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

Adam Hewitt
SYNETIQ
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Going green – what does this mean for the industry?

Nick Rossiter, Motor Damage Strategy Manager, Allianz Insurance and Simon Schofield, Client Relationship Director at SYNETIQ suggest consumers change in attitude to green parts could result in a positive outcome for the vehicle dismantling and recycling industry.

Green parts have an important role to play in helping to reduce the motor insurance industry’s environmental footprint and to safeguard the future for society as a whole. While there has been some resistance, there are signs that their use in vehicle repair is finally getting the green light from consumers.

These parts are non-safety related items such as body panels, lights and wing mirrors recovered from Category B vehicles. Conforming to BS10125, they are perfectly fit for reuse and, by reducing waste and the need for unnecessary manufacturing, create a positive environmental impact.

As well as the green credentials, there are a number of other benefits. By using these original equipment parts, vehicles receive a like-for-like replacement. Any green parts will be sourced from an equivalent donor vehicle that is similar in age to the one being repaired and will have been subject to a rigorous inspection to ensure it appears and performs no differently to a new part.

This stacks up well against sourcing a more expensive and less environmentally friendly brand-new equivalent or an aftermarket non-genuine part that may be of lower quality.

going green industry parts post

Shorter supply chains for green parts also mean that repairs can be completed much faster, enabling the customer to be back in their own vehicle and on the road sooner. Rather than having to source replacement parts from Europe or further afield, repairers can access a large inventory of domestically recycled parts, most of which can be delivered within 24 hours.

Cost is also a significant factor in favour of this approach. Green parts are on average cheaper than new ones. This saving feeds into lower claims costs and insurance premiums but can also prevent a vehicle from being written-off altogether. Although garages have used green parts for many years, insurers have piloted their use in the past with minimal success. However, a shift in consumer attitude means they’re back on the motor insurance agenda. Greater awareness of the damage being done to the planet means consumers are seeking out more sustainable and environmentally-friendly options.

This was demonstrated by independent research commissioned by Allianz Insurance. Conducted in October 2019, it found that 69% of motorists would choose the option of a green part to repair their vehicle, citing the environment as the main reason for their choice (77%). This shift is encouraging but, as there are still some motorists that need to be persuaded it’s a good idea, Allianz believes it’s important to offer customers a choice between new and green parts.

Consumer attitude to green parts may change quickly. With Brexit raising the possibility of delays around the supply of parts from the EU, it could tip the balance further in their favour.

We’re yet to see exactly how Brexit will affect repairs, but the UK’s already experiencing disruption to the whole supply chain as a result of Covid-19. Delays to delivery are adding cost and time to repairs, while the closure of many manufacturers and suppliers during lockdown is putting repair shops under further pressure.

When supply chains are under such pressure, green parts come into their own. For example, during the current crisis, SYNETIQ has been able to ensure that large volumes of green parts are available to help key workers stay on the road. This has involved assisting insurers and fleets, including ambulances and supermarket delivery vehicles.

As green parts play a larger role in vehicle repair, all parties will see the benefits. As well as supporting the vehicle dismantling and recycling industry, their use offers a more cost-effective and sustainable option for the motor insurance sector, its customers and ultimately the planet.

Visit www.allianz.co.uk

Visit www.synetiq.co.uk 

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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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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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