Morning News (Reporter Jiang Shenjun, Interviewer Yang Kaihua and Zhu Tianhua)
In the past, old vehicles that were scrapped were often destroyed with sledgehammers, leading to the recovery of scrap metal and leaving behind significant environmental damage. However, times have changed. These vehicles now find a new purpose through car remanufacturing. Instead of being discarded, they enter specialized workshops where parts are restored and reused, creating value equivalent to 50% of the original vehicle—essentially rebuilding half of the car.
On Thursday afternoon, Wuhan Dongfeng Hongtai Co., Ltd., a core subsidiary of Dongfeng Company, officially received approval from the National Development and Reform Commission. It became one of the first pilot enterprises in Hubei Province for the automobile parts remanufacturing industry in China.
Currently, most scrapped cars are handled through simple methods such as gas welding and hammering, with the remaining metal sent to smelters. While Wuhan has two qualified companies for recycling and dismantling, none are equipped to remanufacture valuable spare parts. Over 90% of the steel and non-ferrous materials in vehicles can be recovered, but improper disposal or burning of components leads to both resource waste and environmental harm.
According to Wang Zhenkun, general manager of Dongfeng Hongtai, when vehicles are properly recycled and dismantled by certified companies, they can be transformed into quality parts for after-sales service. For example, a Fukang car priced at 60,000 yuan would only have a residual value of around 300 yuan if it were forcibly scrapped. However, if its engine or transmission still holds value, it could be tested and remanufactured. The resulting product could be worth 30% to 50% of a brand-new part, potentially reaching up to 30,000 yuan in value.
Looking ahead, the company plans to scrap 10,000 vehicles next year. Wang Zhenkun emphasized that while the initial economic returns of the remanufacturing industry may be modest, the social and environmental benefits are substantial. This green manufacturing process helps reduce waste and protect the environment. In developed countries, this industry is already well-established. Compared to new products, remanufactured parts cost nearly half the price but offer the same level of quality and warranty. Many international consumers actively choose these options.
Wuhan Dongfeng Hongtai has already mastered the full process of vehicle dismantling and remanufacturing within its existing facilities. The next step is to build a standardized factory and officially launch the automotive recycling and remanufacturing business. According to reports, by 2009, the company aims to handle 10,000 scrapped cars, produce 30,000 spare parts, and recycle 40,000 tons of materials.
With over 800,000 to 1 million vehicles currently on the road in Wuhan, and a compulsory scrapping rate of 3%, approximately 27,000 cars are scrapped each year. In the next five years, the number of vehicles being scrapped is expected to peak as more private cars reach their end-of-life. This presents a growing opportunity for the remanufacturing industry to play a key role in sustainable development.
Jiangsu Bailite Transmission Technology Co., Ltd , https://www.zsindustrialbelt.com