Dumpster Driving: Inside the Treasures From the Los Angeles ‘Junkyard’ Car Collection

Classic car enthusiast Rudi Klein was, by all accounts, a unique character.

The German émigré lived in Los Angeles, where he opened a junkyard called Porche Foreign Auto Dismantling (with the automaker’s name misspelled to avoid litigation). Klein, who passed away in 2001, took in only high-end foreign cars, mostly Mercedes and Porsche, but also BMWs and every brand of supercar, including many very rare examples. The junkyard’s trophies included famous Grand Prix driver Rudolf Caracciola’s 1935 Mercedes 500 K Special Coupe, a rare 1955 Mercedes-Benz 300 SL “Gullwing” (one of 29 with alloy bodywork), and many more.

Stacked-up Porsches are still in place for the auction.
Robin Adams/RM Sotheby’s

Most, but certainly not all, of the cars that Klein bought were crashed, burned, or otherwise derelict. A German crew managed to get into Klein’s closely guarded sanctuary, subsequently producing the unauthorised 2017 photo book Junkyard . Many other people were turned away from the gates, and Klein charged such high prices for salvaged parts that purchases were fraught. The doors remained closed after Klein’s sons, Ben and Jason, took over. But now, everything is coming into the light as RM Sotheby’s prepares to auction cars from the Klein collection on Oct. 26 in its current South Los Angeles location, including those two notable Mercedes-Benzes.

Andrew Olson, car specialist at RM Sotheby’s, said Klein’s premises have “an interesting and special atmosphere—if we moved the cars, some of that would be lost. There’s still a rack of Porsche 356s. We took them out to photograph them, but then they went back to where they were.” In Monterey last year, the auction house staged a horde of storm-damaged Ferraris as if they were still in a collapsing warehouse. Klein’s yard provides natural staging.

There’s a total of 180 cars in the sale, Olson says. Most of what was in the yard will be sold, minus some extensively burned cars and those with a current value that would not justify restoration.

The 500 K Mercedes coupe has bodywork by Sindelfingen. It is a one-of-one vehicle, still wearing its original body. The car was restored and caused a stir at the famed Pebble Beach car show in 1966 and then again in 1978. But it was parked under Klein’s ownership in 1980, fortunately under cover. “The condition is surprisingly good,” Olson says. “It’s very solid and should be a straightforward restoration.”

A roomful of Porsche 356s at Rudi Klein’s yard.
Robin Adams/RM Sotheby’s

The alloy-bodied 1955 Mercedes 300 SL was the only one delivered in black, and had once been owned by Ferrari importer Luigi Chinetti. The auction house describes it as “a unique example of the most sought-after of all 300 SLs, virtually unseen for decades.” Complementing it is a 1957 300 SL Roadster that was painted Fire Engine Red from the factory, with a cream interior, and coveted Rudge wheels.

Rudolf Caracciola’s 1935 Mercedes 500 K Special Coupe is in “surprisingly good” condition.
Kegun Morkin/RM Sotheby’s photo

The 1967 Iso Grifo A3/L Spider is a prototype built by the Italian coachmaker Bertone, and is the only factory-built Grifo convertible. Klein acquired the car, with Chevrolet V8 power, reportedly from auto enthusiast and Hollywood producer Greg Garrison. According to Junkyard : “It was one of Rudi Klein’s all-time favourites, and he hoped one day to rebuild it and take part in a classic-car rally in Bavaria.”

The Apple growth and profit machine is wavering, and the boost from price increases might not be enough to keep it going at historic rates. That dials up the pressure on Apple’s new chief executive, John Ternus.

The company saved the bad news for its earnings call, an hour after it posted its results for the September quarter, projecting that for the current quarter its high-margin services business will continue to slow and that its widely watched gross profit margin will continue to fall.

Apple AAPL -1.83%decrease; down pointing triangle shares had been flat in post-close trading but declined as much as 4% after the company made the projections, which fell short of Wall Street estimates.

The impact of high memory costs are weighing even more heavily on the company, Ternus and Apple Chief Financial Officer Kevan Parekh said on the company’s earnings call. Apple has stockpiled cheaper components purchased earlier, but those inventories are dwindling.

When Ternus took over as Apple’s third chief executive of the past 29 years on Sept. 1, he inherited sky-high expectations. The men he followed were among the most successful company leaders in American business history. Steve Jobs revolutionized consumer devices multiple times. Tim Cook expanded Jobs’s creation to spectacular heights.

The expectations are reflected in Apple’s huge valuation. Oppenheimer analyst Martin Yang noted that Apple stock trades at 36 times next year’s expected earnings, a premium to the overall market, even though its earnings are only expected to grow 1%, which is slower than its tech peers.

“We see insufficient upside to justify the premium,” Yang wrote in an investor note, adding that Apple needs to boost iPhone sales growth and turn around its slowing services business to make him more bullish.

Investors have bid up Apple shares because it has been a port in the AI storm—a reliable and capital-efficient business that stands apart from rivals which are spending hundreds of billions of dollars racing to the AI frontier.

While others invest in data centers, Apple has been pouring its own cash into buybacks and dividends. But that safety may be challenged if Ternus can’t speed up Apple’s innovation engine.

Apple’s lagging performance in AI was evident when its new “Siri AI” chatbot arrived this past quarter. Its long-maligned assistant was already stale the day it arrived, surpassed by agents such as Instinct and Muse that can complete multistep tasks for consumers, while Siri still sets kitchen timers.

Apple needs to give people reasons to buy its devices as they get more expensive. The company raised prices across the board last quarter to help offset higher costs. Without compelling new features, a big question is whether consumers will slow the frequency of iPhone upgrades.

The new iPhone Duo appears to be a bright spot. Consumers are scooping up the $1,999 foldable smartphone despite mixed reviews—so many that Apple can’t keep up with demand. Shipping dates jumped out to January soon after the device went on sale, a disappointment for the normally reliable Apple supply chain.

Apple said its revenue grew 12% in the September quarter, slightly ahead of Wall Street’s expectations. Its widely tracked gross profit margin, at 47.9%, also came in just ahead of analyst estimates.

Apple will need to find new growth avenues because a reliable engine during the Cook era—the services business—is slowing. Courts and regulators worldwide have limited Apple’s ability to charge developers big fees to distribute apps through its App Store, the biggest component of the company’s services segment.

One of its most lucrative App Store fee generators has been the ChatGPT app from OpenAI. Around the time Apple accused OpenAI of trade-secret theft this past summer, OpenAI began redirecting potential subscribers to pay via its website instead of the App Store, skirting Apple’s tollbooth.

Apple’s valuation has bumped up against a ceiling in recent weeks. Six times it traded above a $5 trillion market capitalization intraday before finally closing above the threshold, which it has already fallen back below.

News Corp, owner of The Wall Street Journal, has a commercial agreement to supply news through Apple services.

Dumpster Driving: Inside the Treasures From the Los Angeles ‘Junkyard’ Car Collection

Apple’s growth engine is showing signs of slowing, as rising costs, weaker services growth and AI competition challenge its profitability. With John Ternus taking the helm, the pressure is on to reignite innovation and sustain investor confidence.