On May 10, 2011, the FAW Jiefang Xichai Engine Remanufacturing Base was put into operation. This is a new force in the field of engine remanufacturing after China National Heavy Duty Truck Group Jinan Fuqiang Power Co., Ltd., Yuchai, Weichai Power (Weifang) Remanufacturing Co., Ltd., and Dongfeng Cummins. Polycarbonate Hollow Sheets,Pc Lite Polycarbonate Sheet Price,Dual Wall Polycarbonate Panels,Polycarbonate Diffused Sheet NINGBO CHAOMEI PLASTIC CO.,LTD , https://www.chaomeiplastic.com
In 2005, China listed the engine remanufacturing project as a circular economy pilot project. In 2008, the National Development and Reform Commission selected 14 companies as pilot companies to carry out remanufacturing of auto parts. According to the definition of "Opinions on Promoting Remanufacturing Industry Development" issued jointly by 11 ministries and commissions such as the Ministry of Industry and Information Technology and the Development and Reform Commission at the end of May 2010, remanufacturing refers to the batch reorganization of used auto parts, construction machinery, and machine tools. In the production process, remanufactured products can achieve the same quality and performance as the original new products.
Low price attracts users
Weichai Remanufacturing Company said that in 2010, Weichai sold a total of more than 3,100 remanufactured engines, which met the company’s expectations. From January to April 2011, Weichai remanufactured 1,800 engine sales. Most of the users were retail investors and some group users. From the matching models, it is mainly trucks and construction machinery.
China National Heavy Duty Truck Group stated that it is the first company to be engaged in the remanufacturing of auto parts, the National Development and Reform Commission and other departments, the first pilot units of circular economy demonstration and the pilot unit of national auto parts remanufacturing, the application of Fuqiang Power Production. There are already tens of thousands of remanufactured engine market on heavy trucks. In 2011, the sales of re-powered remanufactured engines increased slightly. Fuqiang Power's remanufactured engines are mainly used in large fleets. For example, Jinan Steel has its own maintenance team. They are willing to use remanufactured engines because they can save a lot of costs. In addition, the key users are troops. In short, most of the remanufactured engines are group users. Although these units have their own overhauls, there are basically no overhaul tasks, and they really need overhauls. The overhaul workers can't do anything. They have to look for people outside. It is not as good as replacing a remanufactured engine.
A very important reason for the remanufactured engine to develop in the Chinese market is its price advantage. The price of the remanufactured products of Weichai Remanufacturing Company is only half the price of the new Weichai engine, and the price of the remanufactured engine of Fuqiang Power is equivalent to 50%-60% of the new engine of Heavy Duty Truck. Since the remanufacturing business of Xichai has just started, the remanufactured rate and the utilization rate of the old parts in recycled old machines are still relatively low. Apart from the components such as the cylinder block, cylinder head and crankshaft, some performance parts and all rubber parts and fasteners Basically, new parts are used for seals, etc. Therefore, the initial cost is relatively high, and the price of the remanufactured engine is equivalent to 75% of the new machine.
The remanufactured engine costs 20,000 yuan less than the new engine, which is almost equivalent to the cost of an engine overhaul. And according to users, the re-manufactured engine and the new engine feel the same and can achieve the same performance.
In the field of passenger cars, the remanufactured engines have also been applied. The main use of remanufactured engines are public transport and passenger transport units. Once these vehicles are stopped due to engine problems, they will have a greater impact. In general, overhaul of the engine takes 2-3 days. This time is too long and users are not able to believe it. . The use of remanufactured engines can be installed and used in one day, and the time benefits are obvious, but the use depends on whether the bus manufacturer has an agreement with the engine company.
Most rely on service station sales
The heavy-duty remanufactured engines of China National Heavy Duty Truck are mainly positioned to replace engines that require overhaul, and the manufacturers' counterparty repair stations. Weichai's remanufactured engines are also mainly sold through service stations, and are replaced by remanufactured engines when users need to overhaul engines. Weichai sells remanufactured engines and provides three packs of services through its existing 36 service centers and 3,800 service stations, and uses remanufactured engines produced by Weichai. Customers can enjoy the same three packs of after-sales service as the new machines.
The Yuchai remanufactured engine is not sold separately, but is used in the aftermarket, which means that the engine needs maintenance. Xichai also adopts a similar model. At present, Xichai remanufactured products mainly flow to the after-sales service market, and Xichai remanufactured diesel engines and parts only for the after-sales service, not directly supporting the vehicle manufacturers. Xichai remanufactured diesel engines and parts using dealer channel sales agents.
The old problem is still not resolved
The remanufactured engine can bring benefits to the user, but it is difficult to increase the quantity. This is caused by many factors. Technically speaking, remanufactured engines do not have many problems. They are mainly problems in the circulation field, that is, high recycling costs of old parts and many recycling processes. The recovery of the old engine is almost the most troublesome problem for all engine remanufacturers. When reusing the old engine, the Weichai repair stations around the world often find that the engine does not meet the remanufacturing standards. Many of the recovered old engines cannot be used because the users only have The engine is willing to be sold to a repair station after the engine has been damaged badly or for a long period of time. For a long time, when the old vehicles were scrapped, the five scrapped assemblies (engines, steering engines, transmissions, front and rear axles, and frames) could only be sold to local scrap car dismantling companies instead of being sold directly to remanufacturing. Enterprises, resulting in a single source of remanufactured companies, due to limited resource channels. 
At the same time, national policies also impose many restrictions on the recycling of old engines, which is concentrated on the import of old parts. As we all know, the customs are very strict about the management of old parts imports. We have previously done the remanufacturing of foreign old engines. The business was almost lost. Because the engine was detained at the customs, it not only delayed the remanufacturing work, but also paid a storage fee. Without such restrictions, remanufacturers can expand their business scope and recycling of old parts and launch overseas remanufacturing engines.
Taxation is also one of the reasons why the current remanufacturing seems to be booming, but it is actually not very positive. In particular, the output tax in re-manufacturing enterprises' VAT is difficult to offset and becomes another important factor in inhibiting the development of the remanufacturing industry. The remanufactured engine is not a new product. It saves resources. According to the current price, the profitability of the remanufactured engine is relatively low. If the tax is still paid in accordance with the taxation method of the new production engine, it is difficult for the manufacturer to have the initiative to carry out the work. If the cost of remanufacturers cannot be reduced, they will only be able to increase the selling price. This will cause the enthusiasm of users to use remanufactured engines to weaken. Moreover, the current level of user acceptance of remanufactured engines is not high, and many users confuse remanufactured engines with engine overhauls. As a result, the expectations for remanufactured engines are not high, but the engine is the heart of the car. Users do not want to install their own cars. Others used the heart, although remanufacturing the engine can indeed achieve the performance of the new engine.
Finally, the coordination of remanufactured engines with other industries has yet to be improved. The remanufactured engine is using factory parts, and the price is only 50%-70% of that of the new engine. The profit of selling the remanufactured engine does not sell more parts. The existing sales of remanufactured engines and accessories are also based on service stations. They are also doing business. Service stations must choose high-margin parts sales. The promotion of remanufactured engines has also encountered obstacles at service stations.