Renault announces next phase of its remanufacturing strategy

Carmakers are looking at the reverse logistics involved in salvaging parts for repair and remanufacture to original equipment standards, which reduces waste and is move cost effective than manufacturing new parts.

Renault Group invested in the set up The Future Is Neutral in 2022 as a separate entity aiming to completely recycle every element of a vehicle. It is made up of Renault Group subsidiaries Gaia, Indra and Boone Comenor, and has been working with the Refactory on extending engine, gearbox and mechatronic parts life beyond Renault’s own operations, across the wider automotive sector.

Refactory in Flins has a Re-Cycle programme to renovate those components and create a pool of reusable or longer-maintained parts. A significant part of the programme focuses on extending the life of the parts, including mechatronics.

“The creation of The Remakers opens a new chapter and great prospects for growth,” said Rafael Tréguer, CEO of The Remakers. “Our ambition is to increase our business by +50% by 2030. To do this, we have many assets: the expertise and recognised quality of our business, the engineering skills associated with those of Renault Group and our strategic plan.”

According to Tréguer, the newly named recycling unit will benefit from synergies with the Flins Refactory, which he describes as the first site in Europe dedicated to the circular economy of mobility.

The company said it aims to remanufacture automotive components to a level of quality equivalent to the original part, thanks to a combination of refurbished and new parts. This service is being offered to the entire automotive industry, in line with the development and opening strategy of The Future Is Neutral.

The division is investing €500m ($539m) to expand existing businesses and launch new ones by 2030. Citing data from Deloitte, Renault Group said the European replacement parts market is dynamic and has high development potential. Estimated at around €6.8 billion in 2022, it is expected to reach €8.2 billion in 2030. That increase is mainly driven by the aging of the vehicle fleet and increase in the production of electric vehicles.

In response, The Remakers will provide recycled parts, including engines, gearboxes, turbochargers and injectors, as well as electric motors and power electronics boxes alongside multimedia systems. The division said it also aims to accelerate the launch of new parts on the market, in particular to support the growth of the hybrid and electric fleet.

In March Renault Group said it would be making a new generation electric light commercial vehicle (eLCV) at its Sandouville plant in France for Flexis SAS, a new joint venture set up by Renault, Volvo Group and logistics provider CMA CGM. The venture has been set up to decarbonise the transport and logistics sectors. Renault Group said its eLCV will use a connected electronic platform that would monitor users’ delivery activity and business performance, helping to reduce use costs by up to 30% logistic providers.