Here is the wikipedia article;

http://en.wikipedia.org/wiki/Chop_shop

"A chop shop must be able to take apart a car without damaging the parts and keep them organized. Time is of the essence: more cars processed equals higher profits. Too many cars waiting to be processed require larger buildings, which are often located in higher traffic areas. Larger buildings are more expensive and are not as easily rented without giving out personal information and large deposits. Huge rooms full of cars waiting to be "chopped", as seen in movies, are therefore not realistic. There is no advantage to a large inventory, as it can be done more efficiently in a "JIT" (Just In Time) manner by asking a thief only when cars are needed."

Usually you need a complete mechanic's set of tools and an arc torch.
Source(s):
http://en.wikipedia.org/wiki/Chop_shop

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