Two E Companies Grab the Right to Pilot Remanufacturing of Auto Parts
The pilot project for the remanufacturing of automotive parts has officially kicked off, signaling a major shift in vehicle maintenance practices. Yesterday, a reporter learned from the Dunkou Development Zone that the National Development and Reform Commission has designated 14 pilot companies, including Hubei Dongfeng Hongtai Holding Group and Dongfeng Cummins Engine. This initiative marks a significant step forward in promoting sustainable and cost-effective solutions in the auto industry.
**Five Key Components Can Be Regenerated**
The newly issued "Administrative Measures for the Remanufacturing of Auto Parts and Pilots" clearly defines the scope of "regeneration," currently limited to five key components: engines, transmissions, generators, starters, and steering gears. According to Wang Zhenkun, General Manager of Dongfeng Hongtai, these parts were previously restricted from entering the market and could only be recycled as scrap metal. Now, with the policy barriers removed, remanufacturers can legally reintroduce these components into circulation.
This time, Dongfeng Hongtai, Dongfeng Cummins, and 11 other parts manufacturers have been granted pilot status, while the remaining three are full vehicle producers.
**Investing 200 Million Yuan to Build a Pilot Base**
Wang Zhenkun revealed that Dongfeng Motor will establish an independent subsidiary to manage the recycling of automotive resources. The first phase of the project will involve a 200 million yuan investment to build a 300-acre pilot base. Once completed, the facility is expected to recycle and process 50,000 used vehicles, 100,000 tons of materials, and 100,000 sets of auto parts annually.
Most of the old vehicles recovered at the base will come from Dongfeng Citroen and Dongfeng Peugeot, two major brands under Shenlong. The program is expected to expand to other Dongfeng models in the future.
According to estimates, the base’s industrial scale could reach 2.7 billion yuan within three years. With 100,000 sets of recycled components, the project could save at least 30,000 tons of steel annually, significantly reducing emissions from steel production.
**Car Repairs Are Expected to Benefit Twice**
For consumers, this initiative means more affordable options for replacement parts. Under the new regulations, "remanufactured" parts will be available exclusively for vehicle maintenance and will be clearly labeled as such. According to Wang Zhenkun, the price of these parts is generally around 55% of the cost of new ones.
Although they are recycled, these parts meet the same quality standards as new ones and come with the same warranty. This not only benefits car owners but also promotes a greener and more sustainable approach to vehicle maintenance.
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