Auto parts remanufacturing industry to be revitalized

Previously, many people lacked a full understanding of the remanufacturing industry. At the end of May, 11 ministries and commissions jointly launched the remanufacturing industry to issue guns and issued the "Opinions on Promoting the Development of Remanufacturing Industry" (hereinafter referred to as "Opinions"). Subsequently, the remanufacturing theme continued to heat up. However, the remanufacturing industry, as a slightly unfamiliar vocabulary, faces many problems while entering the fast lane.

Industry is waiting
Since the reform and opening up, China’s import of equipment alone has reached one trillion yuan, and today, these equipments are about to enter the end of life. In the industrial sector, the annual loss of equipment due to wear and corrosion and scrapping accounts for 10% of the annual GDP, and the loss is as high as 100 billion yuan, resulting in huge waste of resources and environmental pressure.

The remanufacturing industry is based on the original industry, using mechanical and electrical products to carry out specialized repairs or upgrades, so that it can be restored to a batch manufacturing process like new products or better than new products. At present, China's products have gradually entered the scrapping period, providing abundant raw materials for the remanufacturing industry.

In 2002, the annual output of the US remanufacturing industry was 0.4% of GDP. Based on this calculation, if China's remanufacturing industry accounts for 0.2% of GDP this year, and GDP itself is expected to reach 37 trillion yuan, on this basis, China's remanufacturing industry will have an annual output value of 74 billion yuan.

After the release of the Opinions, the automobile and tire industries quickly became the object of the remanufacturing industry. The reporter learned that the remanufacturing of auto parts now includes five categories, namely engine, gearbox, generator, starter and steering gear remanufacturing.

It is understood that the cost of remanufactured products is only 1/4 of the new products, energy saving is more than 60%, material consumption is over 70%, and the potential value of manufacturing products is maximized, which can make energy resources close to zero waste.

Li Feng, general manager of Weichai Power (Weifang) Remanufacturing Co., Ltd., one of the pilot units of automobile manufacturing remanufacturing, told the reporter of China Economics and Informatization: "The performance and quality of remanufactured products can reach the level of new products, but because of The cost is lower and the customer spends less on purchases."

Li Feng said that because of the lower cost, Weichai Power's engine remanufactured product price is only 75% of the original price of the new product. And if you use the old engine that has been faulty to re-manufacture the product, you can offset the price by 25%. This trade-in will save half the cost. This not only facilitates the customer, but also provides a good recycling channel for scrap products, which is conducive to resource conservation and comprehensive utilization. ”

A related person from the Department of Energy Conservation and Comprehensive Utilization of the Ministry of Industry and Information Technology told the reporter of China Economics and Informatization: "As with the automotive industry, remanufacturing of construction machinery is also a potential industry, because the machine tools involved in remanufacturing are tens of thousands. At the same time, he also told this reporter that in December 2009, the Ministry of Industry and Information Technology selected seven projects including Caterpillar, Xugong, Zoomlion and Sany Heavy Industry. 35 enterprises and industrial clusters including machinery companies were the first batch of remanufacturing pilots for electromechanical products.

Where is the raw material?
Although the remanufacturing industry started late, due to its broad development space and the contribution of the Opinions, the industry has been listed as an important part of the country's promotion of circular economy. At the same time, many problems in the process of industrial development have surfaced.

The reporter learned that the difficulty in obtaining raw materials is the primary problem facing the remanufacturing industry. Although there are a large number of products in the market that are about to enter the end of life due to the end of the life cycle, the supply of raw materials for the remanufacturing industry has been greatly difficult due to poor circulation channels.

For example, in the auto parts industry, according to Article 14 of the State Council's Decree No. 307, “Administrative Measures for the Recycling of Scrapped Vehicles”: scrapped automobile recycling enterprises must dismantle the scrapped vehicles that have been recovered. Among them, the recovered scrapped passenger bus should be dismantled under the supervision of the public security organ. The disassembled “five major assemblies” (automobile engine, steering gear, transmission, front and rear axles, frame) should be used as scrap metal and sold to steel companies as raw materials for smelting; other spare parts that can be dismantled can continue to be used for sale. , but must be marked as "retired car recycling parts."

Therefore, in principle, remanufacturing companies can only acquire some old parts from the auto repair market as remanufactured raw materials, but the amount of raw materials provided by such markets cannot meet the production and market demand. At present, it seems that the national efforts to promote the development of the remanufacturing industry will be hampered by the relevant provisions of the Measures for the Administration of Scrap Automobile Recycling.

In addition, Li Feng told reporters that Weichai Power (Weifang) Remanufacturing Co., Ltd. can only repair the remanufactured products that it once produced. The state still prohibits the company from remanufacturing products outside its own brand. This phenomenon does not only exist in Weichai Power (Weifang) Remanufacturing Co., Ltd., the entire remanufacturing industry faces the same restrictions.

But there is one exception. The reporter learned from other sources that only Jinan Fuqiang Power Co., Ltd. can remanufacture products produced by other manufacturers in the 14 auto parts remanufacturing pilot units due to changes in cooperative rights. Remanufactured products from other manufacturers must be produced by themselves, which will cause problems in how re-manufactured products are branded.

“After the refurbished products have been refurbished and flowed to the market, they need to be labeled with the manufacturer's logo as well as the new product process, and promise a certain quality assurance, but this will cause some problems. Is it the brand of the original manufacturer or the brand of the remanufacturing party? ?" An industry insider told reporters.

"Because the original manufacturer and the current remanufacturer are not the same one, after re-manufacturing the product, it is necessary to be responsible for the overall quality of the remanufactured product. However, the raw material of the product is ultimately the original product. Manufacturers, if there is a problem with the remanufactured product, there will be a question of who is responsible," the source said.

When the reporter asked about the long-term planning of the remanufacturing company of Weichai Power (Weifang) Remanufacturing Co., Ltd., Li Feng said that although the country had given preferential treatment and subsidies when the existing production line was built last year, they did not plan to continue building new production lines. .

He told reporters that although Weichai Power's generator market has 2.2 million units and a 2% ratio has entered the scrapping period, this does not mean that 44,000 engines will enter the remanufacturing phase. Although some engines have passed the service life, they have not withdrawn from the life cycle, which will cause the loss of some remanufacturing resources.

Tax system to be changed
It is understood that the tax issue still needs to be clarified. It is also one of the reasons why remanufacturing seems to be hot, but the enthusiasm of enterprises is not high. The reporter learned from relevant manufacturing companies that the amount of output tax in the value-added tax of remanufacturing enterprises is difficult to offset, and has become another important factor in inhibiting the development of the remanufacturing industry.

The VAT input tax is the amount of VAT that the taxpayer is responsible for when purchasing goods or accepting taxable services. The VAT output tax refers to the taxpayer's sales of goods or taxable services, and the amount of VAT borne by the purchaser is calculated according to the sales and VAT rates.

Generally speaking, as a general taxpayer, the value-added tax of the enterprise is the current input tax amount minus the current output tax amount. However, because the remanufacturing company purchases scrapped parts from the customer, the company cannot obtain the input tax invoice, and when the company resells the repaired product to the customer, it needs to issue the output tax invoice for the product.

There is no way for an enterprise to offset the input tax because there is no input tax invoice, which results in an increase in the cost of remanufactured products. When the cost of the remanufacturer can't be reduced, the selling price will increase, and the selling will be more expensive, which will eventually burden the user. When the cost is transmitted to the customer, the consumer enthusiasm is weakened, which is not conducive to stimulating the investment enthusiasm of the industry. What's more, consumers' understanding of remanufactured products is not deep and the recognition is not high.

The reporter learned that although the government strongly promotes the development of the remanufacturing industry, in China as an emerging industry, remanufacturing, whether it is a product or a concept, is still difficult to be fully recognized by consumers. When the reporter asked about the remanufacturing industry, many industry insiders said that they had not fully understood the concept. Even if everyone has an understanding of the industry, there is still room for improvement in the acceptance of remanufactured products.

“Remanufactured products are not unacceptable, but customers will also look at the manufacturers. If the manufacturers themselves are famous, the quality of their remanufactured products is guaranteed.” Some people said that this is also the remanufactured product for most people. Attitude.

The head of the sales department of Jinan Fuqiang Power Co., Ltd. told the reporter of China Economics and Informatization: "Now the customer has not enough knowledge of the refurbished products. Even if the remanufactured products are cheap, the customers still have the price/performance ratio of the refurbished products when they buy the goods. doubt."

Therefore, reducing the cost of remanufacturing industry and stimulating the enthusiasm of consumers is the key to the continued development of the remanufacturing industry. Remanufactured products are a new concept for users. Part of the remanufacturing business community once told reporters that in the early stage of industrial development, public welfare propaganda on the concept of remanufacturing is conducive to boosting the development of the industry.

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