Is auto parts remanufacturing spring?

Concerned about the news of the recent parts and components industry, it is not difficult to find that the remanufacturing of parts has become the biggest hot spot. First, on August 26, the five ministries and commissions of the National Development and Reform Commission, the Ministry of Finance, the Ministry of Industry and Information Technology, and the General Administration of Quality Supervision, Inspection and Quarantine issued the "Re-manufactured Products" Pilot Project for Implementation of the "Change of Old and New" (hereinafter referred to as the Scheme), and announced that it will carry out re-manufacturing. Change again" pilot work. The remanufactured engines, transmissions and other products were listed as pilot products; then on September 16, the "Beijing-Tibet Line" of auto parts remanufacturing sponsored by a number of companies such as the China Council for the Promotion of International Trade Automobile Subcommittee set off the road. Testing to verify the quality of parts and remanufactured products.

Domestic auto parts remanufacturing started at the end of the 1990s. After more than ten years of development, although some achievements have been made, it is still developing slowly. This favorable policy was introduced, and whether the promotion of “replacement with old” can be promoted. The auto parts remanufacturing industry can develop faster?

■ Whether policies can boost remanufacturing The reporter interviewed some auto parts remanufacturing companies last year. At that time, many companies expected the government to introduce relevant supporting policies to promote the development of remanufacturing businesses. As mentioned above, in the plans issued by the five ministries and commissions such as the National Development and Reform Commission, parts such as engines and transmissions will be used as pilot projects for remanufacturing “changes from time to time”.

The plan stipulates that for the remanufactured products that comply with the “replacement and re-promotion” re-manufactured products, the central government will provide a one-off subsidy to buyers of re-manufactured products for “old-for-for-new” re-manufactured products according to a certain percentage of their promotion and replacement prices. , And set a subsidy limit. The central government's subsidy for the promotion of remanufactured products in each category shall not exceed five years in principle.

After the plan was released, the reporter interviewed the remanufactured company's views on the plan for the first time. Jiang Boming, general manager of FAW Xichai remanufacturing base, believes that the release of the plan will promote the development of the remanufacturing industry to some extent. Of course there are also voices that the subsidies mentioned in the plan should be two-way, not only to subsidize consumers, but also to provide corresponding subsidies to remanufacturers.

What confuses many remanufacturers is that, while there are not many documents and policies on promoting the development of remanufacturing, in fact the specific incentives for remanufacturing companies have not been reflected.

According to industry insiders, the scheme will certainly play a role in promoting the auto parts remanufacturing industry, but it will not be effective in the short term.

â–  Expanding the Remanufactured Product Categories of Enterprises The majority of currently approved pilot remanufactured automotive component companies are engaged in the remanufacturing of engines, transmissions, generators, starters, and air conditioning compressors. In August, a news report stated that Xichai teamed up with Bosch to launch a domestic electric injector remanufacturing business. According to the reporter's understanding, this is the only company currently engaged in the remanufacturing of electronically controlled injectors.

The remanufacturing of electronically controlled injectors was undertaken by Wuxi Dahao Power Co., Ltd., a remanufacturing base of Xichai. What is the original intention of developing electronically controlled injectors? According to Jiang Boming, general manager of Xichai remanufacturing base, the engine is the heart of the car, and the oil supply system is the heart of the engine. Taking a diesel engine as an example, the value of injectors and oil pumps accounted for one-fourth of an engine. The added value of the product is high, and it also has a large value for remanufacturing.

Jiang Boming said that in daily use, the oil pump and the injector are in many cases caused by the blockage of the oil line, but in the maintenance, the new injector is replaced in most cases. In fact, most of the pumps and injectors still work after cleaning and recalibrating the oil circuit. This is also the original intention of carrying out the remanufacturing business of electronically controlled injectors. This will not only save costs for users, but also expand the scope of enterprise remanufacturing.

Since May 2011, more than 13,000 remanufactured fuel injectors have been put on the market. According to industry sources, the remanufacturing of auto parts will not be limited to conventional parts such as engines and transmissions. ECUs, fuel injectors, and oil pumps will also be included in the remanufacturing category.

â–  Recycling of old parts Still, despite the favorable policies introduced in the current parts remanufacturing industry, there are still several problems in the auto parts remanufacturing industry. The common logistics problems of old parts, reverse logistics, marketing, and remanufacturing companies still restrict the development of the remanufacturing industry. Of these, the reverse logistics of old parts and components is the most urgent problem to be solved.

According to statistics, as of the end of last year, the social possession of domestic internal combustion engines has reached 300 million units. Only the amount of possession of an internal combustion engine is very impressive. With such a considerable amount of retention, there should be no problem with old parts being difficult to seek.

However, judging from the inspection and acceptance of the first batch of 14 auto parts remanufacturing pilot companies approved by several ministries and commissions in 2011, the total annual production capacity of remanufactured engines has reached 100,000 units and the transmission has reached 100,000 units. Remanufactured 400,000 sets of generators and starters, but the yield was only 50%. The reason is still that old parts can't be recycled.

At present, the recycling of used parts in the domestic auto parts remanufacturing industry mainly uses three methods: the old parts and components returned by the manufacturer's Three Guarantees policy, the defective products on the new product production line, and the old parts replaced under normal use. The approach should be the main source of the old parts, but the actual situation is not the case. “Although we remanufactured approved companies, the most confusing problem for companies is indeed the issue of the legitimacy of remanufacturing,” said a person in charge of a remanufacturing company in the interview. He said this because in 2001 the State Council issued the Decree No. 307 “Administrative Measures on the Retirement of Scrap Automobiles,” which stipulates that the five major components of the engine, steering wheel, transmission, front and rear axle, and frame are scrap metal and sold to steel companies. Smelting raw materials, in addition may not carry out any form of transaction.

Contrast this with the remanufacturing business of construction machinery and generator sets. Wu Guoliang, sales manager of the Hebei branch of Jinan Diesel Engine Co., Ltd., told the reporter that although they are engaged in the remanufacturing of internal-combustion engines, the source of old parts and components is much easier for the remanufacturing of construction machinery and generator sets.

Although in recent years, many policies have been promoting the development of domestic auto parts remanufacturing industry. However, the State Council’s Decree No. 307 still caused many parts and components remanufacturing companies to initiate the embarrassment for the source of old parts and components.