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

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Business resilience in the salvage and auto recycling market 

Jim Loughran, CEO of e2e Total Loss Vehicle Management, stressed the importance of business resilience in the salvage and auto recycling market. He noted that the industry is facing ongoing uncertainties and regulatory scrutiny. e2e’s network model offers insurers service certainty, operational resilience, and the benefits of a nationwide network of independent salvage businesses working together towards common goals.


Business resilience in the salvage and auto recycling market p
Jim Loughran

Business resilience is increasingly under the spotlight in the salvage and auto recycling market. The CMA investigation into Copart’s acquisition of Hills Motors has created ongoing uncertainty, which has been further compounded by the recent changes announced to the provisional recommendations. What remains unchanged is the fact that there are very few salvage companies that have a track record of servicing large national insurance contracts for insurance companies. Ongoing market uncertainty reinforces the need to work with a trusted supplier that can offer robust business resilience, despite market dynamics. The e2e network model gives insurers the service certainty and confidence they require. 

The FCA monitors insurers for operational resilience to include the effective management of third-party providers. Supply chain resilience is, therefore, a business priority for insurers and forms part of their business continuity planning. At e2e, we are alive to the operational resilience challenges facing insurers, and our network model can deliver insurers service certainty from their salvage provider despite the significant M&A activity being experienced in the market as a whole.  

Large, single-entity salvage and recycling companies are attractive propositions for those on the acquisition trail and therefore represent an increased risk profile for insurers as their service providers. The beauty of the unique, non-profit-making e2e network model is that it is greater than the sum of its parts. The network provides a nationwide service delivered by independent, entrepreneurial salvage businesses with decades of expertise who are committed to collective professional standards and unified network goals. The model also provides insurers with the additional benefit of deep regional knowledge and the intelligence available through combined data and analytics. Should a member of the e2e salvage and recycling network be acquired, there is the scale, flexibility and capacity for alternative members of the network to take over. Service is seamlessly maintained for insurers with adherence to contractually agreed service level agreements and the audited network quality standard. The network approach delivers resilience, insulating the insurer from dependency on one supplier whilst still benefiting from one audit and management function. 

So how does e2e build resilience into its network? Through robust network management and good governance. Risk mitigation and business continuity plans, aligned to evolving market dynamics and needs are continually reviewed and adapted as required. Risk management rules cap maximum exposure to any one network member at any time. Business continuity plans exist to cater for the exit of any specific network member for whatever reason. The insurer contracts with e2e, and it is e2e’s responsibility to manage the network to deliver against the insurer’s needs. In the event a member leaves the network and service provision is reallocated to an alternative member or members, ESG goals are also factored into the decision making ensuring optimal proximity of members’ sites in order to reduce CO2 emissions related to transportation.       


This article was originally featured in the latest issue of Modern Insurance Magazine.

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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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