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General Automotive Repairs/Auto Wreckers

Industry Code: 65808

Compulsory

This industry includes general and specialized automotive mechanical and electrical servicing on cars and light trucks, as well as tire retreading and the salvage and sale of re-usable automobile and truck parts.

Tire retreading is a service geared to the trucking industry and includes the rebuilding of transport truck tires. Most retreading companies are also involved in the sale and installation of new tires as well as offering other automotive repair services. In larger franchise or branch organizations, the retreading may be centralized in a particular area.

Operation Details:

Businesses may offer a complete range of mechanical services (general automotive repair) as well as specialized servicing of chassis (lubrication shops), tires, brakes, mufflers, radiators, transmissions, and tune-ups with some incidental welding, grinding, painting or machining permitted. The installation and/or repair of vehicle electrical systems or components such as air conditioning/heating, batteries, ignitions, generators, etc., is included.

Businesses may utilize a garage facility with hoists/jacks, air compressors, parts storage, liquid waste disposal, hand tools, tire balancers, tune-up equipment, and may employ mechanics, journeymen, labourers, shop foreman, parts staff, and office/administrative staff.

The sale of parts is typical and common to this industry and does not warrant an additional classification.

In retreading operations, used tires are first visually inspected to ensure road worthiness. Existing tread on the casing is shaved down. Tires are again inspected through a computer analysis and any defects such as nail holes are repaired.

A new pre-molded tread is then glued and wrapped around the prepared casing. Batches of these rebuilt tires are placed in heated drums to cure or bond the retread with the casing. There is a final inspection and then painting to produce a finished tire.

The industry has evolved where most retreaders now use a "cold" capping process rather than the traditional "hot" process which required the use of steam in the curing cycle. Temperatures now do not normally exceed 212 degrees Fahrenheit.

Companies that salvage for resale purposes, used automotive parts from vehicles are referred to as Auto Wreckers. These businesses will purchase or take in unwanted vehicles that are no longer road worthy. Vehicles are stored in large yard compounds and stripped of all reusable parts, for sale to the public with the remnants of the vehicle then sold for scrap metal purposes.

These employers may have mechanics on staff to remove parts from the salvage vehicles and have an inventory of parts available for sale. The mechanics may also rebuild parts and install them for the customer. Auto wreckers may operate on a U-Pick or self-serve basis where the customer would be responsible for removing salvageable parts.

Once all the salvageable parts have been removed, the car or truck body will be crushed or compacted prior to sale as scrap metal. Gas tanks and rubber tires may have to be removed. Unless the auto wrecker has equipment, such as a crusher or a cat to compact the car or truck bodies, the crushing or compacted is contracted out. The car bodies are stockpiled until there are enough to make it feasible to bring in a mobile crushing unit, as well as enough tonnage to haul to the foundry. It should be noted that AltaSteel Ltd. only purchases scrap metal from salvage dealers that are contracted as their brokers.

Underwriting Considerations:

This industry also covers businesses which rent out space for 'do-it-yourself' or self service auto repair. These businesses will provide customers with repair facilities which can include hoists, paint booths, tire changers and other related equipment and tools. The rental service is usually provided in conjunction with another business such as auto repair or sales and would be incidental to the other business being conducted; however, when conducted as a separate business, it would be classified in industry 65808.

Businesses that offer retail gas sales in conjunction with auto repair services are classified in industry 65400, Service Stations.

Businesses primarily repairing mobile equipment, highway tractor units, or servicing diesel engines, will be classified in industry 62201, Mobile Equipment Dealers. Such employers typically employ a predominance of 'heavy duty' mechanics.

Businesses that specialize in engine rebuilding are classified in industry 30801, Machining.

Custom car crushing or compacting operations, independent of an auto wrecking business, are classified in industry 62700, Metal Salvage. In general, industry 65808 does not include any other salvage or recycling operations that would otherwise be classified in industry 62700.

The primary operations of auto wrecker businesses involve the sale of reusable parts. After all the reusable parts are removed, the disposal of the car/truck bodies is considered incidental. This may be in the form of a custom towing service. An additional feature may be compound storage of seized, towed or repossessed vehicles.

This classification should be used for all companies involved in any tire retreading operations including all the operations of companies which combine retreading with other automotive services.

Installation of trailer hitches as a business, whether strictly bolt-on or requiring welding, is included in this industry providing there is no manufacturing involved.

Premium Rate History:

Activities:

Auto Air Conditioning and Heating Systems, Install
Automobile Brake Shops
Automobile Exhaust and Muffler Repair
Automobile Inspections
Automobile Radiator Repair Shops
Automobile Repair Shops, General
Automobile Tire Repair Shops
Automobile Transmission Repair Shops
Automotive Electrical Services
Auto Wreckers
Batteries, Automotive - Service Shops
Brake Repair Shops
Electrical Services - Automotive
Exhaust and Muffler Repair Shops
Heaters, Automotive Air and Water - Installation
Heating and Air Conditioning Systems - Install Automotive
Ignition Repair - Automotive
Jacob Brakes - Installation
Mechanic - Auto/Light Truck
Muffler and Exhaust Systems Repair Shops
Propane Conversion - Vehicle
Radiator Repair Shops - Automotive
Refrigeration Services - Transport
Retreading of Tires
Service Bays (Vehicle) - Rental of
Tire Retreading
Tires and Tubes - Sale, Installation and Repair
Transmission Repair Shops
Transport Refrigeration Services
Tubes and Tires - Sale, Installation and Repair
Vehicle Service Bays - Rental of
Wheel Alignment Shops
Wrecking Yard (Automotive)

Rate Group History:

This rate group was established in 1991. On January 1, 1991, industry 62701, Auto Wreckers was placed into this rate group in recognition of the automotive nature of this business.

On January 1, 1994, tire retreading and tire manufacturing operations were separated with manufacturing moving to Industry 16901, Manufacture of Industrial Rubber Products. Industry 16300, Tire Retreading was placed into this rate group as this service was linked to other tire and automotive service activities.

Industries 62701, Auto Wreckers and 16300, Tire Retreading were consolidated into this industry on January 1, 2011.

This industry includes general and specialized automotive mechanical and electrical servicing on cars and light trucks, as well as tire retreading and the salvage and sale of re-usable automobile and truck parts.

Tire retreading is a service geared to the trucking industry and includes the rebuilding of transport truck tires. Most retreading companies are also involved in the sale and installation of new tires as well as offering other automotive repair services. In larger franchise or branch organizations, the retreading may be centralized in a particular area.

Premium Rate History:

Activities:

Auto Air Conditioning and Heating Systems, Install
Automobile Brake Shops
Automobile Exhaust and Muffler Repair
Automobile Inspections
Automobile Radiator Repair Shops
Automobile Repair Shops, General
Automobile Tire Repair Shops
Automobile Transmission Repair Shops
Automotive Electrical Services
Auto Wreckers
Batteries, Automotive - Service Shops
Brake Repair Shops
Electrical Services - Automotive
Exhaust and Muffler Repair Shops
Heaters, Automotive Air and Water - Installation
Heating and Air Conditioning Systems - Install Automotive
Ignition Repair - Automotive
Jacob Brakes - Installation
Mechanic - Auto/Light Truck
Muffler and Exhaust Systems Repair Shops
Propane Conversion - Vehicle
Radiator Repair Shops - Automotive
Refrigeration Services - Transport
Retreading of Tires
Service Bays (Vehicle) - Rental of
Tire Retreading
Tires and Tubes - Sale, Installation and Repair
Transmission Repair Shops
Transport Refrigeration Services
Tubes and Tires - Sale, Installation and Repair
Vehicle Service Bays - Rental of
Wheel Alignment Shops
Wrecking Yard (Automotive)

Operation Details:

Businesses may offer a complete range of mechanical services (general automotive repair) as well as specialized servicing of chassis (lubrication shops), tires, brakes, mufflers, radiators, transmissions, and tune-ups with some incidental welding, grinding, painting or machining permitted. The installation and/or repair of vehicle electrical systems or components such as air conditioning/heating, batteries, ignitions, generators, etc., is included.

Businesses may utilize a garage facility with hoists/jacks, air compressors, parts storage, liquid waste disposal, hand tools, tire balancers, tune-up equipment, and may employ mechanics, journeymen, labourers, shop foreman, parts staff, and office/administrative staff.

The sale of parts is typical and common to this industry and does not warrant an additional classification.

In retreading operations, used tires are first visually inspected to ensure road worthiness. Existing tread on the casing is shaved down. Tires are again inspected through a computer analysis and any defects such as nail holes are repaired.

A new pre-molded tread is then glued and wrapped around the prepared casing. Batches of these rebuilt tires are placed in heated drums to cure or bond the retread with the casing. There is a final inspection and then painting to produce a finished tire.

The industry has evolved where most retreaders now use a "cold" capping process rather than the traditional "hot" process which required the use of steam in the curing cycle. Temperatures now do not normally exceed 212 degrees Fahrenheit.

Companies that salvage for resale purposes, used automotive parts from vehicles are referred to as Auto Wreckers. These businesses will purchase or take in unwanted vehicles that are no longer road worthy. Vehicles are stored in large yard compounds and stripped of all reusable parts, for sale to the public with the remnants of the vehicle then sold for scrap metal purposes.

These employers may have mechanics on staff to remove parts from the salvage vehicles and have an inventory of parts available for sale. The mechanics may also rebuild parts and install them for the customer. Auto wreckers may operate on a U-Pick or self-serve basis where the customer would be responsible for removing salvageable parts.

Once all the salvageable parts have been removed, the car or truck body will be crushed or compacted prior to sale as scrap metal. Gas tanks and rubber tires may have to be removed. Unless the auto wrecker has equipment, such as a crusher or a cat to compact the car or truck bodies, the crushing or compacted is contracted out. The car bodies are stockpiled until there are enough to make it feasible to bring in a mobile crushing unit, as well as enough tonnage to haul to the foundry. It should be noted that AltaSteel Ltd. only purchases scrap metal from salvage dealers that are contracted as their brokers.

Underwriting Considerations:

This industry also covers businesses which rent out space for 'do-it-yourself' or self service auto repair. These businesses will provide customers with repair facilities which can include hoists, paint booths, tire changers and other related equipment and tools. The rental service is usually provided in conjunction with another business such as auto repair or sales and would be incidental to the other business being conducted; however, when conducted as a separate business, it would be classified in industry 65808.

Businesses that offer retail gas sales in conjunction with auto repair services are classified in industry 65400, Service Stations.

Businesses primarily repairing mobile equipment, highway tractor units, or servicing diesel engines, will be classified in industry 62201, Mobile Equipment Dealers. Such employers typically employ a predominance of 'heavy duty' mechanics.

Businesses that specialize in engine rebuilding are classified in industry 30801, Machining.

Custom car crushing or compacting operations, independent of an auto wrecking business, are classified in industry 62700, Metal Salvage. In general, industry 65808 does not include any other salvage or recycling operations that would otherwise be classified in industry 62700.

The primary operations of auto wrecker businesses involve the sale of reusable parts. After all the reusable parts are removed, the disposal of the car/truck bodies is considered incidental. This may be in the form of a custom towing service. An additional feature may be compound storage of seized, towed or repossessed vehicles.

This classification should be used for all companies involved in any tire retreading operations including all the operations of companies which combine retreading with other automotive services.

Installation of trailer hitches as a business, whether strictly bolt-on or requiring welding, is included in this industry providing there is no manufacturing involved.

Rate Group History:

This rate group was established in 1991. On January 1, 1991, industry 62701, Auto Wreckers was placed into this rate group in recognition of the automotive nature of this business.

On January 1, 1994, tire retreading and tire manufacturing operations were separated with manufacturing moving to Industry 16901, Manufacture of Industrial Rubber Products. Industry 16300, Tire Retreading was placed into this rate group as this service was linked to other tire and automotive service activities.

Industries 62701, Auto Wreckers and 16300, Tire Retreading were consolidated into this industry on January 1, 2011.