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ReMaTecNews REMANUFACTURING INTERNATIONAL

2012 - NO 6 - VOLUME 12

• Successful World Reman Summit

• ATP and Autocraft in Chinese venture

• Industry week in Las Vegas

Meritor

Remanufacturer of the Year • APRA News • FIRM News • International events www.rematecnews.com

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CONTENTS

NO 6 • SEPT./OCT. 2012 • VOLUME 12

Reman of the Reman Summit Turbochargers Year 2012 8 to continue 12 on a roll 16 Doug Wolma of Meritor, the global supplier and remanufacturer of drive axles, driveline, transmissions and more, is this year’s winner of ReMaTecNews’ Remanufacturer of the Year Award. Michael Boe, Head of Meritor Europe (left) and Ian Buxcey, General Manager Remanufacturing (centre), congratulated Doug Wolma, General Manager Aftermarket with the honour.

Reman solutions and visions were heavy on the ground during the World Remanufacturing Summit in Bayreuth, Germany. Organised

by Bayreuth University with ReMaTecNews as partner, the meeting attracted speakers and attendants from across the world.

Remanned turbochargers are experiencing a boom. We take a look at a segment that seems to go from strength to strength and speak to some of its operators.

‘Remanufacturing, when done correctly, is the high quality and low cost alternative required by the market’ Doug Wolma, Meritor Remanufacturer of the Year 2012

4 Editorial 5 New CEO at Cardone Inc. 6 UK reman joint venture in China 20 ACtronics expands 23 François Augnet leaves TRW 24 Industry Week in Las Vegas

28 Heavy Duty World 30 APRA News 32 FIRM News 33 News from other organisations 34 International events and trade fairs www.rematecnews.com

Eight issues in 2012: February, March, May/June, June/July, August, Sept/Oct, Oct/Nov, December Special pages on Transmissions and Electronics & Mechatronics in edition 1, 3, 5, 7 Special pages on Heavy Duty/Trucks in edition 2, 4, 6, 8

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EDITOR’S LETTER

ReMaTecNews Volume 12 – Number 6 – September/October 2012

A world event for remanufacturing

ReMaTecNews, the only international news magazine and website dedicated to automotive and heavy duty remanufacturing worldwide, is an independent channel for news, views and developments within the remanufacturing industry.

Published by: RAI Langfords B.V. P.O. Box 10099 1001 EB Amsterdam The Netherlands In association with

The following lines are being written only a few hours after the close of the first-ever World Remanufacturing Summit that took place on September 3rd and 4th.

Firstly, let us declare an interest. From the outset, ReMaTecNews was involved in the concept for the summit and in the some of the discussions that led up to it. Of course, it was only natural that the magazine would then undertake the role as media partner – as we have always done in respect of the biennial ReMaTec shows organized by Amsterdam RAI, of which the magazine is a part. As with the ReMaTec shows, a key event in the reman industry, we believe that ReMaTecNews has an obligation not only to report on the industry, but also in some cases be a pro-active active player within it. The World Remanufacturing Summit was has been one such case.

As a result, some might therefore suspect ReMaTecNews of being biased in its view of the event. Should this be true, however, we only need to point out that the reactions from the some 150 attendees from across the world were overwhelmingly positive, even enthusiastic.

If the two days in Bayreuth in Eastern Germany in early September proved anything, it is that the reman industry and scientific research into reman processes and technologies need each other in order to prosper.

In fact, few other industries outside IT have experienced such rapid technological advancement as the automotive sector – and in few other industries is the future of the players so closely interlinked and, indeed, dependent on technical innovation as the motorindustry.

The success of the Bayreuth event is an encouraging sign. Even more encouraging, perhaps, is it that the host, Professor Rolf Steinhilper, supported by his team of dedicated young reman scientists at Bayreuth, will remain involved in the concept. So successful was the event that Bayreuth, the Rochester Institute of Technology represented by Dr. Nabil Nasr and China’s Key Laboratory for Remanufacturing under Professor Sheng Zhu have already decided to rotate the World Remanufacturing and annual event switching between China in 2013, the US in 2014 and then back to Europe in 2015.

A regular item on remanufacturing’s agenda has emerged. The industry will welcome it.

Editor-in-Chief William Schwarck Phone +44 (0)1865 340 435 Fax +44 (0)8704 215 681 editorial@rematecnews.com Advertising Sales Eva Barten Phone +31 (0)20 504 28 00 Fax +31 (0)20 504 28 88 advertising@rematecnews.com Managing Director RAI Langfords B.V. Ron Brokking Publisher Luuk Aleva (responsible under Dutch Press Law) l.aleva@rematecnews.com Editorial Advisory Board Niels Klarenbeek Production Niels Zwan, Sebastiaan Dekker, Christiaan van Goens Phone +31 (0)20 504 28 00 traffic@railangfords.nl Design & Art Van Munster & Bos, Amsterdam Printing MediaCenter Rotterdam, The Netherlands Copyright RAI Langfords B.V., Amsterdam, The Netherlands Reproduction Permitted, providing ReMaTecNews is credited Subscription magazine and e-newsletter 8 editions 1 73 See www.rematecnews.com Change of address Phone +31 (0)20 504 28 00, Fax +31 (0)20 504 28 88 E-mail info@rematecnews.com Website www.rematecnews.com

William Schwarck, Editor-in-Chief

ReMaTecNews magazine online www.rematecnews.com Circulation 13,230 readers per edition. The magazine is delivered on a controlled circulation basis to recipients in Western Europe, Eastern Europe, Africa, North America, South America and Asia.

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NEWS FROM THE INDUSTRY

CARDONE appoints new CEO Cardone Industries Inc. strengthens top management CARDONE Industries, the world’s largest independent remanufacturer, has appointed a new CEO. With effect from September Kevin Cramton will succeed Michael Cardone Jr., the company’s co-founder and owner, who continues as chairman of Cardone Industries.

Michael Cardone III remains President as part of the triumvirate that now steers the company into the future.

Kevin Cramton brings to CARDONE more than 25 years of experience in the general and financial management of growing businesses.

Most recently, he served as CEO of Revstone Industries, a major supplier of highly engineered automotive components. Before that, he served as Managing Director of RHJ International (Ripplewood Holdings), a publicly traded investment holding company where he was responsible for overseeing portfolio companies. During his tenure at Ripplewood Holdings, Cramton chaired the Board of Niles, an

Kevin Cramton

Asian automotive electronics manufacturer, where he led the business to record profitability following a successful 20-year career as a

Ford Motor Company executive whose assignments carried him all over the globe. Cramton holds both a BA and an MBA from Michigan State University. He is a graduate of the London Business School Executive Management Program (ADP).

“We are tremendously excited that Kevin Cramton has agreed to join our company and our board,” said Michael Cardone Jr. “He brings an outstanding record of valuesbased leadership, managerial expertise and experience with both privately and publicly held businesses. The Cardone family looks forward to working with Kevin and our board as we continue to invest in the growth opportunities for the remanufacturing industry.”

“I look forward to working with the CARDONE leadership team to create a stronger company for all our stakeholders, including customers, suppliers, shareholders, and our employees,” Cramton commented.

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NEWS FROM THE INDUSTRY

ATP and Autocraft in Chinese joint ve Two of Europe’s well-known remanufacturers, ATP Industries Group Ltd and Autocraft Drivetrain Solutions Ltd in the UK, have announced a joint venture partnership for the remanufacture of automotive products for the Chinese market. Based in Guangzhou in industrial Southern China, the venture will provide remanufactured engines, transmissions, components and vehicle electronics for the world’s leading automotive OEMs, the two companies say.

The new company, named ATP Autocraft Reman Solutions, will provide a one-stop-shop for both OEMs and aftermarket customers operating in China who currently are unable to obtain the remanufactured products available to their global network. Until now, due to its strict import barriers, the vast Chinese market has been closed off to most non-Chinese remanufacturers, the two companies aid in a statement, ATP Autocraft’s facility in Guangzhou, China.

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NEWS FROM THE INDUSTRY

nt venture adding: “In a first-of-its-kind joint venture in the industry, the two companies bring together two trusted global brands and will benefit from the synergies of years of expertise of remanufacturing engines, transmissions and electronics to provide affordable reman solutions to the Chinese market.”

The joint venture was unveiled at the recent International Remanufacturing Exhibition in Beijing, with the two companies displaying the new company in a joint booth. Visitors were able to view an Autocraft engine and cylinder head, an ATP transmission and torque converters as well as vehicle electronics and assembled automotive components.

Opportunity Commercial Director of Autocraft, Mike Hague-Morgan commented: “This is a great opportunity for both Autocraft and ATP to come together in an equal partnership to provide much needed reman solutions to both our current and new customer base in China. We will be replicating bestin-class practice and world leading remanufacturing techniques at our China facility. Customers will be able to receive like-for-like service, quality and performance from our reman products irrespective of where we remanufacture it.”

Mike Hague-Morgan of Autocraft (left) and Alan Smart of ATP shake hands on the joint venture partnership in China.

ATP and Autocraft operate in very similar markets and share much of the same customer base. Many of these customers require a reman solution for their transmissions, engines and other vehicle components in the Chinese market. However the barriers to entry to provide such products in the timescale required by the market were substantial, as Mark Bowen, Group Sales Director of ATP commented: “The technology involved in our high quality products means that for ATP to remanufacture engines in China, it would take us a long while to provide the level of offering required by our customers. The same is true for Autocraft producing a full range of transmissions for this market. The ideal solution is to set up a partnership between the two companies in order for us to both capitalize on each other’s strengths and many years of expertise and knowledge for the benefit of our customers as a whole.”

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REMANUFACTURER OF THE YEAR

Meritor’s Doug Wolma is 2012 Remanufacturer of the Year makes it impossible, in most cases, to do the work in low cost countries when the commercial market is elsewhere.

Global operations. Advanced technological skills. Very substantial investments in reman.

A highly visible commitment to remanufacturing. These were among the reasons given by the panel of judges when ReMaTecNews gave its prestigious Remanufacturer of the Year Award for 2012 to America’s Meritor and it’s General Manager for remanufacturing, Doug Wolma. Awarded for the eight time, the prize was given to Wolma at a ceremony during the recent World Reman Summit in Bayreuth Germany. Afterwards we spoke to Wolma about his and the company’s dedication to remanufacturing.

Recent years has seen a strong upsurge in interest in automotive and HD remanufacturing in general. Why is this?

In my opinion, describing the reman industry as having a recent interest upsurge is probably inaccurate. Remanufactured product has been a significant part of the vehicle

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repair portfolio for many decades. Service garages have been interested and knowledgeable about reman product for a long time. The difference in recent years is that reman production has shifted from small independent locations to larger consolidated enterprises. These larger enterprises market to a broader audience, belong to industry groups, and lobby the government. This has caused an increase in public awareness of something that has been ’in-play’ for a long time.

In addition to the above there are two reasons that remanufacturing has become more attractive to companies, customers, and governments. First, reman supports the sustainability and ‘green’ initiatives that many companies have. Second, remanufacturing creates in-market jobs. Due to the significant costs of reverse logistics associated with cores, there is a financial penalty that results from locating operations far from customers. This

Meritor is already a well-established, global remanufacturer. Where does Meritor go from here in terms of remanufacturing? How is remanufacturing important to Meritor.

Remanufacturing is a very significant part of the Meritor aftermarket strategy.

Meritor designs its aftermarket product portfolio to service a truck from cradle to grave.

This philosophy is illustrated by the Mejaly Triangle which identifies the different ownership maintenance buying decisions during the lifecycle of the vehicle. Most of the commercial vehicles on the road today make up the addressable market for reman product.

Reman offers a solution for both cost and quality to the fleet. Without a reman product offering you are eliminating a significant portion of the addressable market.

Over the last seven years Meritor has achieved a +20% CAGR in our remanufacturing business which includes the recession years. We remain dedicated and committed to growing this in the future. The focus will be mainly footprint. While a significant percentage of our reman product sales exist in North America and Europe, we have an expanding distribution footprint in the rest of the world. With the brick and mortar that exists in the 17 warehouses we have around the world, we gain the ability to grow reman production in those markets. To that end we recently aligned the distribution operations and reman operations together which allows for these synergies to be brought forward more quickly.

What is Meritor’s particular expertise with regard to remanufacturing? What, to you, is ‘excellence’ in remanufacturing?

To me, the characteristics that define remanufacturing excellence are great core management and very efficient core recovery – as we illustrate in the image here.

During my first day in a remanufacturing plant a 30 year veteran of the industry told me something that I have never forgotten nor ignored. He said if you have a great reman process but poor core management you will be out of business in a year. Transversely, if you have average processes but are a great core manager you can stay in business forever. Core management includes hassle

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Doug Wolma

free core return policy, core tracking systems, skill in core acquisition, skill in core disposal, and an understanding of market value.

Creating this as a foundation block of a reman business is absolutely critical.

Core recovery is how we refer to the processes used to bring used parts back to specification. This includes creative techniques (sleeving, welding, material build up, inserting, machining etc.) that cost effectively recreate a component with the same performance and life expectancy as new. Anyone can replace worn parts with new. A world class remanufacturer recovers as much of the original core as possible.

How would you describe the change in attitude to reman amongst the world’s great parts suppliers in recent years – and amongst the car makers?

The Mejaly Triangle also answers this question. It is now recognized by tier one suppliers how much of the market is forfeited without a high quality price point offering.

What do you see as the main challenges – or threats – to remanufacturing?

The challenge of remanufacturing is to cost effectively to bring core components to specification. An expensive recovery method can often be no better (or even worse) than replacing with new.

What are you yourself take most pride in in respect of Meritor’s involvement / achievements in remanufacturing?

From a Meritor remanufacturing specific perspective, I am very proud of the process and product innovation that has been

implemented in our Plainfield, Indiana plant.

The release of PlatinumShield brake shoe coating solved the long time CV industry problem of rust jacking. A cross functional group involving product engineering, quality engineering, process engineering, and product management put forth a tireless effort to achieve a result that received five industry product awards and created incredible customer satisfaction. In terms of process, I am very proud of the extremely efficient and industry-first manufacturing methods used to reman brake shoes in Plainfield. That team designed and installed an entirely new automated cleaning system with capacity for 10,000,000 shoes that is every bit world class.

From a broader perspective, I am also very proud of our position as an industry leader. Independent of the Meritor commercial reman business, we have been significant contributors to legislative change and industry group strategy built to support and leverage remanufacturing.

How – and when – did you yourself first begin to realise the benefits/merits of reman?

In my first days in the remanufacturing business dating back to 1999, I recognized the value that reman product provided to service garages. A repair facility gets paid for each vehicle it can turn in a day / week / month. If the vehicle is sitting on a lift waiting for an engine to be rebuilt, there is significant lost revenue to these shops. By pulling out a broken core and swinging a reman engine, the cost to the customer is not impacted, but the time that vehicle is off the road is significantly reduced. This results in a happier customer and a more profitable service garage. It is not feasible to stock and

Born in 69, Doug Wolma was appointed General Manager, Global Aftermarket Operations for Meritor earlier this year. In his new position he is responsible for Meritor’s remanufacturing business, global distribution and aftermarket supply chain. His area of responsibility comprises 20 locations in 12 countries with 1300 employees.

Prior to his appointment he served as General Manager, Remanufacturing between 2006 to 2012 where he oversaw Meritor’s global remanufacturing operations with 8 facilities and 750 employees.

As General Manager, Remanufacturing, Doug Wolma implemented the acquisition and integration of Mascot Truck Parts and Belgium’s Truck Technic into Meritor Reman as well as creating Meritor Reman as a stand-alone business unit.

At previous stages during his career Doug Wolma held managerial positions with Axle Alliance Company and Detroit Diesel Corporation in Detroit Michigan.

He holds a M.S. in administration from Central Michigan University, has been married for 20 years and has two children, a daughter of 13 and a son of 16.

swing new parts for such repairs as it would be significantly more costly to the customer.

Therefore, early on it was clear to me how important reman was to the aftermarket supply chain.

What does the Remanufacturer of the Year Award mean to you – and to Meritor?

It is always great to be recognized by the industry in which you participate. At Meritor we work very hard and I believe we do things the right way. It is nice to get confirmation of that.

In addition, I think many times OE suppliers advocate new original components as the only proper aftermarket offering. It is great to work for a company that represents a little different point of view. Remanufacturing, when done correctly, is the high quality and low cost alternative required by the market. To hide from this is very poor market positioning. This award recognizes Meritor’s leadership and commitment to remanufacturing in that way.

In future articles ReMaTecNews will take a closer look at some of Meritor’s operations across the world.

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REMANUFACTURER OF THE YEAR

A global award for a global company Packed with attendees at the World Remanufacturing Summit in Bayreuth, Germany, the city’s Aktienkeller Beer Hall was the unconventional setting for ReMaTecNews 2012 Remanufacturer of the Year Award ceremony on Monday 3rd September. Less unconventional, perhaps, was the recipient of the 2012 Award – Doug Wolma of Meritor, a worldleader in aftermarket parts for trucks, trailers, buses and vans in American, European and Asian/Pacific markets. As General Manager, Remanufacturing, at the US giant for the past six years and now occupying the position as worldwide head of its aftermarket operations, Wolma and Meritor proved popular winners of the reman industry’s most prestigious award.

“Meritor is a global company that has set very high standards for everything it does in remanufacturing,” said William Schwarck, ReMaTecNews’ Editor-in-Chief and Chairman of the panel of judges. “We are proud that this year’s winner is of such high caliber and advanced skills and is taking remanufacturing to a new level.”

William Schwarck and fellow judges, Volker Schittenhelm of FIRM and Fernand Weiland of APRA’s European Division, agreed

unanimously to select Meritor as the 2012 winner. The company is the first American winner of the Award.

As this years’ guest of honour, Dr. Nabil Nasr of the Rochester Institute of Technology, the United State’s leading reman scientist, presented the award to Doug Wolma.

“Worldwide many more people appreciate reman today and much of that progress in our favour is due to the growing popular awareness of the linkage between remanufacturing and sustainability,“ Dr. Nabil Nasr said. “The role of reman as a means to achieve greater sustainability in so many sectors of industry will be a major factor in the future growth and success as reman evolves into a global industry. And global is the direction in which reman is evolving as we progress through the 21st century.”

Directly addressing Meritor Dr. Nasr said: “Meritor is North America’s leading source of aftermarket parts for commercial vehicles. In Europe it markets a broad range of brake kits and components in addition to remanufactured brake calipers, valves and compressors for all makes of trucks. In South America, it handles 1500 orders monthly to a network of distributors. In China, Meritor is a

major supplier of off-way axles and in India it has produced more than 1 million axles to date. Meritor is a genuinely deserving receipient of this year’s award.”

Meritor Based in Troy, Michigan in the US, Meritor is a global leader in axles, brakes and safety systems, drivelines and suspensions. Meritor employs around 10.000 employees and serves customers in more than 70 countries.

Around 33 per cent of its aftermarket operations are accounted for by remanufactured products. The company’s reman footprint comprises locations in Canada, the US, the UK, Belgium, Czech Republic and Australia.

Meritor’s recycling and remanufacturing activities include the recycling of more than 30.000 tons of metal per annum with in excess of 40.000 tons of cores returned every year. The company remanufactures 20.000 brake shoes every day and more than 80.000 gearing units.

An impression...

Winner Doug Wolma (left) and Dr. Nabil Nasr.

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Panel of judges.

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WORLD REMAN SUMMIT

The World Remanufacturing Summit – an event for the entire reman industry More World Remanufacturing Summits in future years

A stellar line-up of speakers and presentations were in display when the first-ever World Remanufacturing Summit opened its doors at University of Bayreuth in German on September 3rd. Organised by the university’s Chair of Manufacturing and Remanufacturing in partnership with ReMaTecNews, the two day summit, attracted more than 130 academics, industry executives and decision makers from across the world, the US, China, Japan, Europe and Australia. Rarely, if ever, has a similar gathering of the remanufacturing industries taken place.

As one attendee put it: “What makes this event different is that, besides the indepth focus on automotive and heavy duty reman, it also provides an insight into other types of remanufacturing. To me this has given me a broader knowledge of the potential for reman across the board and, therefore, a broader understanding of some of the issues facing remanufacturers on a global scale.�

More summits in the pipeline On the strength of the two days in Bayreuth, three of the world’s leading scientific reman centres have decided to come together again over the coming years. As a result, two more summits will be held in China and the US

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before returning to Europe in 2015. In China, Beijing’s National Key Laboratory under its Director, Professor Sheng Zhu, will host a World Reman Summit in 2013 and in 2014 the event will be organized by the Rochester Institute of Technology under Dr. Nabil Nasr, both of whom delivered key note speeches in Bayreuth. “As we received many positive com-

By William Schwarck ments during the summit, it was decided to repeat it in different parts of the world over the next two years,� said Professor Rolf Steinhilper, who, over the past ten years, has built the university’s Department of Manufacturing and Remanufacturing into Europe’s leading institution of its kind. “I and my colleagues in the US and China all expect to see a rising need for interaction between science and the reman industries and we look forward to repeat the message in China next year and to meet in the US in 2014. If all goes according to plan, we plan to host the next European version of the World Reman Summit in 2015.�

Among key speakers were: • Prof. Herbert Kohler of Daimler AG, who spoke about The Contribution of Remanufacturing to Resource Efficiency at Mercedes-Benz; • Dr. Nabil Nasr of Rochester Institute of Technology on the View from the US; • Prof. Sheng Zhu of National Key Laboratory for Remanufacturing on Up-to-date Key Technologies for Remanufacturing in China; • Prof. Rolf Steinhilper of Bayreuth University on Remanufacturing - the View from Europe.

The next edition of ReMaTecNews will present more details about the conclusions of speakers at the World Remanufacturing Summit.

Honours for reman veterans At the close of the first plenary session the Summit organizer, Professor Rolf Steinhilper honoured two of the participants with honorary plaques for their work to promote remanufacturing. Fernand Weiland, for many years Chairman of the European Division of the Automotive Parts Remanufacturers Association and current Vice-Chairman, was recognised for his efforts over a quarter of a century. “Fernand Weiland has for many years been an invaluable contributor to the cause of remanufacturing,� Rolf Steinhilper said.

The second plaque went to: William Schwarck, Editor-in-Chief of ReMaTecNews since it’s foundation in 2001 and a Honorary Life Member of APRA. “We want to honour William Schwarck in recognition of many years of communicating the good news about From left to right: William Schwarck, Rolf Steinhilper and Fernand Weiland. remanufacturing,� the citation said.

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An impression...

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WORLD REMAN SUMMIT

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And the word about reman turbos is GROWTH A ReMaTecNews survey shows that although economic uncertainties and weaker markets have contributed to a general economic slowdown, the turbocharger remanufacturing business is being boosted by political pressure and production trends among the vehicle manufacturers.

In Spain’s Catalonia region, engine and transmission remanufacturer Asysum is adding a 4000m2 facility to its production plant in Lleida. In Alabama, USA, clutch manufacturer Alto is opening a new division. Delphi, also in the US, has recently launched a turbo reman

programme. Each move is linked to a growing trend that’s taking turbo remanufacturing worldwide in the same direction - up.

It is no secret that, within the industry, the feasibility and even the quality of turbocharger remanufacturing, has been the

Asysum builds for the future in turbocharger reman At its headquarters in Lleida 130 km northwest of Barcelona, the Spanish remanufacturer of engines and transmissions, Asysum, is currently building a 4.000 m2 production hall for remanufactured turbochargers. By early 2013, this longstanding reman business will be able to produce a further 5.000 turbochargers over and above its existing production of 15.000 per annum. As a result, Asysum expects to expand its turbocharger sales beyond what has so far been the domestic market, by and large, into other European markets.

“We know that the quality of our work is recognised outside Spain, because every day we’re receiving more enquiries and orders from other EU countries. Accordingly, we need more space to increase our capacity for remanufacturing turbochargers,” company spokesman Tony Bened told ReMaTecNews.

Asked about the state of the current market for remanufactured turbochargers, Bened added: “As demand for turbochargers has risen considerably in recent years, new competitors have entered the market. As a result of the increased competition prices have fallen and profit margins have narrowed dramatically. To survive and thrive in this market we must be able to reduce our production costs through economies of escale and that’s why we’re investing in new production facilities. We believe that many small companies will Tony Bened - Asysum. not survive.”

Founded in 1981 by the Vigata family, Asysum was the first company in Spain to offer standard rebuilt engines on an exchange basis.

At present, Group Asysum employ in excess of 250 people and produces 5000 engines, 15000 turbochargers and 3000 gearboxes annually.

Asysum has also created the KIRUS brand for new turbochargers which are 100 per cent assembled and balanced at its factory in Spain.

“To us, this is important because we have seen that the quality of aftermarket turbochargers from, for instance, from Asian countries is insufficient for the European market,” Bened says. “Our intention is to achieve an annual production of 20.000 new KIRUS turbochargers in addition to the 20.000 remanufactured ones.”

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subject of a great deal of debate. Almost by tradition, large turbocharger manufacturers like Garrett, BorgWarner Mitsubishi, Toyota, and IHI have disputed turbocharger remanufacturers’ claims that they could deliver OE quality products. “The technology is too complex for outsiders to handle,” is usually the reason given.”

Yet, the evidence is that the market is increasingly turning towards remanufactured turbos. As one source puts it: “Turbocharger A Delphi turbocharger.

technology is complex, yes, and it may become even more complex in the future.

However, remanufacturers are constantly improving and the gap between manufacturers and remanufacturers narrows all the time.

There are signs that the OE remanufacturers are recognising this, too.”

What is certain is that the signals from the remanufacturing side of the turbocharger business point upward. This is the case in both Europe and the United States, the two largest turbocharger markets in the world.

Melett, a UK-based supplier of turbocharger parts with subsidiaries in the UK and China, puts it this way: “We are lucky to be working in one of the few industry sectors where the word ‘growth’ is on everyone’s lips, rather than ‘recession’. Despite the tough economic climate, the last few years has seen unprecedented growth for both Melett and the turbocharger aftermarket.”

Melett supplies replacement turbocharger repair kits and turbo parts to the independent aftermarkets in over 91 coun-

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tries worldwide, so its comments are a snapshot of the international position rather than just a UK state of play.

Turbo remanufacturers as a whole are riding high on the crest of a wave driven by political pressure to reduce vehicle emissions and the technological responses from the vehicle manufacturers in order to achieve the targets set.

Large increases Although privately worried that escalating core price valuations will make new turbos a more attractive option and strangle the life of the golden goose, the remanufacturers’ collective frown has been eased by forecasts of large increases in the installation of petrol turbos as original equipment on new car assembly lines. Petrol turbos are less complex.

The reman potential seems huge.

“The trend seems to be moving towards putting a turbo on a smaller engine allowing you, for example, to get the performance of a 1500cc out of a 1200cc,” says Melett’s engineering manager Mark Tindall.

“Our perception on this is, the more turbos on the road the better as this in time will create more business and, like many companies operating in the turbo aftermarket, it gives us a sustainable business if the market is going to continue to grow.”

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Concerns about reliability As petrol engines run hotter, there may be concerns in some quarters about reliability issues. The task is to remain in the market long enough to see the profits flow.

‘Flow’ is another of the key words on turbo remanufacturer’s lips. Nowhere is it discussed more avidly Melett's HQ in the UK. than in the field of Variable Geometry, often referred to as VNT (Variable Nozzle Technology) after the brand name owned by OE turbo manufacturer Garrett.

VNT turbo reman issues are a long way from a shot blast and a clean up job. Problems include ‘sooting up’ of vanes, expansion and potential warping in the housing, the minute clearances involved, the sensitivity and behavioural characteristics of the electronic actuators, as well as the ability (or otherwise) to test, recalibrate and recode the remanufactured units.

“Some of the OE suppliers are adamant you cannot remanufacture their VNT turbos.

We know that you can,” says Steve Preest, Sales and Marketing Manager at Turbo Technics, a UK company that is active in turbocharger reman.

In addition to new and reman turbo activities, Turbo Technics builds and distributes turbo core balancing equipment worldwide. A leader in its field, the company has also developed its own system for measuring and testing VNT turbos.

The challenge “We do it (VNT reman) for the aftermarket, plus we supply the vehicle manufacturers (VMs). It’s perfectly acceptable for them, so it

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should be fine for the aftermarket - as long as the turbos are remanufactured correctly and recalibrated correctly afterwards,” adds Steve Preest.

He adds that the challenge is to get the VNT reman process right:

Steve Preest, Turbo Technics

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“This type of actuator is difficult to reman successfully. Replacement is expensive.

The actuators are not interchangeable and have to be reset to the vehicle.”

Worldwide, Delphi Product and Service Solutions believes it has risen to the challenge. At Automechanika in September, it introduced a reman turbo programme for popular light duty vehicle diesel and petrol applications. It claims the move will change ‘the turbocharger landscape’.

“Garages can now offer a complete Delphi reman range of turbochargers to consumers, including variable geometry technology, and cover popular applications such as BMW, Peugeot, Renault and Volkswagen,” said Lúcia Veiga Moretti, President, Delphi Product & Service Solutions.

Further indication of an upward trend is provided by the American player Alto, which claims to be the world’s oldest and largest clutch manufacturer. The company recently announced plans for its newest division, ‘Alto Turbo Products’. These include a complete line of parts for rebuilding turbochargers.

“This line has been launched to meet the needs of continually advancing and unique markets, including shaft and wheels, compressor wheels, bearing housings, and turbo repair kits,” says David Landa, Alto’s President.

Peter Marsh, Turbo Dynamics.

VNT not for everyone While VNT is attracting a good deal of attention, not every turbo remanufacturer has bought into the VNT reman gravy train.

As a Garrett turbo supplier and a manufacturing partner with OE connections, UK-based Turbo Dynamics does not reman VNT units, although it has special dispensation to upgrade them, because the cars that they are being fitted to are remapped.

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“We started off repairing and upgrading customer units but soon found that because in the upgrade, these vehicles were leaping from 140hp up to 220-230 hp, the extra temperatures produced in the turbine housings were accentuating problems associated with the warping of the housing. The VNT mechanism was being jammed in service,” says Managing Director Peter Marsh.

“Although the turbo worked fine on the bench, on the vehicles they were seizing. We made the decision to not upgrade customer units. Now we only upgrade using brand new turbos.”

He points out that the lack of information about VNT settings and no OE spare parts are significant obstacles and urges caution.

He thinks many end users remain to be convinced about the reliability of the VNT reman unit.

“The general public are becoming more aware that a reman VNT unit is a bit of a lottery. While people are swayed by the lower cost, you’ve only got to get bitten once or twice and suddenly its not such a good proposition after all,” he says.

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Turbocharger reman at ReMaTec2013 The rising demand for remanufactured turbochargers is reflected in the exhibitor’s list at the ReMaTec2013 exhibition, which will take place in June next year.

“For ReMaTec2013, we are now seeing strong interest from turbocharger related businesses,” says Niels Klarenbeek, Manager, ReMaTec exhibitions. “By tradition, ReMaTec has been an event where many suppliers of replacement turbocharger repair kits and turbocharger parts manufacturers meet. This is certain to be the case again in 2013.“ ReMaTec2013 will feature the first ever presence of Kawasaki Turbo Systems (Japan) and Noporvis Total Turbo Solution (Taiwan), both taking substantial stands on the show floor.

Familiar names which will feature turbocharger product include Cummins and Alto Turbo Products, both from the US, and Diesel Levante Turbo & Injection (Italy), BU Drive (Germany), Mellett (United Kingdom), EM Turbo (China) and Turbo-Tec (Poland).

Among core suppliers with turbocharger lines are Goldfarb & Associates (USA), Gobbi (Italy), Autoenterprises (United Kingdom) and RAS (USA).

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Founder and Managing Director Leon Kleine Staarman.

ECU remanufacturer shows s ACtronics, a relatively new player in the field of electronics & mechatronics reports some impressive results.

In only eight years, ACtronics BV, a Dutch remanufacturer of ECUs and other electronics and mechatronics components, has developed from a small concept in the mind of founder Leon Kleine Staarman, to a major player in ECU remanufacturing.

This, in part, is reflected in the opening

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of the company’s new, ultramodern premises in its home town of Almelo in the Netherlands. At the same time ACtronics’ rise reflects the rapidly growing business area, electronics & mechatronics remanufacturing. As vehicle components get ever more dependent on electronics, the demand for

remanufactured ECUs is set to arise exponentially. That, at least, is ACtronics’ business concept. And so far it’s been working.

The evidence is all over the new headquarters which the company inaugurated towards the end of August. Occupying 3,000 square meters, the facilities are second-to-

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ws strong growth none by international standards, Leon Kleine Staarman says with pride. “They’ll certainly enable us to maintain our growth and demonstrate that our ambition is to be at the leading edge of this high-tech business.”

UK and China In the new HQ, ACtronics employs a workforce of 75 with a further 50 divided between its facilities in Colchester, Essex in

the UK and in China. As befits its global outlook the company has a multi-national workforce which, in addition to the Dutch includes German, Italian, French, Swedish and Norwegian nationals. To attract and retain high calibre staff, much attention has been given to the working environment in the shape of a tropical courtyard and other secondary conditions. “Finding good employees is not easy in the Netherlands,” says Staarman. “When we find them, we

want to give them the best possible working conditions.” The same approach obviously goes for the technical installations. From arrival and throughout the reman process the units are handled by robots and other automatic tools. “This has dramatically improved the turn-around time for our products,” Staarman says. “The fully automatic logistics system will, in the near future, enable us to offer a 24 hour rebuild time.

That’s the next important step.”

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NEWS FROM THE INDUSTRY

François Augnet leaves top job at TRW Europe François Augnet, head of TRW Europe and Asia for close to a decade has left his position as the US’s company’s main man on this side of the Atlantic. The reason for Augnet’s departure from the company has not been given and no announcement as to his successor has been made at the time of writing.

During François Augnet’s tenure, TRW has emerged as a strong supporter of remanufacturing – a role that resulted in him being named ‘Remanufacturer of the Year’ by ReMaTecNews in 2010. In addition to supporting and promoting reman within TRW, François Augnet, a French National, has exercised his considerable influence within CLEPA, the European Automotive Suppliers’ Association. Here, he was one of the driving forces behind CLEPA’s establishment of a remanufacturing working group.

Tremendous potential “The potential is tremendous,” François Augnet told ReMaTecNews when receiving the ‘Remanufacturer of the Year Award’.

“Firstly, from a CO2 perspective, remanufacturing is the optimum compromise while at the same time, it provides jobs for local people. It’s important to recognise that there is much more labour involved in remanufacturing than manufacturing new parts.”

“We should always remember that remanufacturing is a problem-solving industry. In many cases, the only way to keep older cars on the road is to use remanufactured car parts. So for me, this is a further reason why this is an industry full of promise with a big future ahead of it.”

François Augnet

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Reman comes to Las Vegas

Remanufacturing has always played a role in the motor industry’s annual Industry Week in Las Vegas, Nevada, where the Big R Show, ATRA Powertrain Expo, AAPEX and SEMA exhibitions attract large crowds. This year is no exception. In fact, reman will have a higher profile than ever before.

Since 1988 the annual APRA International Big R Remanufacturing Show has been a focal point for remanufacturers. In addition to the activities on the show floor, the event provides a broad range of seminars and meetings on numerous aspects of automotive parts remanufacturing. This year the Big R, in conjunction with the Automatic Transmission Rebuilders Association’s (ATRA) Powertrain Expo, will be held at Bally’s Hotel in Las Vegas from Saturday 27th October to Monday 29th October inclusive.

And there’s even more – this year in Las Vegas remanufacturing will receive a further boost as the Motor and Equipment Remanufacturer’s Association (MERA) hosts a special reman pavilion on the show floor at AAPEX from 30th October to 1st November. Several months before the show was due to begin, the 8000 sq. foot MERA pavilion had been sold out.

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In addition to the exhibitor’s presentations, MERA will host an exhibit showcasing the environmental, economic and product performance benefits of remanufacturing.

“MERA and its members look forward to promoting the benefits of remanufactur-

ing before the more-than-125,000 aftermarket professionals that participate in AAPEX and Automotive Aftermarket Industry Week,” says John Chalifoux, President and COO of MERA. The following companies will exhibit in

Main Events Saturday, October 27th 8:45 am - Noon 1:00 pm - 5:00 pm 3:00 pm - 4:30 pm 4:30 pm - 6:30 pm

Thrive & Survive Electrical Clinic (Ticketed Event) APRA BIG R Show & ATRA Powertrain Expo Open RIT Cleaning Seminar - Calculating the True Cost of Cleaning ‘Industry Reception’ in the Exhibit Hall (Open to Everyone)

Sunday, October 28th 8:45 am - 11:45 am Noon - 5:00 pm 1:00 pm - 2:15 pm 3:30 pm - 4:45 pm 5:00 pm - 5:45 pm 5:00 pm - 5:45 pm 5:00 pm - 5:45 pm

Around the Profit World in 180 Minutes (Free Admission) APRA BIG R Show & ATRA Powertrain Expo Open Complexity in Remanufacturing: Make it a Bit More Simple Hans-Henrik Westermann, Bayreuth University (Free Admission) RIT Seminar - Opportunities for Remanufacturers HD Brake Roundtable VTRG & HD Transmission Roundtable Core Suppliers Roundtable

Monday, October 29th 8:00 am - 9:00 am 9:00 am - 2:00 pm 9:30 am - 10:45 am 9:30 am - 11:30 am 1:30 pm - 4:30 pm 2:00 pm - 4:30 pm

Idea Breakfast APRA BIG R Show & ATRA Powertrain Expo RIT Seminar - Non-destructive Inspection Technologies Heavy Duty Electrical Clinic Air Conditioning Clinic Global Reman Perspective Seminar - Moderated by Joe Kripli

Tuesday, October 30th - Thursday, November 1st AAPEX and SEMA Shows

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the pavilion area: Boles Parts Supply, Electronics Remanufacturing Company, ETE Reman, Flight Systems Electronics Group, GB Remanufacturing, Knopf Automotive, LKQ, MCI Cores, Phoenix Automotive Cores, Rebuilders Automotive Supply, Remy International, Undercar Express, USA Industries and Wabco Reman Solutions. The ReMaTec2013 show in Amsterdam, The Netherlands and ReMaTecNews magazine will also be present at the pavilion.

On behalf of ATRA, Executive Director, Dennis Madden says: “We are pleased that we were able to co-host our exposition once again at the same time as the International BIG R Show. It looks like our joint show will be another winner.”

APRA’s President, Bill Gager, added: “Both of our associations believe very strongly that this will provide each other’s attendees and suppliers with some new opportunities and will help them reach more people. Both associations will continue to offer their broad range of technical seminars and workshops.

We also look forward to welcoming other remanufacturers and rebuilders from a variety of other product lines from around the world to this major event. This joint event makes this the largest remanufacturing exposition on earth.”

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Hans Westermann

Sandra Seifert

Steffen Butzer

Black Magic or Rocket Science With a number of workshops and seminars, this years Big R Exhibition will also comprise a strong European element, when a team of young scientists and engineers from Bayreuth University in Germany presents findings from their research at the university’s Fraunhofer Project Group Process Innovation. The presentation will comprise a overview of some of the conclusions of the lectures and speeches at the 2012 World Remanufacturing Summit in early September, including Global views on remanufacturing, large scale remanufacturing, special challenges, markets and trends, SME Innovation leaders and automotive OEM remanufacturing.

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marketPLACE ASSOCIATIONS

APRA (office Europe) Neustrasse 8 48653 Coesfeld Germany phone +49 (0)2541 80068-18 info@apra-europe.org www.apra-europe.org

FIRM Rue Vautier, 54 1050 BRUSSELS Belgium phone +32 (0) 498 802740 secretariat@firm-org.eu www.firm-org.eu CLEANING EQUIPMENT

Metalas Cleaning Systems BV James Wattweg 28 3133 KK Vlaardingen The Netherlands phone +31 (0)10 4356036 info@metalas.com www.metalas.com

POWERGENT PEERESS INTERNATIONAL ASSOCIATES 302, Shimizu Bldg., 2-18-20, Shinmachi, Nishi-Ku Osaka, JAPAN #5500013 phone +81 6-6536-6325 info@powergent.net www.powergent.net

CORES

M&M Dronten GM Specialist All Car Makes Pioniersweg 76-78 8251 KR Dronten The Netherlands phone +31 (0)321 318635 sales@autocarparts.eu www.autocarparts.eu

Autoenterprises Ltd. Units 5,6,14,15 Pembroke Centre, Gardiners Lane South Basildon, Essex, SS14 3HX United Kingdom phone +44 (0)1268 285888 john.snr@autoenterprises.co.uk www.autoenterprises.co.uk

Gobbi Spare Parts Srl Via Capannaguzzo, 3681-47521 Macerone di Cesena (FC) Italy phone +39 0547 3111346 info@gobbisp.com www.gobbisp.com

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• Cleaning equipment • Consultancy - Research • Cores • Environmental products • Lubricants - Chemicals • Organisations - Associations • Parts for remanufacturers • Production equipment • Remanufactured products • Test equipment Rates 2012 1 placement 1 160 5 placements 1 695

REMANUFACTURED PRODUCTS

ERA Benelux Drieslaan 78 B-8560 Gullegem Belgium phone +32 56 439300 info@erabenelux.be www.erabenelux.be

BU DRIVE GmbH Friedrich-Ebert-Str. 129 49811 Lingen/Ems Germany phone +49 (0)591 71050 info@bu-drive.com www.bu-drive.com

TEST EQUIPMENT

R.A.S.E.D. S.p.A. Spaco Diesel Via Padova 183 20127 Milano Italy phone +39 022722161 info@rased.it www.spacodiesel.com www.rased.it

Wah Seng Industry Sdn. Bhd. 22 Jalan Industri Beringin 14100 Juru Industry Park S.P.T. Penang Malaysia phone +6 04 5079982 marketing@wahseng.com www.wahseng.com

Dynostar Hogerwerf 15 4707 RV Roosendaal The Netherlands phone +31-165521336 info@dynostar.com www.dynostar.com

TRANSMISSION PARTS

S.D.A. Im-Export BV Duizeldonksestraat 7 5705 CA Helmond The Netherlands phone +31 (0)492 524463 Info@sdaim-export.nl www.sdaim-export.nl

Auto-Matic C/ Laguna 20 (Pol.Ind.Urtinsa II) 28923 Alcorcón Madrid Spain phone +34 91 644 44 22 auto-matic@auto-matic.es www.auto-matic.es

Van Der Star Bvba Proceco Ltd. 7300 Tellier Street Montreal, QC H1N 3T7 Canada phone: +1 514 254 8494 cleaning@proceco.com www.proceco.com

INFORMATION For more information please contact Eva Barten, phone +31 (0)20-5042800 advertising@rematecnews.com www.rematecnews.com

Van Der Star Bvba Ind. Leuerbroek 1094 B-3640 Kinrooi Belgium phone +32 (0)89 703657 vanderstarbvba@msn.com www.vanderstarbvba.com

A.E.S. Auto Electric Service BV Cannenburgerweg 59c 1244 RH Ankeveen The Netherlands phone +31 (0)35 6563444 info@aes.nl www.aes.nl

Ganzeboom Transmissies Planthofsweg 45 7601 PH Almelo The Netherlands phone +31 (0)546-819510 info@ganzeboom.net www.ganzeboom.net

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Rebuilding refuse collection vehicles A UK company is achieving considerable results within a rather specialised field of remanufacturing: Remanufactured refuse collection vehicles. The company in question, RVS, claims that it’s customers, British refuse

more than 25 years, says: “We can engineer a vehicle to meet a customer’s precise requirements, whether that involves full or partial body remanufacturing. A big plus is that we can beat manufacturer’s lead times and we can often source, remanufacture and deliver an ‘as new’ vehicle in less than four weeks.”

Earlier this year, RVS was awarded a second contract to provide the refuse collection

company, Swindon Commercial Services, with a new fleet of six refuse vehicles. “If we can get the equivalent lifetime and operational standards from remanufactured vehicles as we can from new vehicles, at the same time making significant savings against capital costs, we are able to provide a much better value for money service,” a spokesman for SCS said.

Delphi extends remanufactured instrument cluster range management businesses, save 40 per cent when buying remanufactured instead of new.

The remanufactured vehicles are as reliable as new and built to the same specification, RVS says.

Managing Director, Spencer Law, who has been building and repairing dust carts for

Delphi recently added nearly 100 additional remanufactured instrument clusters covering more than 16.9 million GM vehicles from 1996 to the present, the company announced. The range will be available in the US during Q3, 2012. Delphi says that its remanufactured instrument clusters provide critical vehicle data on odometer reading and speed, engine temperature and RPMs, battery voltage and oil pressure in one unit. Moreover, all clusters are designed and remanufactured to OE stan-

dards operate properly with fully functioning features and displays appropriate for each GM make and model.

According to the company, and each remanufactured cluster is programmed and calibrated with critical information such as steering wheel control functionality. In addition, Delphi says it conducts parametric testing at the electronic component level, which validates proper operation and longer-term reliability.

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HEAVY DUTY WORLD

Profiting from the economic downturn Nearly four years after the UK recession started, a UK HD brake caliper remanufacturer reports that turnover has increased by 300 per cent, there are three times as many people employed, while its business premises has tripled in size.

Remanufacturing Systems Ltd (RSL), of Swadlincote in Derbyshire, remanufactures HD brake calipers for trucks, trailers and light commercial vehicles. It supplies local and national distributors of replacement parts used by fleet workshops and independent workshops throughout the UK. Managing Director Andrew Bennett says that after over ten years of stable performance, the economic downturn that occurred in 2008 changed everything: “Suddenly we were able to sell reman to companies we had been unable to sell to before. They were being forced into switching from OE-based product to reman due to customer demand. At the same time, the OE supply chain was reigning in its production levels and unable to respond to the needs of the aftermarket.”

“Investment in new equipment has helped the company to keep pace with developments in the electronics such as wear pad sensors that are increasingly fitted to and associated with modern brake calipers.“

RSL has just spent over £200,000 on a core and stock investment programme in order to meet customer demand, maintain the correct stock profiles and to ensure continued product availability at the current rate of sales.

The company has recently joined the UK’s fledgling representative body, the Federation of Automotive Remanufacturers (FAR) as move that it sees will help the business make further progress:

“We deal with large national trade distributors and they are keen to see their suppliers progressing to the ‘next level’, says Andrew Bennett. “They want to know what sets us apart from other suppliers in the industry and they want to see what we are doing in order to demonstrate that. We read about the FAR, liked the concept and we think it will help us satisfy some of those needs. We want to help the industry but we also want any help it can provide to us.”

UK brake caliper remanufacturer RSL has succeeded in a time of economic downturn.

Expanded capacity home and away for Eaton Eaton Corporation is planning to expand its automotive remanufacturing operations in India by the end of this year, with the introduction of a new product range.

“We plan to leverage one of our production facilities and have a section that is specifically for the remanufacture of transmission products,” says Global product strategy manager Matthew Colwell.

The plant at Ranjangoan, Pune, is the focus for its truck related products and it will

now become the launch platform for the remanufacturing of Eaton’s six and nine speed transmissions range.

Since establishing its corporate base through acquisition in 1999, Eaton has invested heavily in the Indian market. Its facilities there are extensive, with an extensive customer service infrastructure and two production plants so far.

This latest remanufacturing move will cap a busy year for the automotive remanu-

Honour for US HD supplier The US trade magazine Inc. magazine has ranked a fleet supplier, Tidewater Fleet Supply among America’s fastest-growing private companies. The list provides a comprehensive look at one of the most important segments of the economy – America’s independent entrepreneurs. “We are honored to be recognized by as one of America’s fastestgrowing private companies for the second time in the past six years,” said Allan Parrott,

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president of Tidewater Fleet Supply LLC in Chesapeake, Va. “We could not have achieved this exceptional growth without the outstanding support of our loyal employees, suppliers and customers,” Parrott added.

Based in Virginia, Tidewater supplies a broad range of heavy duty components to fleet managers in America. The range include remanned products from Remy International and other remanufacturers.

facturing side of Eaton’s global business.

Expansion of the TECU and Push Button assembly products in February was followed by first production of its reman hybrid PEC battery packs in July - a development that was quickly followed by the release of reman options for its third generation transmissions products.

Roadranger Matthew Colwell also points out that throughout 2012, Eaton has been investing in its home market aftermarket service network, known as Roadranger. The business, which also supports customers in the US, Canada and Mexico, switched over from a shared operation to become an Eaton only service in June. This year it has almost doubled its size in the US alone.

Eaton remanufactures products in more than 12 different locations worldwide. Its automotive range includes HD - medium duty transmissions and clutches, automated electronics and sub assemblies. Its reman strategy also includes the use of reman partners to provide remanufacturing products where practical.

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HEAVY DUTY WORLD

Caterpillar also expands in India Caterpillar Inc. the world’s leading mining and construction equipment maker, plans to its blockbuster ‘remanufactured’ products to India.

The company’s managing director for India, China and Asean, Kevin Thieneman has announced that the company intends to launch financial services as well as ‘reman’ (remanufacturing) products.

Thieneman said India is a key emerging market for Caterpillar because of good growth in the country’s infrastructure. He pointed out that the backhoe loader manufacturing facility near Chennai will not only strengthen the company’s presence in the market but also augment the distribution channel.

The other new facility, being built with an investment of $150 million, will have the

He pointed out that Indian customers are shifting priority from initial price to life-cycle costs.

“With large investments currently being made in the infrastructure sector, the customer is keen today to complete the job quickly and efficiently to capture more opportunities,” he said.

Bottlenecks

capacity to produce its Perkins range of 4000 series engines in India.

By the time it becomes fully functional in 2013, its workforce would have gone up to 450. “Significant investments are being made to ensure that India is an important export base,” he said.

Thieneman said certain bottlenecks in policy implementation need to be addressed quickly to move ahead to build better infrastructure.

“There are issues that plague the sector and the governments as well as private players need to address the loss caused by these lapses in infrastructure,” he said. “But based on growth projections for the Indian economy, there are great opportunities for Caterpillar to grow its business in India,” he pointed out.

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APRA Europe

NEWS

How to define remanufacturing From the outside, the remanufacturing industry is undeniably complex, even confusing.

Yet because of its clear ecological and sustainable benefits, the industry is the subject of ever increasing public focus.

So it is no wonder that very often we are asked to explain what exactly remanufacturing is, how it differs from repair or new

Definition This is the common definition of APRA, CLEPA and FIRM and is supported by MERA and RIC. • A remanufactured part fulfills a similar function as the original part [1] • It is restored from an existing part [2] • Using standardized industrial processes [3] • In line with specific technical specifications [4] • A remanufactured part is given the same warranty as a new part [5] • and it clearly identifies the part as a remanufactured part and the remanufacturer [6].

units. As insiders, of course, we’re delighted to talk about our profession. Nevertheless, most of the time explanations should be simple, clear and extend to no more than two sentences so as not to lose the attention of our audience. Now it becomes a challenge.

Each of us will use slightly different wording with slightly different emphasis, depending on which area of the industry we are working. If our audience speaks to several remanufacturers, a great deal of confusion is bound to arise.

If we want politicians, officials, bureaucrats and others to support the reman industry – locally or internationally – it’s crucial that we establish a clear picture of what remanufacturing stands for. Up to now different reman-related associations across the world have applied different definitions in accordance with the specific demands of their members.

To be more successful in promoting remanufacturing and developing new reman markets, it is imperative that all major players define and communicate remanufacturing in a uniform way.

A huge step in this direction has been taken by three associations that have now developed a common definition for remanufacturing: a definition that respects the differ-

By Peter Bartel, Chairman, APRA Europe

ent aspects of the business and is as precise as possible at one and the same time.

Together, FIRM, CLEPA and APRA have developed the required two sentences mentioned above and other associations have indicated their support for this common wording. The breakthrough came with the agreement that the aim is not to include other processes like repair and refurbishment, which are often misused in respect of remanufacturing. To ensure that the definition meets a variety of local requirements and to prevent misinterpretation, some additional notes had to be added. Additional information about the new definition for remanufacturing is available at www.apra-europe.org.

For further news about APRA Europe, please visit www.apra-europe.org

Footnotes: [1] Original part, matching quality part BER 461/2010/EC Article 1, Para h) in connection with supplementary guidelines 2010/C 138/05, Para 19 and 20.

[2] Core A core is a used original or matching quality part which will be remanufactured.

[3] Industrial processes An industrial process is an established process, which is fully documented. The size of the industrialized production batch is not limited; only one part could be remanufactured. In case of remanufacturing the minimum procedures used in the industrial process are: core management, core sorting, dismantling, cleaning of all internal and external components, replacement of all missing parts, restoration of all impaired, defective or substantially worn parts to a sound condition or replacement thereof,

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reworking, machining or performing such other operations as are necessary to put the part in original working condition or better, components assembly and final testing of each remanufactured part.

[4] Specific technical specifications Specific technical specifications, established by the remanufacturer and consistently applied.

[5] Warranty as new part The remanufacturer must give a warranty for the remanufactured part which is the same as the warranty required by law for a ‘new part’, if one is required by law.

[6] Clearly identifies A non-removable, sustainable and uncoded marking is put on each remanufactured part.

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New insight into reman in Europe New remanufacturing technologies are extremely important for most automotive remanufacturers. Providing information of ongoing development within the field of reman technology, therefore, is important, too.

Acknowledging this basic fact, Fernand Weiland, Vice Chairman of APRA’s European Division, and a group of academic and professional reman experts, have published a guide to current and future technology developments for the reman industry.

“I have been fortunate to persuade Stefan Freiberger and Alexander Nagel from University of Bayreuth to write about electronic car networking systems and Leon Kleine Staarman and Stef de Winter of Dutch ECU remanufacturers ACtronics to explain car electronics,” Fernand Weiland says. “Their mission was to ‘demystify’ these subjects and they have done an excellent job.”

Equally important for remanufacturers are strategic issues. Here experts like Bayreuth’s Daniel Köhler explain how remanufacturing supply chains help to save CO2 emissions while Edwin Tom of TRW shows how remanufacturing can extend the life of out-ofproduction components. Fernand Weiland himself provides an overview about European remanufacturing today and in the future. All authors, including Professor Rolf Steinhilper who wrote the preface have contributed greatly to the book through their in-depth knowledge and dedication.

The book can be ordered via: fernand.weiland@t-online.de

APRA speakers at summit in Bayreuth The Summit in Bayreuth organized by ReMaTecNews and the University Bayreuth on September 3 & 4 saw a great line up of many professional speakers. Among them were representatives of prominent APRA members such as Robert Bosch (Germany), Meritor Europe, FJW Consulting (Germany), BU Drive (Germany), Shinenetsu (Japan), Hitzing & Paetzold (Germany), SRC (USA), TRW Europe and Injectronics (Australia). The themes discussed centered on the importance of remanufacturers in the move towards global sustainability, the benefits offered by new technologies and the implications for the reman industry. As intended, the presentations offered a broad range of ideas to assist remanufacturers with coping with the future opportunities and challenges.

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NEWS

By Volker Schittenhelm, Head of Information, FIRM

Achievements despite honorary positions According to our statutes, members of FIRM must be the owners or heads of engine remanufacturing companies. This is intended to ensure that the appropriate skills and expertise exist at the highest level of the association. As board positions are voluntary and unpaid, potential – and qualified - candidates occasionally decide not to take on the task, often due to lack of time.

Whilst understandable this is also a cause of some concern in that a lack of action, new thinking, innovative measures etc. may make the association less interesting to new members and, in a worst case scenario, may threaten the association’s future.

For FIRM it’s not always easy to find new candidates to join our board. Yet over many years our membership has benefited from the fact that a small but highly efficient working group – the President, two Vice-Presidents plus Secretary and Honorary President have undertaken a wide range of responsibilities on your behalf on a voluntary basis. These

colleagues put in their own time, even their weekends, and are absent from their (generally speaking) small and medium-sized companies for significant period per year, including paying out some expenses from their own pocket. Their enthusiasm and motivation is to be praised and their results are, therefore, all the more remarkable. These include:

Administration management • Strategic and competent support of the ReMaTec project as a cooperation partner (trade show, steering committee); • Founding member of the World Reman Council together with the South African and New Zealand engine reman associations; • Activities within the R2RC (right–to-repaircampaign); • Creation of a new FIRM association for better acceptance in Brussels; • New statutes as a basis for an updated membership structure;

From left to right: Brian Ludford, FER (UK); Paul Britz, ERA/RMI (ZA); Philippe Maerten, Federauto and FIRM-President; Thys van Eck, ZA; Michael C. Lammel, VÖM (A); Greg Brink, ERA (ZA); John Gray, FER (UK).

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• Closer cooperation with reman related associations: APRA, CLEPA and others; • Mutual membership with APRA-Europe; • Common reman definition with Clepa, APRA and MERA; • An informal flyer inserted in ReMaTecNews for the Automechanika exhibition, which will be available at certain press areas at Automechanika; • Participation at the ‘world reman summit’ in Bayreuth, Germany to list only some of a number of recent initiatives.

FIRM is part of a worldwide automotive remanufacturing network with partnerships, informal (and formal) exchange of experiences as well as lobbying activities on behalf of automotive remanufacturing in general and engine remanufacturing in particular.

FIRM is the engine remanufacturing’s voice in Brussels and across the automotive reman industry and we all owe our thanks to FIRM’s board and our secretary.

Having said that, let’s try and imagine the role and impact FIRM could have on the industry by attracting more members and, therefore, benefiting from a healthier financial position. I’m pretty confident that if we become better at sharing responsibilities and devoting more time to investing in new tasks and strategies, we could achieve even more.

We have already seen what is possible with enthusiasm and motivation. With even more dedication and commitment, we could go even further.

Please show your respect for the work undertaken by our elected colleagues by participating in general meeting(s), submitting information to the board (almost all of us have information worth writing about), sharing information, providing facts and figures from your country or, even better, undertaking responsibilities and sharing the work. We will all profit from this – and your own business will profit, too.

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NEWS FROM OTHER ORGANISATIONS

Clepa announces new definition CLEPA, the European Automotive Suppliers’ Association, used Automechanika in Frankfurt to reveal the new common definition for remanufacturing. “This is a big step forward,” said Josef Frank, Senior Consultant, CLEPA. “Now we’ll approach ACEA (The European Automobile Manufacturers Association) in order to reach a common understanding with the OEMs.”

front against businesses that supply inferior products masked as ‘remanufactured’. If similar agreement can be reached with ACEA very substantial progress will have been made.

In connection with the work on the definition CLEPA asked an external service provider, EcoFys, to evaluate the CO2 savings from remanufactured versus new. CLEPA members offer 27 product lines, which can be remanufactured. These product lines have the potential to reduce emissions in the EU27 by 400kt CO2. This is comparable to the absorption of 30,000 hectares of forest – or more than the size of Frankfurt in September.

CLEPA presented the definition and information in the form of leaflets and slides on remanufacturing at its stand at Automechanika Frankfurt

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The wording of the definition is as follows: “A remanufactured part fulfils a similar function as the original part. It is restored from an existing part, using standardised industrialised processes in line with specific technical specifications. A remanufactured part is given the same warranty as a new part and it clearly identifies the part as a remanufactured part and the remanufacturer.”

The new definition also states: “A remanufactured part is different from a reused, repaired, rebuilt, refurbished, reworked or reconditioned part.”

The long desired definition agreement is supported by key reman-related organisations: APRA (Automotive Parts Remanufacturer Association (USA, Europe and ASIA), CLEPA, FIRM (the International Federation of Engine Remanufacturers and Rebuilders, Europe). The definition is also supported by MERA (Motor and Equipment Remanufacturers Association, USA) and RIC (Remanufacturing Industries Council, USA).

In itself the common definition is a considerable achievement in that it will do away with much disagreement in the industry and enable remanufacturers to form a common

Plans to celebrate the 75th anniversary of the UK’s Federation of Engine Remanufacturers next year are likely to include a members’ trip to the ReMaTec2013 Exhibition in Amsterdam.

“It’s only one of several initial plans we are considering, but the thrust of this idea is to help members further their international ambitions at the same time,” says FER secretary Brian Ludford.

“Although individual company members may have attended previous shows, this will be the first official member delegation from the FER. “As well as visiting the exhibition, we hope it will also provide an opportunity for them to meet up with delegates from other organisations that represent remanufacturers in other countries,” he says.

High level MERA conference On October 2, 2012, the Motor & Equipment Remanufacturers Association (MERA) and the Golisano Institute for Sustainability will cohost a remanufacturing and sustainability conference at the MSU Management Education Center, Troy, Mich. The event will feature many prominent speakers – including U.S. Senator Debbie Stabenow and Meritor Chairman, CEO and President Charles ‘Chip’ McClure – and a number of panel discussions.

One of the panels, titled ‘Remanufacturers and Vehicle Manufacturers: Working Together to Build a Sustainable Business Model’ will feature executives from a vehicle manufacturer, a tier one supplier (and remanufacturer) and an independent remanufacturer: • Rosa Pizzuto, Purchasing Manager, Electronics & Advanced Technology, GMCCA, General Motors Company; • Allan Losey, Segment Director, OE Service, Continental Automotive; • Mark DiGiampietro, President, Flight Systems Electronics Group.

The panelists will discuss their current working experience and recommend ways to further enhance business relationships.

The programme is intended for senior executives from across remanufacturing industries, as well as motor vehicle parts executives with an interest in remanufacturing, policymakers, and sustainability and financial industry executives.

The conference theme – ‘Remanufacturing and the Sustainable Organisation’ – links remanufacturing with an organisation’s overall sustainability strategy. Within the framework of the triple bottom line, speakers and panelists will discuss ways to build and market a sustainable organisation. They will highlight how remanufacturing helps a company meet its sustainability goals – and the goals of its customers – particularly when the use of green products can be critical or have valuable incentives. Timely issues in the remanufacturing industry will also be addressed.

MERA also has set the time for its next Sales & Marketing Council meeting: October 1 at 1 p.m. ET at the Federal-Mogul headquarters in Southfield, Mich. The time and date were chosen to accommodate members of the council planning to attend ‘Remanufacturing and the Sustainable Organisation’ in Troy.

Brian Ludford, General Secretary, FER.

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INTERNATIONAL EVENTS & TRADE FAIRS 29.09.2012-14.10.2012 Mondial de l’Automobile - International Paris Motor Show Paris (France) 05.10.2012-07.10.2012 AUTOSALON.AUTOSERWIS - International Car Fair Katowice (Poland) 05.10.2012-07.10.2012 Classic Expo - International Classic Car Exhibit.

Salzburg (Austria) 10.10.2012-12.10.2012 TIR Truck International Review - Trucks and Commercial Vehicles Kiev (Ukraine) 10.10.2012-12.10.2012 AUTOTECHSERVICE - International Exhibition for Vehicle Workshop and Service Station Equipment, Spare-Parts and Accessories Kiev (Ukraine) 10.10.2012-13.10.2012 NACE - International Autobody Congress & Exposition New Orleans (USA)

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10.10.2012-13.10.2012 SAAW - South African Automotive Week Port Elizabeth (South Africa) 16.10.2012-24.10.2012 Abuja International Motor Show Abuja (Nigeria) 17.10.2012-28.10.2012 S.A. Salao do Automovel - International Automobile Trade Show Sao Paulo (Brazil) 19.10.2012-21.10.2012 Tbilisi Auto Show/Caucasus AutoShow - Cars, Spare Parts, Auto-cosmetics Tbilissi (Georgia) 19.10.2012-28.10.2012 AIMS Sydney - Australian International Motor Show Sydney (Australia) 23.10.2012-25.10-2012 parts2clean exhibition International Trade Fair for industrial parts and surface cleaning Stuttgart (Germany)

25.10.2012-29.10.2012 ATRA Powertrain Expo Automatic Transmission Rebuilders Show Las Vegas (USA) 26.10.2012-28.10.2012 CIAPE - China International Auto Parts Expo Beijing (China) 27.10.2012-29.10.2012 International Big R Show Automotive and Truck Parts Remanufacturing Show Las Vegas (USA) 30.10.2012-01.11.2012 AAPEX - Automotive Aftermarket Products Expo Las Vegas (USA) 30.10.2012-02.11.2012 SEMA Show - Speciality Equipment Market Association.Auto International Las Vegas (USA)

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