Remanufacturing automotive parts should seize the opportunity to find a breakthrough

Recently, the good news about the remanufacturing of auto parts has continued: On August 26th, the five ministries and commissions including the National Development and Reform Commission, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Commerce, and the General Administration of Quality Supervision, Inspection and Quarantine released the “remanufactured products” for replacement. The “Pilot Implementation Plan” started the pilot work of remanufacturing “replacement with old” and listed the remanufactured engines and transmissions as pilot products; on September 16th, it was sponsored by several companies such as the China Council for the Promotion of International Trade Automobile Industry Branch. The “Beijing-Tibet Line” of automobile parts remanufacturing started its journey and tested the quality of parts and remanufactured products through actual road tests. On October 14th, at the 4th International Forum on Heavy Commercial Vehicles, the National Engineering Research of Mechanical Products Remanufacturing Hu Zhenfeng, director of the Center for Remanufacturing Technology, said that the country is developing specific standards for remanufactured products and that the remanufacturing standards for auto parts are also being drafted.

Experts said that domestic auto parts remanufacturing started in the late 1990s. After more than 10 years of development, although it has achieved certain achievements, it is still slow. The introduction of this related policy and boosting by industry associations will accelerate the development of China's auto parts remanufacturing industry.

Steady progress at the national level

"Re-manufactured products" "replacement with old" pilot requirements for implementation of the program requirements, 2013 will be automotive engine, transmission and other remanufactured products as a pilot, and later depending on the implementation of the situation gradually expand the scope of the pilot. For remanufactured products that comply with the "old-for-for-new" promotion criteria, the central government grants a one-time subsidy to buyers of remanufactured products at a certain percentage of their promotion replacement prices (remanufacturing product sales prices minus old ones).

In response, Jia Xinguang, a well-known car commentator, said that "replacement from old to new" refers to the act of remanufactured products remanufactured by domestic buyers of remanufactured products and purchased remanufactured products at replacement prices. The "Re-manufactured Products" implementation plan for "replacement from old to new" aims to support the promotion and use of remanufactured products, promote the recycling of remanufactured old parts, and expand the market share of remanufactured products. Among them, the remanufacturing of auto parts is one of the key areas of the remanufacturing industry.

According to the "Re-manufactured Products" implementation plan, the re-manufactured products should be followed by the principle of "simple procedures, direct subsidies, and safety and high efficiency". The five ministries and commissions will include remanufactured products produced by the remanufactured pilot enterprises, which are large in volume, reliable in quality and performance, and effective in energy saving and material saving, to be included in the scope of financial subsidies.

The "Re-manufactured Products" implementation plan for the "old-for-for-new" pilot pointed out that for the remanufactured products that conform to the "replacement and re-addition" promotion conditions, the central government adopted a certain proportion of its promotion and replacement prices, through the pilot enterprises, Again, the buyers of remanufactured products are given a one-off subsidy, and the specific subsidy ratio, the subsidy limit, and the number of subsidy subsidies are clearly stated in the public notice of the “old-for-for-new” promotion enterprise qualification public solicitation. The central government's subsidy for the promotion of remanufactured products in each category shall not exceed 5 years in principle.

It is understood that although the remanufacturing of auto parts in China started relatively late, this work has been promoted by the relevant national ministries and commissions; there are expert academicians to provide theoretical and technical support, such as the Chinese Academy of Engineering academician Xu Binshi's remanufactured surface repair technology, etc.; Trade associations provide industry data, industry research, industry standards, and remanufacturing marks. For example, the China Association of Automobile Manufacturers and the China Automotive Technology and Research Center have made strict technical specifications.

Since 2008, the remanufacturing of auto parts has been steadily advancing from the national level. In 2008, the National People's Congress passed and promulgated the "Circular Economy Promotion Law," and remanufacturing was affirmed legally. In the same year, 14 auto parts remanufacturing companies were allowed to pilot, marking the real start of China's auto parts remanufacturing industry. Pilot companies include China First Automobile Group Corporation, Anhui Jianghuai Automobile Group Co., Ltd., Chery Automobile Co., Ltd., Shanghai Volkswagen United Development Co., Ltd., Weichai Power (Weifang) Remanufacturing Co., Ltd., Guangxi Yuchai Machinery Co., Ltd. and 14 other companies. . The range of auto parts for piloting remanufactured products is tentatively classified into five categories: engine, transmission, generator, starter, and steering gear. In 2011, relevant ministries and commissions organized acceptance of the pilot enterprises. In terms of production capacity, the number of remanufactured engines reached 100,000 units, transmissions reached 100,000 units, and generators and starters reached 400,000 units.

Old pieces of recycling problems to be broken

Jia Xinguang said that despite favorable policies to promote, but the auto parts remanufacturing industry still has several major problems. The reverse logistics of old parts, marketing, and taxes and fees for remanufactured companies have constrained the development of the auto parts remanufacturing industry. Among them, the reverse logistics of old parts and components is particularly acute.

According to Liu Jianmin, president of the China Material Recycling Association, the proportion of scrapped vehicles issued by China at present is only 20.6%, and 20% for undisclosed vehicles, 30% for illegal recycling, and 29.4% for social deposits. .

Yao Jian, the spokesperson of the Ministry of Commerce, said that in recent years, the actual amount of scrapped automobiles in China is only 0.5%-1% of the vehicle's possession, which is far below the level of 5%-7% in developed countries. At present, the loss of end-of-life vehicles in China is serious, and a large number of vehicles that should be scrapped are sold to remote areas, causing impacts on formal recycling and dismantling companies, and causing environmental pollution and hidden safety problems.

Specifically, the recovery of the engine, which is one of the core components of a conventional fuel vehicle, is unsatisfactory. According to statistics, as of the end of last year, the social possession of domestic internal combustion engines reached 300 million units, which is very impressive. However, from the review of the acceptance of 14 approved remanufacturing enterprises for auto parts by several ministries and commissions in 2011, the total production capacity of the remanufactured engine is only 50%, which is mainly due to the old zero. Parts cannot be recycled.

Jia Xinguang believes that the reason why domestic scrap cars are difficult to recycle is that the key issue is that recycling prices are too low. The purchase price of domestic end-of-life vehicles is calculated on the basis of metal content and is based on the market price of local scrap metals. At present, the end-of-life vehicle recycling company's compensation for end-of-life vehicle owners is several hundred yuan per ton. Each recycling plant floats 30% above or below the recycling price according to the condition of the vehicle and the market conditions. Jia Xinguang stated that it is the low price of this formal recycling channel that gives the underground auto industry a sufficient number of “living spaces”.

Industry agglomeration into development direction

Experts said that although the development of China's auto parts remanufacturing industry is facing some difficulties, but with the promotion of relevant policies, the development prospects are still worth looking forward to.

According to Guo Qimin, Director of Circular Economy Department of the National Development and Reform Commission, China's auto parts remanufacturing industry will become a trend of agglomeration and development. The automobile parts remanufacturing industry is supported by certain industrial technologies and can contribute to professional recycling, dismantling, cleaning, remanufacturing, and construction of public platforms, forming the entire industrial chain. Guo Qimin stated that according to the requirements of enterprise integration, industrial agglomeration, and park management requirements to promote the development of agglomeration, currently there are already two mature demonstration bases in China. Next, it is planned to build 5-10 industrial agglomeration areas during the “Twelfth Five-Year Plan” period. base.

For automotive companies, the future of green design for remanufacturing can be described as a new direction. Whether remanufacturing can proceed smoothly, how much remanufacturability is used, and how effective it is depends largely on the initial design of the product. "We must consider the requirements of future dismantling and remanufacturing from the structural and material aspects when designing products, and carry out universal design on wearing parts and small parts." Guo Qimin said that many remanufactured parts are currently manufactured. The low rate and high cost are largely due to the fact that the requirements for remanufacturing were not taken into consideration when the original product was designed. For example, if some engines are not demolished, they will fail, and if they fail, they cannot be used. At present, European countries and the United States attach great importance to this issue. Germany has already promulgated the "Eco-Design Law." Major auto companies have already started work in this area.

For strengthening the cooperation between auto companies and auto parts remanufacturing enterprises, Guo Qimin stated that in the developed country market, there are three basic models for the remanufacturing of auto parts: the first is the direct remanufacturing of the original factory; the second is The original factory authorizes remanufacturing; the third is independent manufacturing by a third party. Among China's 14 pilot companies, FAW and SAIC are the first models. Guo Qimin believes that the second type of original authorized remanufacturing model is more suitable for promotion in China. Because the second model is adopted, the advantages of both the original manufacturing enterprise and the auto parts remanufacturing enterprise are reflected, which can not only exert the old organization ability and professional remanufacturing ability of the remanufacturing enterprise, but also exert the control of the original factory quality. Competence and branding, but also take advantage of sales channels.

At the same time, it is a statutory obligation for automakers in developed countries to disclose maintenance information for their own products. Detailed regulations govern many aspects such as sales, maintenance, and spare parts supply of automobiles. In particular, technical information, diagnostic equipment, tools, and execution environments for maintenance are proposed. These contents are all open to independent maintenance companies, especially auto parts remanufacturing companies. At present, there are no provisions in this regard in China. Guo Qimin believes that this is also an urgent need for improvement in the development of China's auto parts remanufacturing industry.

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