An increase in car component damage means that the reman industry has a big opportunity to get more business, says Volker Schittenhelm.
Germany-based CarGarantie has been an international specialist warranty company for more than 40 years. Its latest publication showed a damage frequency increase in engine breakdowns from 8.8% in 2013 to 10.1% in 2015 - and 10.9% in 2016! Engine damage ranked third after fuel system/turbochargers (first) and electrics (second). With regard to repair cost, engine damage is by far the most expensive factor: the share of cost-intensive engine breakdowns within the total volume of all regulated component breakdowns increased from 8.8% in 2013 to 10.1 % in 2015 – and then 22.9% in 2016! This is not at all surprising. It is a clear effect of engine downsizing with highly sophisticated engines that cannot tolerate longer service intervals and driver behaviour (high-load in cold temperatures, engine-stop after highspeed highway driving, use of low-quality oils and so on). I personally see some significant chances in this development. CarGarantie’s recommendation is a ‘repair cost insurance’ for the driver or car owner. And as that car insurance company will certainly be open to solutions in order to reduce expenses for engine repair, it is the right moment to get in contact with them as the national engine reman association to see what we can offer, e.g. framework agreements and emphasizing the highly-qualified engine reman competence of every individual member. My message to FIRM member associations is to make something out of it: CarGarantie works in 19 countries… For more information, see website: www.cargarantie.com.
Promote ‘Engine Reman First’
But getting in contact with insurance companies is not only a task for the national engine reman associations but also for umbrella organisations such as FIRM, APRA, CLEPA and MERA. Let us all initiate a top-down information and action plan to promote a) the existence of reman and b) the quality of reman products.
Legal thoughts
Besides that, we all must be proactive in clarifying some legal aspects of reman: is it allowed for the remanufacturer to give a reman product to the consumer in a warranty/guarantee case or not (see the Dutch court iPad decision in the last issue of ReMaTecNews)? Also, as the legal practice in Brussels only knows two status types of products - new and used - we have the chance and the duty to a) decide in which box we see our nal (remanufactured) product and b) how we will proceed in positioning reman between new and used. /p>
Conclusion
A simple analysis shows us so much potential for activities, strategies and chances. Let us all go for it – when, if not now?
Send me your comments to communication@firm-org.eu.
