Session Details: ARA2017

Since the recent announcements by many automotive manufacturers regarding their production of more electric and hybrid vehicles, professional automotive recyclers must start to consider how this will affect their businesses. In this session entitled 'Beyond 2020 - the future of recycled parts', Chris Daglis of PARTnered Solutions (an advisor to the collision, alternative parts and insurance industries) will discuss how the recycling must embrace these new challenges as opportunities.

Components such as engines, gear boxes and transmissions currently make up approximately 70% of the sales of an automotive recycling facility. With the rise of the electric and hybrid vehicles, the automotive recycler is poised to dramatically change. These electric vehicles don't have engines or gear boxes in many cases, and for the hybrid vehicle, well the engines are worked far less than the traditional engine in normally aspirated vehicles, resulting in less wear and tear.

So, is this a threat to the survival of the industry? If we choose to ignore it, that is. The logical question is, what will replace these sales that make up a good majority of our current top and bottom line? The answer is high voltage batteries, sensors, electrical components, reversing cameras, dash header units, a myriad of computers and many more components that we have not yet seen introduced to the market.

Professional recyclers will need to change to handle these components properly. The industry will need to do things differently. We will need to meet more stringent standards and regulations. This session will discuss to potential paths to that transformation.