Remanufacturing involves effectively reusing resource-efficient strategies that encourage product circulation and improve environmental performance, in terms of the life cycle.
Commercial vehicle engine remanufacturing can be defined as the manufacturing process that involves product dismantling, replacing and restoring components, and whole product and individual part testing to its original design specifications.
The remanufacturing provides the vehicle with a new service life in each usage cycle. Remanufacturing prevents material dissipation, and it is considered superior to material recycling.
However, measuring the remanufacturing effectiveness is difficult due to the absence of fundamental indicators, and supporting tools used for the task.
The remanufacturer has to ensure improved performance or equal performance to the previous component. The lesser cost obtained from the warranty periods or recycling provided by remanufacturers boosts the sales of remanufactured commercial vehicle engines.
Due to a shortage of raw material resources, and mining restrictions in several countries, with red tape, increasing mining metal costs, and surging carbon footprint caused by massive energy consumption, and water usage in manufacturing of new equipment are projected to fuel the remanufactured automotive parts demand in the near future.
Companies either buy cores from the customer directly or from third-party service providers, including scrap yards, used parts dealers, or core brokers. Various supply sources boost the overall coordination effort and procurement logistics complexity. The rising demand for cooperation with third-party providers and customers results in procurement logistics action in the strategic management field.
The remanufacturing companies primarily source the major components from recycling, as the developed products are more inexpensive than previous components, and provide value to the user. Besides cost, they generate lesser environmental footprints, led by decreased wastage, reduced energy consumption, and saving from natural resources mining. In addition, the long warranties and service life with improved features fuel the demand for remanufacturing of commercial vehicles.
The rise in the IoT connectivity adoption in commercial vehicles provide ease to OEMs to forecast the engine components' life relying on previous usage pattern with the analysis of the driving pattern, and maintenance history. It reduces the resource security challenges, and lead time, and secures the supply of spare parts, with rising consumer confidence with decreased aftermarket cost, and improved profitability.
The major companies operating in the industry are Valeo SA, Monark Automotive GmbH, ATC Drivetrain Inc., Sharper Edge Engines LLC, Jasper Engines and Transmissions, Aer Manufacturing Inc., Reman Engine, Eagle Engine Sales Inc., ATC Drivetrain Inc., and Genuine Parts Company.
Therefore, the increased sustainability led by environmental concerns fuels the demand for commercial vehicle engine remanufacturing.