Auto parts remanufacturing

Abstract On May 8, "Made in China 2025" was released. The plan puts forward the "three-step" strategy of building China's manufacturing powers for three 10 years, and puts forward that sustainable development is an important focus for building and manufacturing a strong country, and strengthen energy conservation...
On May 8, "Made in China 2025" was released. The plan puts forward the "three-step" strategy of building China's manufacturing powerhouse for three 10 years, and puts forward that sustainable development is an important focus for building and manufacturing a strong country, strengthening energy-saving and environmental protection technologies, processes, equipment promotion and application, and comprehensively promoting cleaner production. Building a green manufacturing system and taking the path of ecological civilization development is of great significance to the auto parts remanufacturing industry. What opportunities and challenges will the plan bring to the auto parts remanufacturing industry? Recently, the China Economic Herald reporter interviewed Xie Jianjun, Secretary General of the Auto Parts Remanufacturing Branch of the China Association of Automobile Manufacturers, and Lu Jing, Project Manager of Guangzhou Huadu Global Automatic Transmission Co., Ltd.

"Internet Remanufacturing" establishes the only international e-commerce platform

China Economic Herald reporter: The introduction of "Made in China 2025", what is the significance of the auto parts remanufacturing industry? What challenges will it bring to the industry?

Xie Jianjun: "Made in China 2025" fully promotes green manufacturing and clarifies the status of auto parts remanufacturing, which is of great significance to the development of the industry.

At the same time, the introduction of the plan also brings challenges to the industry, such as the technical level of remanufacturing enterprises,

The technical improvement in the remanufacturing process will require higher requirements. As an integral part of green manufacturing, remanufacturing companies should choose a more environmentally friendly and low-carbon manufacturing process in the process of cleaning and processing to avoid secondary pollution.

Lu Jing: The remanufacturing industry is dominated by the market and is an emerging industry, recycling and low-carbon emission reduction manufacturing industry. In the context of the new policy, the prospects for remanufacturing companies are very broad.

China Economic Herald reporter: "Made in China 2025" takes "Internet" as the core and promotes the deep integration of informationization and industrialization, which will be the main line to promote "Made in China 2025". How do you think that the auto parts remanufacturing industry is developing this main line?

Xie Jianjun: We are currently building an "Internet Remanufacturing" model to build an e-commerce platform in the remanufacturing field - Lumai.com, which is the direction for re-manufacturing the Internet. Although Lumai.com is currently online, it is now in the stage of public beta and commissioning, but the market response is very good, and the industry has high expectations. This is not only the only comprehensive e-commerce platform for professional auto parts remanufacturing in China, but also the only one in the world. There is no professional e-commerce platform for selling remanufactured products abroad, only the company's own portal.

Lu Jing: As far as Guangzhou Huadu Global Automatic Transmission Co., Ltd. is concerned, before the introduction of "Made in China 2025", it has independently developed a management system that is in line with the development of the enterprise. This system can be managed very conveniently. Find, search, and progress data for each project to maximize paperless work. In addition to the client, this system also has a web mode. All branches, partners, distributors, administrators, and salesmen can control production and business status anytime, anywhere. Mobile terminals are under development.

In addition, suppliers and service providers rely on the power of the Internet to sell and promote remanufactured products, which can greatly reduce the cost of advertising investment, and promote the promotion. At the same time, the change in payment methods has also made the sales of remanufactured products more convenient. For example, consumers can browse products on the company's WeChat platform and pay with Alipay.

There is still a 45% gap with the international

China Economic Herald reporter: "Made in China 2025" proposed to improve the level of international development of manufacturing. What is the gap between China's auto parts remanufacturing industry and the international advanced level? How do you think you can shorten these gaps?

Xie Jianjun: First of all, in the developed countries and regions such as the United States and the European Union, the remanufacturing industry has a history of development for decades. The scope of the remanufacturing industry already covers the engine and its accessories, transmission systems, brake systems and other components. In the technology, processing, sales and other aspects to form a complete system, the recycling of automotive parts and components basically reached more than 80%. In contrast, China's auto parts remanufacturing started late, and the auto repair industry has been using traditional repair methods.

In "Made in China 2025", it is proposed to deepen industrial international cooperation and accelerate the "going out" of enterprises. We encourage domestic remanufacturing enterprises to strengthen ties and cooperation with foreign remanufacturing enterprises. The foreign base is good and there are technological advantages. We must strengthen learning and introduce technology. For example, in June, we organized 13 companies and a park to participate in the world's largest remanufacturing exhibition, exchange and learn advanced technology and experience.

Secondly, the current industry has made great progress in consumer awareness of remanufactured products through various publicity, but it still has a big gap with our expected results. We hope that in the after-sales market, the market share of remanufactured products will gradually increase and the target will be in line with international standards, but the current gap with the international market is still very large. Remanufactured products have high recognition in the international market, and the market share is over 50% compared with new products. The market share of remanufactured products in China is less than 5%.

What is worth looking forward to is that “replacement with old” has increased the market share of remanufactured products. The National Development and Reform Commission has published a list of remanufacturing companies and product catalogues that enjoy state subsidies.

Lu Jing: First of all, in terms of the development of remanufacturing enterprises, there are many aspects that lag behind the international advanced level. First of all, from the perspective of the green industry supply chain, including old machine recycling, environmentally dismantling, environmental cleaning, environmental protection assembly, etc., the current supporting facilities are still not perfect, and the remanufacturing is more difficult than the production prototype new machine.

Secondly, from the core components and core materials mentioned in "Made in China 2025", these core parts and materials are highly dependent on imports in the remanufacturing process to ensure product quality and reliability. In the future, the development of new materials and the manufacture of core components will be the focus and direction of development.

Thirdly, the domestic consumption concept has gradually improved. From understanding remanufacturing to accepting remanufacturing, it has gradually developed in a good direction, but the overall level is still quite different from that of advanced countries. At present, most of the domestic sales channels are limited by the concept of consumption.

Create a fair market

China Economic Herald: What advice do you have for the development of the auto parts remanufacturing industry?

Lu Jing: "Made in China 2025" mentioned that creating a fair competitive market environment, but as a "re-manufacturing" peer - "refurbishment" is full of auto parts market, has caused many consumers trouble, even repair shop 4S shops have been unable to distinguish between true and false. Therefore, the so-called "refurbishment goods" under the banner of "remanufacturing" has disrupted the auto parts market. The low standards and low cost of "refurbishment goods" have also had a significant impact on our real remanufactured products. Regarding this issue, I suggest that we should crack down on "refurbishment goods", punish unfair competition practices, and create a good production and operation environment for enterprises.

At the same time, we must pay attention to the cultivation and accumulation of talents. "Made in China 2025" also mentioned the need to improve the multi-level talent training system. At present, in the remanufacturing industry, the post-80s employees are already the mainstay, and the employees after the 90s have gradually entered the employment enterprise. Relatively speaking, the young employees can bring new vitality to the enterprise. However, due to the lack of experience in technology and the lack of experience in technology, there is also a lack of momentum in researching new technologies. Therefore, in the process of continuous development and growth of the enterprise, it often leads to a situation where no one is available.

The cultivation and accumulation of talents has always affected the development of enterprises. In response to the shortage of talents, our company and related colleges and universities have now reached an agreement on “school-enterprise cooperation – re-manufacturing orientation classes”. Sophomores and junior college students can apply for “re-manufacturing orientation classes” according to their own wishes. Each student enjoys an annual academic subsidy of 3,000 yuan. After graduation, students can be employed immediately.

In addition, "Made in China 2025" mentions the construction of the park. In the development of the park, unified training of talents can be carried out, and difficult parts (such as "non-national standard size" parts, or hard-to-buy parts) can be uniformly processed, sewage and waste gas. The waste is uniformly recycled and processed in a unified manner, thereby reducing the various cost consumption of all remanufacturing participants, and finally achieving the purpose of environmental protection, energy saving and emission reduction.

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