. This essentially kills the transient in its tracks. However, this also greatly increases drop-out time, because the diode has no resistance above its own voltage-drop. You may remember that Ford used a diode in their fender-mounted solenoids for a few years before they discontinued use of an external starter solenoid (see Figures 4, 5 and 6).

    A test using an automotive-type relay with a 55-ohm coil with 13.5 volts applied, produced the results shown in the chart (see Figure 7). It shows the drop-out time and transient voltage produced by a coil with no suppression device. Also shown are the test results with suppression resistors of varying values, a diode alone and a diode in series with an opposing 24-volt Zener diode. As you can see, the diode with an opposing Zener diode produced the most favorable results, with good suppression and minimal increase of drop-out time.

    Contact Arcing

    As explained in our previous article, switching a loaded electrical circuit, inherently creates arcing at the switch’s contacts. Arcing is the unwanted flow of current that takes place as contacts begin to “make” or after they “break”. The breaking arc presents the biggest threat to the contacts,

    SWITCHES, RELAYS & SOLENOIDS ... continued

    Figure 4— Ford’s fender-mounted starter solenoid created transient problems for first-generation electronic systems in the early 1990s.

    Figure 5—Their quick fix solution was the addition of a diode in parallel with the coil.

    RED ARROWS SHOW TRANSIENTDISSIPATION LOOP

    DIODE

    B+

    B–

    LOAD

    B+

    COIL

    Figure 6—The diode allows all discharge voltage above 0.7 volt to dissipate through a coil loop circuit.

    Figure 7—This chart represents the results of testing a typical automotive relay with a 55-ohm coil and 13.5 volts applied. Notice the difference in drop-out time versus peak transient voltage.

    Suppression Device Drop-Out Time (ms)Recorded Transient

    (volts)

    Unsuppressed 1.5 -750

    Diode & 24V Zener Diode 1.9 -25

    680 Ohm Resistor 2.3 -120

    470 Ohm Resistor 2.8 -74

    330 Ohm Resistor 3.2 -61

    220 Ohm Resistor 3.7 -41

    100 Ohm Resistor 5.5 -22

    82 Ohm Resistor 6.1 -17

    Diode 9.8 -0.7

    12 • MARCH 2019 • REMAN CONNECTION • www.apra.org

  • SWITCHES, RELAYS & SOLENOIDS ... continued

    especially when the load is inductive. In addition to the damage it can cause to the contacts themselves, a breaking arc can also generate radio frequency interference (RFI), which can affect nearby electronics through the airwaves.

    Electric current inherently seeks the path of lowest resistance. So, the solution

    to reduce arcing is to provide an alternate path for the unwanted current. Since the contacts are the only thing between a “hot” battery and the load in most applications, that “low resistance path” must also prevent full current from reaching the load. There are multiple ways to accomplish this. The term used to describe most of them is a

    snubber, coming from the word “snub” meaning “suppress”. Figures 8, 9 and 10 show typical snubber circuits.

    Most relay manufacturers provide specifications of their products which include information about any suppression devices built into each relay. Some cube relays have a diagram on the relay itself (see

    B+

    B–

    B–

    B+

    COIL

    DIODE

    RED ARROWS SHOW TRANSIENTDISSIPATION LOOP

    LOAD

    A Diode Snubber, also called a flyback diode, is often used for inductive loads. It is wired in parallel with the load, but in the opposite direction of normal current flow (see Figure 9). Inductors strongly resist current flow when initially turned on, and again when current is removed. When the contacts controlling an inductive load open, the stored energy in its magnetic field will be released as reverse EMF or “back-voltage”. The flyback diode will pass that reverse current back into a loop circuit, thus allowing the load to dissipate its own energy safely.

    Figure 9—This diagram shows how a Diode Snubber is wired in parallel with the load to reduce arcing.

    B+

    B–

    B–

    B+

    COIL

    CAPACITOR

    RESISTOR

    LOAD

    Figure 8—This diagram shows how an RC Snubber is wired in parallel with the contacts to inhibit arcing.

    An RC Snubber is a resistor and capacitor in series (see Figure 8). As you can see, it is wired in parallel with the switch’s contacts, bridging the load and the battery terminals. When the contacts close, the RC snubber’s capacitor discharges any energy that it may have held over from its last use. At this point, it is ready to absorb more energy. As the contacts begin to open, the capacitor absorbs much of the arcing current’s energy and releases it safely to the load, once the contacts fully open. The resistor serves as a current limiter, controlling the energy’s release and turning some of it into heat.

    Figure 10— An RCD Snubber (aka RC Network)

    B+

    B–

    B–

    B+

    COIL

    CAPACITOR

    RESISTOR

    DIODE

    RED ARROWS SHOW TRANSIENTDISSIPATION LOOP

    LOAD

    An RCD Snubber uses a resistor, a capacitor and a diode together (see Figure 10). An RCD snubber is sometimes referred to as an RC Network. It uses a diode in parallel with the load and a resistor/capacitor in parallel with the switching contacts.

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 13

  • r

    Figure 11—This is a 40-amp automotive relay with a diagram on it showing a suppression device in parallel with the coil.

    Figure 12—Here you can see the suppression device is a resistor.

    Figures 11 and 12) which lets you know that a suppression device is being used under the cover. However, that diagram does not tell you much about it. It indicates that something is there, but not what it is. In our case, it was a resistor

    Caution should be used when substituting or swapping relays. In addition, when adding a relay into a circuit to solve a voltage-drop problem, take care that you choose a relay which will not introduce a secondary problem.

    This article is Part 4 of a four part series sponsored by the APRA and the ERA (Electrical Rebuilders Association). Previous articles are available on both the APRA and ERA websites:

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    SWITCHES, RELAYS & SOLENOIDS ... continued

    14 • MARCH 2019 • REMAN CONNECTION • www.apra.org

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    www.apra.org • REMAN CONNECTION • MARCH 2019 • 15

  • VI

    16 • MARCH 2019 • REMAN CONNECTION • www.apra.org

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    www.apra.org • REMAN CONNECTION • MARCH 2019 • 17

  • In our annual automotive industry analysis, the U.S. online automotive eCommerce market will continue its impressive growth rate and will exceed $12 billion for the first time. This is a little more than a 16% increase over 2018 online parts sales.

    We estimate that online parts sales in Canada will reach C$3.8 billion/US$2.9 billion in 2019. Online parts sales in Mexico will come in around US$700 million, making the North American online automotive eCommerce market size about US$15.9 billion in 2019.

    Although not part of our study, the Australian online market for auto parts is estimated at $484 million in 2018, growing at 7% per year. That puts the Australian online parts market around $518 million in 2019.

    Automotive industry analysis: Digital influence on the auto parts industry

    Digital influence is an overwhelming factor on online parts sales, as well as on sales through brick & mortar retailers. Just over $148 billion in auto parts & accessory sales in the U.S. will be influenced by digital in 2019.

    First, let’s define “digital influence”.Digital influence occurs along

    a consumer’s Road-to-Purchase as consumers and service professionals search for and read information online, when they read reviews, as they are exposed to product and brand advertising, and as they watch video advertising or video content.

    Nearly all consumers do online research along their Road-to-Purchase. About nine out of 10 consumers now do some form of research online before they

    purchase an auto part or accessory. This happens whether they eventually buy at a brick & mortar retailer, or buy online.

    Digital influence affects automotive eCommerce market in many ways

    This online research includes looking for information and reviews, and verifying fitment on manufacturers’ websites. Consumers are exposed to online advertising. They also go to automotive forums, or conduct specific long-tail searches on Google or Bing.

    Hedges & Company consumer surveys show four sources for online research have most of this online activity. They are online search (74% of all consumers); auto

    INDUSTRY ANALYSIS: ONLINE E-COMMERCEAutomotive Market Size Will Be $12 Billion In 2019

    By Hedges & Company

    Analysis Highlights Online automotive eCommerce

    market will pass $12B in 2019 in the U.S.; projected at $19B by 2022

    North American automotive eCommerce market nearly $16B in 2019, excluding auctions, used parts

    Digital influence: Automotive industry analysis shows $148B in parts sales influenced by online; will grow to over $160B in 2022

    Over $7B in online parts sales will be on mobile in 2019 (scroll down)

    Amazon auto parts sales will pass $8B in 2019

    18 • MARCH 2019 • REMAN CONNECTION • www.apra.org

  • parts retailer websites (73%); manufacturer websites (57%) and automotive forums (47%).

    Consumers are exposed to more online advertising every year. This includes text ads on Google or Bing. Google Shopping and Bing Shopping have increased as sources of information. Banner ads on websites create billions of impressions each month.

    By 2022, digital influence on parts and accessory sales will increase to over $160 billion in parts and accessory sales. This includes auto parts sold through chain retail stores, automobile dealers, big box retailers, local independent brick & mortar retailers, and jobbers. It also includes online sales, and by definition, 100% of online sales count under “digital influence.”

    Automotive industry analysis: Automotive eCommerce market includes $7.5B from mobile in 2019

    Ever shop on your phone?It’s almost a daily occurrence for many

    people today, and that includes consumers shopping for auto parts and accessories.

    Online sales transacted on mobile phones will account for $7.5 billion in the U.S. in 2019. That’s about a 30% increase over 2018 when mobile nearly hit $6B. Today most parts and accessory websites get more than 60% of total traffic on mobile devices.

    Mobile auto parts eCommerce will continue to grow rapidly, with an annual growth rate of over 25% projected over the next few years.

    Most of the automotive aftermarket has transitioned to mobile-friendly websites, so today you need to pay attention to marketing to mobile devices and users, too.

    If you’re not testing different strategies and bid modifiers for mobile phones and tablets, it’s time to start.

    Going back to our reference under digital influence to the consumer’s Road-to-Purchase, not only are consumers shopping on mobile devices, they’re shopping on all devices depending on how far along they are on the “Road.” It’s common for consumers to use multiple devices while making a buying decision.

    Quite often, online research is completed, a decision is reached, then the consumer’s mobile phone is merely the last

    device used to buy a product.

    Amazon auto parts sales

    Amazon continues to grow as a source for auto parts and accessories.

    Our forecast puts Amazon auto parts sales, accessories, and car care product in 2019 at $6.3 billion, plus $1.6 billion in OEM replacement parts sales for a combined total of $8 billion. We see Amazon’s amazing growth rate slowing slightly over the next few years.

    Most of Amazon auto parts sales growth comes from direct Fulfillment by Amazon (FBA) sales, known as “first party sales” or “1P”. 1P sales typically include Amazon Prime offers. Most of Amazon’s 1P sales come either from manufacturers supplying Amazon directly or from warehouse distributors (WDs). We’re projecting Amazon’s 1P sales to hit $5.3 billion in 2019.

    Third party sales through Amazon are also called “3P”, and we project these 3P sales at around $2.6 billion in 2019. We’ve seen projections from other sources that put Amazon’s 3P sales even higher in 2019. Amazon is on a mission in 2019 to move more important high-volume automotive products to 1P and shift more of the smaller automotive brands and low volume auto part numbers to 3P.

    We don’t include 3P sales in our annual forecast of online sales, because many of these 3P retailers also sell through other channels. See the methodology below for more explanation.

    More automotive aftermarket trends: size of 3P marketplaces

    How big are third party marketplaces? We don’t track sales of aftermarket auto parts through marketplaces like Amazon 3P, eBay Motors, the new Google Express or Walmart, but the folks at GCommerce do. They work with aftermarket companies to transfer data all along the supply chain. They’re projecting aftermarket sales to be $17 billion by 2020.

    Automotive industry analysis forecast methodology

    We’ve tracked the online automotive eCommerce market every year going back to 2007. To do that, we use a combination of proprietary industry research, analysis of

    trends, data from the U.S. Census Bureau, and data from the U.S. Bureau of Economic Analysis. We conduct interviews with industry leaders and influencers and utilize analysis of third-party data with statistical modeling.

    Sales statistics are for the U.S. only unless specifically noted for Canada, Mexico or the North American aftermarket industry.

    In our annual forecasts, we count only online sales of new and re-manufactured auto parts. This includes the type of parts that SEMA market research would call “specialty equipment” parts and accessories. It also counts replacement parts (including OEM replacement), an important category of the overall auto care industry. We don’t include used or recycled auto parts. We also don’t include data from online auctions such as eBay Motors or other third party marketplaces. These virtual marketplaces are an online sales channel where sellers sell through Amazon (separate from direct sales through Amazon), Jet.com, Newegg.com, Walmart.com, and other similar sites.

    Nearly one third of Amazon’s auto parts sales are third party “3P” sales. We exclude these from our annual automotive industry analysis.

    For our annual analysis we consider eBay and most third-party marketplaces to be sales channels. Many online retailers sell through their own websites as well as multiple other sales channels, so including them results in double counting. Including auctions would also include individuals selling used parts.

    For more information, contact SEMA market research directly. You can also refer to Auto Care Association market research.

    Hedges & Company has provided automotive market research and marketing services for automotive industry publishers, trade associations, OEMs, Fortune 500 corporations, government agencies, universities, private equity firms, as well as some of the aftermarket’s best-known brands. News organizations such as NBC Nightly News with Brian Williams, Bloomberg Businessweek, the Wall Street Journal, the Denver Post and others have trusted Hedges & Company for accurate industry data. www.hedgescompany.com

    r

    ONLINE E-COMMERCE ... continued

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 19

  • Organizations involved in automotive component remanufacturing, are well aware that non-repairable components contain materials such as steel, copper, and aluminum that can easily be sold to a scrap buyer to generate extra income. If you are involved in diesel-particulate-filter cleaning and refurbishment, you can add two valuable new metals to the list: platinum and palladium.

    What’s in your tailpipe?

    Starting in 2007, all heavy-duty on-road diesel trucks sold in North America have come equipped with advanced emission-control technology, namely diesel-particulate filters (DPFs) and diesel-oxidation catalysts (DOCs). This exhaust aftertreatment equipment is necessary to comply with the U.S. EPA’s increasingly stringent emissions standards. Exhaust aftertreatment, as the name implies, is

    installed downstream from the engine, typically replacing the conventional muffler. Figure 1 shows a typical post-2010 diesel engine setup with a number of exhaust aftertreatment elements.

    Other tell-tale signs that indicate the device is an emission-control component and not a muffler are: • The catalyst devices weigh much

    more than a simple muffler.• They often have gasket and clamp

    design to make them serviceable for

    RECYCLING EXHAUST AFTERTREATMENT PARTSDiesel-Oxidation Catalysts and Diesel-Particulate Filters

    By Dr. Bradly Edgar

    Figure 1: Diagram of modern diesel engine with various aftertreatment components

    Diesel particulate filters ready to be recycled

    Figure 2: Diesel-particulate filter and oxidation catalyst installed vertically

    Figure 3: Diesel-particulate filter and oxidation catalyst installed horizontally, under body and attached to the frame rail

    20 • MARCH 2019 • REMAN CONNECTION • www.apra.org

  • • maintenance and cleaning. Currently, there are more than 3

    million post-2007 trucks on the road. They all require periodic cleaning and/or replacement of their DPFs and DOCs. The emission-control systems on modern trucks are found as part of the vertical stack or under the body where the muffler used to be located (see figures 2 and 3). With all the engines and vehicle makes, models, and configurations, there are hundreds of unique designs and part numbers for emission-control parts. The good news is that the part numbers and serial numbers, which are almost always included, help to ease the identification process.

    Emission-aftertreatment components often require maintenance, as the diesel-particulate filter will collect soot and ash emitted from the engine. Also, the devices are prone to failure if there is an upstream engine problem, such as a failed fuel injector or turbocharger. In the course of engine troubleshooting and/or DPF and DOC maintenance, you will no doubt encounter parts that are damaged beyond repair or cannot be cleaned to the proper standards. These parts contain valuable precious metals, so they should never be thrown away or treated as scrap steel.

    Red Fox Resources is one of several companies in the U.S. focused specifically on purchasing catalyst parts used in the heavy-duty vehicle and equipment industry. We help our customers maximize revenue and minimize the hassle of managing used diesel-emission control-system parts. We strive to provide compliance, sustainability, and return-of-value to the customer.

    Below, we’ve outlined a few of the most common questions related to recycling emission-control parts such as DOCs and DPFs.

    How much can I get for my scrap DPFs and DOCs?

    In most cases, failed or damaged DPFs and DOCs have high reclaim value, because they are coated or “catalyzed” with precious metals such as platinum and palladium. Recycling specifically to reclaim the precious metals is always

    a better choice compared to selling the cannisters as scrap steel.

    In general, a failed DPF or DOC can fetch between $20 and $400. Exactly how much your DPFs and DOCs are worth depends on a few key factors, such as the current precious-metals market price and the amount of precious metal contained in each part. The price can vary significantly, based on the engine and the vehicle’s make, model, and model year.

    It’s best to work with an expert to get the best prices.

    Are price quotes available?

    Reputable recycling companies like Red Fox maintain detailed part-number databases and can provide written quotes upon request. If the part number is known, an accurate quote is possible. If the part number is not available, a “ballpark” estimate can be provided and then trued up once the parts are received and cataloged. If it’s too much hassle to find all the part numbers, the easiest option is to arrange for us to pick up your parts and inspect them ourselves.

    Who pays for shipping?

    Red Fox Resources arranges and pays for shipping at no cost to the customer. We do require a minimum of 10-20 parts (a full Gaylord box) to cover the shipping costs. We have found that our customers appreciate having us handle the logistics and the shipping costs, as it takes the hassle out of the process.

    Is there any liability with DPF/DOC recycling?

    Generally speaking, DOCs and DPFs are not classified as hazardous waste, and there are no issues associated with storing or transporting them. However, to be

    safe, Red Fox provides a written release of liability for each part purchased under our recycling program. This means that Red Fox assumes the liability for properly recycling and disposing of these parts and materials. This process helps organizations eliminate the risk of improper disposal. Regardless of the recycler you use, make sure you work with an established company that provides a release of liability and a statement that they will not resell the

    parts for re-installation on a vehicle.

    How do I get paid for my recycled DPFs and DOCs?

    Red Fox offers settlement and payment within 15 business days of receiving your parts. To ensure proper documentation of all transactions, Red Fox issues payment only via company check and paperwork documentation.

    About Red Fox Resources and the Author

    Red Fox Resources was established in 2013 to manage the product end-of-life and precious metals reclamation from

    emission-control equipment found in the heavy-duty diesel market. The company is located in Oakland, California, with offices in Southern California. We work with service shops, scrap yards, and OEMS throughout the United States and Canada to purchase scrap DPFs and DOCs.

    Dr. Bradley Edgar is the President and co-founder of Red Fox Resources. He holds a Ph.D. in Mechanical Engineering from UC Berkeley and has spent his career working with diesel engines and diesel-emission-control technology.

    r

    RECYCLING EXHAUST ... continued

    “Currently, there are more than three million post-2007 trucks on the road. They all require periodic cleaning and/or replacement of their DPFs and DOCs”.

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 21

  • Looking back at the boxing matches that captivated the world in the 1970s, 1980s, and 1990s, each one began the same way. The referee brought the boxers into the center of the ring and gave them final instructions: do not hit below the belt, obey my commands, and most importantly, protect yourselves at all times. Protecting yourself is a fundamental ingrained in every boxer. This Golden Rule of boxing is also key for any automotive rebuilder’s success in avoiding and winning lawsuits.

    Last fall, we represented a former auto parts rebuilder during a six-week trial. The plaintiff claimed that her husband’s lung cancer was partly caused by asbestos, which she said was in the brakes our client re-manufactured, and partly caused by his cigarette smoking. The plaintiff ’s husband allegedly installed thousands of these brakes as a mechanic in the early 1960s. Over half a century later, the plaintiff ’s husband died from lung cancer. The plaintiff sued several auto parts companies, including our rebuilder client, as well as two tobacco companies. (The plaintiff ’s husband smoked for 53 years.) At trial, only our client and the tobacco companies remained as defendants in the case. Our client won, but one of the cigarette companies was hit with a $43.1 million verdict.

    Although the potential exposure from these types of claims against auto parts companies may seem outrageous, they are regularly brought and are difficult to defend against. This article will give you some tips to improve your chances to protect yourself against such claims.

    The Early Rounds: How the Past Reverberates into the Present Asbestos Lawsuits

    Beginning in the 1960s, scientists became aware of the negative health effects asbestos had on workers in the shipbuilding, mining, and textile industries. No one, however, studied the effect of asbestos on auto mechanics in the United States until the 1970s. As the science linked asbestos to

    certain cancers, lawsuits against companies that manufactured asbestos products exploded nationwide.

    Auto parts companies and rebuilders are frequently named in lawsuits alleging asbestos disease, because many of the industrial asbestos manufacturers, such as Johns-Manville, are bankrupt. Every rebuilder, especially those in business in the 1970s or earlier, should be aware of the tremendous risk these cases present.

    In most types of cases, if you are not sued in the first several years after someone is injured by your product, the statute of limitations prevents the plaintiff from filing suit. Unlike many injuries, asbestos-related diseases can take decades to develop after asbestos inhalation. However, the statute of limitations does not start to run until a person is diagnosed with a disease. Although asbestos is not banned from use in brakes and clutches today, jurors often fail to distinguish the difference between the types of asbestos and the types of exposure. These lawsuits turn on details—employees, purchases, work, and parts—as well as variations in state law.

    Backpedaling from Early Offensive Strikes

    The auto industry began warning about potential health hazards from asbestos in brakes and clutches in the 1970s in response to asbestos research and lawsuits in other industries where asbestos was used. Although these warnings were designed to protect manufacturers and rebuilders from lawsuits, they had the opposite effect. Ironically, these warnings about the potential health hazards of asbestos created the impression that hazards existed, when, in fact, not a single scientifically-validated study has ever shown that asbestos in brakes causes an increased risk of cancer for auto mechanics.

    The auto industry’s good faith warning efforts are now being misconstrued by plaintiffs’ experts as insufficient. They are used as evidence that the warnings themselves prove hazards existed. These “experts” cloak scientifically questionable

    PROTECT YOURSELFFrom Asbestos Lawsuits in the Rebuilding Industry

    By David M. Governo, Esq. and Vincent N. Depalo, Esq.

    What Is Asbestos?

    Asbestos is a set of six naturally occurring silicate minerals, all of which all have in common, their shape--long (roughly 1:20 aspect ratio), thin fibrous crystals, with each visible fiber composed of millions of microscopic “fibrils” . These fibrils can be released by abrasion and other processes.

    Asbestos has been mined for over 4,000 years, but large-scale mining began at the end of the 19th century, when manufacturers and builders began using asbestos for its desirable physical properties. Some of those properties are sound absorption, and resistance to fire, heat, and electricity. These desirable properties led to asbestos being used very widely until the late 20th century.

    Inhalation of asbestos fibers can cause serious and fatal illnesses including lung cancer, mesothelioma, and asbestosis (a type of pneumoconiosis).Asbestos is currently estimated to cause 255,000 deaths per year. Concern of asbestos-related illness in modern times began with the 20th century and escalated during the 1920s and 1930s. By the 1980s and 1990s, asbestos trade and use were heavily restricted, phased out, or banned outright in an increasing number of countries.

    Fibrous tremolite asbestos

    22 • MARCH 2019 • REMAN CONNECTION • www.apra.org

  • opinions in “sound bites” tailored to appeal to jurors, who seldom have an appreciation for the science and history involved. Oftentimes, sympathy trumps reality in the courtroom.

    Hands Up: Protect Yourself at All Times, Even Before the First Bell

    Because most lawsuits claiming harm from asbestos-containing products involve issues from decades ago, defending any company requires accurate and believable historical evidence, which is based on good record keeping. Plaintiffs testify to their use of a particular company’s products 30 or 40 years ago with amazing specificity. Often employees who might have contradicted these “facts” are deceased or otherwise unavailable. Sophisticated and painstaking factual investigations are key components in a successful defense.

    These cases are not only capable of million-dollar verdicts, they are expensive to defend. But many companies that are sued have no proof of their historical insurance. Preserve all insurance-related

    documentation that still might exist, even if it’s simply correspondence or notes. Try to locate and preserve all insurance policies dating back to your company’s creation. Most insurance companies began to exclude asbestos-related claims decades ago, but policies that existed early on may have provided coverage for asbestos lawsuits. This coverage may protect your company and pay for your legal expenses.

    Asset protection is also vital. An optimal corporate structure is critical to protect you and your company. This is a step that must be taken before a claim is made, in order to have any chance of being successful.

    Finally, asbestos lawsuits are unusually perilous and complicated compared to typical cases. Hiring specialized legal counsel—with a proven track record for defending companies against these claims—is the first step to keeping your company safe if you are sued. Even before you are served with a lawsuit, if you have any concerns, it is a good idea to seek legal advice by hiring an outside attorney

    to help you protect yourself by reviewing your records, analyzing your insurance coverage, and establishing the optimal corporate structure for your company.

    By taking these steps, you can protect yourself and dodge the next left hook.

    Attorneys David M. Governo and Vincent N. DePalo from Smith Duggan Buell & Rufo, LLP in Boston recently won the first asbestos-tobacco trial in Massachusetts history. They defend companies and individuals in cases involving asbestos, lead, insurance, indoor air quality, toxic torts, and products liability. They can be reached at [email protected] and [email protected] or at www.smithduggan.com.

    NOTICE: The information in this article is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information should be construed as legal advice and you should seek legal advice about the particular facts at issue in your situation before taking any action.

    r

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    ASBESTOS LAWSUITS ... continued

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 23

  • July 10 – 12, 2019Centro Citibanamex, Mexico Citywww.INAPAACEAutomechanika.com

    Interested in Attending?Register with the following link:www.INAPAACEAutomechanika.com/apr1

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    INNOVATION52% of expo attendees are seeking parts and components

    EXPANDING MARKETSGain market share in Mexico’s niche remanufacturing market

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  • ©2019 Transmission Digest. Reproduced with permission. For subscription information call 800-274-7890

    TECH

    NIC

    AL T

    RAIN

    ING

    •Author: Carman Klaber

    •Subject Matter: U660E, A4BF1

    •Issue: Corrosion and wiring

    Two Unique Situations,

    Two Happy Customers

    R&R Tech

    I wanted to share with you a cou-ple of situations that I have run into over the past couple months. The first one is a 2010 Lexus RX350 that came in on the back of a tow truck. This SUV is equipped with a 3.5L V6 and a U660E transaxle. The customer had it towed because the vehicle was in failsafe mode. When I began the evaluation, the first thing I noticed was the strong odor of battery acid when I opened the hood (Figure 1). One look at the battery and I knew this was going to need to be addressed, but at this point I did not know what was causing the failsafe problem. When the scan tool was connected I discovered that I had no com-munication with the TCM, but did have communication with all of the other modules.

    All of our initial diagnostic evaluations include a battery and charging system test. I’ll bet you can

    1

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 25

  • ©2019 Transmission Digest. Reproduced with permission. For subscription information call 800-274-7890

    guess the outcome of this one; the battery failed, but the alternator had passed. At this point we informed the customer that some electrical testing was going to be necessary in order for us to find out what was causing the problem. The customer agreed to that and we then proceed-ed with the job.

    I am sure that you guys have

    seen these vehicles in your shop and know that the battery is posi-tioned directly above the transaxle, so knowing that and the fact that the battery had evidence of leaking acid, I knew where I was headed. The TCM is mounted directly on top of the unit and plugs straight into the transmission case connec-tor. I started by checking power and

    grounds on the vehicle harness to the TCM and found everything in order. I disconnected the harness and everything looked good with no corrosion or pin-fit connection issues. Next I removed the two bolts that hold the TCM to the case. The TCM just fell off onto the floor, and I was not expecting that! The case connector and the TCM were cor-roded so badly that four of the pins and the plastic housing were stuck in the TCM (figures 2 and 3). I think I found the problem! My next move was to recommend a pan inspection to see if there was any need to go in-side the transmission, or just replace the internal harness and TCM. After dropping the pan it looked good inside, no clutch material or exces-sive metal. I then recommended replacing the internal harness, TCM and battery; I also recommended a transmission fluid flush.

    The parts were a couple of days out, so while I was playing the wait-ing game I cleaned the area as best I could and installed the new battery. When the parts arrived I pulled the valve body down and replaced the internal harness, installed the TCM, and flushed the transmission fluid. The TCM came already loaded with the calibration so all I needed to do was the initialization procedure, “reset memory” as Toyota/Lexus call it, and go for a road test. The transmission shifted as it should and I couldn’t be more pleased. The customer was also pretty happy that they did not need to replace the transmission.

    The next vehicle I wanted to discuss had an issue that you will not see that often. The car was a 2006 Hyundai Tiburon with a 2.0L 4-cylinder with an A4BF1 transmis-sion. While going through the initial evaluation and connecting the scan tool, it had a DTC stored for P0711 TFT signal abnormal, but no other codes. The customer concern was that everything seemed to work fine

    2

    3

    26 • MARCH 2019 • REMAN CONNECTION • www.apra.org

  • ©2019 Transmission Digest. Reproduced with permission. For subscription information call 800-274-7890

    but the CEL light would “come and go.”

    With the scanner attached and the transmission data PIDs on the screen, I could see that the transmis-sion temperature was 45º F, which was fairly close to the ambient temperature at the time. That, cou-pled with the customer concern, I was expecting an intermittent issue. As I took off on the road test the transmission shifted well but the TFT PID never went above 45º F, so therefore the TCC never engaged. This appeared to be what was causing the code to set, so I needed to find the root cause of the issue. After returning to the shop and pulling onto the lift, I started taking a closer look into the area of the transmission and noticed an extra red wire in the loom to the mass air flow sensor, as seen in the photo (Figure 4).

    4 5

    After peeling the tape and wiring loom off the red wire, I could see that it was spliced into the yellow/black wire in cavity #5 of the MAF sensor pigtail. The other end of the wire was spliced into the gray wire cavity #1 of the transmission case connector, which is for the TFT sen-sor (Figure 5).

    I talked to a couple of colleagues about this but they had never seen nor heard of this scenario. I even tried the tech support search, but nothing came up. My theory is they were trying to trick the ECM into thinking it was running cold so it would enrich the fuel mixture and supposedly get better power and performance. I just could not figure out why we went to the transmis-sion temp sensor. Maybe they were trying to have the IAT temp and transmission temp match? I wish I knew what went through some of

    these people’s thought processes. After returning everything back

    to a factory configuration, I ser-viced the transmission and went for another road test. Watching the scanner, the TFT sensor was rising as it should, and when it was warm enough the TCC would now engage as it was designed to. We called and let the customer know his car now worked like it should have and he was happy that the source of the intermittent CEL was solved. Both cases could have turned out worse for the customers, but a happy cus-tomer means repeat business.

    Carman has been in the transmission industry his entire career, and has been with Certified Transmission since 2003. He has held ASE certi-fications for over 25 years. He is married with two children, and enjoys camping and riding ATVs.

    www.apra.org • REMAN CONNECTION • MARCH 2019 • 27

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