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


The reform of red diesel – what could this mean for vehicle dismantlers?

At Budget 2020, the government announced that it was removing entitlement to use red diesel (off-road diesel) from most sectors, effective from the 1st of April 2022. This, in effect, is a ban on red diesel for many of its current users, making the use of red diesel more restrictive than it is currently. ATF Professional spoke to Danny Chrispin, owner of Chrispin’s Car and Van Dismantlers, a used vehicle parts supplier, dismantler and bodyshop; he voiced his concerns on this matter and the possible outcome on his business and the industry.


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Danny, before we discuss the reform to red diesel, can you provide a little background about yourself and Chrispin’s Car and Van Dismantlers?

I started Chrispin’s paint and bodyshop by myself at the young age of 21 back in October 2000. My Dad and brother joined a few years later to help out with the workload as business became increasingly busy.

We got through quite a few salvage vehicles in the early years, but sourcing parts was always the problem; we spent many an hour at Simpson Salvage – now the ‘U-Pull-It’ at York. Often we would forget some parts, especially those little brackets, so having the odd donor vehicle at our site made it easier, more productive and more time-efficient.

But there were always lots of parts leftover, and scrapping the car just didn’t seem right. We looked at selling the parts, but a licence is required for this, so we looked into this and gave it a go; I received my WAMITAB qualification, and in 2008, we got our licence.

We now purchase salvage vehicles, strip them down to their components and sell the parts. We still run from the same site, but we have since expanded by purchasing the site next to us.

The bodyshop still runs, but our main time is spent with the dismantling yard.

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An Aerial view of Chrispin’s Car and Van Dismantlers

You have concerns regarding the changes in the regulations regarding red diesel. Can you explain what these changes are and when they will come into place?

At Budget 2020, the government announced that it would remove the entitlement to use red diesel and rebated biodiesel from most sectors from April 2022 to help meet its climate change and air quality targets.

The tax changes will ensure that most users of red diesel use fuel taxed at the standard rate for diesel from April 2022, like motorists, which more fairly reflects the harmful impact of the emissions they produce. Removing most red diesel entitlements will also help ensure that the tax system incentivises users of polluting fuels, such as diesel, to improve the energy efficiency of their vehicles and machinery, invest in cleaner alternatives, or just use less fuel.

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Chrispin’s Car and Van Dismantlers

How will these changes affect you personally and the UK vehicle recycling industry as a whole?

We run diesel forklifts, a material handler as well as getting EMR in with their bailer a couple of times a year. We are a small operation, so this extra tax is going to put more pressure on us going forward. As you know, these machines are not cheap to replace, and as there is nothing out there that can give zero-carbon yet, it will be unaffordable to us.

We are a recycling yard that recycles at least 95% of the cars we buy in, and we sell a great quantity of green parts. I think we more than do our fair share. So to take the tax off is of great concern.

Large yards with multiple machines that all have big diesel engines will cost them considerably, and this will either have to be swallowed up or passed on to their customers.

Do you have any figures you could provide to show what effects these changes will have on your operating costs, and will this increase have to be reflected on vehicle purchases and parts sales? Why do you think these changes have been made?

Gas oil intended for use in diesel engine road vehicles, otherwise known as ‘white diesel’ (because it has no marker or dye), has a fuel duty rate of 57.95 pence per litre (ppl). Red diesel is entitled to a rebate of 46.81ppl, giving it an effective duty rate of 11.14ppl. As a small company, we use about 3500 litres a year so as the figures show, the price difference will add extra costs to our company on top of all the other fee increases.

Some sectors will be exempt from the changes; why do you think this is, and do you believe this is fair?

It is not just for our sector, but the construction and frozen food transport market will also lose out. These changes will affect businesses that have any equipment that needs to use diesel-engine-run machinery apart from a few exempt industries, including agriculture, fishing and forestry. I am not sure why these are exempt, but I believe this reform should extend to all related sectors.

We understand things have to change, but as a small company, this is quite a big increase to come at once; if the government must do this, then surely a phased approach over several years would be more beneficial to all sectors involved.

If you would like to know more about these changes, go to

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Adam Hewitt

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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 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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