Car remanufacturing welcomes new opportunities

Although the sales volume has increased by more than 10%, it is accompanied by the continuous increase of pollution and energy consumption. The Chinese automobile industry, which is intertwined with joy and anxiety, has already reached the goal of developing a circular economy and effectively promoting resource conservation. The key intersection of the remanufacturing model.

Turning waste into treasure
As an important way to develop a circular economy and effectively conserve resources, the automobile remanufacturing industry is not simply a refurbishment and maintenance. It has a huge impetus to alleviate resources, environmental pressure, promote energy conservation and emission reduction, and realize the transformation of economic growth mode.

“Remanufacturing projects can save a lot of materials and energy. The energy consumption of a new car is six times that of remanufacturing. If the engine is used as an example, the energy consumption of the remanufactured engine is only half of that of the newly manufactured engine. The labor value is 2/3 of the new manufacturing, and the material consumption is only 20% of the new manufacturing.” Xu Binshi, an academician of the Chinese Academy of Engineering, and another director of the National Defense Science and Technology Key Laboratory of Equipment Remanufacturing Technology of the Armored Forces Engineering College, he pointed out that compared with the manufacture of new products. Remanufacturing can save costs by 50%, save energy by 60%, and save 70% of raw materials.

The reporter learned that in Germany, at least 90% of auto parts can be reused or handled properly. Since 1947, the Volkswagen Company of Germany has paid attention to remanufacturing. So far, only 74,000 units of original recycling engines have been manufactured. Statistics show that remanufacturing the 7.48 million engines is equivalent to saving about 337,400 tons of steel. These steels are enough to build 49 Eiffel Towers and 161 Golden Gate Bridges. Not only that, but also played a significant role in reducing emissions, including carbon dioxide emissions reduced by 572,200 tons, sulfur dioxide emissions decreased by 569 tons, and nitrogen oxides emissions decreased by 662 tons.

In addition, the economic benefits of remanufacturing are staggering, and for enterprises, it will be a huge “invisible gold mine”. Huge profit margins are hidden in the process of “renovation”.

"China's remanufacturing industry is promising." Jia Xinguang, a veteran of the automotive industry, told reporters that auto remanufacturing is related to the amount of possession and scrapped amount. The annual scrapped amount is about 7% of the amount of possession. According to this rough figure, this market can at least reach the output value of hundreds of billions of yuan. At present, China's automobile industry is developing at a high speed, and the automobile will soon develop to the possession of 100 million vehicles. The amount of scrapped will reach 7 million vehicles per year. According to this estimate, there is at least 200 billion yuan in output value per year.

According to statistics from the China Association of Automobile Manufacturers, in 2010, China's auto parts remanufacturing capacity was: remanufacturing of about 110,000 engines, remanufacturing of about 60,000 transmissions, and remanufacturing of generators and starters of about 1 million units; Less than 2.5 billion yuan.

Barriers
The benefits of remanufacturing are obvious. The Chinese government has also begun to attach great importance to the recycling of waste materials. However, the current development of the automobile remanufacturing industry is facing many realities. "China's parts recycling rate is low, the recycling system is chaotic, the remanufacturing raw materials are limited, the industry policy is relatively backward, and the internal and external sales channels are not smooth enough to restrict the development of the industry." Deputy Secretary of the Automotive Economic Development Research Branch of the China Automotive Engineering Society Chang Han advertising v. reporter.

The first problem facing automotive remanufacturing is the difficulty of obtaining raw materials, which is caused by relevant policy regulations.

The current "Administrative Measures for the Recycling of Scrapped Vehicles" stipulates that the "five major assemblies" of scrapped vehicles dismantled by scrapped automobile recycling enterprises shall be sold as scrap metal to steel enterprises as raw materials for smelting.

According to this regulation, key components such as engines dismantled by automobile scrap recycling companies cannot be recycled to the remanufacturing stage, but treated as scrap metal. It is not difficult to understand why some auto parts remanufacturing companies have insufficient sources of processing materials.

The second problem is the backward management of the remanufacturing industry. At present, in addition to the remanufacturing mentioned in some documents promulgated by the State Council, there are no clear regulations for remanufacturing enterprises and remanufactured products in China. Therefore, there are a series of problems to be solved in terms of production licensing standards, production access regulations, market access standards, market access regulations and government regulatory systems.

Low recognition
Compared with the lack of policies and regulations and related functional management, public awareness is the biggest problem in the face of automobile remanufacturing. In the interview, the reporter found that car remanufacturing is still a strange term for consumers. Remanufactured products are generally considered to be the concept of second-hand goods renovation. "A big difficulty at present is the issue of public awareness." Han Guang told reporters that although remanufacturing is valued in developed countries and has formed a huge industry, for most Chinese consumers, "again Manufacturing is still a very strange word. “Remanufacturing products? Is it a refurbished piece?” When the reporter mentioned remanufacturing, Mr. Zhou, the owner of Beijing, repeatedly asked several questions: “I don’t know if the quality is guaranteed? I think it’s more reliable with new products.”

Mr. Zhou’s understanding of remanufactured products is quite representative among consumers. In a random interview with reporters, most consumers equated "remanufacturing" with ordinary "repairs" and questioned the quality of remanufactured parts.

In this regard, Jia Xinguang said that enterprises have the responsibility and obligation to establish a positive image of remanufactured products in the consumer sector and dispel consumer concerns. “Through the promotion and popularization of remanufactured products, consumers can understand that in the production process, the quality of remanufactured products must meet the requirements and return to the original new product level; in the use, the remanufactured products are also the same as the new ones. There is a warranty period."

Twilight
Undoubtedly, the development of the automobile remanufacturing industry is a general trend. The obstacles facing the development of the remanufacturing industry need to be solved by multiple parties and means. Fortunately, the relevant state departments are currently canceling or changing the policy restrictions on the remanufacturing of auto parts, which will bring opportunities for the vigorous development of the remanufacturing industry.

On March 21, 2008, China's auto parts remanufacturing pilot work was officially launched, and the National Development and Reform Commission identified 14 companies to carry out pilot work on auto parts remanufacturing.

And this year, the policy's support for the remanufacturing industry is strong, unprecedented. On May 31, 11 departments including the National Development and Reform Commission jointly issued the "Opinions on Promoting the Development of Remanufacturing Industry", proposing to re-manufacture parts such as automobile engines, gearboxes and generators by increasing capital investment and eliminating institutional bottlenecks. At the same time, the scope of re-manufacturing of auto parts has been expanded to include drive shafts, compressors, oil pumps, pumps and other components. At the same time, continue to promote the renovation of large old tires.

On July 19th, the Legislative Affairs Office of the State Council issued the Regulations on the Management of Recycling and Dismantling of Scrapped Motor Vehicles (Draft for Comment), which will clarify “promoting the comprehensive utilization of resources and the development of circular economy” as one of the legislative objectives, and encourage automobile remanufacturing enterprises and Recycling and dismantling enterprises establish long-term cooperative relationships to promote the effective connection between recycling and dismantling links and remanufacturing links; in order to improve the recycling rate of scrapped vehicles, it is stipulated that recycling and dismantling enterprises should adopt methods that are conducive to resource recycling and remanufacturing. Waste motor vehicles; the dismantled car assemblies and other spare parts can be sold to remanufacturing companies.

Once implemented, this policy will provide stronger policy guarantees for the development of the automotive remanufacturing industry.

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