Best of the Blog - The Three Drivers of Reman
- November 23, 2016
The main drivers for companies to engage in remanufacturing are not the lure of environmental savings and economic incentives or the fear of legislation: the security of cores, future spare parts supply and brand protection are the underlying reasons.
Firstly, OES/VMs want to control the cores market and not let an independent aftermarket remanufacturer take advantage of the design knowledge, material and energy inputs invested by them.
Secondly, they have to support their vehicles for 10-15 years and, after some time, remanufactured parts are the only way to supply the spare parts.
Finally, OES/VMs want to protect their brand image and that translates to keeping control over providing the highest quality product possible. OEMs/VMs who do not remanufacture open themselves up to competition from their own branded cores in the aftermarket. There is a risk of cheap, poor quality OEM-branded products entering the market. As such, competition in the aftermarket can be a driver in reman decisions
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