Pennywise, and...?

A tale of a small part and large consequences.

Page Content

By Eric van Spelde
Editor in Chief, ReMaTecNews Online

Anyone rebuilding automotive components can tell stories about how much cost pressure has been applied to system suppliers over the past decade or so. Our disposable incomes haven't exactly soared in most parts of the world, and we all want 'more' car for our money - more safety and comfort systems, more space, better performance... Ever tightening environmental regulations ensure that engines and fuel systems tend to be a lot more advanced and costly than before.
All this, for the same or less money - allowing for inflation - means something will have to give.
Often, that 'something' is small and seemingly inconsequential - like the rubber boots on the end of steering racks. Except that nowadays, they're seldom made of rubber anymore - the vast majority of manufacturers has long switched to cheaper, plastic boots.
Why does this matter? "Plastic boots are always loose on the clamped end," says Edwin Roozing of rebuilder Auto Elect Hydroline as he effortlessly spins a plastic boot around the rack and track rod end, even though it's secured to the rack with a jubilee clip and with a tie-wrap at the track rod end. "As a result, they won't seal as well as proper ones."

Next he takes a rubber boot and exerts a significant turning force on it with his hand. The boot deforms, but stays put.
The steering racks in the opening picture are from a fairly recent, mid-sized saloon from a European brand that prides itself on its 'sporting heart' and positions itself more or less at the premium end of the market. The track rod ends are quite short, which means the steering rack itself protrudes well into the inner wheelwells - a more hostile environment for the inner surfaces of a steering housing and the rack itself can hardly be imagined. The problem is compounded by the plastic boots posing little resistance to moisture ingress. As a result, the racks on the picture are now rendered non-rebuildable.
The good news is that while the OE supplier has made an expensive mistake for the consumer by using a cheap part, you don't have to. Quality boots will cost less than a euro a piece if you buy enough of them - small beer compared to the cost and reputation damage associated with comebacks...

Some do, some don't - part 2

Discrimination against parts

By Hans de Boer,
Owner, De Boer Transmissies

It's a fact of life that many spare parts are not made available by the original equipment supplier. Fortunately for us, there's always the aftermarket to fill in the gaps. However, no matter how quick the aftermaket suppliers are to respond to market demand, they will always be lagging behind the OEs to some extent. Also, the levels of demand for specific parts tend to vary greatly between markets.

In cases where neither OE nor aftermarket parts are yet available, sometimes we are lucky when used - often nearly new - parts are available. This way, we can still repair and rebuild the components affected by non-availability of spares.

Except of course, when the parts are needed in a country that forbids the import of used parts!

Last week I had a visit from a few Turkish customers. They bought lots of new spare parts, but also a couple of used ones that were unavailable any other way. These went on the bottom of the shipping crate.

Now they will need to pray that the parts arrive, so that a vehicle owner on a budget who has a small part failing on their transmission can be on the road again, and the repairer can earn a living in economically tough times.

Of course, the parts vendor would be more than willing to pay import duties on the parts. Only they cannot: the parts they need are illegal to bring into their country - just because they have been used previously...

Oh, and following on my previous blog, at the end of last summer Jatco announced that in 2012, they will only carry spare parts for the JF506E anymore; all the rest has been discontinued.

Ah well, just another challenge...

Some do, some don't...

By Hans de Boer
Owner, De Boer Transmissies

Why is it that some transmission manufacturers don't sell spare parts to the aftermarket at all, while others not only sell any part you like, but also support the installer with things like parts catalogues and detailed instructions with every part they sell?

Genuine Aisin-Warner parts are not available to the aftermarket. Instead, Aisin Warner would suggest replacing a transmission with a broken C1 clutch - aftermarket price 300-500 euro - with a new one at a cost of 4,000 euro. On the other hand ZF is all too happy to provide us rebuilders with a replacement clutch for one of their transmissions at an average price of 80 euro. ZF also offers complete kits with everything you need for a specific repair - a comprehensive set of installation instructions included.

Is the difference in stance towards the transmission repair market between transmission manufacturers a result of agreements with the OEMs they serve? Hardly likely, since for instance the Volkswagen Group uses transmissions from both ZF and Aisin Warner in its cars. ZF transmission parts for VAG cars are freely available for the repair market, while Aisin Warner parts are not.

Transmission rebuilders will always find a way to repair or remanufacture a transmission. Parts that are not available from the OES will become available from aftermarket suppliers in due course - at a price, of course - and with experience, rebuilders become quite apt at 'reverse engineering' newly developed transmissions.

Handling aftermarket sales the ZF way, however, not only has a benefit to the rebuilder but also to the manufacturer themselves: a ZF transmission will likely be rebuilt with genuine ZF parts, as they are available at reasonable prices and rebuilders get full support. It's no secret that ZF Aftermarket Services is a net contributor to ZF's bottom line.

As an aside, Mercedes-Benz, too, is happy to supply spare parts for their transmissions... except when those transmissions happen to be in a Porsche.

More than a piece of news

By William Schwarck,
Editor-in-Chief,
ReMaTecNews

In any industry some weeks are obviously more newsworthy than others. Actually, some months, even years, can be more newsworthy than others. It’s all part and parcel of the flow of news, events and developments that constitute the lifeblood of an industry.

Automotive remanufacturing is no exception. Although perhaps not the most innovative of industries, reman is ultimately about preserving existing components and has its share of newsworthy, even momentous, weeks. The past week was one.

The announcement that the Cardone family of Philadelphia has decided to sell a majority share of Cardone Industries, the world’s largest independent remanufacturer, to the investment group TPG Capital, merits more than passing attention. Since all indications are that Michael Cardone Jr., the company’s Chairman and CEO and his son Michael III, will remain in day-to-day charge of the business for the foreseeable future, the repercussions, if any, may be more evident inside the company than outside.

Even so, the injection of new capital, perhaps also an element of new thinking at the top, could spur important new initiatives by Cardone in the market place. It’s hardly unknown that a strongly competitive streak runs through its corporate veins and it would be surprising, indeed, if the change in ownership would lessen this in any way.

So barring unforeseen developments, Cardone Industries will, as it has had for more than forty years, have a Cardone at the helm - and the reman industry will maintain the services of a leader, Michael Cardone Jr. who has been a dynamic force in remanufacturing for almost as long.

This, however, is not the only interesting aspect of the deal between the Cardone family and TPG, a global investment firm with offices worldwide, a history of shrewd investments in a broad range of leading businesses and an instinct for backing winners.

With Cardone Industries, its leaders clearly believe they are backing another winner - as they probably are. But, more importantly, they are also showing huge confidence in the future of automotive remanufacturing and a willingness to back that confidence with their own, or their investor’s, cool cash. That is certainly one key message from the announcement coming out of Philadelphia over the past few days. Cardone is here to stay but so is remanufacturing.

Again, some weeks are more newsworthy than others. This was one of them.

Designed obsolescence - how to remanufacture?

By Eric van Spelde

Editor in Chief, ReMaTecNews Online

Sometimes we come across parts and systems that are not yet on production vehicles. It's always interesting to look at how automotive technology is evolving, and what will be on the remanufacturers' work benches and assembly lines in due course.

Or, will there be any remanufacturing - as we know it - possible at all? This question was raised after taking a closer look at some parts that are in 2012, not-yet-in-showrooms car models. A high pressure diesel pump for a leading European brand, appeared to be a lot more compact and simple (and probably cheaper to make) than its predecessors. There also was not a single screw or bolt to be found in the unit. It's truly 'sealed for life'. 

A steering rack to which the hydraulic hard lines would normally be fitted using fasteners, now has had them welded to the housing. In this case, one of the lines was pinched shut, rendering the entire housing beyond repair.

We also took a look at a dual clutch assembly of a 2007 Volkswagen Golf 1.2 (59 kW/80 hp) with the 7-speed, dry clutch DSG box. As of yet, we cannot see a way to replace the clutch discs without destroying the 'cage' they are in (containing the flywheel and starter motor gear).

What major parts and assemblies have you come across that, for all intents and purposes, are become 'throwaway items'? And what sort of workarounds have you developed, or are thinking about, to be able to continue serivng your customers with a remanufactured product - saving them money and us all valuable resources?

Welcome!

Finally, we've added some much anticipated interactivity to the ReMaTecNews domain. Here you will find thoughts and insights about every aspect of the reman industry from industry leaders and experts worldwide.

Most of all, though, we would like you to get involved. This blog page is meant to be a two-way street. Please tell us about what you think about the points raised by our bloggers, simply by replying to their posts. Only by sharing knowledge and insight we can all progress in our ongoing pursuit of establishing and further building the case for remanufacturing with all stakeholders - something from which we will all benefit.

Hope you'll enjoy reading and participating!

Eric van Spelde
Editor in Chief, ReMaTecNews Online