Automotive Remanufacturing
Towards Sustainable Mobility…
INTRODUCTION
• Remanufacturing , is the practice of taking end-of-life goods and rebuilding
them into new or better condition ones, with a warranty to match.
• Remanufacture ensures the same product quality, durability and
performance as new components while maintaining sustainability of
resources
Nature
Materials
Remanufacturing
Manufacturing
Products
Usage
Waste
Reuse
Recycle
Disposal
Source : Advance Remanufacturing Technology Centre
REMANUFACTURING IS ALSO KNOWN AS…
Rebuilt
Rebuilt is synonymous with remanufacturing when used in
connection with motor vehicle parts and systems but not the
entire vehicle.
Refurbished
Refurbished is synonymous with remanufacturing of furniture
systems for offices, hotel lobbies, and hospitals.
Recharged
Recharged is synonymous with remanufacturing when used in
connection with imaging products, such as laser toner cartridges.
Factory Reconditioned or Recertified
Factory reconditioned or recertified is synonymous with
remanufacturing when referring to consumer products, such as
electrical hand tools.
Source: Dr. Nabil Nasr of the Golisano Sustainability Institute of the Rochester
Institute of Technology is gratefully acknowledged).
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FINAL TESTING
PRODUCT REASSEMBLY
RECONDITIONING OF PARTSAND
/ OR REPLENISHING BY NEW PARTS
INSPECTION AND SORTING
OF ALL PARTS
THOROUGH CLEANING OF
THE PARTS
COMPLETE DISASSEMBLY OF
THE PRODUCT
REMANUFACTURING PROCESS
STANDARDS OPERATING PROCEDURE (SOP)
PROCESS FLOW
Product Correction &
Reverse Logistics
No
Needed in
production
Incoming receiving
Store until needed
Yes
Pass Initial
Inspection
Initial
inspection
Disassembly / Demanufacture
Planned
Salvage
Cleaning
Planned Discard
Remanufacturing or
Restoration Process
Failed Initial Inspection
Process
Scrap
Recycle
In Process Inspection Fallout
Rework
Component
Recertification
Pass
Fail
Rework
Assembly
New Components
Final Product
Inspection
Pass
Warehouse
Shipping
TYPES OF REMANUFACTURING
PRODUCTS
• Remanufactured products include:
– A/C Compressors
– Alternators
– Engines
– Fuel System Components
– Rack and Pinion Steering
– Starters
– Steering Gear Boxes
– Transmissions
– Turbochargers
– Water Pumps
Source: William A. Tanenbaum, Kaye Scholer LLP, Chair, Technology, Intellectual Property &
Outsourcing Group Green Technology Group New York Office
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WHY REMANUFACTURING?
ENVIRONMENTALLY SUSTAINABLE?
• Reduces energy costs and environmental impact of:
– Raw materials and natural resources
– Manufacturing products
– Shipping components and final product
•
What are the environment savings?
– Saves enough natural resources to fill a train 1,100 miles long!
– Saves enough energy to power 6 million automobiles!
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REMANUFACTURING BENEFITS
Approximately 85% of the energy expended in the manufacture of an
original product is preserved in the remanufactured product.

Recycling Reclaims


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Material
Remanufacturing Reclaims

Material

Energy from Casting, Machining, etc.

Labor from original processes

Capital

Function/Design Intent
Source: MIT study on the remanufacturing of automobile component, 1981
Ecologic Benefit of Reman – Automotive Parts
Delco CS 130 100A alternator
• The remanufacturing ecological benefit is the recovered
energy and avoided environmental impact minus the impact
of the remanufacturing processes.
CS130 Example:
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Ecologic Benefit (2)
• Material analysis for Delco CS 130 100A alternator:
– Kwh used to create one NEW alternator:
61.1 Kwh
– CO2 emissions to create one NEW alternator:
66.6 lbs
• Benefits from remanufacturing one thousand produced
Delco CS 130 100A alternators each year:
– Annual energy savings:
37,700 Kwh
– Annual CO2 savings:
51,357 lbs
Source: William A. Tanenbaum, Kaye Scholer LLP, Chair, Technology, Intellectual Property & Outsourcing Group Green Technology Group
New York Office
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GREEN IMPLICATIONS
• Remanufacturing is designed to allow a portion of product
to be continuously upgraded with improved version to
take advantage of advancing technology
• Compared with new
components save *:
components,
Remanufactured
– >60% energy
– >70% materials
– >90% water
– >80% pollutant emissions
– >80% value retention
– 50-70% cost reduction
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*Source : Advance Remanufacturing Technology Centre
REPAIR VS. RECONSTRUCTION
• Right of repair includes
– Right to preserve useful life
– Right to replace individual unpatented elements that
themselves have a shorter life
• Reconstruction includes
– Making a new article (after original article, viewed as
a whole, has become “spent”)
– Creation of a second entity
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CHALLENGES
• Will remanufacturing products to obtain “green” benefits be deemed
“permitted repair” or “prohibited reconstructions” – given the
commercial objective of remanufacturing?
 E.g. But does incorporating a more advanced chip from a third
party supplier constitute infringement of that third party’s patents?
• Predict use of more expansive contractual provisions, from both
licensees and licensors to clarify scope of rights with related to
warranty
• Test result when remanufacturing includes enhanced or “new”
technology
– Even if permissible repair of “old” patent, use of “new” technology
may require licensee for that patentee
• Patentees will argue that provider of enhanced technology is liable for
inducing or contributory infringement
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MOVING FORWARD
• Review current related policies e.g. rebuilding,
IP.
• Standards - recyclability, efficiency, design,
material, innovation.
• Procedures - energy savings, reduce
emissions, enhance safety
• Awareness
 Education
THANK YOU