Wednesday, November 23, 2011

Scrapping boom makes spare parts cheaper

Auto Repair
Recyclers could thanks to scrapping old cars and scrap lots
cannibalize. The sudden glut of utilizable confuses the spare parts
market.
Lots of parts on the shelf - because of the scrapping the bearings of
the recycling companies with cannibalized parts well filled.
Photo: AP
Kassel. The scrappage scheme has a dubious reputation. While car
dealerships as they celebrate success, recycling companies moan about
the consequences of Abwrackbooms: You need a lot of old cars and scrap
cannibalize.
The sudden glut of utilizable confuses the spare parts market.
Already, the industry complains about shrinking margins. But consumers
who leave their cars repaired with used parts can be happy about
falling parts prices.
"We have an insane glut of used parts," complains of the Gottfried
hell ArGe-old car in Kassel. The Federation of ELV recycling are
connected approximately 800 certified recycling companies. Normally
would in Germany each year about 3.2 million cars deregistered,
cannibalized and recycled 1.2 million of them, the rest exported. By

scrapping now come to around one million vehicles for salvaging.
According to the Federal Office of Economics and Export Control (BAFA)
in Eschborn near Frankfurt / Main have been around 1.44 million
applications for payment submitted to the scrapping premium (as of May
14). The grants ranged 557 773 for further applications. The assault
on the premium resulted in some recovery facilities to chaos. Because
they are no longer the vehicles could be scrapped, they had to rent
land. There, the cars were parked between, until it dried out, are
exploited and utilized.
Since the ELV directive provides that a car to be scrapped in Germany
does not migrate easily into the press. All fluids must be used for
environmental reasons previously drained and collected. In addition,
required to restore a certain rate in the parts or raw materials
cycle. These include expanded vehicle components which are then tested
and then sold as spare parts to repair shops.
The excess supply of such parts now pushes the price: "The price goes
downward spiral," Holl said of the Godfrey ArGe-old car. Is currently
used for spare parts, a discount of 30 percent to 40 percent observed.
For recovery operations is aggravated by the demand decreases. "We
lack even a Million 'need support'" - older cars, according to the
principle of time value in accordance with repair cheaper spare parts
are installed. Even with molded bodies can hardly earn any money
because the price of scrap is at an all time low.
A change is not yet in sight: After many old cars stood parked
somewhere between around, Arnulf Thiemel ADAC technology center in the
Bavarian town of Landsberg says. The first would have to be exploited
yet. "Until this affects the prices, it will probably take a couple of
months."
Some recyclers may abgewinnen the oversupply but also something
positive. "We come in through the scrapping many vehicles that would
not otherwise have been scrapped," says Hagen Hamm from the car parts
store in Pinneberg, Schleswig-Holstein. Many are still in good
condition - but must be disassembled and scrapped by law. In this way,
the recycler would come closer to many high quality parts that you can
sell it. "Previously, it has not given these parts on the market,"
argues Hamm. Customers have used parts instead of the more expensive
brand-new reproduction parts or have to buy expensive spare parts.
"Now the gap is closed in the offer."

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