Essential information for end of life vehicle dismantling, depollution and recycling

Adam Hewitt
SYNETIQ

Reclaimed Parts – A Sustainable Approach

Neil Joslin e2e - reclaimed parts
Neil Joslin

Neil Joslin – Chief Operating Officer [COO] from e2e Total Loss Vehicle Management provided his views on why reclaimed parts is the way forward not only for the benefit of businesses but for a sustainable future.

There continues to be much talk across the industry when it comes to reclaimed parts and whether the ‘tipping point’ has been reached whereby insurers and the general public are ready to embrace the possibilities presented by recycled vehicle parts.  

It is true that insurers are more open to the possibilities presented by high quality, warranty assured reclaimed parts. This can be aligned in part to rising motor repair costs and ongoing concerns over delays in the procurement of parts from Europe, with the Brexit uncertainties still at play. The customer experience advantages are also now acknowledged particularly in relation to the option to avert a total loss claim. The UK motor insurance market remains one of, if not the most, competitive in the world; insurers work hard to attract a new customer – why not then do all they can to retain that customer? Public attitudes to recycled parts have begun to improve with education around environmental, speed and future policy cost benefits.   

Operationally, insurers are most likely to apply the reclaimed parts option to make the repair of a border line total loss vehicle economically viable. But this is by no means the case in every instance. If insurers’ costing tools included prices for reclaimed parts, how many more borderline total loss vehicles might have the option to be repaired, and how many customers might happily continue to drive their repaired vehicle and insure it with their existing insurer? For commercial policyholders this could also mean getting their vehicle back on the road quicker and earning for the business. Less customer churn, lower potential credit hire costs and greater customer satisfaction. All achieved in an environmentally friendly way. I can see a future where insurers typically adopt this approach to borderline total loss claims and where any lingering consumer fears surrounding the use of second hand parts have been allayed through education.  

But for me, the tipping point is when an insurer wants to adopt a reclaimed parts policy and apply it as a genuine option on all motor claims, not just borderline total loss vehicles. And therein lies the challenge. For insurers to fully embrace reclaimed parts in this way the proposition needs to be sustainable; it requires scale and proper engagement and there needs to be exceptional governance of the supply chain, including matching parts by vehicle VIN. Body shops are working on very tight margins and need to be brought into the equation to see and realise the benefits of working with reclaimed parts, in part linked to speed and efficiency for their businesses. Ongoing consumer education will also be necessary to reassure that reclaimed parts are safe and to promote their benefits.  

It is true that insurance companies in the UK have traditionally fitted new for old when repairing an accident damaged vehicle. We can learn from the experiences of other countries. The French implemented “Energy Transition for Green Growth” in January 2017. This law sees all professionals involved in vehicle maintenance and repair required to offer consumers recycled or remanufactured parts. The USA also advocates the use of recycled parts sourced from vehicles either the same age or newer. It can be done successfully and I believe industry wide collaboration will be key.   

At e2e, we are working to collaborate with the industry to design a sustainable reclaimed parts proposition fit for purpose, both now and in the future. We see reclaimed parts being part of the additional value delivered by a salvage contract partnership, consistent with our ambition to redefine how a salvage partner is viewed. We have engaged with Thatcham and we are canvassing insurers and body shops about their requirements to include ease of searching/identifying and selecting parts, stock availability, transit and logistics and quality control. We are also part of a steering group working to create a kitemark for reclaimed parts sold – an initiative sponsored by eBay. For the industry as a whole there is much work to be done to change mindsets, re-engineer business processes, revise motor claims strategies and build a viable reclaimed parts infrastructure, but the business case is clear and the effort will be rewarded tenfold; and the planet will thank us all. 

If you would like to find out more about e2e Total Loss Vehicle Management, then visit their website at www.e2etotalloss.com

 

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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.

e2e awards logo

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. 

The power of the network model means e2e has the ability to influence industry standards and is committed to continually raising the bar whilst redefining the role and perceived value of the salvage operator.  Network members adhere to robust service level agreements, against which they are audited, in order to ensure performance consistency and a market leading customer experience.  

The salvage and recycling operating environment is evolving rapidly, and e2e is anticipating, listening and responding to changing market needs.  Regulatory compliance, ESG, reclaimed parts, customer experience, EVs, new vehicle technologies, data and reputation risk are just some of many considerations linked to the procurement of salvage services.  e2e will drive further added value to clients and members through the adoption and application of emerging technologies, continuing to differentiate its proposition and position salvage services as a professional partnership. 

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