1. Automotive Remanufacturing
Towards Sustainable Mobility…

2. INTRODUCTION
Remanufacturing , is the practice of taking end-of-life goods and rebuilding them into new or better condition ones, with a warranty to match.
Remanufacture ensures the same product quality, durability and performance as new components while maintaining sustainability of resources
Nature
Remanufacturing
Materials
Manufacturing
Products
Usage
Waste
Reuse
Recycle
Disposal
Source : Advance Remanufacturing Technology Centre

3. REMANUFACTURING IS ALSO KNOWN AS…
Rebuilt
Rebuilt is synonymous with remanufacturing when used in connection with motor vehicle parts and systems but not the entire vehicle.
Refurbished
Refurbished is synonymous with remanufacturing of furniture systems for offices, hotel lobbies, and hospitals.
Recharged
Recharged is synonymous with remanufacturing when used in connection with imaging products, such as laser toner cartridges.
Factory Reconditioned or Recertified
Factory reconditioned or recertified is synonymous with remanufacturing when referring to consumer products, such as electrical hand tools.
Source: Dr. Nabil Nasr of the Golisano Sustainability Institute of the Rochester Institute of Technology is gratefully acknowledged).

4. REMANUFACTURING PROCESS
QUALITY ASSURANCE
REMANUFACTURING PROCESS
FINAL TESTING
COMPLETE DISASSEMBLY OF THE PRODUCT
THOROUGH CLEANING OF THE PARTS
INSPECTION AND SORTING OF ALL PARTS
RECONDITIONING OF PARTSAND / OR REPLENISHING BY NEW PARTS
PRODUCT REASSEMBLY
STANDARDS OPERATING PROCEDURE (SOP)

5. Product Correction & Reverse Logistics
PROCESS FLOW
Needed in production
Product Correction & Reverse Logistics
Incoming receiving
Store until needed No
Yes
Pass Initial Inspection
Initial inspection
Disassembly / Demanufacture
Planned Salvage
Cleaning
Planned Discard
Remanufacturing or Restoration Process
Process Scrap
Failed Initial Inspection
Recycle
In Process Inspection Fallout
Rework
Component Recertification
Fail
Rework
Final Product Inspection
Assembly
Warehouse Shipping
Pass
Pass
New Components

6. TYPES OF REMANUFACTURING PRODUCTS
Remanufactured products include:
A/C Compressors
Alternators
Engines
Fuel System Components
Rack and Pinion Steering
Starters
Steering Gear Boxes
Transmissions
Turbochargers
Water Pumps
Source: William A. Tanenbaum, Kaye Scholer LLP, Chair, Technology, Intellectual Property & Outsourcing Group Green Technology Group New York Office

7. WHY REMANUFACTURING? ENVIRONMENTALLY SUSTAINABLE?
Reduces energy costs and environmental impact of:
Raw materials and natural resources
Manufacturing products
Shipping components and final product
What are the environment savings?
Saves enough natural resources to fill a train 1,100 miles long!
Saves enough energy to power 6 million automobiles!

8. REMANUFACTURING BENEFITS
Approximately 85% of the energy expended in the manufacture of an original product is preserved in the remanufactured product.
Recycling Reclaims
Material
Remanufacturing Reclaims
Energy from Casting, Machining, etc.
Labor from original processes
Capital
Function/Design Intent
Source: MIT study on the remanufacturing of automobile component, 1981

9. Ecologic Benefit of Reman – Automotive Parts
Delco CS A alternator
The remanufacturing ecological benefit is the recovered energy and avoided environmental impact minus the impact of the remanufacturing processes.
CS130 Example:

10. Ecologic Benefit (2)
Material analysis for Delco CS A alternator:
Kwh used to create one NEW alternator: 61.1 Kwh
CO2 emissions to create one NEW alternator: 66.6 lbs
Benefits from remanufacturing one thousand produced Delco CS A alternators each year:
Annual energy savings: 37,700 Kwh
Annual CO2 savings: 51,357 lbs
Source: William A. Tanenbaum, Kaye Scholer LLP, Chair, Technology, Intellectual Property & Outsourcing Group Green Technology Group
New York Office

11. GREEN IMPLICATIONS
Remanufacturing is designed to allow a portion of product to be continuously upgraded with improved version to take advantage of advancing technology
Compared with new components, Remanufactured components save *:
>60% energy
>70% materials
>90% water
>80% pollutant emissions
>80% value retention
50-70% cost reduction
*Source : Advance Remanufacturing Technology Centre

12. REPAIR VS. RECONSTRUCTION
Right of repair includes
Right to preserve useful life
Right to replace individual unpatented elements that themselves have a shorter life
Reconstruction includes
Making a new article (after original article, viewed as a whole, has become “spent”)
Creation of a second entity

13. CHALLENGES
Will remanufacturing products to obtain “green” benefits be deemed “permitted repair” or “prohibited reconstructions” – given the commercial objective of remanufacturing?
E.g. But does incorporating a more advanced chip from a third party supplier constitute infringement of that third party’s patents?
Predict use of more expansive contractual provisions, from both licensees and licensors to clarify scope of rights with related to warranty
Test result when remanufacturing includes enhanced or “new” technology
Even if permissible repair of “old” patent, use of “new” technology may require licensee for that patentee
Patentees will argue that provider of enhanced technology is liable for inducing or contributory infringement

14. Review current related policies e.g. rebuilding, IP.
MOVING FORWARD
Review current related policies e.g. rebuilding, IP.
Standards - recyclability, efficiency, design, material, innovation.
Procedures - energy savings, reduce emissions, enhance safety
Awareness
Education

15. THANK YOU 15 15