Recently, two national standards for remanufacturing - "GB/T31208-2014 Remanufacturing Roughcast Quality Inspection Method" and "GB/T31207-2014 Mechanical Product Remanufacturing Quality Management Requirements" were issued, implying that auto parts remanufacturing has entered Standardized development stage. At the same time, the National Development and Reform Commission, the Ministry of Finance, and other companies jointly implement remanufactured products throughout the country to replace them with old ones, and subsidize the remanufactured products such as automobile engines and transmissions that meet the requirements in accordance with the replacement price of 10%.

A series of positive shows that parts remanufacturing will usher in opportunities for large-scale promotion. What has been the development of truck parts remanufacturing? After many years of trials, has there been conditions for further large-scale promotion? The reporter conducted interviews with relevant companies and experts.

Remanufacturing is not a renovation

The remanufacturing of truck parts, as the name implies, refers to the deep repair of certain parts on the used trucks, and the restoration of performance for the customers to choose. In this regard, some laymen and even truck users understand remanufacturing as deep renovation. However, in the eyes of people in the industry, there is a big difference between renovation and remanufacturing.

Industry insiders believe that the refurbishment is the replacement or repair of damaged parts of the vehicle, etc., and it does not clearly stipulate the quality after renovation and the service life that should be achieved. The remanufacturing of truck parts is different from this. It requires that the quality of parts after remanufacturing must be close to or even exceed new products. For this reason, the management department has repeatedly issued measures to strictly regulate the quality standards of remanufactured products, and through a series of remanufacturing technologies, the old parts and components are truly made to have new effects.

Compared with manufacturing new products, remanufactured products can save costs by 50%, save energy by 60%, save materials by 70%, and prices are only 50% to 70% of new products. Therefore, from the perspective of developing a recycling economy, remanufactured truck parts are highly economical and practical. Therefore, in countries with developed automobile industries such as the United States and Germany, the value of remanufacturing of parts and components for trucks, passenger cars, etc. will reach tens of billions.

However, a number of industry experts from the Department of Automotive Engineering of the Tsinghua University interviewed all bluntly “unfamiliar” and “have not heard” about truck parts remanufacturing. It can thus be seen that China's market has just begun and there are few research institutions in China that specialize in project research. In fact, the domestic remanufacturing of truck parts is still at a pilot stage.

Demarcate the product range and promote the pilot

Remanufacturing of truck parts is beneficial to both consumers and truck manufacturers, but not all truck parts can be remanufactured, and there are restrictions on remanufactured company qualifications.

The current range of products that can be remanufactured is limited to the "five major assemblies" - engines, gearboxes, generators, starters, steering gears. The National Development and Reform Commission (hereinafter referred to as the “National Development and Reform Commission”) announced in 2008 and 2013 the names of two batches of pilot companies for component remanufacturing. The first batch included 14 pilot enterprises for remanufacturing entire vehicles or parts, and the second batch contained 28 pilot enterprises.

The National Development and Reform Commission also provides for the remanufacturing rights enjoyed by various companies: Each remanufacturing pilot unit must strictly follow the approved implementation plan and relevant state regulations, and must not exceed the type and scope of the approved pilot. In other words, an enterprise that only has the authority to dismantle may not carry out remanufacturing, and a company that has the authority to remanufacture the engine or the like may also only remanufacture the company product that the other party has authorized. It can be seen that the management department is cautious in remanufacturing pilot companies.

However, the gradual increase in the number of pilots and eventually promotion, is also in line with market trends. An industry insider who has been engaged in research in the automotive industry for many years believes that the increase in remanufactured pilot companies is conducive to the standardized operation of the auto parts trading market. The increase in pilots is a helpless move before major policies for the auto parts market have been released. In his opinion, the market demand has always been on the increase, and increasing the number of pilot points is an effective way to promote the development of truck parts and components manufacturing industry.

The relevant person in charge of CNHTC Jinan Fuqiang Power Co., Ltd. (hereinafter referred to as “Jinan Fuqiang”) said: “The company currently remanufactures engines focused on the WD series and the Cummins K series. Trucks equipped with remanufactured product lines are There are corresponding remanufactured products to choose from."

"Use old and change" subsidies to promote

From the very beginning, the government management department actively promoted the remanufacturing of parts and components. Li Pumin, Secretary-General of the National Development and Reform Commission, stated at the theme activity “Remanufacturing Products (Auto Parts and Components) into the Auto Parts City” that in recent years, the Chinese auto industry has maintained an average annual growth rate of more than 10%. It is estimated that the domestic civil car ownership will reach 200 million by 2016. According to the development of developed countries' car ownership and remanufacturing industry, China's auto parts remanufacturing industry will usher in a good market development prospect. . And since trucks are an operating tool, the emphasis on operational efficiency will further promote the development of the more economical truck parts remanufacturing industry.

However, consumers must have the right to know. Relevant person in charge of Jinan Fuqiang Company stated that in accordance with the relevant provisions of the "Administrative Measures for the Remanufacturing of Auto Parts and Testing Pilots," manufacturing companies must mark "remanufacturing" in the prominent position of remanufactured parts. "Our company's truck remanufactured parts will tell consumers that it is a remanufactured product, and these parts will never be used in new cars," said the person in charge.

Jinan Fuqiang is one of the first 14 pilot remanufacturing companies for parts and components selected by the National Development and Reform Commission in 2008. According to the person in charge of the company, the company has been developing parts and components remanufacturing business for many years, and has participated in the formulation of “Auto Parts Remanufacturing Standards” led by the China Automotive Technology and Research Center as an industry representative.

In order to promote the development of this industry, the government has also introduced corresponding incentive policies in addition to standard setting. In December 2014, the National Development and Reform Commission and the Ministry of Finance jointly implemented remanufactured products throughout the country to replace old ones, and subsidized and remanufactured 10% of replacement prices for remanufactured products such as qualified automobile engines and transmissions. The maximum engine subsidy is 2,000 yuan, and the highest subsidy for remanufacturing gearbox is 1,000 yuan. This is not the first time that the government has introduced a corresponding subsidy policy. Industry insiders believe that similar subsidy policies are more attractive to logistics companies and private owners who emphasize operating economy.

Customer perception still needs to be improved

Although considering the circular economy, the government has actively promoted the remanufacturing of parts, but the market recognition of remanufactured parts needs to be further improved.

“There are two kinds of our business processes. One is that customers in auto repair shops actively request the use of remanufactured products for truck repair; the other is that customers replace the same type of remanufactured products with old engine parts and other truck parts, and get the price. Offer." The person in charge of Jinan Fuqiang said.

Regarding such issues as the after-sales service that truck drivers are concerned about, the person in charge said that the company will provide specialized after-sales service channels for remanufactured parts and components to protect the rights and interests of customers.

Yang Jiechi, an analyst at the National Automobile Market Research Association, proposed that steel has a certain life span, and overuse can cause metal fatigue, which will undoubtedly affect vehicle performance. However, the relevant person in charge of remanufacturing enterprises believes that remanufactured parts will undergo strict technical inspections at the factory. What really restricts the remanufacturing of truck parts is market size and customer acceptance. Both aspects will have a positive impact on the scale of production and sales of parts and components for remanufacturing.

Before the second batch of pilot companies for remanufacturing parts and components was introduced, Xie Jianjun, secretary general of the Auto Parts Remanufacturing branch of the China Association of Automobile Manufacturers, had stated that the scale of this industry had increased from less than 5,000 sets/year in 2005 to 2012. The 1.5 million units/year (including auto parts and construction machinery products), industrial scale and output value have all significantly increased.

Relevant person in charge of Jinan Fuqiang Company believes that there are no major problems in the technical aspects of remanufacturing companies. At present, it is imperative to increase the acceptance of remanufactured products by customers. This is also the purpose of the recent "Remanufacturing Products (Automobile Parts) into the Auto Parts City" activity.

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