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Gen Z at the Wheel – A Sustainable Revolution in the Auto Industry

The environmental movement is gaining traction across industries, and the auto industry is no exception. A driving force behind this shift is Gen Z, a generation deeply concerned about the planet. Studies show that 82% of Gen Z worry about the future of the Earth, and 76% are actively taking steps to lessen their environmental impact.
 
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While Gen Z is a smaller segment now, they’ll soon be a major force as more reach driving age. The auto industry needs to be ready to engage them and explore ways to shrink its environmental footprint. By listening to Gen Z’s evolving preferences, the industry can pave the way for a future that balances economic growth with environmental responsibility.

Learning from Fashion’s Green Revolution

The fashion industry offers valuable lessons. It redefined “used” clothing as “pre-loved,” making sustainability trendy and appealing to eco-conscious consumers. The auto industry needs a similar shift, changing the perception of used car parts.

Insurers, body shops, and garages have a role to play. There’s a misconception that used parts are inferior, but pre-owned doesn’t mean unsafe or ineffective. They can be a more sustainable, cost-effective option.

Embracing Used Parts: Good for the Planet, Good for Business

This shift towards used parts isn’t just greenwashing. A report suggests a mere 2% increase in repair rates across Europe could slash annual CO2 emissions by 30,000 tons.

Gen Z is already on board. Research shows 80% of 17-24-year-olds are open to using pre-loved parts with a guarantee, compared to 58% for other age groups. Garages that embrace green parts and cater to Gen Z’s needs will gain a competitive edge.

Busting the Price Myth

There’s a misconception that green choices are expensive. Gen Z is more price-conscious than previous generations, so this concern could deter them from sustainable options. However, used parts can be both more sustainable and more cost-effective. Research suggests opting to repair instead of replace could save consumers almost £3,000 a year.

A New Type of Sustainable Insurance

The path to sustainability goes beyond used parts. The insurance industry can work with garages to create greener insurance policies that attract Gen Z drivers. Tools are now available that provide insurers with data on their carbon footprint and offer reduction initiatives. This allows them to compare the environmental impact of repair versus replacement and make informed decisions.

AI: Driving Profit and Sustainability

Technology is key to making the entire automotive lifecycle more sustainable. AI can streamline the claims process and suggest the most environmentally friendly repair solutions for insurers, garages, and body shops.

Gen Z isn’t just demanding change; they’re shaping the future. The auto industry must adapt its practices to this shift in consumer behaviour. By acknowledging Gen Z’s values and embracing sustainable solutions, the industry can secure a future that’s both profitable and environmentally responsible.

Source www.solera.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.

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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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