Herb says. “By 1999, we still had a very small footprint of 3 ½ acres, yet we were gener- ating about 6 million a year. Our 68 employees turned our stock over once a quarter. We built a 13,000 sq. ft. two- story building to do our busi- ness. People wondered why we would invest in a building with an enclosed rack ware- house? Auto recyclers didn’t invest in their properties at that time. But the reality was we were looking to diversify, and develop the property with all industrial buildings. Our phase two, after we built our own building, was the construction of a modern automotive center with six non-competing automotive tenants,” says Herb.

This cutting-edge operation caught the eye of a buyer,

government affairs. He also was integral in several LKQ initia- tives in the U.S. and abroad. What makes this part of Lieb-

erman’s story most interesting was that he was to become ARA’s next president. The industry was experiencing fear of the unknown and the rise of consolidators, like LKQ and Greenleaf. “Some of those who were fearful now tell me that LKQ is their largest customer,” says Herb. “But back then, it was a difficult time.”

The quote (shown right) that appeared in the November-December 2000 Automotive Recycling magazine interview of Lieberman as he became the ARA President illustrates that CHANGE is a consistent theme in the industry!

which landed Lieberman at the center of what was to be a transitional time in the industry and the ARA – the era of consolidation. The team at Lakenor Auto & Truck Salvage was approached by the LKQ Corporation, and its then-new president and chief executive officer Joe Holsten to be purchased and adopted into the LKQ fast- growing network. “At this time, Barry was managing the company, and I was semi-retired working just three days a week. LKQ approached us first and we began discussions. A week later, Ford Motor Company’s Greenleaf approached us, as well. Because we had already started confidential con- versations with LKQ, we were unable to let Greenleaf view our records, so they withdrew their interest.” Ultimately, Lieberman left the decision to sell up to his father and his son. “My father started the business and this was my son’s inheritance. My father said we had laid a good foundation and maybe we should let someone else take it further. My son said he loved the business, but didn’t much enjoy the management aspect, and was concerned about when I retired full-time. For all of us, we weighed the liability that we had as a family business. We were too small to be big and too big to be small. So we all agreed to sell.” Their facility was the 6th to be acquired by LKQ, and the smallest facility in the network still to date. Under the LKQ mantel, Barry continued to run the business for two years until a replacement was hired, and then he went into real estate. Herb was offered a job doing what he loved most, as LKQ’s intra- and inter-in- dustry liaison, where he represented LKQ to related automotive industry organizations and had a hand in

48 // March-April 2019

“Since I was in line to become ARA President, there were some decisions to be made. In our negotiations, Joe Holsten and I discussed that I could not have dual allegiance to LKQ and to ARA and its membership. I would have to make ARA a pri- ority and make decisions based on what is best for ARA and its

members. Holsten felt it would be beneficial for me to make ARA and its members the priority, and allowed me to serve ARA as president,” says Herb. As he went into that role, it was not easy. “It was an extremely hard time for me. I had been active in ARA since 1958. I had developed industry friends who all helped me along the way. When you become part of the Executive Committee, it is a tight group, built on trust and respect, like family. When they found out we had sold off the company, there were misgivings. I made it very clear that the agreement with LKQ made my loyalty to ARA. But, my track record had to speak for itself, and eventually trust overcame the fear,” Herb said. “I am glad I was able to serve, and I know I did the right thing for my family and for my industry.”

Executive Concerns During his EC service, an ARA vs. ADP lawsuit was before the Federal Trade Commission. In the suit, ADP, who owned Hollander, purchased Auto Info. ARA claimed this created a data monopoly. ARA pre- vailed in the law suit and received significant awards for use towards its members. ARA established an inter- national database with the then-court awarded perpetual license to the Hollander database. Lieberman feels his effort to develop this was his largest contribution. “At the time, this provided the greatest protection to host industry-specific data and provided non-dues rev- enue for the Association. Unfortunately, third-party inter- ests and a series of events unraveled progress,” he says. “Now, my greatest fear has now come true.”

Automotive Recycling

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