China's first powertrain remanufacturing project put into operation

Volkswagen FAW Engine (Dalian) Co., Ltd.'s powertrain remanufacturing project, a powertrain remanufacturing joint venture between Volkswagen Group and China FAW Group, was put into production in Dalian on the 27th. This is the first passenger vehicle powertrain remanufacturing project in China, and it is also one of the 14 pilot remanufacturing projects for auto parts deployed by the National Development and Reform Commission.

Remanufacturing is a production process that restores waste products to the same technical performance and product quality as the original product. In developed countries such as Europe and America, remanufactured automobile engines have accounted for more than 85% of the repair parts market. In order to promote the development of circular economy and speed up the construction of a resource-saving and environment-friendly society, the National Development and Reform Commission signed a letter of commitment with 14 companies such as FAW Group two years ago to formally launch the pilot work of auto parts remanufacturing.

The initial investment in the remanufacturing project of Volkswagen FAW Engine (Dalian) Co., Ltd. is approximately RMB 100 million, starting with the remanufacturing of the engine and expanding the remanufacturing of the transmission. The project will have an annual production capacity of 5,000 units. By 2014, the annual production capacity of remanufactured engines will reach 15,000 units.

The director of the remanufacturing and aftermarket spare parts center of the Volkswagen FAW Engine (Dalian) Co., Ltd. said that currently remanufacturing is still in its infancy in China, and most Chinese consumers still lack understanding of remanufactured products. In fact, the important feature of remanufacturing is that The quality of manufactured products reaches new products. The remanufactured products provided by Volkswagen FAW Engine (Dalian) Co., Ltd. all follow the Volkswagen Group's quality standards. Compared with new production engines, the price of remanufactured products is clearly competitive. He said that all remanufactured auto parts must not be used in new cars, but only after-sales service.