Due to prior commitments we are unable to attend. However it did set us thinking about remanufactured parts and whether we should update the research we have previously carried out in this area.

The last time we looked in detail at remanufactured parts was five years ago. Back then, over half of the franchised dealers that we interviewed said they did not use remanufactured parts at all and many interviewees were uncertain about their position on warranty replacement parts.

However, it was clear that franchised dealers were not big users of remanufactured components and assemblies outside warranty cover - primarily because they work on relatively young cars which are less likely to need repairs. The most common remanufactured items retailers said they bought and supplied were alternators, starter motors, steering and suspension, gearboxes, radiators and clutches.

In the same survey, independent garage workshops were more enthusiastic with, on average, interviewees telling us that 8% of the parts they used were remanufactured. There were some similarities with franchised dealers on the items purchased with any differences easily explained by the much older cars repaired by independents.

Our survey also explored the reasons for purchasing remanufactured parts and here franchised and independent workshops were in total agreement. Price and availability were the top two reasons with price by far and away the most important - 75% of franchised workshops and 60% of independents said price.

Franchised and independent workshops were also in agreement about the future of remanufactured parts with 85% of dealers and 78% of independents saying their usage will increase or stay the same.

Obviously, five years later the situation could have changed a lot and we shall include the appropriate questions in our next survey to find out. However price is almost certainly still the key driver for using remanufactured parts and, in the current dire economic conditions, it seems very likely that the survey results will be similar.

There is a very strong environmental case for using remanufactured parts, which can save 50% of the cost, 60% of the energy and 70% of the materials on average, compared to new products.

In our report five years ago, we speculated that their future might depend on ‘green’ legislation and vehicle manufacturers actively supporting sales because there was some evidence suggesting motorists were wary of remanufactured parts.

However, judging by the information coming out of China today, the price of remanufactured parts is falling dramatically in real terms and this could bolster sales to hard-up UK motorists without any intervention.

Written by Trend Tracker director Chris Oakham, this piece first appeared his column in the subscription monthly Auto Retail Bulletin in February 2011.(See auto-retail.co.uk for subscription details.)

Chris Oakham

Trend Tracker Limited

0870 421 4350

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