CSK Discovers Accounting Problems
Some Diesel Additives Not Appropriate for Diesel Engines
Entries Sought for America's Top Auto Technician

CSK DISCOVERS ACCOUNTING PROBLEMS

Accounting irregularities have surfaced at CSK Auto Corp., the parent company of Checker Auto Parts, Schuck's Auto Supply, Kragen Auto Parts and Murray's Auto Parts Stores.

Phoenix-based CSK's internal auditors recently found that potentially $27 million in sales of merchandise had been overstated, said company spokesman Mike Banas. "It appears that at least $20 million of this inventory overstatement originated in periods prior to fiscal year 2002," the company said in a statement.

The company said they were also looking into $4 million to $10 million in vendor allowance receivables that were written off or refunded to check for any potential problems.

CSK has hired an independent auditor to investigate these and other accounting irregularities, including $112 million in improper inventory costs between 2001 and 2005.

CSK operates 1,273 auto parts stores in 22 states.

SOME DIESEL ADDITIVES NOT APPROPRIATE FOR DIESEL ENGINES

Diesel fuel additives that are not clearly labeled as approved for use in model year 2007, or newer engines, should not be used in new diesel motor vehicles.

According to the Automotive Specialty Products Alliance (ASPA), the problem is "The vast majority of the consumer diesel fuel additive industry was not notified or aware of this requirement before May 1, 2006. Therefore, products remaining on store shelves or in retail inventory prior to June 1, 2006, are likely not appropriately labeled."

According to EPA regulations, all diesel fuel additives sold to their ultimate consumer after June 1 must be labeled with one of the following statements on the container: "This diesel fuel additive complies with the federal low sulfur content requirements for use in diesel motor vehicles and nonroad engines" for additives meeting the 15 ppm sulfur standard.

Additives not meeting the 15 ppm sulfur standard must have the consumer label "This diesel fuel additive does not comply with federal ultra-low sulfur content requirements for use in model year 2007 and newer diesel motor vehicles or model year 2011 and newer diesel nonroad equipment engines.''

The EPA-required labels are meant to ensure that consumers do not add diesel fuel additives to 2007 model year diesel engines if those additives are above 15 ppm sulfur content. These 2007 model year diesel engines have been designed to run on 15 ppm sulfur (or less) containing fuel and fuel additives.

The ASPA would like to remind all retail outlets, distributors, and distribution centers with diesel additives in inventory of the need to provide proper labeling of all diesel fuel additive products and providing sticker labels or other methods to be attached to unlabeled products.

Retail outlets are also encouraged to utilize a "shelf talker" to advise consumers about reading the label and selecting the correct products for their engines.

ENTRIES SOUGHT FOR AMERICA'S TOP AUTO TECHNICIAN

BP is launching its second annual Amoco Ultimate Golden Mechanic contest to find the "top auto technician in America."

BP will select the three best mechanics who will receive an all-expenses paid three day/two night trip to Las Vegas, Nevada, where they will compete in a head-to-head competition at the 2006 SEMA show to battle it out for the coveted "Golden Wrench." The finalists will demonstrate their automotive expertise and abilities in front of a live audience and panel of qualified judges, including automotive industry experts.The grand prize winner will take home $25,000, $1,200 of fuel, and will be named an Amoco Ultimate spokesperson for 2007.

"We want to reward the mechanic who consistently goes above and beyond in the garage, providing quality service to his or her customers each day," said Chuck Grawey, Vice President of BP's Fuels Management Group. "Our ideal candidate has premium auto repair skills, a charismatic personality, is active in his or her community and is environmentally conscious."

The contest is open to state-certified independent auto technicians over the age of 21. For complete rules or to enter the contest, visit www.bpgoldenmechanic.com. Entries must be received by Aug. 11.

Originally published in the August/September 2006 issue of Automotive Booster Magazine.
Copyright 2006 by KAL Publications Inc.