Why Dismantling of ELV should be Encouraged Over Scrapping?
| Read Time: 5 minutes
One of the main sources of Auto Recycling today is ELVs i.e. End of Life Vehicle at Authorized Treatment Facilities and car part sellers globally. Governments are playing a vital role in encouraging sustainable practices and circular economy concepts with new directives like European Green Deal and The Paris Agreement, forcing automotive companies and auto recyclers to meet strict carbon-neutral targets. Now, developing countries are also looking at the dismantling of ELV (end-of-life vehicles) rather than scrapping ELVs (end-of-life vehicles).
Today, more Auto Recycling Facilities are becoming sophisticated by adopting technologies and upgrading facilities that offer seamless end-to-end dismantling of ELV, yard management services, and recovering, and repurposing. They are connected to metal recyclers and refurbishing companies that are heavily invested in getting green parts from ATFs.
Although even today, there are many dismantlers where scrapping is preferred by many car dismantling companies because it is mostly easier to scrap the vehicle than put the effort to dismantle and lack of awareness about new tools and technologies. This applies especially to End-of-Life Vehicles because there is very little value seen for used parts in that scenario, which is gradually changing worldwide.
Many car dismantling facilities or ATFs send it directly for scrapping for metals, and other materials. But now, due to the adverse effects on the climate due to landfills caused by the scrapping of vehicles, the government is imposing regulations for encouraging the extraction of used parts from old cars and the use of refurbished parts, so that economies can contribute to the circular concept.
So, let’s understand why Scrapping Vehicles was preferred.
Or let’s say why the Dismantling of ELV was avoided.
- Recovery of Green Parts is expensive
- A general assumption that ‘Scrapping is Cost Effective than Dismantling’
- Low profitability was generally a problem with dismantling cars for profit
- Extraction of parts from an ELV is man-power intensive
- Dismantling cars for profit requires trained manpower, expertise & experience
- It is a time taking process, indirectly affecting the cost of procurement of used parts
- Not knowing which parts to extract would be beneficial or profitable
- Car scrapping offers dismantlers revenue from metal recycling
- Bulk selling of scrap cars is beneficial for Auto Recyclers & yard management
These are a few reasons – why scrapping was more convenient. And now with increasing awareness about auto recycling and new methodologies and technologies, dismantling for profit and used part selling is a growing business avenue.
Why Dismantling of ELV Should be Encouraged?
- Increasing Need for Green Parts
- Environment Friendly and contributes to a circular economy
- The landfill will decrease, as more used parts will be recovered and extracted for repurposing, refurbishing, and recycling.
- Helps Dismantlers optimize profits from used parts selling
- Reducing unauthorized crushing of vehicles
- Global demand for the sustainable use of energy, and to reduce the emission of harmful gases into the environment is rapidly driving the need for efficient car recycling.
- Customer consciousness is increasing, and people are looking to reuse and recycle. They are looking to become environment friendly
- A younger generation of employees is also interested in sustainable innovations
With Automotive Industry being the 3rd largest contributor to climate change and pollution, it is becoming more important to control how new vehicles are being manufactured, and how recycling can help control landfill.
Let’s see what the industry says
Car Dashboards and other interior components could soon be made from bioplastics, explains Wojciech Komala, Research, and Development Director said,
“We lower the carbon footprint by using bio-based sources. And by trying to develop lighter components for the cars.”
Source: BBC news article
A Study by eBay found that 71% of motorists would consider switching from installing new car parts on their vehicle in a bid to cut costs. Dr. Tony Tong, Head of Automotive at eBay UK, said:
“As budgets continue to tighten across the country, motorists will understandably look to save money where they can, and eBay’s certified recycled items are the perfect solution. They are typically 70% cheaper than new items and are kinder to the environment by recycling existing components. Most importantly, all VRA Certified items meet strict quality standards, so buyers get peace of mind, as well as saving money.”
Explore some challenges faced by the industry here.
European Commission is the Flag Bearer for Green Parts
European Commission proposes a 55% cut in CO2 emissions from vehicles by 2030 and a 100% cut by 2035, making it nearly impossible to sell fossil-fuel-powered vehicles in the European Union.
In addition, carbon taxes are being imposed, incentives are offered through carbon points by the government to encourage dismantling and recycling auto parts. For the same, Dismanto – A platform by Gateway Group enables dismantlers and Auto Recyclers to gain carbon points by optimizing dismantling processes and allowing dismantlers to save on costs and explore dismantling for profit. Now, you can gain carbon points and know how much incentive you can make by considering recovery and sale of ‘GREEN Parts’
Our Strategic Advice for Adoption of Sustainable Practices
Long term Strategy
A strategy that works in the long-term interest of an Auto Recycler becomes the foundation for considering sustainability in every process and function. Thus, making the long-term objective of being sustainable and truly circular.
Using Technology
We are enabling Auto Recyclers and Dismantlers with state-of-the-art software solutions helping them increase their visibility and transparency to be more sustainable by providing end-of-end ELV management or DMS for Authorized Treatment Facilities.
Track & Measure Emissions
Knowing and using relevant data to implement sustainable strategies is the need of the hour. Here, technology can give us insight into the right parts to extract as green parts and reduce emissions. Knowing emissions can also help gain carbon points and higher satisfaction among customers concerned with the environment.
Collaboration & Ideation
Learning from others always helps, and that is our value system at Gateway Group. We believe in collaborating and helping companies become sustainable and profitable at the same time. We implement sustainable practices with many businesses across the globe, where our innovations and technology experience have been instrumental in making some businesses sustainable and profitable.
Let’s Collaborate to Become Sustainable
We are encouraging dismantling through innovation, where expensive processes can be optimized and costs can be reduced by having business intelligence. Having an end-to-end ELV management system or popularly known as Dismantling Management System i.e. DMS, we are enabling Auto Recyclers with insights like no other.
Unlike other dismantling systems/ DMS, we are offering Auto Recyclers a new-age solution, which gives you absolute flexibility to create your processes, set your pricing mechanism and manage your yard and inventory efficiently along with unique features like parts identification and assisted car inspection, making it configurable and highly scalable. Learn more about the platform with our ELV experts.
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