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Spain – Flood Crisis and Vehicle Recycling: Industry Faces a Mounting Challenge

The automotive and recycling industries in Spain are urging the government to swiftly approve regulations to address the removal and processing of flood-damaged vehicles. This call comes in the wake of the devastating floods earlier this year, which claimed lives in municipalities such as Paiporta, Catarroja, and Benetússer as residents tried to save their vehicles.

 

Spain - Flood Crisis and Vehicle Recycling: Industry Faces a Mounting Challenge p
Image credit: Envato Elements

Human and Economic Toll

The floods left an estimated 140,000 cars immobilized across the Valencian Community, though Aedra (Spanish Association for Scrapping and Recycling of Automobiles) estimates the actual number could be closer to 200,000, with 90% deemed total losses. Rafael Pardo, Aedra’s general manager, emphasized the urgency of clearing these vehicles to enable cleanup efforts and prevent document theft from abandoned cars.

“There may be situations of looting of all the documentation that is normally kept in cars,” Pardo noted. However, the removal of these vehicles faces bureaucratic hurdles, as deregistration through the General Directorate of Traffic (DGT) is required before the cars can be relocated. Tragically, some car owners perished in the floods, and others are too overwhelmed to complete the process.

Financial and Logistical Strains

The government plans to compensate vehicle owners with their car’s appraised value plus 20%. Yet, scrapyards are bracing for significant financial challenges. Transporting and decontaminating flood-damaged cars is expensive, often exceeding the value of recoverable parts.

Alicia Granell of the Spanish Scrapyard Operational Network said: 

“Contrary to what many people think, scrapyards are not going to make any profit. All the mechanical, electronic and interior parts have been left unsalvageable. At most, the bodywork could be recovered, but it also seems, from the images we have received, that it may be unrecoverable.”

Flooded vehicles lose 60-80% of their value. For cars over ten years old, their value becomes negative, compounding financial burdens on scrapyards already grappling with increased costs and reduced capacity.

Environmental and Technical Challenges

The recycling process is also facing environmental and technical obstacles. Authorized Treatment Centers (CATs) decontaminate vehicles and prepare them for shredding, but the volume of mud in flood-damaged cars poses unique challenges.

Alicia García-Franco of the Spanish Federation of Recovery and Recycling noted:

“We are not going to obtain any benefit because the mud inside the cars clogs the filters and causes greater wear on the installations. To give us an idea, if we usually change the filters every two weeks, and if we received cars from the DANA, we would have to change them every two hours. It is difficult to shred trunks with 400 kilos of mud.”

Industry Outlook

Despite the overwhelming challenges, industry leaders remain cautiously optimistic that a regulatory framework will emerge to streamline the process. Both Aedra and Ro-des stress the importance of immediate action to mitigate risks and financial strain while ensuring compliance with environmental standards.

The flood crisis has exposed vulnerabilities within the automotive recycling system, underscoring the need for collaborative efforts between the government, industry stakeholders, and affected communities.

Source: www.abc.es

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