Strategic Development Plan for Domestic Automotive Parts Remanufacturing Industry

Abstract

Remanufacturing includes processes from disassembly to reassembly and throughout each process, every single pertinent component of a part is freshly reworked or replaced with a new one to perform like new as a whole part. Remanufacturing not only reduces consumption of natural resources and environmental emissions, but also produces economic benefits [6]. This thesis provides a market assessment of international automotive parts remanufacturing industries and their regulatory regimes to benchmark and implement domestic remanufacturing industry development. Ultimately, recommendations to effectively improve the domestic automotive parts remanufacturing industry roadmap are proposed to assess strategic regulations, remanufacturing organization structures, and rapidly changing automotive parts trends that best suit domestic automotive trends in Korea. The United States has been implementing legislation to empower the remanufacturing industry for 30 years [7]. Comparing the U.S.’s and Korea’s automotive parts remanufacturing industry, currently Korea utilizes only 15%-20% remanufactured parts whereas the U.S.A utilizes 50% to 70% [4]. These statistics shows how the less developed domestic remanufacturing industry currently falls behind. In this paper, the following conclusions were drawn: First, the most frequently remanufactured components are identified as electronics/electrical and thus, for an effective benchmarking strategy, Korea ought to progressively reform the current legislation with a concentration on electronics/electrical parts [6]. Second, it is assessed that integrated remanufacturing out of all remanufacturing structure types has the most advantages according to the value chain process analysis. This analysis suggests that the integrated remanufacturing process elicits the synergistic benefits of easing logistics and reducing costs for qualification and procurement. With this assessment, a strategic development plan and recommendations are made to support the development of an effective domestic automotive parts remanufacturing industry.