Maximiliano Marques, owner of NH AUTOPIEZAS, an innovative automotive recycling and spare parts supplier in Argentina, shares his insights on the country’s evolving auto recycling landscape. In this conversation, Marques discusses recent regulatory developments, the global influence of the circular economy, and the unique challenges faced by the sector in Argentina. He also explores how advancements in technology, lean management practices, and potential partnerships with automakers could shape a more sustainable and efficient future for the industry.
New Regulations and Leadership Spark Hope for Progress in Argentina’s Auto Recycling Industry
The most significant development was due to the election of a new president who has been focused on deregulating the economy and reducing bureaucratic processes. Consequently, a new law was passed to increase the number of recoverable parts. Although the law has not yet been implemented and comes with certain limitations, it offers hope for aligning our industry to international standards.
Global Circular Economy Trends: Challenges and Opportunities for Auto Recycling in Emerging Markets Like Argentina
Argentina is more worried about stabilizing its economy than promoting the circular economy. With ongoing struggles, such as inflation, poverty, and insecurity, the government’s efforts are directed toward addressing these immediate challenges. However, this situation presents opportunities for auto recyclers that invest in skill development and adopt the right technologies. Being ready to adapt to the new government’s changes can become a competitive advantage. The country is gradually shifting from protectionism and closed borders to greater global engagement.
In the near future, Argentina might allow the importation of used auto parts and vehicles, as well as the exportation of scrap and precious metals. Gratefully, discussions about a potential free trade agreement with the USA are gaining momentum. Everything is changing and moving forward.
Overcoming Regulatory Hurdles: Balancing Sustainability and Growth in Argentina’s Auto Recycling Sector
The auto recycling sector in Argentina faces several regulatory challenges:
- Most End-of-Life Vehicles (ELVs) in municipal or judicial warehouses are sent directly to shredders.
- Only thirty parts per vehicle can currently be recovered and sold.
- The new regulation that expands the listing of recoverable parts has not been implemented, and several parts will require the signature of a mechanical engineer.
- Deregistering ELVs to recover auto parts takes over 60 days to complete.
- Exporting scrap and precious metals (like catalytic converters) is prohibited.
- Environmental compliance is becoming more demanding but is not yet a significant issue.
Auto recyclers are taking advantage of the restrictions on new auto parts imports to sell used products at higher prices and enjoy the fact that vehicle costs remain lower than international prices.
As the industry is underdeveloped, even minor improvements can have a significant impact.
Leveraging Technology and Lean Management for Efficiency and New Revenue Streams in Auto Recycling
In my view, Lean Management is the ideal strategy for running recycling facilities. It provides a comprehensive system focused on continuous improvement and waste reduction. We work every day to improve our processes and teach our people to see waste.
The adoption of advanced technology is vital. Technologies like metal balers, de-pollution systems, ERP solutions connected to e-commerce platforms, and AI enhance operational efficiency and revenue potential, and introducing technology that reduces labor costs as a percentage of sales, is crucial for surviving and thriving.
Rising Demand for Second-Hand Auto Parts Amid Economic Struggles
Given the decline in purchasing power, second-hand vehicle parts have become highly attractive due to their quality and affordability.
Insurance companies are limited by legislation to purchase used auto parts in Argentina.
Building Partnerships: How Automakers and Recyclers Can Drive Eco-Friendly Practices in Auto Recycling
Currently, there is no cooperation between automakers and recyclers in Argentina. Earlier this year, a major consulting firm approached us on behalf of an automaker interested in acquiring our company, which suggests growing interest in collaboration.
Toyota Argentina has also initiated a circular economy project, and we have tried to establish a connection, though results have not yet materialized.
Partnerships are critical for creating a circular economy for ELVs. Automakers’ support in areas like knowledge-sharing, technology, and networking could transform the industry and drive significant improvements in Argentina.
Fostering Growth: Collaborative Efforts and Education to Advance Sustainability in Auto Recycling
I strongly believe that conventions, expos, and facility tours have a profound impact. Creating the right environment where stakeholders—including the public sector, automakers, recyclers, vendors, media, and others—can come together is essential for transforming the industry and ensuring a sustainable future.
I want to emphasize the invaluable support and help we have received from several associations and professional auto recyclers who are helping to advocate for regulatory reforms in Argentina. This collective effort demonstrates the power of international collaboration in strengthening the auto recycling industries.
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