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Fenix Auto Parts

Allianz’s Efforts to Integrate Reused Car Parts

Allianz Versicherungs-AG is actively incorporating reused car parts into vehicle repair processes, championing sustainability in the automotive and insurance sectors. By leveraging innovative strategies and partnerships, the company aims to reduce CO2 emissions, optimize resource utilization, and maintain mobility standards. This initiative aligns with Allianz’s broader sustainability objectives, emphasizing environmental responsibility and operational efficiency.

 

Allianz’s Efforts to Integrate Reused Car Parts f four

Promoting Sustainability Through Reused Car Parts in Vehicle Repairs

Allianz Versicherungs-AG: Energy-intensive material recycling allows raw materials to be recovered from end-of-life vehicles so that they can be reused in the production of new vehicles. For repair purposes, undamaged parts can also be reused from totally damaged vehicles, which cause significantly lower CO2 emissions compared to new parts. Accident repairs very often require body parts as well as lamps and lights, which can also be included as used parts with a lower CO2 footprint. The handling of parts is not entirely new for experienced workshops, but the ordering processes have become highly professionalised.

When it comes to vehicle repairs, the principle of ‘repair before replacement’ is also considered the best solution from an environmental point of view. If replacement is unavoidable, a used spare part can improve the environmental balance. In the event of delivery backlogs, the used spare part may also be the only way to complete the repair promptly and avoid detours with replacement vehicles. Allianz can improve the still limited supply of used spare parts for newer vehicles through the targeted procurement of suitable total losses. With used spare parts, a manufactured vehicle can be used for longer if necessary.

These measures ensure that mobility is maintained for as long as possible through the smart utilisation of existing resources.

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Ensuring Quality and Safety Standards for Recycled Car Parts in Repairs

Allianz Versicherungs-AG: Only OEM parts, no safety-relevant parts and no parts of unknown origin. The average age of cars in Germany has almost doubled since 1980 to 10.3 years, primarily as a result of better parts quality and better corrosion protection.

The parts obtained are assigned to a quality level, and the workshops preferably use quality level A for Allianz repairs. The workshop is responsible for achieving a technically flawless repair result, but it questions whether this can be achieved with the available used parts that can be ordered. The supplier of the used parts is responsible for the function and the correct description of the condition, as well as pictures and part numbers in the portal. In addition, the customer receives the same warranty as with a new part.

Strategic Partnerships for Efficient Sourcing of High-Quality Recycled Parts

Allianz Versicherungs-AG: Allianz works together with service providers who have organised the used parts business with part numbers and logistics solutions in a similarly professional manner as garages are familiar with the new parts business.

There must be no delays in delivery for the workshop, and the used parts ordered with a spare part number must fit. Qualified used parts suppliers are selected through the spare parts platform.

20 recyclers from Germany have fulfilled the requirements of the GreenCasion vehicle exchange and bought accident vehicles from insurance companies at auction there.

Building Customer Trust and Awareness Around Recycled Car Parts

Allianz Versicherungs-AG: Two flyers inform interested customers about the used parts repair and when placing an order, the workshop employee can provide information about the availability of suitable used parts. Possible concerns can also be discussed there with a repair professional. Policyholders are free to decide when it comes to used parts repairs, and Allianz is currently gathering operational experience for the processes.

Impact of Reused Car Parts on Allianz’s Claims Process and Customer Satisfaction

Allianz Versicherungs-AG: Our first experience in 2023 was that the regularly required used parts for typical car repairs were often not available. Recyclers have little access to more recent accident vehicles, which is why their parts portfolio preferably comes from vehicles older than 8 years, while our requirements are preferably focussed on the 3 – 10-year-old vehicle segment.

Availability has improved in the meantime, also thanks to new suppliers. The fast delivery means that used parts repairs do not affect repair times. The cost saving remains in the single-digit percentage range and correlates with the hourly charge rate, as spare parts costs are partly replaced by additional labour time.

Future Plans to Expand Recycled Car Parts Use and Drive Industry Sustainability

Allianz Versicherungs-AG: The development of an efficient infrastructure for the collection and sale of used parts, including logistics, will take time and require investment. If there are signals from the industry that support this cycle on the supplier and buyer side, then the system will grow in competition. As the supply increases, the prices for used parts will also stabilise. Allianz supports this process, but it requires an effort from the entire industry.

This would make it possible to prepare in advance for possible legal requirements for used parts repair, such as in France, or for the requirements from the draft of the new end-of-life vehicle regulation for dealing with totalled vehicles and to build on a well-established infrastructure.

Visit www.allianz.de

All images courtesy of Allianz Versicherungs-AG

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