Green Parts

Nov 2021

Completing the circle: good for vehicle supply and good for the environment

Much is currently being said about the challenges in new vehicles and parts supply, and the knock-on effect they are having on the global automotive marketplace. And the insurance sector is no exception. Delays and shortages in parts are adding days and weeks to repair timescales and pushing additional costs onto the claim as customers hold onto replacement vehicles for longer. The availability of replacement vehicles is also being undermined by the slowdown in new vehicle supply, with customer satisfaction ratings taking a hit as a result.

Unfortunately, there isn’t one single – or simple – solution to the current challenges. But there are some steps that businesses in the supply chain can take to help insurers reduce the overall impact on the customer experience. And there could be a green benefit too.

Necessity is the mother of invention

Now is the time for invention and re-invention; the necessity is clear to see. And innovation that is designed to solve a short-term supply problem could have quite significant long-term positive consequences. For example, the use of green parts by businesses in the supply chain goes to the heart of tackling the current parts supply issues.

At Europcar we have been working with a green parts specialist for several years to recycle and re-use undamaged and reusable parts of end-of-life and written-off vehicles from our fleet. These are routinely reclaimed during the dismantling and recycling process and with the rigorous testing and warranties already demanded of the green parts sector, this means we have a stock of parts to fulfil the repair requirements of our own fleet, rather than waiting for new supplies from already beleaguered manufacturers.

For insurers the immediate customer benefit is clear. Availability of replacement vehicles can be maintained. And that means there’s a cost advantage too – claims can be closed more quickly than if replacement vehicle supply is hampered by the current market conditions. But there is another benefit of working with suppliers that adopt a recycling and re-use ethos. And that is the ‘green’
advantage.

More than two years ago a Futerra 1 study reported that consumers want to see the brands they engage with take the right actions to improve their environmental and social footprint. Staggeringly, the study found that those brands that don’t demonstrate their sustainable actions are in danger of disappointing 88% of their customers. With the greater social consciousness we have seen in the last two years imagine what that number might look like now.

Working with supply chain partners that help a brand deliver on its Environment, Social and Governance promise is, therefore, no longer a ‘nice to have’ but a necessity.

James Roberts, Business Development Director, Insurance, Europcar Mobility Group UK

1. https://www.forbes.com/sites/solitairetownsend/2018/11/21/consumers-want-you-to-help-them-make-a-
difference/?sh=910e94a69547