Henk Jan Nix, General Secretary of the European Group of Automotive Recycling Associations (EGARA), discusses the role of spare parts in the evolving internet marketplace. While dismantlers sell valuable parts from end-of-life vehicles, online platforms present both opportunities and challenges. Legitimate businesses face unfair competition from illegal sellers, complicating the market. He emphasizes the need for stricter regulations to ensure only authorized dismantlers can offer used parts, protecting consumers and dismantlers alike.
As dismantlers, selling parts is a core part of our business. Our end-of-life vehicles (ELVs) are stocked with valuable components, and our task is to connect those parts with the right buyers. While this may sound straightforward, the reality is often more complex. At times, it’s easier—customers may already know how to reach us, we may have long-standing relationships with them, or they may seek us out when parts are expensive or difficult to source elsewhere. We rely on our networks, online presence, digital systems allowing potential customers to search and find us, and the well-known digital platforms we all use.
The digital systems referred to here are typically national platforms associated with dismantlers’ associations or dedicated specifically to the dismantling industry. In other words, only dismantlers are permitted to sell their parts on these sites. These platforms and their providers maintain a reputation for reliable service, so there’s generally little concern about their trustworthiness.
On the other hand, digital platforms are more like eBay and similar sites. It’s not just eBay; many countries have multiple national platforms where parts can be sold and found by customers. These systems are excellent for reaching buyers but cater to illegal and criminal sellers. Customers often struggle to differentiate between legitimate offerings from Authorized Treatment Facilities (ATFs) and illegally dismantled or stolen parts. In many cases, our parts are priced higher because our legal status comes with costs that illegal sellers don’t have to bear.
The situation gets even worse. In some countries, parts are often advertised as if they come from an Authorized Treatment Facility (ATF), but unscrupulous sellers use our names, logos, and branding to deceive customers. They pretend to have the parts take payment but never deliver, leaving the unsuspecting customer blaming the legitimate ATF for not fulfilling the order. This type of scam is a serious issue, and we need protection, as it’s nearly impossible to defend ourselves against such fraud.
To combat this, we (EGARA, though national associations might be more effective in some cases) must raise the issue with both our governments and the relevant internet platforms. We need to push for regulations that only allow ATFs to sell used parts online. Platforms should be required to verify that sellers are legitimate by checking business registration numbers, permits, or membership in recognized associations or Producer Responsibility Organizations (PROs). Additionally, parts must come from legal sources, with the vehicle identification number (VIN) provided or a traceable link back to the ATF that dismantled the car. Platforms must actively work to prevent scams and illegal sellers from operating.
EGARA will advocate for clear rules governing platforms within the EU. Addressing illegal activity and fraud begins with legislation, followed by enforcement. To make an impact, it’s crucial that not only EGARA but all members push for attention from the European Commission (EC). While this is not a problem that will be solved overnight, consistent effort from all sides can lead to progress.
The more voices delivering the same message, the stronger the impact. Both the EC and national governments need to support us in combating scams and unfair competition. We must actively seek their attention and propose workable solutions. Offering solutions is key, and often, we have the best understanding of the problem. We’ll keep you updated on this issue as it develops.
