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Reclaimed Parts and the Road to a Circular Economy: Why Now Is the Time to Act

The automotive recycling sector stands at a pivotal point in its evolution. As sustainability targets tighten and the environmental cost of manufacturing soars, the role of reclaimed parts is under sharper focus than ever. Speaking at the BVSF Conference 2025, Adam Murray, Head of Policy Standards and Accreditation at Solus (an Aviva-owned company), delivered a candid and insightful presentation that peeled back the layers of complexity surrounding the integration of reclaimed parts in modern vehicle repair processes.

 

Reclaimed Parts and the Road to a Circular Economy: Why Now Is the Time to Act f one
Adam Murray

Murray, with over three decades of industry experience and a history of thought leadership in sustainable repair practices, laid out a pragmatic roadmap: understand the current state, improve standards and processes, and prepare for a more ambitious future, potentially one where even safety-critical components could be safely remanufactured.

Where We Are Now

Currently, only about five out of 17 replacement parts used in a typical vehicle insurance repair are reclaimed. While insurers like Aviva have made a 100% commitment to using reclaimed parts where feasible, the road to full integration is fraught with operational, legal, and safety challenges.

At the core is traceability. Murray emphasised that insurers must be able to prove that a reclaimed part comes from a legitimate source and matches the original part in function and specification. The implications are significant: a misfit component could lead to failures with serious safety and liability consequences.

Moreover, many manufacturers embed software into their components, meaning that even a seemingly compatible part may require reprogramming at added cost and complexity. The result? Some repairers avoid reclaimed parts altogether, not out of resistance, but because the process is simply too cumbersome.

What Needs to Change

Murray identified several areas where progress is possible and necessary.

First, the VRA Standard, which underpins quality grading and compliance for reclaimed parts, needs urgent revision. Grading criteria must be clarified and updated to reflect the realities of today’s vehicle systems and technologies.

Second, recyclers should aim to supply “stripped” parts only, components removed cleanly and free of extraneous elements that complicate fitment and increase labour costs. It’s a simple ask, but one that could dramatically increase uptake if adopted industry-wide.

Third, collaboration across the supply chain, from insurer to repairer to recycler, must be strengthened. Murray urged insurers to lead by educating customers and repair partners alike, not just about cost savings, but about sustainability goals. “This isn’t about saving money, it’s about reducing carbon,” he said, referring to Aviva’s own net-zero target set for 2040.

What Comes Next

While reclaiming cosmetic and structural components is becoming more accepted, Murray floated a more provocative idea: remanufacturing functional and safety-critical components such as steering racks and braking systems.

He cited the example of a small UK-based operation already remanufacturing steering components for high-performance vehicles, including Ferraris and Lamborghinis. “If a small outfit with three or four people can do it to an OEM standard, why can’t we?” he challenged.

This approach aligns with the broader vision of a circular economy where not only parts are reused, but entire systems are reconditioned, tested, and returned to service. While the idea may seem radical, Murray sees it as inevitable, especially as manufacturers reduce part production timelines and governments strengthen end-of-life vehicle (ELV) regulations.

He also pointed out that European vehicle manufacturers are preparing to take more control over their parts’ life cycles, including remanufacturing initiatives like Stellantis’ massive facility in Italy. The message to recyclers: adapt now, or risk being locked out of future circular systems being designed without your input.

A Call to Action

Murray closed with a mixture of encouragement and urgency, saying to the vehicle salvage and vehicle recyclers in the room. “You’ve done an amazing job transforming your facilities, some are now unrecognisable from just a few years ago,” he said. “But we’re only halfway there. To truly make reclaimed parts mainstream, we need updated standards, deeper cooperation, and bold thinking.”

As government regulation, environmental concerns, and market pressures converge, the time for complacency is over. The auto recycling industry must seize this moment to push for smart reforms and embrace innovation, or risk being overtaken by those who do.

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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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