24th Year, No. 1, January 2014Official Publication of the Automotive Parts Remanufacturers Association

Automotive Parts Remanufacturers Association4460 Brookfield Corporate Drive, Suite HChantilly, VA 20151-1671CHANGE SERVICE REQUESTED

PRSRT STDU.S. POSTAGE

PAIDPermit #6194Springfield, VAap

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Meet our New President .................2

Auto Electric Corner .......................3

New Members ................................8

HDRG Summit ................................9

What's New ..................................11

Tax Edge.......................................12

Classifieds ....................................14

Advertisers....................................15

InsideJanuary 27, 2014

HDRG SummitLas Vegas, Nevada

January 27-30, 2014Heavy Duty Aftermarket Week

Las Vegas, Nevada

April 3-5, 2014VTRG Clinic and Auto TECH Expo

Chicago, Illinois

Industry Calendar

In 2011 in Hangzhou and 2012 in Beijing, APRA contributed regularly as co-organiz-er and sponsor to the meetings held by the NKLR (National Key Laboratory Reman-ufacturing - China). Recently in December 2013 the NKLR organized their annual Summit, this time in Shanghai to which APRA contributed with presentations and ReMaTec News contributed as a media partner with William Schwarck as chief editor. From the academic world, the main speakers were Professors Xu Binshi, Zhu Sheng, Rolf Steinhilper and Nabil Nasr.

The Symposium opened with keynote speakers from the Chinese Government. Yao Xin of the very important National

Development and Reform Commission, presented the Chinese plans for develop-ing and promoting remanufacturing in China. The plan is very comprehensive and an accurate roadmap for implement-ing remanufacturing for all the branches of the Chinese industry.

APRA speakers at the event were Presi-dent/Chairman Joe Kripli, who spoke about “Heavy Duty Automotive Remanu-facturing and its Global Challenges,” and APRA board member Fernand Weiland who spoke about “European Remanufac-turing of Heavy Duty and Offroad Vehicle Components” (including tires).

The Summit was not only about automo-tive remanufacturing. At least half to the presentations were about other remanufac-turing industries like health care equip-ment, heavy duty, laser, machine tool and the photocopy industry.

NKLR is conscious that automotive is an important driver for remanufacturing, but it is also promoting the other reman in-dustries. We have learned from the survey made by the US Trade Commission that

automotive and HD/Offroad remanufac-turing is the biggest sector representing 35 percent of the remanufacturing industry, but sharing the remaining 65 percent with aerospace, machinery, IT products, medi-cal devices, retreaded tires, etc.

I suggest that Europe and China are not very different from this 35-65 percent structure. Perhaps it is time for APRA and all the other reman associations to

APRA Travels to Shanghia for the Remanufacturing Summit & Expoby Fernand Weiland, FJW Consulting

APRA Booth at Expo: (l-r) Joe Zhou, APRA member from Wabco China, Fernand Weiland and APRA member Luis Teng, CEO of Picopulse China

What do 1,375+ remanufacturers, manufacturer suppliers, core suppliers, exhibitors and other visitors to the recent APRA International BIG R Show have in common? They all enjoyed one of the best APRA BIG R Shows in quite some time.

The BIG R Show was housed at the newly remodeled (over $180 million renovation), Tropicana Hotel in Las Vegas, Nevada over the dates of November 2nd – 4th. This boutique, South Beach-style hotel served the APRA BIG R Show well; it was just the perfect size to fit the entire conven-tion, exhibition and numerous break-out meetings under one roof. For the most part, it felt like the APRA show owned the hotel during our event!

Saturday, November 2nd, opened with exhibitor move-in and a full day “Grow, Expand & Profit” Electrical Clinic. Many thanks to our Electrical Clinic speakers – Shawn Bray and Wray Schott, Romaine Electric; Steve Venne, Atelier Dynamo; Dennis Jacinto, Dan Smith (also Electrical Chair-man); and the multi-talented Mohammad Samii of Sammy’s Auto Electric. Sammy has become a “legend” in the automotive electrical community. And, thanks to the Electrical Clinic sponsors – Arrowhead Electrical Products, DuBois Marketing, International Automotive Trading, WAIglobal, Lester Catalog, J & N Auto Electric and Atelier Dynamo.

2013 APRA “International BIG R Show” a Smashing Successby Jeanie Magathan, APRA Senior Vice President

continued on page 3

continued on page 15

Page 2 January 2014

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 / spector@buyreman.com / Ph: 203-288-1234

President: Joe Kripli/ kripli@apra.org / Ph: 703-968-2772, ext. 103 Senior 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: 810-881-0018

European Office: Gregor Schlingschroeder / info@apra-europe.org / Ph: 011 49 2541 80068-18 / Fax: 011 49 2541 80068-21 / Address: APRA European Office / Neustrasse 8 / 48653 Coesfeld GERMANYSend All News & Articles To: APRA, Attn: Kirsten Kase, 4460 Brookfield Corporate Drive, Suite H, Chantilly, VA 20151-1671 / kase@buyreman.com

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

COPYRIGHT, 2014 / AUTOMOTIVE PARTS REMANUFACTURERS ASSOCIATIONPrinted 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 in the articles in this newspaper 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 newspaper 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 abridgement. Unsolicited items will not be returned. The APRA Global Connection newspaper subscription rates are $15 for one year, or $25 for two years.

APRA EXECUTIVE COMMITTEEChairman: Joe Kripli • First Vice Chairman: Tim Roth • Treasurer: Omar Cueto • Secretary: Jay RobieImmediate Past Chairman: Nick Staub • Past Chairmen: Dennis Jacinto, Gary Phillips

I'm Here for Youby Joe Kripli APRA President

AAPEX / A.S.E. Industries, Inc. / Andre Niermann / The ArmaKleen Company

Automechanika Shanghai / B & C Truck Electric / BBB, Inc. dba Wilson Auto

Electric / BizUnite / BombShelter Diesel Supply / BPS Cores

C.C. Battery Co., Inc. / Cortecto (Transtec) / DS USA Ltd. / DuBois Marketing Inc.

GAAS / Heavy Duty Aftermarket Week / International Automotive Trading

J & N Auto Electric / Knopf Automotive / Kotek America / Magnus Equipment

Metropolitan Distributors / Nova Lux / PAACE Automechanika

Phoenix Automotive Cores / Power Brake Sales, Inc. / ReMaTec 2013

Regitar U.S.A., Inc. / Romaine Electric Corp. / Rydemore Truck Parts

Rebuilders Automotive Supply, Inc. / SEMA Show / Showpower

Van Bergen & Greener / Vensel Enterprises / WAIglobal

Westport Machine Works

to APRA's 2013 Global Connection Advertisers

Meet Joe Kripli, APRA's new President & Chairman

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I am very excited about becoming the President of your association and can assure you that I will give 100% to grow-ing this organization and improving on the value of your membership.

A little background for those of you who don’t know me. I have been in the re-manufacturing industry for over 33 years.

I started in 1980 with Lucas CAV (now Delphi Diesel) remanufacturing Diesel Fuel Injection products and Starters (CA45). I then went to work for various Fuel Injection Distributors in Tampa, Fla.(Stuart Diesel Service) and Fort Wayne, Ind. (Fort Wayne Diesel Service). From there I ran the North American Remanu-facturing for TRW Automotive handling mostly ABS products but also some cali-per remanufacturing. After that I became the President of Flight Systems Electron-ics where I learned a tremendous amount about remanufactured electronics. I then bought MD Rebuilt in Illingen, Germany, a company that remanufactures starters and alternators and was a previous winner of the ReMaTec “Remanufacturer of the Year” award. And last but not least I am working for WABCO Reman Solutions, remanufacturing AC compressors and various WABCO heavy duty product for the truck market.

As you can see, remanufacturing is my life and I really enjoy it. So we have a lot in common and I understand many of the issues facing our members today and believe we, the APRA, can bring you solutions. I appreciate how our members support the remanufacturing industry—it’s important to support what you do and what you believe in.

The single most important topic I hear about from our members is what benefit do I get from paying dues and belonging to an association? Well I can assure you that the benefits more than offset the cost of membership significantly. Just the lobby-ing that APRA does in Washington, D.C. quickly outweighs the cost of membership. Remember, we lobby on your behalf, so if there is something in legislation that con-cerns you, please let us now, that’s what were here for.

There has been a big push on the “Right to Repair” legislation moving through vari-ous US states. This is important legislation that protects your rights to remanufac-ture components and also have access to technical specifications required for the remanufacturing of the product.

Another great member benefit is the Reman Toolbox—it’s amazing the cost saving opportunities available within the Reman Toolbox. I invite you to check it out and see where your company can save money and reduce expenses. Look over the ad below and then visit www.remantoolbox.com to sign up and start saving today.

I look forward to meeting every single member of the APRA and working with you to make this even a greater associa-tion than it already is. r

Joe can be reached by email at kripli@apra.org

Page 3 January 2014

An “Advanced Cleaning Techniques” Session taught by our friends at the Rochester Institute of Technology (RIT) rounded out Saturday and the day ended with one of the highlights of the show – the “Make a Splash” Industry Reception.

This year’s opening reception was held at the Tropicana Pool, which was voted the best pool in Las Vegas. Tom Jones and Marilyn Monroe made some surprise

appearances (Marilyn looked pretty good for 87 years old!). The Tropicana chef impressed everyone with outstanding food stations that included lobster ravioli, crab cakes, and tempura shrimp just to name a few of the delicacies served that evening. Everyone was glowing under the evening stars as the APRA staff passed out glow necklaces (special thanks to Kirsten Kase for the glow necklace idea). The back drop of the lights of the neighboring Las Vegas hotels gave the party extra ambi-ance (at no charge!). Everyone with food and drink in hand seemed very happy.

A special thank you to our exhibiting sponsors of the opening party: RAS, BPS, Accumax, Romaine Electric, D & V Electronics, The Recycler Core Company, Phoenix Automotive Cores, Precision Remanufacturing, S & S Truck Parts, WAIglobal and Wagner. Look for more fun events like this at future shows.

Sunday, November 3rd opened with a spe-cial Awards Breakfast, which also includ-ed the passing of the gavel from outgoing APRA Chairman Nick Staub of Romaine Electric to incoming APRA Chairman Joe Kripli of Wabco. The Honorary Member Award was given to Past APRA Chair-person Sandra Galvin, who currently serves as Chairperson of the Heavy Duty Remanufacturing Group (HDRG). Sandy Galvin (Sandra’s father) was given the Distinguished Service Award. In Sandy’s acceptance speech, Sandy gave touching remarks regarding both his daughter and his wife being such a large part of APRA’s history.

Shingo Komatsu was also given the Distinguished Service Award for his many contributions to APRA over the years.

The last Distinguished Service Award was to be presented to Jerry Mariam for his many years in the industry. Unfortunately, Jerry was unable to attend this year due to health reasons, and as many of you know, passed away recently. APRA will

truly miss Jerry, he was an amazing and wonderful person.

Following the Sunday Awards Breakfast, concurrent educational sessions were held prior to the grand opening of the exhibits. These were all complimentary sessions for everyone registered. Among the sessions: “Selling the Value Nobody Can compete With” by Bill Haas, Educational Seminars Institute; “Tuning Up Your Reman Busi-ness” by Jeff Susbauer; “Business and Benefits with Remanufacturing: A Look Across the Pond and Across the Fence” by Frank Kuebler of Fraunhofer Bayreuth At the Make a Splash Opening Reception (l-r) Craig Van Batenburg, Marilyn Monroe, Ivan

Cregger, Bob Stanley, Delia Downes, Deb Van Batenburg and Tom Jones lit up the night in style!

Outgoing Chairman Nick Staub (r) passes the Chairman's Gavel on to Incoming Chairman Joe Kripli during the BIG R Show Awards Breakfast.

BIG R Showcontinued from page 1

continued on page 6

Page 4 January 2014

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

WE KEEP YOU RUNNING

www.arrowheadep.com Call: 1-800-328-5454

Your #1 choicefor high quality starters, alternators and components

I am starting the new year with a new set of priorities. I realize that the electrical rebuilding industry is different than it was a decade ago, and for someone like me who has

been in it for more than 40 years, the changes that have happened make our industry unrecognizable from what it once was.

The facts are the number of units that require rebuilding have been reduced dra-matically. This could be for any number reasons, but I think the most likely causes are the improvement in the quality of the starters and alternators used today, im-provement in engine design requiring less cranking time and quick-start features, im-provement in battery design and quality, and finally a saturated market dominated by almost every one!

If you set aside the ubiquitous internet and eBay stores, almost all auto parts stores have a large selection of units on the shelf, new or rebuilt, and most at prices far be-

low what they should be and available to everyone at anytime, wholesale or retail. And if they don’t have them in stock, thanks to a very efficient overnight deliv-ery system, they will have it the next day.

For small rebuilders and auto-electrics, the heavy duty trucks, industrial and agricul-tural applications were always a strong part of their sales. There are still strong niche markets that local rebuilders can take advantage of, but those are highly localized. Oil fields, offshore drilling rigs, and some rare industrial or marine applica-tions are good examples of this.

One of the rare areas that remains nearly untouched is service work. No matter who sells a unit and how low the prices are, there are applications that installation is nearly impossible by a DIY, and some help by a specialized shop becomes necessary.

In addition to that, there are always electri-cal problems regarding wiring, accesso-ries, and various sub-systems that a quali-fied technician who is versed in electrical systems can diagnose and repair.

Small electrical rebuilders who have been working with things electrical throughout their career are good candidates for this sort of repair, and the bonus is it is im-mune to any Internet, auto parts chains,

and inexpensive imports from oversees. I will share with you a couple of such repairs that are becoming a more prevalent part of our business:

Inoperative Power Seat and Seat WarmerA 2006 Chrysler Town & Country was brought to us by the owner. We were rec-ommended by another local shop who had worked on the vehicle for several days but were unable to come up with a fix for the inoperative power seat and seat heater.

We went to work performing a general test of the system and quickly found out that the system’s 30-Amp circuit breaker was too hot to touch. Obviously something was shorted to the ground, casing heavy amperage draw and thereby tripping off the circuit breaker.

Having access to a system diagram is of utmost importance, and that’s when AutoElectricPro.com comes in handy. The system wiring diagram was consulted for shared items, which showed the heated seat is on the same circuit. So the time came to disconnect different portions of the system, to isolate it further and see if there was any component that when disconnected would stop tripping circuit breaker. Once the connector C307 that carries the power to the passenger side was located and disconnected, the driver side started working.

Taking a few panels off and looking under the passenger seat, it became obvious that a wire was pinched by the seat bracket and became fused to it, causing the short to ground. Once repaired and re-routed, the power seats and the heated seats started working fine. (Figure 1)

The resulting diagnostic fee and labor charges which were billed at four hours of labor was happily accepted by the customer and made a fair sale for the business.

Intermittent SnowplowThe first big snow of the season usually results in a few snowplow motor repairs, with the marginal ones dropping off at the first big attempt.

We had a big flatbed truck with an

attached Boss snowplow system that belonged to a local lumberyard come into the shop. It was used for clearing their yard as well as material delivery to job sites. According to the drivers, the plow would work intermittently, and sometimes stuck in one position without responding to any control switches input.

As often the case with such equipment, the plow was highly used and abused by an assortment of operators without much care, but now the big snow fall had forced them to have it fixed.

A thorough inspection revealed the years of neglect; such as dangling wiring har-nesses, poor power and ground connec-tions, as well as a plow position selector switch that was broken and the reason for the sticking. I might add this was a much older version of the Boss plow and there were not any service parts like switches and such available, so we had to impro-vise.

The plow’s selector switch was only available on eBay, but we didn't have the time or the confidence to order it, so the old switch was torn down, meticulously repaired, and checked to be certain that all of its functions (up-down-left-right, and tilt) were in working order

The ground and power connections were also cleaned and serviced, but we still needed to know what was causing it not to work all the times.

When a dangling 15-pin connector was opened for inspection, it was obvious that this was where the problem lay, as a couple male pins were completely missing or broken and stuck into the female part.

Anytime that the connector was squeezed hard enough, it would make contact, and when it wasn't, the plow would stop working. (Figure 2)

A call to a local 4x4 Truck and Trailer shop showed they had the connector in the stock, so one was obtained, wired up and installed in a secure bracket that was never used on the truck. (Figure 3)

Needless to say the labor in-volved went well above a few hundred dollars, and this job turned out to be a good one.

Figure 1 - Chrysler's Town and Country's Under the Seat Wiring and the Pinched wire (Inset)

Figure 2 - The Worn-out Mulit-pin Connector of the Boss Snowplow

Page 5 January 2014

www.jnelectric.com8 0 0 - 3 6 6 - 7 1 0 0

@2014, J&N Auto Electric Inc., All Rights Reserved. Trademarks used herein are the property of their respective owners

®

Figure 5 - Worn-out Valeo 2650557 (Wagner's W082-47N) Regulator Brushes

Cases like these are the additional things an auto electric shop who provides service can offer. As I mentioned before, quality service is the very thing that can make you stand out from the discount auto part store, large chain stores, or any cheap overseas supplier.

Saturn Relay AlternatorDiagnosing a charging system using hunches and guess-work certainly is not the proper way to tackle a prob-lem, but there are times when your “hands are tied” and choices are limited.

A case in point was a 2005 Saturn Relay that we had in the shop recently. The customer was complaining that the battery was losing its charge and the alternator warning light was coming on at times.

We were hoping it would be quick find problem and sim-ply replacing the alternator would cure it. But when the car was brought in and tested, its charging system worked fine, alternator output was sufficient and there was no bad stator or diode pattern.

A quick scan of the PCM history code showed no charg-ing system related codes in the registry and no other code was present when the engine was running, thus for all practical purposes the car was fine and the alternator worked properly. But going by the owner’s word, there must be something wrong; otherwise the car would have never made it to my shop!

The vehicle, which had nearly 150K miles on the odom-eter, was quipped with a 3.5L engine, using a 11021 Valeo alternator. The battery current sensor wrapped around the battery’s negative cable was a dead giveaway that this was a RVC (Regulated Voltage Control) system. The alternator was mounted on top of the engine, very close to firewall and below the windshield’s deck. Getting to the regulator connector was nearly impossible, and practically of no use since the charging system for the time being showed no problem.

Figure 3 - Final Connector Installation and the Holding Bracket

Figure 4 - Saturn Relay's Tight Cavity for Alternator Removal

Here is where the hunches and guesswork come into play, and I decided to have the alternator removed for inspec-tion.

Of course this wasn't an easy alternator to come off the car. There were brackets and bolts in some very tight areas, and the wiper motor and linkage had to be taken off to access the alternator. (Figure 4)

It ran fine on the test bench, but when the regulator was taken out, it became obvious why this unit would stop charging at times. The brushes were covered by a lot of brush dust, were worn down, and one of them was barely making any connection to the slip ring. (Figure 5)

Rebuilding the alternator included a new regulator and the replacement of a badly worn slip ring, which made for a reliable charging system. Extensive testing and test-drives showed no problem at all and the vehicle was delivered.

As much as I don't like to base my diagnostic on guess-work, it seemed to be the most logical way of handling the problem on hand, which in the end proved us right, and a Valeo RVC alternator and hours of labor made for a very good sized ticket.

Well, that’s it for this issue. Until I see you again, keep up the good work. r

Mohammad Samii can be reached via email to samii@buyreman.com or through his website www.sammysautoelectric.com

Do you have a technical question about rebuilding, installation, or on-vehicle issues? Call 217-398-3864 or email samii@buyreman.com and talk to APRA's Electrical Technical Consultant,

Mohammad Samii.

Page 6 January 2014

ARMATURES HD Blower• Condenser DC Motors Evaporators• Starters

ROTORS & STATORS Industrial• Lift Truck HD Truck Foreign & Domestic ORIGINAL ROBCO QUALITY FAST TURN AROUND!

"Authorized Valeo Distributor"

Electrical Systems

University; “Preparing for Obam-acare” by Ed Sterczek of Mass Marketing Insurance Consultants; “The Hybrid

Battery Reman Busness” by Craig Van Batenburg ACDC, and “eCleanER Tech-nologies: Cleaning of Electronic Compo-nents and Assemblies for Remanufactur-ing” by Dr. Stefan Schwinstig and Marco Bauer, both of Fraunhofer Bayreuth University.

The exhibits opened after the sessions concluded and the crowds poured into the Exhibit Hall. Later Sunday afternoon, an Export Seminar was held, the annual Past Chairman’s Luncheon took place, another informative RIT session was presented – “Opportunities for Remanufacturers.”

This year’s exhibitors and potential ex-hibitors were invited to a special preview to next year’s show, which will become the BigR/ReMaTecUSA 2014. Booth sales have already begun for next year’s show, scheduled at the Rio Hotel in Las Vegas on November 1-3, 2014.

Monday, November 4th started off with a Highlight Breakfast, featuring Bret D. Jordan of BB & T Capital Markets, fol-lowed by a special Salute and Tribute to APRA President, Bill Gager, who will retire at the end of 2013. Mr. Jordan pro-vided some insight in the “Opportunities and Future of the Automotive and Truck Aftermarket.”

After Mr. Jordan’s speech, the breakfast started filling up, with very few empty seats. The time had finally come to say goodbye to Bill Gager, who committed 35 dedicated years of service to APRA

and the automotive aftermarket industry. Those at the breakfast — Past Chair-men, current and past Board members, exhibitors, speakers, supportive APRA members, members of the media and Bill’s staff were all there to thank him for a job extremely well done. Past Chairmen Ronnie Charnes, Evan Hammer, Jr., Ivan Cregger and Paul Weldon all spoke with kind words and fond memories. A video was played of Dr. Nabil Nasr of RIT. Nabil, Dr. Rolf Steinhilper and Shingo Komatsu and others who spoke thanked

The BIG R Show is a great place to come and learn how to make your business more profitable. There are always new ways of doing things and new tools to help you do them.

Bob Jensen of A-1 Base in Commerce City, CO, won $100 just for attending one of the Profit Sessions on Sunday morning. There were a total of six $100 winners!

Tim Schneider, Car-Part.com and Anthony Frasca, Mapco Automotive, close a deal with a firm and friendly handshake.

Bill for helping their careers in the auto-motive aftermarket.

Bill also received special awards from Bobby Mace of MD Publications, Niels Klarenbeck and William Schwarck of ReMaTec, and Sandra Standley and Carl Van Allen of the APRA Heavy Duty Brake Division. Outgoing Chairman Nick Staub presented Bill some gifts on behalf of APRA, as well as the prestigious Dis-tinguished Service Award — for Dis-tinguished Business Statesmanship and

Gene Kaiser talks with Mitch about one of Regitar's Show Specials, an AC Delco Digital Inspection Camera.

BIG R Showcontinued from page 3

Page 7 January 2014

Brakes

Electrical Motors

Transmissions

Electronics

Mechatronics

Fuel Systems

Electrical

Hydraulics

Air Conditioning

Turbochargers

Superchargers

Engines

Dedicated Service rendered to the entire industry of Automotive Parts Remanufacturing.

A long standing ovation was given to Bill after his remarks, and as Bill left the stage, many members rushed forward to em-brace and shake his hand.

The exhibit hall re-opened after the Highlight Breakfast, with large crowds in the aisles. Monday afternoon was full of more seminars – “Multi-Generational Workforce” by Bill Haas, EIS; “What Causes MPG to Diminish in Hybrids?” by Craig Van Batenburg, ACDC; “Tuning Up your Reman Business” by Gary McCoy of Fairway Communications; “Non-Destruc-tive Inspection Technologies” by Mike Haselkorn of RIT and “This Isn’t Rudy’s Diesel Anymore” by Greg Arsenault of Rotomaster.

As many people told me and other APRA staff members, this turned out to be one of the best BIG R Shows. I hope to see everyone again next year at the Big R/ReMaTecUSA 2014 Show at the Rio Hotel, November 1-3! r

Daniel Herrera, Seikai Trade Corporation, talks with the salesmen at the CORTECO (TransTec®) booth.

The massage chair is actually empty at the Recycler Core Company booth!

APRA's Past Chairmen get together for their annual luncheon during the BIG R Show. Seated, l-r: Bill Gager, Bob McLaren, Ivan Cregger, Joe Kripli, Nick Staub, Gary Phillips and Dennis Jacinto. Standing, l-r: Pete Kaburick, Mike Droullard, Evan Hammer, Jr., George Davis, Ronnie Charnes, Paul Schuck and Peter Bain.

We look forward to seeing you at next year's show!

Page 8 January 2014

Welcome New Members

Automotive Parts Remanufacturers Association - NORTH AMERICA APPLICATION2014 APRA Membership Application

Please complete the ANNUAL DUES & LISTING sections for your company type below. Other membership types include Warehouse & Educational Institution Member. Call APRA for information.

APRA • 4460 Brookfield Corporate Drive, Suite H, Chantilly VA 20151-1671 • Ph: (703) 968-2772 • Fx: (703) 968-2878 12/13 v1

NOTE: Contributions or gifts to APRA are not tax-deductible as charitable contributions. However, they may be tax-deductible as ordinary and necessary business expenses.

Company Name Website

Address

Telephone Fax Email

Name / Title Signature

SUPPLIER REMANUFACTURER No. of Employees Dues: Monthly Dues: Yearly 1-2 $20 $230 3-6 $25 $300 7-12 $33 $390 13-30 $50 $595 31-60 $70 $820 61-100 $87 $1,030 101-400 $110 $1,310 401 or more $170 $1,995 Dues (Monthly or Yearly) List items you REBUILD:

*You may select to pay your dues in full or monthly by an automatic payment option. If you choose to pay monthly, your credit card will be automatically charged the monthly rate on the 1st of each month.

Check : Core Supplier Manufacturer Supplier

List manufacturers you REPRESENT:

Do you reman HD? Yes No On-vehicle repair? Yes No

If YES:

Auto Truck

Other

MFR. REPRESENTATIVE

This membership does not apply to company sales personnel. You must be an authorized representative of 2 or more manufacturers

engaged in the automotive aftermarket.

Dues: Monthly $25 Dues: Yearly $300

Dues: Monthly Dues: Yearly

Less than $2 M $65 $780 $2 M - $8 M $90 $1,080 $8 M - $20 M $175 $1,995 Over $20 M $350 $4,095 Dues (Monthly or Yearly)

Annual Sales to Rebuilders

List items you SUPPLY:

Dues (Monthly or Yearly)

Paid by: Check (Mail)

Card Number: Security Code: Expiration:

Signature: Print Name:

Recommended by APRA Member (if known): Company:

VISA MasterCard

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

ALL NEW MEMBERS Check your products

REBUILDERS ONLY

Borg Automotive A/S Leszek Waliszewski Silkeborg, Denmark Sponsored by APRA Europe

Flight Systems Electronic Group Mark DiGiampietro Lewisberry, PA Sponsored by Marlene Koskinas, APRA

Flight Systems European Group Marc Baines Czech RepublicSponsored by Marlene Koskinas, APRA r

Wage and Hour Mythsby SESCO Management Consultants

Although the federal law governing work-ers’ wages and hours of employment is among the oldest legislation on the books, it is perhaps the one least complied with by employers. According to National Economic Research Associates, employ-

ers spent $467 million settling wage and hour lawsuits at both the state and federal level in 2012. That’s nearly half a billion dollars on lawsuits related to wages and salaries and overtime.

More often than not when wage and hour laws are violated, it’s not an intentional act by an employer, but rather a mis-understanding of the rules. It may be a surprise to some managers to learn that a few commonly held beliefs and practices are actually illegal.

Below are three myths related to wage and hour laws and suggested steps human resource (HR) professionals can take to make sure their companies stay within the law.

Myth #1: Employees paid a salary are not entitled to OT

It’s not just employers that have this misconception. Many employees wrongly believe that if they’re salaried, they don’t have the right to ask for overtime. But salary is only part of the equation when it comes to determining whether or not an employee is entitled to overtime pay.

Generally, under the Fair Labor Standards Act (FLSA), employees are considered “exempt” from overtime if they are paid a salary of at least $455 per week and they perform certain duties falling within one of the exemptions as defined by the FLSA. Therefore, HR profession-als should closely review the roles and responsibilities of all of their employees as well as all new hires before assuming that offering a salary eliminates the need for overtime pay. A careful reading of the FLSA will make it clear which employees are “exempt” and which employees are “non-exempt.”

Myth #2: Employees who take work home for convenience are not entitled to OT

False again. Any non-exempt employee who takes work home, even if the em-ployer has not encouraged them to do so, is entitled to overtime pay if the work at home results in total time worked for the workweek in excess of 40 hours.

This may have been less of a concern a decade ago, but in an age when em-ployees are constantly “connected” via the Internet, mobile phones and tablets, employers need to be extremely mindful of when their employees are engaging in work related activities.

HR professionals can protect their com-panies by outlining overtime and clear remote work policies and establishing consequences for employees who bring work home when they are told not to do so.

continued on page 9

Page 9 January 2014

For information about the activities of the

European APRA Divisionplease visit:

www.apra-europe.org

Registration Cancellation Policies: Registration cancellations received prior to January 10th, 2014 entitle registrant to a full 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 7, 2014. Refunds take up to 4 weeks.

Hotel Reservations: Visit www.hdaw.org to make your hotel reservations at the Mirage Hotel and Casino or call the hotel directly at 702-791-7111 and mention you are attending HDAW events.

Return to APRA 1) Fax: 703-968-2878 or 2) Mail: 4460 Brookfield Corporate Drive, Suite H, Chantilly, VA 20151-1671

HDRG Summit Registration Fee: Fee includes coffee breaks, group luncheon and all related meeting materials. APRA / HDRG / ADS / ITPA Member: $315 (U.S.) per person on or before January 10th; $350 (U.S.) after January 10th.

Non Member: $395 (U.S.) per person on or before January 10th; $425 (U.S.) after January 10th.

Questions? Call APRA at 703-968-2772

Register Early and Save Early Bird Fee After 1/10/14

APRA / HDRG / ADS / ITPA Member $315 $350 TOTAL

Non-Member $395 $425 TOTAL

GRAND TOTAL

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8th Annual Heavy Duty Remanufacturing Group Summit

January 27, 2014

Mirage Hotel, Las Vegas, Nevada*Held prior to HEAVY DUTY AFTERMARKET WEEK

Preliminary Program• Welcome & Introductory

Remarks Sandra Standley, Chairman of the HDRG

• Tuning Up Your Reman Business Jeff Susbauer, Growth Strategies

8th Annual Heavy Duty Remanufacturing Group SummitJanuary 27, 2014 / Mirage Hotel, Las Vegas, Nevada*Held prior to Heavy Duty Aftermarket Week in Las Vegas

• Getting to the Core of Remanufacturing Lisa Locklear, Level Seven Group, LLC

• How to Handle All the Electrical Loads in Trucks Bruce Purkey, Purkey’s Fleet Electric

• HD Reman: How Fragile is Our Industry? Bill Wade, Wade & Partners

• Electronics Turbo Actuator Remanufacturing Russ Schinzing, ERC, LLC

• HD Powertrain Remanufacturing Study & HD Remanufacturing Electronics Study Sandeep Kar, Commercial Vehicle Research, Frost & Sullivan

• The Reverse Logistics Story Gailen Vick, Executive Director, Reverse Logistics Association

• Heavy Duty Remanufacturer of the Year Awards Luncheon

• Coffee Breaks sponsored by Owner Resource Group r

Myth #3: Employers can give comp time instead of overtime

For many employees, the idea of receiving time-off for extra hours worked instead of additional pay is an attractive option. In fact, it’s something that many employees request.

Unfortunately, under the FLSA, it’s not a legal practice for private sector employ-ees. It should be noted that a bill that has been proposed in Congress that would enable private sector employees to choose between receiving overtime pay and comp time.

In the public sector, this choice already exists for state and federal workers. But as it stands today, it’s something that private sector employers must stay away from.It should be noted that “comp time” should not be confused with “flex time.”

If a non-exempt employee works 10 hours in one day and an employer wants to give them the ability to work six hours on a day later in the week, it is completely acceptable as long as the employee does not work more than 40 hours total in a given week. Once that threshold has been crossed, the employee must be paid overtime. r

SESCO Management Consultants is available to assist with your human resource issues. You may contact us by phone at 423-764-4127 or by email at sesco@sescomgt.com.

Wage & Hourcontinued from page 8

Page 10 January 2014

KEI ▪ MITSUBISHI ▪ POWERLINE ▪ NIKKO QUICKCABLE ▪ LUCAS CAV ▪ BUSSMAN

LEECE-NEVILLE ▪ PRESTOLITE ▪ LETRIKA LOADHANDLER ▪ NIEHOFF ▪ XANTREX ▪ C-TEK

COLE-HERSEE ▪ UT ▪ JIMCO ▪ PowerBright

• Facebook is now the most visited website (of all websites). • Three out of four consumers rely on social media to make buying decisions. • Facebook shares are the top influencer of Google search rankings in the U.S. • Every second two new members join LinkedIn. • The fastest growing age group using Twitter is 55- to 64-year-olds.

With more than 20 years as a journalist in the remanufacturing industry, Traci Matt is the logical choice to help build your company’s presence on social media. She has helped APRA and many businesses set up and maintain their social media strategies with creative, relevant content.

APRA members receive a “buy two, get one free” discount on social media account creation, updating, and content administration. This includes an assessment of your current strategy, setup or revamping your sites, and regular, engaging posts. Whether you need to improve your website’s search ranking or just want to connect with others in the industry, she will work with your goals in mind. Call APRA at (703) 968-2772 or contact Traci at matt@buyreman.com to get started for as little as $250. Other digital and print marketing content services are available.

Traci has done a terrific job getting our social media program off the ground. – APRA President/CEO Bill Gager

Traci Matt tracimatt.com

Social Media • Writing • Editing matt@buyreman.com

APRA's Distinguished Service AwardDuring the 2013 International BIG R Show, APRA honored three industry luminaries with the Distinguished Service Award. The award honors them for “distinguished business statesmanship and dedicated service rendered to the entire industry of automotive parts remanufacturing.”

Alex C. “Sandy” Galvin, Secretary of Power Brake Sales in Sacramento, California, has a long history with APRA. Volunteering just seems to run in the Gal-vin family, thanks to Sandy's inspiration. Power Brake Sales, a family owned and operated business, specializes in remanu-

facturing vacuum pumps, air brake com-pressors, air valves, spring brakes, wiper motors, power brake boosters, hydrovacs, hydraboosts and master cylinders. The company has been an active member of APRA for almost 30 years and was instru-mental in organizing APRA’s Heavy Duty Brake Division in 1980.

Shingo Komatsu, President of Shine Auto Parts in Nagano, Japan, has been a leader in the Japanese remanufacturing industry and a solid contributor to APRA’s growth in Asia over the past 35+ years. Komatsu has spoken at many APRA symposiums

in Asia, Europe and the USA. In present-ing Komatsu with the award, Nick Staub stated, “We look forward to Shingo’s con-tributions in the years to come with our newly formed Asia Pacific Division.”

Shine Auto Parts is a leading remanufac-turer in Asia of a/c compressors, alterna-tors, starters, power steering and starter drives.

The late Jerry Mariam, President of Quality Equipment Sales in Gardena, California, was been a staunch supporter of APRA, having volunteered his time and

Sandy Galvin and Immediate Past Chairman Nick Staub Shingo Komatsu shares a laugh during the “Salute to Bill Gager” Breakfast

service since 2005 as the Manufacturer Supplier Representative to the Execu-tive Committee. His positive outlook and giving nature made him a natural when it came to bringing in new exhibitors to the BIG R Show or helping staff liaison with members. Jerry knew everybody in the industry and was always willing to lend a hand and be the voice of reason.

Although Jerry was not able to attend the 2013 BIG R Show due to health reasons, he did receive his Distinguished Service Award. When presented with the award Jerry said, “It should be me giving the trophy to the industry for bringing so

many good friends into my life.”

Unfortunately, Jerry passed away from his long battle with cancer on December 1st. The industry lost a great con-tributor and we all have lost a wonderful friend.

APRA proudly welcomes Sandy, Shingo, and Jerry to this distinguished group of leaders of the worldwide remanufactur-ing industry. r

Jerry Mariam during the 2012 BIG R Show

Page 11 January 2014

CERTIFIED MANUFACTURER OFQUALITY AUTOMOTIVE ELECTRONICS

www.regitar.com • Tel: 334-244-1885 • Toll Free: 877-734-4827 • Fax: 334-244-1901 • Email: info@regitar.comAuthorized Distributors for REGITAR USA: Arrowhead Electrical Products, MN; Elpar Industries Inc., FL; J & N Auto Electric Inc., OH; R & R Regulators, IN;

Wagner Alternators and Supplies, CA; Dayer, Inc., Canada; IVO Automotive Corp., Canada

AUTOMOTIVE ELECTRONICS / POWER TOOLS

All Test Boxes include:RRT001-4G1, RRT001-6G1, RRT001-GM1

RVC RegulatorsGR822, GR910M, VRF156,

VRVN001, VRH2005-88, VRH2005-96,VRH2009-98, VRH2009-102, VRH2009-140

D755, VRB314, V0441VRH2005-101, VRH2005-163

VRH2000-73 , VRH2009-130, VRH2009-145

*Needs RRT001-130VRH2000-51, VRH2009-66, VRH2009-95,VRH2009-100, VRH2009-114, VRH2009-126

*P-D Regulator need VRH2009-66TF Module Test Plug

RRT001 Control Box for PCM and RVC Type Regulator TestingA Quick Guide to the Regulators we carry to use with our Tester and Test Harnesses

VRH2005-95*Needs RRT001-RLO

VRH2005-142, VRH2005-150*Needs RRT001-142

New from CORTECOA Division of Freudenberg-NOK Sealing Technologies - TransTec® Power Steer-ing Kits. A trusted brand for 35 years.

Pump Seal Kits• Kit # 8965 – Application – 2007-

2012 Suzuki SX4 2.0L• Kit # 8968 – Application – 2007-

2012 Hyundai Veracruz 3.8L 6 Cylinder

To place an order, please call toll free (800) 852-0340; phone +1 (419) 499-2502; fax +1 (419) 499-6122. For a com-plete list of available items, please visit us on the web at www.transtec.com

New from WAIglobal• IZR510 – Rectifier – Nikko, Used

on: Komatsu (1994-1997), Replac-es: NIKKO 0-35730-0510, Lester number: 12259

• M569 – Voltage Regulator – Valeo, 12 Volt, A-Circuit, IG-L Terminals, 14.7 Vset, Used on: Hyundai - Europe (2003-2006) ,

Email new product announcements to Kirsten Kase at kase@BuyReman.com.

Kia - Europe (2003-2006), Replac-es: VALEO 13480351, 9RC6131, W20100714, Lester number: 23910

• CUF193 – Ignition Coil, Used on: Subaru (1997-1999), Replaces: SUBARU 22433AA400

Call WAIglobal toll free: 800-877-3340, Ph 484-875-6600, Fax 800-948-6121 www.waiglobal.com

New from J&N Electric• J&N #410-24162 - New 12V,

CW, 10T PLGR Replacement for Bosch Starters on Dodge Sprinter & Mercedes Appl., 1.7kW, Ref. #0001115072/-5073

• Bosch #1127319575 - OEM Recti-fier for Bosch Alternators, 8 Press Fit Diodes

• Datcon #103736 - 12V Heavy Duty Industrial Electric Tachometer, 0-40000 RPM, 3-3/8"OD, Chrome Bezel, Black Face, Includes Mount-ing Bracket and Attaching Hard-ware

• Denso #028099-6290 - OEM CW Clutch for Denso Starter Appl., 5 Spiral Spl., 13.6mmID x 65.4mmL

• IMI High Torque #IMI201-001 - New 12V, CW, 11T OSGR Starter for Hyster and Yale Appl., 1.2kW, 33.4mmOD Pinion

Check out the full line up at www.jnelectric.com

New From Wagner• W050-34N - Bosch Alternator

Decoupler Pulley OE Litems, fits Lester 12370, 12379…, for Deutz, John Deere, dim: 8GRV 56mm OD, ref: 920650

• W450-102 – Bosch Starter Sole-noid, for Lester# 17751…, 107 Series Starter, for Audi…, ref# ZM-6-773

• W460-31 – Bosch Solenoid Cap, fits Lester# 17407, 17778, 17977, 32605…, for Audi, Linde, Skoda, VW…Small OD

• 416810 - Hyundai OE Starter, 36100-26810, Lester 6927…, for 2010 1.6lt Hyundai Accent M/T, 2009-2010 1.6lt Kia Rio M/T

For more information visit www.wagner-alt.com or contact directly, ph 800-345-5927, fx 909-465-5032, www.sales@wagneralt.com

New from REGITAR• VRB280 Regulator Bosch BMW,

Pic # 8020-1195, OE :1-124-515-105, 0-124-525-026; Lester: 11083, 13986

• RV-H024B, Rectifier-Regulator Assy, Hitachi, Nissan 23100-0T002, 35A, 24-V on Cabstar OE: 23100-0T002

• RB179HV Rectifier Bosch, Pic #:220-5209 OE: F-00M-123-266; Lester: 11076

See www.regitar.com or, contact

Customer Service in Alabama USA, phone 877-734-4827 , FAX (334) 244-1901 and email info@regitar.com

New from Peterson Wash and Blast Systems The Model AB2876 Airless Shot Blaster is a redesigned unit which cleans large or small parts—the largest part can be up to 76” long and 28” tall. The AB2876 has a load capacity of 600 pounds and is equipped with (4) 5HP blast wheels for even coverage, 18 spring loaded rods and clam shell style door. The cabinet is lined with ¼” manganese alloy, the AB2876 comes with a variety of options such as a 9DC bag style 3HP dust collector, 8”x24” parts basket and many others.

Suited mostly for aftermarket rebuilding of engines and other processing equip-ment it can also be used in the production facility as well.

Peterson Wash and Blast Systems offers industrial cleaning solutions for all sizes and shapes of metal parts. To receive a copy of the new brochure or for infor-mation on any of Peterson equipment, please call 1-800-835-3528, email sales@petersonwashandblast.com or visit www.petersonwashandblast.com. r

Page 12 January 2014

Tax EdgeIrv Blackman, CPA and lawyer, is a retired founding partner of Blackman Kallick Bartelstein LLP and chairman emeritus of the New Century Bank, both in Chicago. He can be reached at 847-674-5295, e-mail blackman@estatetaxsecrets.com, or on the Web at www.taxsecretsof the wealthy.com

How to Get Your Estate Plan Right the First Time Your Do Itby Irving Blackman

This tax victory story is about Joe. An interesting guy (age 61). Married to Mary (age 60). Owner of a family business (Success Co.)... professionally valued at $5.6 million. Has three kids (one son—Sam—manages Suc-cess Co. and will someday own it) and seven grandkids.The most interesting —from my perspective—fact about Joe is that he is a member of a 20-person study group (each an owner of a closely held business) that meets monthly, and once a year invites an estate planning pro-fessional (this year a lawyer, Lenny) to talk about "How to Create the Best Estate Plan."

Each year one member (this year it was Joe) becomes a case study. After Joe's case study was done (Lenny rec-

ommended a few changes), Joe —a long-time reader of this column —called me for a second opinion.

Let's take a minute to talk about the thousands of wonder-ful estate planning lawyers like Lenny, who—like 99% of his peers—is what we call a "traditionalist." Their estate planning goal is to make sure that there is enough liquid-ity (cash-like assets owned by the client, enough life insurance or both) to pay the potential estate tax.

My goal—on the other hand—is much more ambitious: (1) eliminate, or reduce as much as possible, the potential estate tax liability and (2) maximize the amount of wealth to the heirs (typically the kids and grandkids). The plan is set up to make sure Joe and Mary can maintain their lifestyle and keep Joe in control of his assets—including Success Co.—for life.

Now a few more key facts about Joe. He is worth (all numbers rounded) $15 million, which includes Success Co.: nets $1.5 million before tax, after a $300,000 salary to Joe, plus liberal fringe benefits. Success Co. grows—on average—about 10% per year. Joe earns (after taxes) about $400,000 to $600,000 more per year than he and Mary spend.

The balance of Joe's wealth includes two homes worth $2.7 million (main residence and vacation home), $1.7 million in his 401(k), cash and a stock and bond portfolio

of $1.8 million, $2.9 million in income producing real estate and $.3 million in sundry assets.

Finally, Joe has $6.2 million of insurance on his life (now owned by an irrevocable life insurance trust (ILIT) per Lenny's recommendation): $1.2 million in whole life and $5 million in 10-year term (6 years to the end of the term).

Without getting into every detail, following are the key changes and additions we made to Joe's estate plan. (First, it should be noted we made no changes to the ex-isting documents created by Joe's original lawyer and the changes made by Lenny.)

1. Residences (two): Changed titles so Joe's trust owned one-half of each residence and Mary's trust owned the other half. Result: Reduces the value of the homes by 30% for estate tax purposes (a discount of $810,000).

2. 401(k) plan: Qualified plan assets, like a 401(k), IRA and similar plans, will be double taxed... in-come and estate. Instead, we used a strategy called "Retirement Plan Rescue" to use the future income of the 401(k) plan to pay a portion of the insurance premiums in Number 7. following.

3. Success Co.: The business grows in value every year. We froze its value by having Joe sell Success Co. to his son (Sam) via an "intentionally defective trust" (IDT). Under crazy American tax law every penny Joe receives from Success Co. in payment for the sale to the IDT is tax-free to Joe. Joe keeps control of Success Co. via the voting stock (less than 1%) and sold the non-voting stock (over 99%) created just before the sale, to the IDT. The future cash flow of Success Co. will be used to pay Joe for the non-voting stock. A portion of this cash flow will be used to pay the premiums for the life insurance in Number 7. following.

4. Stock and bond portfolio: These assets were transferred to a family limited partnership (FLIP). Once again a discount (35%) as allowed under the tax law reduced the value of these assets for tax purposes by $630,000.

5. Income producing real estate: These properties were in three LLCs. The LLC interests were trans-ferred to a separate FLIP. More discounts for estate tax purposes... this time just over $1 million.

6. We set up a gifting program to use the $14,000 per year ($28,000 for Joe and Mary) for each of the kids and grandkids. We also used a portion of the $5.25 million ($10.5 million combined lifetime exclusion for Joe and Mary). It should be noted that the plan we created made sure that if any of the kids got divorced, the ex-spouse would not share in the family wealth.

7. Life insurance: Since no estate tax is due until the second death (of Joe and Mary), second-to-die life insurance (in an ILIT) makes more sense than insurance on only Joe's life. (Premiums are $19,160 on Joe per $1 million of coverage and only $11,102 on Joe and Mary for second-to-die.) Joe decided to stay with the $6.2 million in cover-age... but second-to-die only (dropping the existing policies). Annual premium cost will be $67,722 (to be paid for by Number 2. above [401(k)] and Number 3. above [Success Co. via the IDT]).

Victory! Our strategies eliminated all of Joe's potential estate tax liability. And that $5 million second-to-die insurance will someday go to the kids... guaranteed

Visit www.hdaw.orgfor details and

registration information

The Mirage, Las VegasJanuary 27-30, 2014

Driving EnergyInto the Industry’s

Future

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Page 13 January 2014

The remanufacturing industry helps the environment in a number of different ways: Energy & Raw Material Conservation • Landfill Space Conserved • Air Pollution Reduced

Imagine the added benefits to society if EVERYTHING we buy could be remanufactured.

Also imagine if products were originally manufactured with the sole purpose of being rebuilt and not thrown away...

Doing Our Part

(remember the term policy will lapse in 6 years). Finally, it should be noted that we con-sulted with Lenny and he approved every one of the strategies listed above. Want to learn more? Browse my website, www.taxsecretsofthewealthy.com. Got a ques-tion... call Irv at 847-674-5295.

Why Closely Held Business Owners Should Always Get a Second Opinion on Their Estate Plan by Irving Blackman

Joe, a long-time reader of this column, called me for a second opinion. He and his wife Mary were planning a three-week trip to Europe. His concern: Make sure his potential estate tax liability was covered in case of a fatal mishap on the trip.

Joe asked his CPA (Charlie) to compute his estate tax liability based on his current wealth. Charlie prepared a worksheet showing all the assets (and their values) owned by Joe, the estate tax liability ($3,227,000 ),the liquid assets available to pay the tax ($766,100) and the short-fall ($2,460,900). Charlie recommended and Joe bought a $2.5 million term policy on Mary (with Joe as the owner) to pay the estate tax.

It should be noted that Joe (age 61) and Mary (age 58) have a typical traditional estate plan: pour-over-wills and A/B trusts (drawn by a lawyer specializing in estate planning).

I want to zero in on the most common errors I see closely held business owners, like Joe, make in their estate planning... errors (really, missed opportunities to save estate taxes) that cause the Joes of the world to lose millions of dollars of their wealth to the IRS.

Let's start by taking a closer look at Joe's personal wealth. His total taxable estate is $16.7 million: $9.5 million in various investments (mostly real estate subject to $2 million in mortgages); Success Co. (business owned 100% by Joe) worth $4.6 million and nets about $950,000 per year after $275,000 salary to Joe, plus liberal fringe benefits; $1.8 million in a 401(k); $.8 million in miscellaneous assets, and finally, a $2 million life insurance policy on Joe (owned by him).

DiscountsThere is a loophole in the tax law concern-ing the value of certain assets: A particular asset retains its real fair market value, but has a lower discounted value for tax purposes.

Following is a little chart that shows you the asset class, the strategy used and that oh-so-wonderful discount.

Asset Strategy Discount Class Business Nonvoting stock 40% Investments Family limited 35% partnership Residence Split-ownership* 30% *Typically, 50% of residence owned by husband's A/B trust and 50% by wife's We implemented the above three strate-gies for Joe. The discounts totaled $5.565 million, bringing the taxable estate down to about $11.2 million (actually $9.2 million without the $2 million insurance policy, which we will deal with later).

Freeze the major assetsHere gifts (to the three kids) are the weapon of choice. We used the annual exclusions of $14,000 per donee ($28,000 for Joe and Mary combined), followed by using a portion of the lifetime credit (in 2013) of $5.25 million ($10.5 million for both). An intentionally defective trust (IDT) was used to transfer the non-voting stock of Success Co. to Joe's kids.... a tax-free transaction. Important: Even though the assets were out of Joe's estate, he continued to control them.

InsuranceThis is complicated stuff. You must (1) know the law, (2) understand the life in-surance products available in the market-place, (3) keep the policy proceeds out of the insured's estate and (4) minimize the cost of premiums. Sadly, few profession-als know how to get the job done. Let's deal with Joe's two policies one at a time. The $2 million policy: The annual premi-ums were $15,349 with a cash surrender value (CSV) of $52,000. A second-to-die policy on Joe and Mary (really what they need because no estate tax is ever due until both husband and wife have gone to heaven) has a lower premium of $10,521. The decision was easy... Drop the old policy. Joe pocketed the $52,000 CSV. A new second-to-die policy for $2 million was purchased by an irrevocable life in-surance trust to keep the death benefit out of their estate. The $2.5 million policy: First, a fact... the policy was no longer needed to pay estate taxes, which were eliminated by the above planning. But when, I told Joe that the premiums could be paid by the IDT, he was on board to have the IDT buy a $2.5 million second-to-die policy on Joe and Mary (for the benefit of their kids) and, of course, it was structured to be estate tax free. Some help with your life insurance plan-ning: Can you guess what is the most messed up area in estate planning?... Yes! Life insurance. Wrong type of policy. Overpay premiums. Proceeds subject to

estate tax. Either over insured or under insured. Actually, I could write a book. But the following should help you deter-mine if you are in insurance hot water and should get a second opinion:

1. You are married, have single life in-surance (typically on the husband), but logic tells you second-to-die will give you more bang for your premium buck.

2. Your policy is paid up... you no longer pay out-of-pocket premiums. Guaranteed to enrich the insurance company, instead of your family. Simply use a tax-free exchange to significantly increase the death ben-efit, and still pay no premiums.

3. In general, (a) have more than $350,000 in CSV, (b) $3 million in coverage or (c) the policy is more than 10 years old. Old policies should be updated. Typical result—significantly more death benefits for the same premiums dollar.

4. It's smart to have your insurance policies reviewed by an indepen-dent set of eyes every three years (get a second opinion).

Want to learn more? Browse my website: www.taxsecretsofthewealthy.com. In a hurry, call Irv (847-674-5295) with your questions or concerns. r

Page 14 January 2014

Caliper Core and Rebuilt for SaleWholesale lot of close to 3,000 rebuilt caliper and/or caliper core to sell. The calipers are in Eastern Canada. Email me for more information or if you want to receive the listing. Listing compare Absco numbers to Fenco, Promecanix, Cardone, AcDelco, Wagner and DNS.jo.dussault@absco.ca

Driveshaft Balancers for Sale(1) Westport Shaftmaker. New bearings, center bearing support, auto-weld unit and tooling.(1) Westport Model B-17 Balancer. New bearings, center bearing support and tooling. Contact Dan at drivelineman2003@yahoo.com

Prime business Opportunity near Green Bay, Wisconsin. Established customer base. Call Realtor Taylor Hansen @ (920)639-2291.

Shepard-Thomason Clutch rebuilding and test-ing machine, with load sensors and digital read out. Must be in good working order. Wanted clutch cover/fly-wheel balancer. Balancer must be in good working order.Please contact Bernie Solomons at 734-216-0317 or by email at bsolomons@exedyusa.com.

Director of Sales and OperationsKey Responsibilities:

• Develop relationships with new customers• Communicates creative sales techniques• Quantify market segmentation and opportunities• Manage operational aspects of incoming and outgo-

ing inventoryKey characteristics:

• Strong team player• Strong organizational capabilities• Exceptional communication skills, transparent,

direct and positive• Engaging personal style, able to be comfortable

at all levels of the organization• Unquestioned integrity• Able to build consensus amongst a team• Critical thinking and analytical skills• Strong problem solving and prioritization

capabilities.Requirements:

• Outstanding writing and communication skills• Read trade journals• 5 years in aftermarket automotive industry• Must be able to travel monthly• Proficient computer skills

Compensation:• Income: 60(s)k/ year• Benefits: Retirement and Insurance

Please send all resumes to directorofsando@gmail.com

HELP WANTED

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POSITION WANTED

(First 50 words FREE for all APRA members ) $1 per word for each additional word over 50. $3 per word for all non-members

Write down your classified ad as you want it to appear in the space provided below and mail, fax or email it with payment to APRA. We must receive payment BEFORE your ad is published. You may advertise equipment, parts, cores, businesses for sale, help wanted, etc. Please be sure to check off which issue(s) you would like your ad to appear. ADDED BONUS: Your ad will appear on APRA's website (www.apra.org) at no additional charge.

Please check ad type you are submitting:

For Sale r / Business For Sale r / Wanted r / Help Wanted r / Services r / Misc. r

Classified Advertisement

MAIL TO: APRA, Global Connection, 4460 Brookfield Corporate Dr, Suite H, Chantilly, VA 20151-1671(703) 968-2772 • FAX (703) 968-2878 • e-mail kase@buyreman.com

Please print or type:

rFeb 2014 r Mar 2014 r Apr 2014 r May 2014 r June 2014 rJuly 2014

NAME E-MAIL

COMPANY E-MAIL

ADDRESS

CITY STATE ZIP

PHONE FAX

FOR SALE

BUSINESS FOR SALE

European Remanufacturing Specialistis looking for a new challenge. A European Remanufac-turing manager has worked in our industry for more than 25 years on engines, transmissions and other components. Extensive experience in Production, Production Planning & Control, Logistics, Engineering, Services, Marketing, and Sales. The new challenge should be to work in Euope for a remanufacturer as a manager or product/ manager-specialist on a full time basis or as a consultant. For more information please contact Kirsten Kase at kase@buyreman.com. r

Auto TECH expo Features Snap-on Innovation Center Tour Snap-on Inc., innovator, manufacturer and marketer of tools, diagnostic and service equipment, and information solutions, is sponsoring an exclusive tour of its Corpo-rate Innovation Center in Kenosha, Wis., and a special seminar during Auto TECH expo, April 3-5 at the Hyatt Regency O’Hare in Chicago

This tour and seminar are limited to the first 120 Auto TECH expo Seminar Passport sign-ups. The morning event April 3 at the Snap-on campus includes a tour of the auto-technology lab; the Snap-on Museum, showing memorabilia dating to the company’s founding in 1920; its prototyping and 3D modeling facility; and its training center.

Guests also will attend a special technical seminar by Jim Moritz, Snap-on’s national training manager. “Breaking Good: Vehicle Sensors as a Diagnostic Tool” will tell you how to read oxygen, zirconia, titanium, lambda and other sensor technologies through his useful case studies on engine and drivability diagnostics.

The O2 sensor reports the oxygen content remaining in the exhaust. But this data reveals so many common engine faults and can even show what is going wrong before a failure. Jim will show how to read data from oxygen sensors and use it to diagnose various engine problems. The seminar will range from the basics of oxygen-sensor operation to tuning engine performance using the exhaust sensors as a diagnostic tool.

Lunch will follow, along with a final stop at the Snap-on gift shop. Visit www.autotechexpo.net. r

Register with Reman Toolbox today to get great discounts — like up tp 55% off

certain items from Grainger!

www.remantoolbox.com

Page 15 January 2014

DRIVESHAFT FABRICATION MACHINERY

WESTPORT MACHINE WORKS, INC.700 Houston St., West Sacramento, CA 95691

1-800-237-1444 • Fax 916-371-1720 www.westportproducts.com

ASSEMBLE - WELD - STRAIGHTEN - BALANCE DRIVELINES QUICKLY & ACCURATELY

Arrowhead Electrical Products (www.arrowheadep.com) .......... 4

BizUnite (www.remantoolbox.com) .......................................... 16

C.C. Battery (www.ccbattery.com) ........................................... 10

EGPS (www.eglobalpartsearch.com) ........................................ 3

Heavy Duty Aftermarket Week (www.hdaw.org) ...................... 12

J&N Electric (www.jnelectric.com) ............................................. 5

Metropolitan Distributors (www.metrodist.com) ......................... 6

Phoenix Automotive Cores (www.phxautocores.com) ............... 7

Regitar USA (www.regitar.com) ................................................11

Romaine Electric (www.romaineelectric.com) ......................... 13

TransTec (www.transtec.com) ................................................. 15

Westport Machine Works (www.westportproducts.com) ......... 14

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realize that we should collectively look across the entire remanufacturing industry and start to put all our forces together.

Alongside the Summit, Duxes Consulting organized an exhibition for remanufacturers and their suppliers. In 2012 in Beijing at the NKLR International Forum, Dux-es operated their first hotel exhibition with 30 exhibitors. In Shanghai this year they successfully enhanced their exhibit to 50 exhibitors. Duxes is confident that over time this exhibition will continue to grow.

Regarding automotive remanufacturing in China, my view is that the heavy duty side of remanufacturing is well represented and progressing steadily, but on the car side of remanufacturing a lot remains to be done. Not only are the cars on the road young, but the other challenge is that the Chinese trade and consumers are not yet particularly keen to use reman products. I have not forgotten the time when I was fighting in Europe for remanufactured products versus new products. In certain areas this is still the case, but I believe that eventually remanufacturing will win everywhere and not only in automotive industry. r

Fernand Weiland can be contacted at fernand.weiland@t-online.de

Shanghaicontinued from page 1

www.BuyReman.com

Why I’m an APRA Member

APRA, the Membership that PAYS!Become an APRA member today. Call 703-968-2772, ext. 115 and speak with George or email APRA at APRAmembership@apra.org

I have been an APRA member since the early ‘80s. Much of my early training and exposure to emerging technology was through attendance at clinics and seminars presented during the Big R Shows. Through my involvement with APRA I have had the opportu-nity to meet and become friends with leaders of our industry, past and present. This networking and sharing of knowledge is an integral part of my success in the Electrical Remanufacturing community.

I have seen APRA grow and change with the times. When I first came into this business large and medium size rebuilders dominated the market and that is where APRA’s focus was — small guys like me just went along for the ride. Today that landscape has changed. Through consolidation, acquisition and mergers there are far fewer large rebuilders, but there are still several thousand small shops in

operation.

The addition of the Reman Toolbox has been one of the best member benefits that I have seen come along in years. Great discounts from Grainger, as well as deals on freight, cell phones, uniforms, and credit card processing give small shops the buying clout of much larger firms. The savings from these programs alone can easily cover the yearly membership dues. I wish these great deals were around when I was running my shop!

Dan Smith, Sales ManagerArrowhead Electrical ProductsAPRA Electrical Div. Chairman

Page 16 January 2014

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