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 significant transformation in vehicle maintenance practices. Yesterday, a reporter learned from the Dunkou Development Zone that the National Development and Reform Commission has identified 14 enterprises as the first batch of pilot companies, with two subsidiaries of the Dongfeng Hongtai Holding Group and Dongfeng Cummins Engine among them. This initiative marks a major step forward in the auto industry's efforts to promote sustainability. 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. In the past, remanufacturers faced strict policy restrictions, but these barriers are now being lifted. Wang Zhenkun, General Manager of Dongfeng Hongtai, noted that previously, parts like engines were only allowed to be recycled as scrap metal, preventing them from re-entering the market. Now, this is changing. In addition to 11 component manufacturers, three full vehicle producers have also been selected for the pilot program. Dongfeng Hongtai plans to establish an independent subsidiary dedicated to recycling automotive resources. The first phase of the project will involve an investment of 200 million yuan to build a 300-acre pilot base. Once completed, the facility is expected to process 50,000 used vehicles, 100,000 tons of materials, and 100,000 sets of auto parts annually. Most of the recovered vehicles will come from Dongfeng Citroen and Dongfeng Peugeot models under Shenlong, with plans to expand to other Dongfeng brands in the future. Industry analysts estimate that the scale of this operation could reach 2.7 billion yuan within three years. By recycling 100,000 sets of parts annually, at least 30,000 tons of steel can be saved each year, significantly reducing emissions from steel production. For consumers, the availability of remanufactured parts offers a more affordable alternative to new components. These parts will be clearly labeled as "remanufactured" and sold for vehicle maintenance. According to Wang Zhenkun, remanufactured parts typically cost about 55% of the price of new ones. Despite being recycled, their quality meets the same standards as new parts and come with the same warranty, making them a reliable and cost-effective choice. This development not only benefits car owners but also supports a greener, more sustainable automotive industry.

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