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

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Reclaimed parts – where is the industry headed?

Robin Challand, Claims Director at AGEAS, one of the UK’s largest car and home insurers, provides ATF Professional with a current view on the use of reclaimed parts across the supply chain.


Reclaimed parts - where is the industry headed? p
Robin Challand

The effect of increasing costs on reclaimed parts

Inflation and the war in Ukraine have added to the challenges many repairers are seeing around new parts availability and general repair costs, so having a well-established green parts programme has been incredibly helpful in ensuring we can get our customers’ cars repaired and back on the road despite those challenges. Having built that circular supply chain back in 2020, we have been able to access a supply of green parts.

Green parts can play a part in helping us to mitigate increased costs to some extent. If a green part is quicker and cheaper to get hold of than a new part, then we can settle a customer’s claim quicker and for less. Ultimately that’s what it’s all about, getting customers back on the road and doing something good for the environment at the same time.

Current technology and meeting supply chain requirements

Our repairers are already able to quickly and easily order green parts through the portal offered by our green parts supplier. The Green Parts Specialists have been continually gathering data on the kind of parts our repairers regularly need, so they can make sure they have more of those parts in stock. Being able to triage vehicles using the real-timing availability of green parts is the next important step. That will help us to make even quicker decisions that will keep more vehicles on the road and repairable.

Public perception

Feedback from our repairers shows that the vast majority of customers are happy to have green parts fitted, especially when they understand it can get them on the road quicker. That’s been the feedback from the outset, and it helps that we take the time to explain the benefits to customers.

Commitment to Environmental, Social and Governance, and the adoption of reclaimed parts

We are committed to supporting our customers, our people and our partners, ensuring that everything we do contributes to a more sustainable society. Our green parts initiative is one of the ways we can do that, and it has benefits for the customer as well as the environment.

As well as reducing the amount of glass, metal, plastic and energy needed to make a new part, it means parts that are already in existence get a second life, extending their use and reducing unnecessary waste. It also reduces the likelihood of damaged cars being scrapped because the cost of a new part outweighs the value of the vehicle.

Using green parts also benefits our customers. This is because it can be faster for us to source a green car part than to order in new parts, especially if that new part needs to be imported from overseas. It also helps us keep our costs low, which ultimately helps us keep premiums as low as possible for our customers.

The future of reclaimed parts

Our ambition is to use even more green car parts in our repairs. We are also looking to continue to learn and innovate from different pilots with repairers and looking at what technology and MI can teach us to get better at being the best. We hope to use green parts in 30% of our vehicle repairs in 2023.

SYNETIQ April 2023 M

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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 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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