China's auto industry agrees to parts recycling program
China has launched a pilot program to recover and reuse auto parts. The country is looking to boost the amount of auto parts that are reprocessed as well as spur innovation in recovering and rebuilding parts.
So far three automakers and 11 auto parts manufacturers in the country have gotten on board with the recycling effort, signing letters of commitment to the program, according to news reports.
The recycling effort will initially focus on only a few products, including engines, transmissions and electrical generators, according to the National Development and Reform Commission. Estimates put the cost of recycled parts at about 60 percent the cost of new ones, China Central Television reported.
By 2010, the market for auto parts throughout the country is expected to grow to 65 billion yuan ($9.2 billion), 3.8 billion yuan ($538 million) of which consists of recovered parts, which currently are only valued at 700 million yuan ($99 million).
According to the China Association of Automobile Manufacturers, China churned out 8.88 million motor vehicles in 2007 and is expected to trash 4 million vehicles a year starting in 2010.
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