Under the general environment of energy conservation and emission reduction, the recycling of resources has become a general trend. Dismantling the spare parts of old motor vehicles and reusing them is a link in the automotive industry chain. However, the current scrapped vehicle market is full of chaos, high profits, and lack of supervision mechanisms, resulting in non-compliant assembled vehicles entering the market, endangering drivers and road safety. Although in 2009, the central government spent 60 million yuan to support the upgrading and transformation of 60 dismantling companies from 14 provinces and cities, the implementation effect is not ideal. In September this year, six ministries and commissions also jointly issued a document stating that they would carry out a special rectification work on scrapped vehicles in China for half a year. (The picture is a data picture)

China News Service, October 15 (Automotive Channel Lu Siyan) Shanghai recently stated that it is studying the revision of the "Scrapped Vehicle Recycling Management Measures" to comprehensively regulate the scrapped motor vehicle recycling services. Under the general environment of energy conservation and emission reduction, the recycling of resources has become a general trend. Dismantling the spare parts of old motor vehicles and reusing them is a link in the automotive industry chain. However, the current scrapped vehicle market is full of chaos, high profits, and lack of supervision mechanisms, resulting in non-compliant assembled cars entering the market, endangering drivers and road safety. Although in 2009, the central government spent 60 million yuan to support the upgrading and transformation of 60 dismantling companies from 14 provinces and cities, the implementation effect was not ideal. In September this year, six ministries and commissions also jointly issued a document stating that they would carry out a special rectification work on scrapped cars in China for half a year.

Three channels for scrapped cars divert the market with high profits

With the rapid development of China's automobile industry, the number of cars has risen sharply, and the number of scrapped cars has also increased year by year. Normally, a large number of scrapped cars should flow into the hands of regular scrapped car recycling centers, but the facts are quite the opposite. It is reported that in 2011, the amount of scrapped cars recycled in Xinjiang (excluding enterprises in the Corps system) was 13,366, a year-on-year increase of 13%, including 6,619 passenger cars, 1,907 trucks, and 4,840 other models.

The profit from formal dismantling of scrapped cars is relatively low, generally around 5,000-6,000 yuan. Due to the low statutory scrap recycling standards, nearly 80% of scrapped cars flow into the black market every year, resulting in a shortage of raw materials for formal car dismantling companies. This has not only impacted formal recycling and dismantling companies, disrupted the normal order of recycling and dismantling, but also brought serious hidden dangers to road traffic safety, environmental protection and resource utilization.

Jia Xinguang, executive director of the China Automobile Dealers Association, said in an interview with the media that three underground trading channels currently make it difficult for regular car dismantling companies to recycle. First, some vehicles that are about to reach the scrap age are resold to the second-hand car market; second, some car owners withdraw their motor vehicles that are about to be scrapped from their household registration and resell them to areas with weak management or remote areas, or use fake license plates to drive on the road; third, illegal companies illegally dismantle and assemble vehicles. In terms of the purchase price of raw materials, regular dismantling companies have no advantage at all.

The reuse value of scrapped vehicles is very high. Some core parts of automobiles, such as engines and gearboxes, can be restored to their original performance through remanufacturing and can continue to be used. It is not a problem to make 10,000 or 20,000 yuan by selling the dismantled parts. The dismantled parts generally flow to auto repair shops. The state has strict regulations on the "five major assemblies": any unit or individual is prohibited from using the "five major assemblies" and other spare parts of scrapped cars to assemble cars; scrapped cars, "five major assemblies" and assembled cars are prohibited from entering the market for trading or trading in any other way; assembled cars and scrapped cars are prohibited from driving on the road. However, many black markets still turn a deaf ear to it and commit crimes against the wind, replacing the power parts with car owners.

Government departments need to cooperate with upstream and downstream of the automotive industry chain in special rectification

Compared with European and American countries with mature automotive industries, China's automobile dismantling industry is still in its development stage and its institutional guarantees are very imperfect. In 2009, the central government spent 60 million yuan to support the upgrading and transformation of 60 dismantling companies from 14 provinces and cities, but the implementation effect was not ideal. In September this year, the Ministry of Commerce, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Transport, the State Administration for Industry and Commerce, and the General Administration of Quality Supervision, Inspection and Quarantine jointly issued a notice, deciding to carry out special rectification of scrapped cars in China from September 2012 to February 2013.

The notice pointed out that the competent commerce departments should conduct a comprehensive cleanup and inspection of scrapped car recycling and dismantling enterprises in the administrative area, the public security departments should strengthen supervision of the public security conditions of scrapped car recycling and dismantling enterprises, and the industrial and commercial administrative departments should increase supervision of the business activities of scrapped car recycling and dismantling enterprises, and investigate and punish the illegal acts of selling scrapped car parts that can no longer be used and parts that are not marked as "scrapped car reuse parts" in accordance with the law. Crack down on the behavior of scrapping and assembling vehicles on the road, and establish a long-term mechanism for scrapped car management. Although the system is frequently introduced, the implementation effect is not obvious. The reason for repeated prohibitions is nothing more than the word "interest".

In the European and American markets, scrapped cars must be sent to special scrapped car recycling companies for processing. After the recyclers dismantle the scrapped car parts, they send them to professional manufacturers to repair and refurbish the parts that are still useful, and then transport them to the repair shop for reuse.

According to statistics, there are more than 12,000 scrap car dismantling companies, 20,000 parts remanufacturing companies and 200 scrap car crushing companies in the United States. Most of them are jointly operated with automobile manufacturers, dismantling and refurbishing engines, motors and other parts with reuse value and reselling them. Since the United States gives high subsidies of about US$4,000 (about RMB 25,200) to scrapped vehicles, no one in the United States will sell scrapped cars on the black market.

The European Union stipulates that the recycling rate of old car parts and materials must reach 75% in the near future and 95% in the long term. As a result, a number of car dismantling companies came into being in Germany. On the assembly line of the dismantling company, engines, metal frames, plastics, wires, rare metals, etc. are piled together in different categories. The intact parts are sent to the auto repair shop as spare parts, and the rest are recycled as recycled materials. In Germany, 75% of auto parts can be recycled. By 2015, the part of each car thrown away as garbage will only account for 5% of the weight of the car.

However, in China, manufacturers do not assume the responsibility for recycling scrapped vehicles, nor do they manage and control restricted substances in cars, let alone provide dismantling information and environmental protection requirements to the public. According to a relevant person in charge of Shanghai Baosteel Iron and Steel Resources Co., Ltd., in 2002, the State Economic and Trade Commission counted that there were 367 scrap dismantling companies in China. "Today, it is not an exaggeration to say that there are 3,670 scrap dismantling companies in China. For example, in big cities such as Chengdu, scrap dismantling companies can easily obtain qualification approval." Manager Zhai of Guangfa Material Recycling Co., Ltd. also made it clear that there are too many private companies in the industry, and none of them are qualified to dismantle. China prohibits the "five major assemblies" flowing out of dismantling companies from entering remanufacturing companies. Although this avoids risks, it means that car companies at the upstream of the automotive industry chain and recycling and remanufacturing companies at the downstream have neither a good cooperative relationship nor their respective obligations.

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