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Argentina automotive recycling industry in Danger – Could it be expanded to the region and the world?

Maximiliano Marques, Director of Nh Autopiezas
Maximiliano Marques, Director of Nh Autopiezas

Maximiliano Marques, Director of Nh Autopiezas, autoparts specialist in Argentina gave us an overview of the current state of the vehicle dismantling industry in his country and how recent legislation could spread to other parts of the world without the assistance of the international community and Governments.

Key Figures relating to the vehicle recycling industry in Argentina

  • Argentine Population: 44 Million
  • Circulating Fleet: 13 Million
  • Age of Fleet: 17 years
  • ELV total: 120k per year (unofficial estimate)
  • ELVs allowed by law to be dismantled and reused for parts: 30k per year
  • Car parts allowed to sell: 30 pcs per year
  • Vehicles deregistered without reusing autoparts: 90 K per year
  • Car theft: 50k per year (approximately, unreliable statistics)

In 2003 the Argentine association of new component factories passed a law that regulates the vehicle recycling industry. The main consequence was a restriction to the sales of the majority of autoparts with only 30 pieces allowed to be sold, the rest must be destroyed, including pieces such as cylinder heads, seats, rims and others.

This law set a procedure that forces the dismantling of each car immediately (within a time period of up to 15 days) and a sticker for the traceability of each piece is added. Printed registers must be taken with the input and output of each piece and/or car. Any violation of the law can enforce the closure of businesses that do not comply with this law and the start of a trial with consequences ranging from a fine to imprisonment.

To make matters worse, a legislator is in its third intent to pass another bill to forbid the entire activity with the aggravating factor that the scrap metal price is a third of the international price and not allowed to export.

Argentina automotive recycling industry in DangerThe effects have been harmful to the society, environment, and industry:

Social:

  • Car Safety: Low-income earners unable to fix their cars
  • Car Robbery: Total and partial. Due to unavailability of autoparts

Environmental:

  • We are throwing away more than 90 thousand cars per year with a high possibility to reuse spare parts.
  • Core enters the illegal market or is thrown away.

Financial:

  • Companies that work within the law of autoparts will be extinguished due to the lack of profitability as a consequence of not being able to sell high-value autoparts and there is an added bureaucracy cost to comply with this strict regulation.
  • Not attractive for new businesses entering the market.

We have to realise that these ideas could expand to other countries. The autoparts law in the State of Sao Paulo (Brazil) was inspired in the Argentinian autoparts Law.

Argentina needs the help of the international community and Governments to change the current mindset and regulations. We require for a new ELV law that takes into account the urgent situation on our planet and society.

To find out more about Nh Autopiezas, visit www.nhautopiezas.com.ar or if you would like to contact Maximiliano directly, email him at: maximiliano@nhautopiezas.com.ar

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e2e Total Loss Vehicle Management [e2e] is the UK’s only salvage and automotive recycling network with nationwide, environmentally compliant sites delivering performance resilience and service reliability to the insurance and fleet markets.  The network’s online salvage auction www.salvagemarket.co.uk drives strong salvage resale values and faster sales.  e2e’s salvage clients have access to the network’s stocks of over 5 million quality graded, warranty assured reclaimed parts. 

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Owain Griffiths

Owain Griffiths

Head of Circular Economy at Volvo Cars

Owain joined Volvo Cars in June 2021 to lead Circular Economy in the Global Sustainability Team. The company has committed to being a circular business by 2040 and has financial, recycled content and CO2 based targets for 2025, all of which Owain is working across the company to make happen. Owain previously worked for circular economy consultancy Oakdene Hollins where he advised businesses on evidence led circular economy implementation. 

Turning into a circular business and the importance of vehicle reuse and recycling.

The presentation will cover the work Volvo Cars is doing to achieve 2025 but mainly focus on the transformational work towards 2040 and the business and value chain changes being considered. Attention will be paid to the way vehicles are being dealt with at the end of life and the complexities of closing material and component loops. Opportunities and challenges which Volvo Cars is facing will be presented including engagement with 3rd parties and increasing pressure from stakeholders.

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