Reman – CLEPA Perspective - CLEPA ´s Perspective ... but gets under price pressure ... The components used for replacement may be new or rebuilt themselves. CLEPA DEFINITION

Reman - CLEPA´s Perspective

APRA European Expo & Symposium

24 April 2012

Josef Frank

Senior Adviser Aftermarket CLEPA

4/26/2012 CLEPA Aftermarket Department CLEPA Aftermarket Department 1 1

Reman- CLEPA´s Perspective

• CLEPA at a glance

• Automotive overview

• Remanufacturing – CLEPA´s perspective

Reman perspective

Automechanika

• Aftermarket Conference 2012

CLEPA Aftermarket Department 2 2 4/26/2012





Reman perspective

Automechanika



CLEPA - the European Association of Automotive Suppliers, founded

in 1959 and represents

91 corporate members of the world’s most prominent suppliers for car

parts, systems and modules

25 National trade and European sector associations

representing more then 3000 member companies in total,

2500 SMEs,

more then 3 Million employees

with 600 Billion Euro sales

CLEPA is an accredited partner of the EU and the UN

Facts about CLEPA


25 Member Associations

13 National trade associations:

ACS (Slovenia)

AFIA (Portugal)

AGORIA (Belgium)

ANFIA (Italy)

AUTIG (Denmark)

FIEV (France)

FKG (Sweden)

ILEA (Luxembourg)

MAJOSZ (Hungary)

RAI (The Netherlands)

SERNAUTO (Spain)

SMMT (UK)

VDA (Germany)

12 Associate members and

Affiliate members :

ACMA (India)

GLASS FOR EUROPE

MIRA LTD.

SINDIPEÇAS (Brazil)

SUPPLY ON

TAYSAD (Turkey)

TECCOM

TECDOC

VDI/VDE IT

ZVEI

EUROFORGE

EUWA


91 Corporate Members

3M Advanced Labels Tech. Aisin Akebono Brakes Arvin Meritor Autoliv Automotive Lighting Behr Bekaert Borg Warner Bos Bosal Bpw Brembo Brigade Britax Brose Fahrzeugteile Cie Automotive Cimos Continental

Dayco Delphi

Denso

Dorel France

Dunlop Tech

Dytech Group

Eaton

Eberspächer

Erling Klinger

Emitec

Faurecia

Federal-Mogul

Ficosa

Gates

Getrag

GKN

Haldex

Hayes - Lemmerz

Hella

Hjs Emission Technology

Honeywell

Huf

Iteris Europe

Johnson Controls Inc.

Jtekt Europe

KG Knutsson AB

Kirchhhoff Automotive Knorr - Bremse Koito Europe Kostal KYB Europe Magneti Marelli Mahle Magna e-car Systems Mann & Hummel Meccanotecnica Umbra Mitsubishi Electric MS Motor Service Int. Newell Rubbermeid NGK Spark Plug Europe NRF b.v. Osram Philips Automotive Lighting Pilkington Plastic Omnium

Rameder Raymond Group

Reflexite Remy Automotive Europe Robert Bosch Saint-Gobain Sekurit Sanden of Europe Schaeffler Group Sensata SKF Industrie Sogefi Takata Petri Tenneco ThyssenKrupp TMD Friction Services Toyota Boshoku Europe TRW UBD Cleantech Valeo VB Autobatterie VBG Group Wabco Web Webasto WePredict ZF

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CLEPA Aftermarket Department

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CLEPA is a partner of…

Founded in 1959 based in Brussels (Belgium),

CLEPA is the accredited discussion partner to

the European Institutions, United Nations and

fellow associations representing Automotive

suppliers.

Within the United Nations Economic Commission

for Europe, CLEPA has received formal mandates

from the Motor & Equipment Manufacturers

Association - MEMA (USA) and Japan Auto Parts

Industries Association - JAPIA (Japan) to represent

suppliers worldwide.


Automotive Suppliers

in Europe

5.000.000

people are employed in the

automotive supply industry

This represents 42% of all

those who are employed

by the automotive industry,

covering all products,

services and technologies

within the automotive supply

chain, including 50% of the

€25 billion per year in R&D

for the automotive industry.

75 %

of the vehicle is made

by automotive suppliers

“Automotive Suppliers have proven their leadership in developing

products that are innovative, environmentally sound and safe, providing

sustainable mobility for Europe’s citizens”

Peter Tyroller CLEPA President, Bosch


Our Mission

• Supporting the EU decision-making process and legislation affecting the automotive business;

• Coordinating views and opinion regarding all the challenges facing the industry, both in the technical and the economic fields;

• Ensuring harmonious development of international trade, especially through the lifting of tariff and non-tariff barriers;

• Actively endorsing the development of the necessary competitive framework conditions;






Reman perspective

Automechanika



Strategic Issues

• CO2 emissions reduction for both passenger

cars and light duty commercial vehicles

• Zero-emission vehicles

• Energy taxation

• Balanced trade agreements

• Improved terms and conditions


• Concern about TRADE relationship not only with

China but also with India

• Our future depend on the growth of China, India,

Brazil and Russia

• We are looking into two major concerns: globalization

and environmental concern

Globalization


Two Automotive Worlds

BRIC Markets’ Growth Will Continue

Light Vehicle Sales

Note: Triad comprises USA, Japan & W. Europe

0

5

10

15

20

25

30

35

40

45

50

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

Mil

lio

ns

Triad LV Sales BRICs LV Sales

Source: IHS Data Insights


Double Revolution

of the Industry

Massive shift of geographic balance

China acquires global locomotive status

Short-term growth in U.S. equally important

Regional markets demand localisation and specific products

Massive shift of technology mix

Conventional technology is not going away, but gets under price

pressure

New drivetrain technology quickly becomes commoditized

Other technology fields needed to make a difference

Both require massive investment

OEMs concentrate on cash-flow based financing

Try to cut variable costs in whatever possible way

Global suppliers can take on strategic partner roles now!



Technological Trends

Steer-By-Wire

Passenger Safety Systems (Airbags etc.)

Brake-By-Wire

Cockpit modules and instrument clusters

Dynamic Navigation, Telematic systems

ABS/ASR ESP

Car management System Cartronic

Modern lighting technology

Gasoline Direct Injection (DI Motronic)

Alternative energy supplies (H2, Fuel Cell)

Adaptive Cruise Control

High-pressure Diesel Injection Systems

Increasing share of electronics of production costs: 22% in 2000; 35% in 2012

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Decisive factors

to be part of the Aftermarket

Knowledge is power

• To stay in this market all participants need access to Repair and

Maintenance Information (RMI) to maintain and repair the vehicles

and

• Access to the Vehicle Identification Number (VIN) for unequivocal

parts identification


4/26/2012 CLEPA Aftermarket Department

Consumers (car drivers or owners) must have the freedom to get repaired and

maintained their vehicle in the workshop of their choice, either independent or

authorized.

The workshop and the consumer must have the opportunity to order or buy

spare parts from a supplier of their choice, independent (IO-network) or

authorized (OEM-network).

It must be assured that vehicles can be maintained and repaired properly and

according to the regulations with the right spare parts in all workshops.

CLEPA’s Principles

CLEPA Aftermarket Department 17 17





Reman perspective

Automechanika




Remanufacturing

The European automotive remanufacturing business is worth

approximately 8 to 10 billion Euros (retail sales)*

* Estimation CLEPA

19

Remanufacturing is a business worth taking seriously!



Reman as a brand

CLEPA invites all stakeholders to elaborate a cross industry definition for reman,

valid for OES and IAM, based on the rules of the Automotive BER 461/2010

using the definitions of „OE Quality „ and „Matching Quality“.

Our target is to establish REMAN as a “brand„ (standard) with a certification

trademark and promote the safety and environmental contribution of the

remanufactured parts vs. other „reused „ parts for the benefit of the enduser


Aspects of remanufacturing

Employment Safety

Environment

CO2

CLEPA Aftermarket Department 4/26/2012 CLEPA Aftermarket Department 21 21

Technology evolution calls

for remanufacturing Due to the development of the technology the remanufacturing is at a critical stage

today

The remanufacturing require more and more a R&D with OE knowledge and also sophisticated manufacturing and testing processes

Remanufacturing

knowledge

Mechanical Electric

Electronic


It is important to point out that a remanufactured part is different

from a reused, refurbished or repaired part.

The CLEPA definition of a remanufactured product is:

“A remanufactured product fulfils a similar function to the original part. It is

manufactured using a standardized industrial process in line with specific technical

specifications. The industrialized process incorporates defined core management

standards. A remanufactured spare part is warranted as a new spare part.”

Creation of a definition and process


Creation of a definition and process


Definition OE Quality and Matching quality

• ‘Original parts or equipment’ means parts or equipment which are

manufactured according to the specifications and production standards

provided by the motor vehicle manufacturer for the production of parts

or equipment for the assembly of the motor vehicle in question.

• In order to be considered as ‘matching quality’, parts must be of a

sufficiently high quality that their use does not endanger the reputation

of the authorised network in question. As with any other selection

standard, the motor vehicle manufacturer may bring evidence that a

given spare part does not meet this requirement.

Source: Official Journal of the European Union C 138/19 28.5.2010 Article 19 +20


Common Definition of Remanufacturing

is it possible? APRA DEFINITION

Remanufacturing means renovating used vehicle parts (old units) in accordance with

the generally accepted state of the art so that they can perform their function similar

to new.

“Remanufacturing” regularly consists in dismantling the used aggregate into its

components, checking these components, repairing defective components, cleaning

all components, reassembling the aggregate, readjusting as necessary, and

submitting it to a final test.

The components used for replacement may be new or rebuilt themselves.

CLEPA DEFINITION

A remanufactured product fulfils a similar function to the original part. It is

manufactured using a standardized industrial process in line with specific

technical specifications.

The industrialized process incorporates defined core management

standards. A remanufactured part is warranted as a new spare part.



is it possible?

MERA DEFINTION

Remanufacturing is a standardized industrial process that recovers and

recycles end-of-life products (cores) and returns them to their “same-as-

new,” or better, condition and performance.

RIC DEFINITION

Remanufacturing is a comprehensive industrial process by which a

previously sold, worn, or non-functional product or module is returned to a

“like-new” or “better than new” condition and warranted in performance

level and quality.



is it possible?

COMMON DEFINITION (proposed from MERA and RIC)

Remanufacturing is a comprehensive industrial process by which

previously sold, worn, or non-functional products are returned to

same as-new, or better, condition and performance.

The process incorporates technical specifications, including

engineering, quality, and testing standards to yield fully warranted

products.


Reman – WG Safety

• Starting point: Security level of the reman part

• Evaluation of the „quality level“ that has to be reached for the specific reman

product; Recommended basis is ASIL methodology (Automotive Safety Integrity

Level)

• 5 „quality levels“: QM, A, B, C, D

• According to each level, different process steps have to be covered by the

remanufacturer

• Goal: Implementing a reman audit

CLEPA Aftermarket Department 4/26/2012 CLEPA Aftermarket Department CLEPA Aftermarket Department 29 29

Reman – WG Environment

• Ecofys chosen as performing agency for footprint calculation

• Footprint will be calculated for 4 representative products out of CLEPA reman

product scope

• Basis: Footprint relevent material volume in EU

• Talks with the European Commission ( DG Environment) to fix final calculation

method

CLEPA Aftermarket Department 4/26/2012 CLEPA Aftermarket Department CLEPA Aftermarket Department 30 30

Reman – WG Environment

• End of 2012 new Standard from the European Commission (publishing of

draft expected for 06/2012)

• CO2eq savings accepted by the European Commission have to include

additional environmental key figures.

• 3 main additional aspects out of a list of categories have to be evaluated.

• Consequence:

Calculate CO2eq footprint according to ISO 14040 and actively use in

communication.

• Define borderlines for environmental footprint of the remanufacturing

business together with all European reman associations as basis for further

individual used key figures.

CLEPA Aftermarket Department 31 4/26/2012 CLEPA Aftermarket Department 4/2 CLEPA Aftermarket Department 31 31





Reman perspective

Automechanika



Joined Reman booth at Automechanika

• Participating members






Reman perspective

Automechanika



4th CLEPA Aftermarket Conference

28-29th November 2012

Conference Programme 29 November

The global Automotive World in 2020 for OEMs and Suppliers

Challenges - Opportunities and the Framework

How to service automotive electronics in 2020

Means and needs from where we stand today

www.get-connected.com

Internet and Aftermarket – Opportunities or Threats?

35 4/26/2012 CLEPA Aftermarket Department

THANK YOU!

CLEPA

the European Association of

Automotive Suppliers

www.clepa.eu

4/26/2012 CLEPA Aftermarket Department 4 CLEPA Aftermarket Department 36 36

http://www.clepa.eu/

Documents

Reman – CLEPA Perspective - CLEPA ´s Perspective ... but gets under price pressure ... The components used for replacement may be new or rebuilt themselves. CLEPA DEFINITION