Maximiliano Marques, Director of Nh Autopiezas, autoparts specialist in Argentina gave us an overview of the current state of the vehicle dismantling industry in his country and how recent legislation could spread to other parts of the world without the assistance of the international community and Governments.
Key Figures relating to the vehicle recycling industry in Argentina
- Argentine Population: 44 Million
- Circulating Fleet: 13 Million
- Age of Fleet: 17 years
- ELV total: 120k per year (unofficial estimate)
- ELVs allowed by law to be dismantled and reused for parts: 30k per year
- Car parts allowed to sell: 30 pcs per year
- Vehicles deregistered without reusing autoparts: 90 K per year
- Car theft: 50k per year (approximately, unreliable statistics)
In 2003 the Argentine association of new component factories passed a law that regulates the vehicle recycling industry. The main consequence was a restriction to the sales of the majority of autoparts with only 30 pieces allowed to be sold, the rest must be destroyed, including pieces such as cylinder heads, seats, rims and others.
This law set a procedure that forces the dismantling of each car immediately (within a time period of up to 15 days) and a sticker for the traceability of each piece is added. Printed registers must be taken with the input and output of each piece and/or car. Any violation of the law can enforce the closure of businesses that do not comply with this law and the start of a trial with consequences ranging from a fine to imprisonment.
To make matters worse, a legislator is in its third intent to pass another bill to forbid the entire activity with the aggravating factor that the scrap metal price is a third of the international price and not allowed to export.
- Car Safety: Low-income earners unable to fix their cars
- Car Robbery: Total and partial. Due to unavailability of autoparts
- We are throwing away more than 90 thousand cars per year with a high possibility to reuse spare parts.
- Core enters the illegal market or is thrown away.
- Companies that work within the law of autoparts will be extinguished due to the lack of profitability as a consequence of not being able to sell high-value autoparts and there is an added bureaucracy cost to comply with this strict regulation.
- Not attractive for new businesses entering the market.
We have to realise that these ideas could expand to other countries. The autoparts law in the State of Sao Paulo (Brazil) was inspired in the Argentinian autoparts Law.
Argentina needs the help of the international community and Governments to change the current mindset and regulations. We require for a new ELV law that takes into account the urgent situation on our planet and society.