//


Link to atfPro

All the latest news for auto recyclers

Welcome to ATF professional - the site specifically aimed at Authorised Treatment Facilities and those involved with motor vehicle dismantling, vehicle salvage and other operations associated with motor vehicle depollution and recycling. Sign up for our, free monthly newsletter.
Visit from the Environment Agency? Need to apply for an Environmental Permit? Call Paul Downing Associates now for an informal chat - 07790 147084 or click here.

Rise in fuel price to hit auto spares revenues in Europe

parts sales
Can we use a slow down in new parts sales to boost our own revenues?
The credit ratings agency, Moodys recently reported that the steep rise in European fuel prices could hit the revenues of suppliers of brakes, tyres and other spare parts in the short term as consumers adopt more energy-efficient driving behaviour to keep their fuel costs down.


The report goes on to say that Moody’s expects that higher fuel prices could also affect suppliers that focus on automotive manufacturers.

“We expect motorists in Europe to increasingly adopt more energy-efficient driving behaviour or avoid using their cars to keep their fuel spending under control,” says Rainer Neidnig, a Vice President - Senior Analyst in Moody’s Corporate Finance Group and co-author of the report. “As this behaviour reduces wear and tear, we could see demand for replacement car equipment such as tyres and brakes to decline, at least temporarily, thereby affecting auto suppliers’ aftermarket revenues.”

High fuel costs will probably also affect demand patterns for new cars in the medium term and this could affect suppliers who supply car manufacturers, or original equipment manufacturers. However, the effect will be less clear: drivers may delay new car purchases or choose smaller cars, which will harm suppliers’ revenues. On the other hand, higher fuel prices will probably accelerate demand for more fuel-efficient cars, which will help suppliers that can provide fuel-saving technology to manufacturers.
So where does the auto recycler fit in all this?
As with the new parts suppliers, reduced vehicle use will mean reduced parts wear but we have the advantage of being able to offer a more cost affective product which, if we market ourselves well, could lead to an increase in demand for used parts. It is at times like this that proper standards for used parts could play a big part in giving confidence to potential new customers who have previously only bought new.


Latest stories

Who’s buying our salvage vehicles in Europe?
It seems that there are some questions surrounding the purchasing of vehicles by other European countries, in particular Cat B vehicles. One of our readers asked us the following:
Diesel and petrol car sales to be banned from 2040
In recent news and following on from France’s commitment to take polluting vehicles off the road by 2040, Britain has also followed suit by banning the sales of all new diesel and petrol cars and vans by 2040. The final plan is due by the end of July.
Palladium cost has increased, hitting a 16 year high
Automakers may have to decrease the use of palladium and seek an alternative due to higher prices of the metal
There is a use for rusty old cars!
This years’ Glastonbury featured ‘Cineramageddon’ – an interesting use of old vehicles.
The pressure’s on for tyres!
The Tyre Recovery Association (TRA) and National Tyre Distributors Association (NTDA) warn of rising costs on tyre recycling due to regulatory changes and market conditions, factors that will affect used tyre collectors and re-processors.
Volvo to go electric by 2019
Volvos plan is to launch five electric models between 2019 and 2012 and a number of hybrid models and they aim to sell one million electrified cars by 2025.
We’re not a scrap yard, we’re a vehicle dismantlers
Atf Pro met up with the guys at Skan 4x4 Ltd to take a look at their great setup.
Code of practice flawed, the opinion of the BVSF
One has to be concerned when the insurer’s new Code of Practice (CoP) that received its “soft launch” a week or so back isn’t supported by either the Motor Vehicle Dismantlers’ Association or the British Vehicle Salvage Federation, two of the main owners of the pre-existing code.