New EU end-of-life regulation (ELV-R) promotes remanufactured products

The future end-of-life regulation is set to significantly promote remanufactured products in the Automotive Aftermarket after entering into force expectedly in 2024. This is primarily due to the European Green Deal, which aims to ensure a circular economy where resource management is optimized, and pollution is minimized by 2050.  

By incentivizing recycling, reducing strategic dependencies on raw materials, and supporting the decarbonization of the automotive industry, the new EU regulation seeks to increase the reuse, remanufacturing, and recycling of materials, parts, and components contained in vehicles. This is a big step towards more circularity within the Automotive Industry.

 Remanufacturing is already a substantial sector but needs more support on a legal basis. Therefore, the new End-of-Life Vehicle Regulation (ELV-R) includes several key elements:

-An attempt to define remanufacturing on an EU-wide level. 
-The classification of how to assess the fitness for Remanufacturing. 
-A guideline on how to label parts to be remanufactured. 
-The request to the Member States to adopt incentives to promote Remanufacturing. 
-The request for accessibility of information and coding of components from the vehicle manufacturer to support remanufacturing. 
-The request to mandatory dismantle specific parts category at the end of life for remanufacturing. 
-Legal clarity that parts and components removed within the use phase or from an end-of-life vehicle, which are suitable for reuse, remanufacturing, or refurbishment, should not be considered waste.  

The impact of the new regulation will be substantial for both the Automotive Aftermarket and remanufacturers. For the market, there will be a growing pull effect from the workshops to get remanufactured products from the wholesalers. Wholesalers will have a high request to have all relevant remanunfactured product groups in their sales portfolio. Remanufacturing will be set as the preferred business for the automotive aftermarket, with high availability of used parts (cores) for remanufacturing when the first vehicles reach the end-of-life status. 

It is crucial for all remanufacturers and wholesalers to invest now in new reman products as the new regulation is planned to enter into force within 2024. Companies like Circular Economy Solutions GmbH (C-ECO) with their service CoremanNet can provide essential support within this transition. 

An EU regulation is a binding legislative act that must be applied in its entirety across the EU. In conclusion, the future end-of-life regulation will have a profound impact on promoting remanufactured products within the Automotive Aftermarket. It’s an exciting time for all stakeholders in the industry, and it is crucial for all to understand and prepare for these changes.