Looks Like Junk, Smells Like Money

Automotive Industries, May, 1999

Ford says it's in the junkyard business now. The automaker will dismantle scrapped vehicles and sell the undamaged parts to mechanics over the Internet and the rest to foundries for recasting into new parts. The as yet un-named venture could produce $1 billion in annual sales revenue within five years, says Bill IA, Ford's COO for the new business.

In addition, the recycling business could push Ford into related businesses such as a re-manufacturing venture that repairs and replaces worn parts in components that otherwise work. Some 11 million vehicles a year are scrapped and 75% of the parts are recycled. Ford says it aims to bring that recycle rate up to 90% on the vehicles going through its yards.