That's a Texas shredder that they ran the car through. The first one I saw in action was in Waco, Tx. Normally they don't run the tires through the ones I have seen though. They eat cars and other metal items and sort the metal and waste material out on the other side.
http://www.texasshredder.com/aboutus.html
It sure beats chopping up junkers with an ax to haul them to the scrap yard.