Written by / Ma Xiaolei
Editor/ Wu Jing
Design / Shi Yuchao
Source/thisismoney, by ROB HULL
After 2030, the new car market in various countries will gradually ban the sale of fuel vehicles. This makes many people cherish the gasoline or diesel cars in their hands more, praying that they can accompany them for a longer period of time.
Engine reengineering companies have found business opportunities.
Take Ivoor Searle, an engine remanufacturing company in Cambridgeshire, England, whose sales in 2021 reached a record high in the company's 76 years of existence.
Ivor Searle believes that remanufactured engines are part of the circular economy that reduces costs and environmental impact while reusing existing components as much as possible.
Unlike simple engine refurbishment, engine remanufacturing is deep processing on the basis of the original machine, and has corresponding industry standards, and the rebuilt engine is almost the same as the new machine, and even better than the original machine in some aspects.
Demand for remanufactured engines has surged▼
The surge in demand for remanufactured engines has been led by vans and diesel vehicles.
One reason for this is that since the outbreak of the epidemic, companies have increased delivery and express delivery services, and the use of trucks has increased dramatically, which has added additional pressure to some existing, aging commercial fleets, resulting in a significant increase in orders for diesel engine remanufacturing of delivery vehicles.
Since the outbreak of the epidemic, companies have increased their delivery and courier services
In addition, orders for passenger car engine remanufacturing also exceeded record highs, mainly due to the continued shortage of new cars due to the global shortage of semiconductor supplies.
Over the past two years, car production has been limited and new cars have been delivered for too long. The waiting time for some models has even reached more than a year. As a result, many car owners want their cars to be in service longer.
In the near future, the "ban on combustion" in the new car market is another major factor in consumers' pursuit of engine remanufacturing, providing a new alternative for car owners who still do not accept electric vehicles after 2030.
"Over the past year, sales of remanufactured engines have increased by 35 percent." Ivor Searle revealed that it has expanded its operational capabilities to keep up with the needs of consumers in the UK and EU.
Currently, the company can produce 150 engines per week, about 7,800 per year, which is the highest production record ever achieved. Ivor Searle executives expect this number to grow further in 2022.
Ivor Seale factory in Cambridgeshire▼
"During the first lockdown in 2020, our order volume started to climb significantly as the company's delivery fleet worked around the clock, putting a lot of pressure on older vehicles." David Eszenyi, the company's commercial director, explains.
This, coupled with the impact of the semiconductor crisis, has led to an increase in the manufacturing cycle of new cars, and increased pricing and supply chain issues for other components. Individual car owners, courier companies, business owners and truck fleets are forced to want to extend the service life of existing vehicles.
"This trend has given Ifan Seale more momentum over the past year, and we expect demand to increase further, particularly in Europe, which is fast becoming a major growth market for our remanufactured products." Ethany said.
Engine remanufacturing is part of the circular economy, but it is ignored by many people
Because most drivers choose to get a new car after an engine failure or other important component failure, engine remanufacturing is often overlooked.
Ivor Searle says remanufactured engines, transmissions or turbochargers typically cost 40 percent less than buying brand new equipment, providing a affordable solution for owners who are reluctant to give up their existing cars.
It is also more cost-effective than manufacturing entirely new products, while also reducing the consumption of raw materials and energy. Typically, each remanufactured engine saves about 50 kilograms of core metal and 85 percent of energy.
It works like this▼
The source of remanufactured engines is generally donated by enterprises. It can then be reused in ten steps with an unlimited mileage warranty for 12 months.
The recycled engine is supplied from vehicles donated by companies that have terminal failures
Ivor Searle revealed that the engine with the highest demand for remanufacturing is the 2.2-liter diesel engine for vans, especially for the Ford Transit.
It is followed by 2.0-liter and 1.6-liter diesel engines for Ford, Renault, Mercedes-Benz, BMW, Volkswagen and Audi. The third most popular was the 1.0-liter Ford gasoline engine, which usually appears in Fiesta and Fox.
Jaguar Land Rover's UK factory▼
Typically, when a car is sent to a workshop to replace the engine, the repair shop buys a remanufactured unit from Ivan Searle. Once the remanufactured engine is installed, the vehicle's odometer will not be reset. However, the owner should have a backup of the mileage record before the installation date.
If the owner does not want to purchase a remanufactured engine through the repair shop, in principle, he can also apply directly through Ivor Searle's Customer Own Unit service.
However, a spokesperson for the company said: "At present, all engineers are arranged to process orders from commercial customers and are temporarily unable to provide personal customer service." However, it is hoped that more engineers will be recruited and then the service will be restored. ”
It's a highly skilled job, and talent with that skill is rare, the spokesperson explained.
The company also revealed that the European auto parts remanufacturing market is worth about 10 billion euros and is expected to reach 20 billion euros by the end of 2024, because diesel engines account for the highest proportion of cars and trucks in the whole of Europe.
According to a recent report, Europe's auto parts remanufacturing market is expected to grow at a rate of 10% per year. By the end of 2024, the number of remanufactured products will exceed 56 million units per year.
This article was originally produced by Automotive Business Review
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