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.

Business in New Zealand has its own twists

Parts World NZ
Knowing what happens around the world with other auto recyclers can often open our eyes to new ideas and better ways of doing things. Steve Tapner takes us to New Zealand this month.
A recent trip to the North Island of New Zealand gave me the opportunity to have a quick look at how things are done there and to see the ways in which conditions are different for dismantlers in NZ.

New Zealand is a great place to be a dismantler: tough climate (particularly in the South), challenging roads, and keen drivers (New Zealanders have a long history in motorsport that began long before Bruce McLaren and continues today with Hayden Paddon contesting the World Rally Championship). This along with the diverse vehicle fleet presents many opportunities and challenges for New Zealand’s dismantlers.

I was visiting two PartsWorld sites – Henderson PartsWorld in Auckland and Maztech PartsWorld in Rotorua. PartsWorld is New Zealand’s largest chain of dismantlers, with 35 outlets covering both the North and South Islands. You can visit their website here.

Like many dismantlers in NZ these two businesses are also importers of used parts and complete cars from Japan. This is in response to the New Zealand vehicle fleet, which is made up of a large number of used cars imported from Japan along with a smaller number of new vehicles sold by manufacturers. These cars from Japan are referred to as JDM models: JDM standing for Japanese Domestic Market.
Steve Tapner
Steve Tapner is as a past owner of a dismantling business in Australia but more recently (since 2004) he has worked with Actual Systems which then became Hollander International Australia, following its acquisition by Solera Inc. This period saw the introduction of the Pinnacle inventory and management software to the Australian market - from the first sites in late 2004 to 100 plus sites in Australia and New Zealand by late 2014. Since that time Steve has been working as a trainer and independent consultant to the industry.

If you have any questions or would like to ask Steve anything, then contact him by email here.
As you can imagine, this mix of vehicles presents quite a few challenges in itself just to get the make and model information correct for every enquiry!

One thing I did see whilst I was there that was not necessarily a plus for the dismantlers is the use by car insurers of a website called PartsTrader to access parts for repairs.

PartsTrader is an online tendering system that has been adopted by all the major insurers in NZ. Suppliers of new, aftermarket and used parts all participate in what PartsTrader calls an online marketplace. The result though is mixed for the dismantler. It does give him visibility of all the parts required for repairs and the chance to offer the parts he has available to be used in those repairs. But it is labour intensive for staff who complete quotes online without direct contact with the customer. And the close rate on these quotes is low.

And although there are considerations other than the part price when a repairer is choosing which parts to use (there are star ratings for both repairers and suppliers for example), the main outcome appears to be to create downward pressure on part prices.

So PartsTrader does give dismantlers access to a bigger market and repairers potential to access more available parts, but I am not sure it promotes more parts availability! By that I mean any business will focus its resources on the activities that bring the best return. Car Insurers whose repairers use PartsTrader may have visibility of more used parts, but dismantlers have no incentive to find ways to make even more parts available whilst ever a low price is an important determiner. Interestingly PartsTrader is also used in the US but not in Australia.You can visit PartsTrader website here. information about PartsTrader.

As I hope to have more visits to New Zealand I will be able to share with you more insights in the future on the way things are done there.

July 2015

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.