Lkq

LKQ Current Strategies include the following principles:

1. Strengthen the LKQ national network: LKQ intends to expand their market coverage through a combination of internal development and acquisitions They plan to have a presence in all major metropolitan markets and in a number of smaller markets in the US. They claim to apply an analytical and disciplined approach to their acquisition process and target companies with strong management teams, a record of environmental compliance, solid growth prospects and a reputation for quality and customer service.

2. Further Develop Business Relationships. LKQ intends to continue to develop business relationships with automobile insurance companies and extended warranty providers. LKQ believes that insurance companies and extended warranty providers, as those who pay for many repairs, will take a more active role in the selection of replacement products in the repair process in order to use lower cost alternatives to new OEM products. On behalf of certain insurance company customers, LKQ provides a review of vehicle repair order estimates so they may assess the opportunity to increase usage of recycled OEM, aftermarket and refurbished products in the repair process, thereby reducing the insurance company’s costs.

3. Continue to Improve Operating Results. LKQ is working to improve operating results by applying business disciplines to their most recently acquired facilities, continuing to build their network, further centralizing key functions such as IT and Purchasing and by increasing revenue at lower volume facilities. They believe that they can improve profitability at these facilities by achieving higher volumes and improved economies of scale that are realized at the higher volume facilities.

4. Further Develop Technology and Business Processes. LKQ continues to emphasize the use of technology in their processes to improve efficiency and to increase