Shortcomings in the Development of Automotive Parts Production Process

Shortcoming one is the insufficient amount of recycling, which hinders the sustainable development of remanufacturing enterprises. Policy restrictions also result in a smaller quantity of automotive parts. According to the still implementing State Council Decree No. 307 "Management Measures for Scrap Automobile Recycling", the "five major assemblies" including the engine, transmission, and front and rear axles must be sold to steel enterprises as production raw materials. But in reality, many of these assemblies are resources that can be remanufactured. This has resulted in insufficient recycling by remanufacturing enterprises from a policy perspective.
Shortcoming 2: The order of the remanufacturing industry is chaotic, and legitimate enterprises are facing unfavorable competition from the "miscellaneous army". For legitimate automobile parts remanufacturing enterprises, the price for recycling and scrapping enterprises is generally based on the market price of scrap iron. Taking a Jetta sedan facing scrapping as an example, the company pays the owner around 1000 yuan. Some small workshops lacking qualifications rely on the private sale of engine, transmission and other assemblies to obtain huge profits.
Taking a 10 ton scrapped truck as an example, because the "five major assemblies" cannot be sold according to regulations, legitimate enterprises mainly profit from selling scrap steel after dismantling, with a maximum selling price of 20000 yuan and a purchase price not exceeding 12000 yuan. Otherwise, including costs and taxes, they will incur losses. But underground dismantling factories can definitely purchase for 20000 yuan or even more, because at least by illegally selling the "five major assemblies", they can make a big profit. For example, the engine of a large truck can be sold for 7000 yuan, and the rear axle can be sold for 8000 yuan. In this way, it is not difficult to sell a car for 25000 yuan or even higher.
Shortcoming 3: The overall technical level of domestic remanufacturing enterprises is not high, and the social recognition of the remanufacturing industry is low, which hinders the further development and growth of the industry. It is reported that the remanufacturing and production of automotive parts require specific processes such as disassembly, cleaning, inspection and classification, remanufacturing or replacement of failed parts, product reassembly, and finally strict testing before leaving the factory and entering the market. In fact, due to the late start and relatively backward equipment of China's automotive parts remanufacturing industry, the main reason is the high investment cost, which puts a lot of pressure on the enterprises themselves. This has led to a significant gap in technology and quality between the domestic remanufacturing industry and its foreign counterparts. An obvious example is that even in the demonstration pilot enterprises of automobile parts remanufacturing, there are still some that use relatively outdated methods of size repair and replacement repair, resulting in a low remanufacturing rate.
At the same time, due to factors such as traditional consumption concepts and insufficient publicity, the current level of public awareness of the automotive parts remanufacturing industry in China is insufficient, and there is a certain deviation. The consumption concept of "even if it is half as cheap, they will not buy old goods" is very common. This leads to insufficient understanding and support from consumers for automobile remanufacturing, and the return of remanufactured products to consumers is still very limited.
To promote the healthy and orderly development of the automotive parts remanufacturing industry, it is necessary to take multiple measures and comprehensively use legal, economic, and necessary administrative means to promote it. Especially for the widespread phenomenon of illegal dismantling and dismantling in the industry, administrative law enforcement should be strengthened, and illegal enterprises and small workshop style dens should be resolutely banned.