Clunker recycling boosts scrap business

Archiv – Recyclers and other firms are experiencing an increase in business as a result of the U.S. government’s ’Cash for Clunkers’ program. Recyclers expect to see a constant supply of vehicles for months because dealers are releasing the clunkers (end-of-life vehicles/old cars) only after they receive federal vouchers worth US$ 3500 and US$ 4500. USA | Recyclers and other firms are experiencing an increase in business as a result of the U.S. government’s ’Cash for Clunkers’ program. Recyclers expect to see a constant supply of vehicles for months because dealers are releasing the clunkers (end-of-life vehicles/old cars) only after they receive federal vouchers worth US$ 3500 and US$ 4500. After the clunkers are towed from dealers’ lots, recyclers remove fluids, tyres, batteries, and catalytic converters. Mid-September, scrap steel was selling for US$ 150 to US$ 160 per tonne, so a small utility vehicle can bring in as much as US$ 300, while the scrap from a full-size pickup could sell for at least US$ 400. Most profits derive from the value of the parts taken out. Recyclers say the font end of a midsize SUV, which includes the bumper, hood, headlights, grille, and radiator, can be worth several hundred dollars. Aluminium wheels bring in about US$ 13 each, says Michael Thompson, owner of American & Import Auto Parts. The additional business is prompting employees at some companies to work overtime, while some companies are hiring new people. ’I’ve been surprised at how many 2002 and 2003 models we’re picking up,’ says Doug Cortellini, District Manager for LKQ of Michigan.