The Current State of Vehicle Scrapping and Recycling in Japan Japan has recorded a vehicle ownership of 70 million units, with 5 million vehicles scrapped annually. Currently, the shredder dust remaining after dismantling these scrapped vehicles amounts to 1 million tons. As waste disposal associated with scrapped vehicles becomes increasingly serious, attention is turning not only to recycling (recycling into new resources) of car parts but also to reuse.

The Current State of Vehicle Scrapping and Recycling in Japan Japan has recorded a vehicle ownership of 70 million units, with 5 million vehicles scrapped annually. Currently, the shredder dust remaining after dismantling these scrapped vehicles amounts to 1 million tons. As waste disposal associated with scrapped vehicles becomes increasingly serious, attention is turning not only to recycling (recycling into new resources) of car parts but also to reuse.

"Current Status of Used Parts Reuse" However, in Japan, the rate of reusing used parts for automotive repairs and maintenance stands at only about 3% (equivalent to 50 billion yen), compared to 15% in Europe and over 30% in the United States. "Purpose of the Research Report" This research report details the current status and future prospects of reuse—the process within the vehicle disposal chain that imposes the least environmental burden while effectively utilizing resources.

"Germany's Initiatives" In Germany, where 2.6 million vehicles are scrapped annually, design considerations for part recycling and reuse are incorporated from the production stage. Notably, Mercedes-Benz publicly discloses which parts use used components, and consumers accept this as standard practice. In Sweden, the major insurance company "Folksam Insurance" operates a specialized subsidiary, "Folksam Auto," dedicated to dismantling scrapped vehicles and selling used parts, actively promoting the reuse of automotive components.

"Finland's Initiatives" Similarly, in Finland, three companies, including VAT Damage Repair Center Insurance, jointly operate "Autovarikos," a company specializing in vehicle dismantling and used parts sales. Since Finland lacks domestic car manufacturers, repairs are directly brought to this company, resulting in an overwhelmingly high usage rate of used parts. The company also handles a large volume of dismantling work for accident-damaged and scrapped vehicles, maintaining a rich inventory of recycled parts. The current usage rate of used parts in repairs by this company is 15% per vehicle. The goal is to increase this share to 20%.

"Initiatives by Major Automakers" Next, looking at initiatives by major automakers and Japan, Mercedes-Benz, mentioned earlier, collects approximately 110,000 batteries, 50,000 bumpers, 30,000 hubcaps, and 170,000 window panes annually from about 1,300 dealerships in Germany. These are sorted by specialized companies for recycling or reuse. Starting in November 1993, Mercedes-Benz implemented the "Mercedes Recycling System," a specialized logistics system to promote the collection, recycling, and reuse of discarded parts. This system was realized through a partnership with Rents System Transport (RST). RST currently operates an experimental plant that swiftly dismantles and sorts end-of-life vehicles.

"Volvo's Initiatives" Volvo Car Corporation (Sweden) has operated a pilot plant for reuse since 1994. By 1998, it had dismantled 3,000 passenger cars, sorting reusable parts while developing technologies for more effective reuse.

"BMW Japan's Initiatives" As part of the Japanese subsidiary of the German automaker, BMW Japan (Chiba City: 043-297-7075) began offering free end-of-life vehicle collection in 1994. Vehicles collected through dealers are transported to the Himeji plant of a partner company, where they are dismantled and sorted. Materials and parts suitable for reuse or recycling are then sold. Although the initiative currently handles only about 100 vehicles annually, the company's high recycling rate of 80-85% for its various models is cited as a factor enabling the free service. "Mercedes-Benz Japan's Initiatives" Mercedes-Benz Japan (Minato-ku) has built a system since 1980 in Japan to collect high-value parts like transmissions, engines, and gearboxes from authorized domestic dealers for reuse.

"NGP Activities" The activities of the NGP (Nippon Good Parts) Group are also significant. The group currently has 107 member companies, a total of 117 distribution hubs, and possesses an inventory of 350,000 items. Its total annual sales reach 18 billion yen, making it Japan's largest "recycled parts distribution group" and playing a major role in the automotive repair market. One key feature of the group is the utilization of the online "Super Line" system accessible to all members. While individual member companies might hold only a few thousand items each, consolidating all member inventories online enables the group to instantly access a shared inventory of 350,000 items. Locating any single item within this inventory takes just 30 seconds. Computer access to the system reaches 200,000 hits per month, with over 60,000 items traded online monthly on average.

"Japanese Manufacturers' Response" In contrast, Japanese manufacturers show little engagement with reuse. Companies like Toyota Motor Corporation, Honda Motor Co., Ltd., Fuji Heavy Industries Ltd., and Isuzu Motors Ltd. are involved in initiatives such as bumper collection and recycling. However, only two manufacturers—Toyota and Honda—currently operate nationwide programs. Even then, these programs focus solely on used bumpers generated by their respective dealer networks.

"Japan's Reuse Market" Consequently, the current Japanese auto parts reuse market is supported by used car dealers (approx. 50,000 stores), auto dismantlers (approx. 5,000 companies), auto repair shops (approx. 60,000 companies), and used parts retailers (approx. 300 companies). Among these, Shimizu Shokai (Kumagaya City: 0485-24-0610) stands out as a rapidly growing pioneer in used auto parts sales, having completely transitioned from being an auto dismantler. "Shimizu Shokai's Initiatives" Shimizu Shokai thoroughly leveraged such support systems, achieving approximately 60 employees and annual sales of ¥1.05 billion in fiscal 1995. Furthermore, sales of ¥1.4 billion are projected for fiscal 1996. The company sells parts directly usable from scrapped vehicles to approximately 10,000 auto repair shops nationwide. Processing around 150 scrapped vehicles monthly, the company currently holds inventory of about 50,000 parts, claiming to stock nearly all parts for vehicles over
five years old.

"Prospects for the Reuse Market" "Reusing and recycling car parts is commonplace in Europe and America. Conditions are gradually improving in Japan too. I believe this market will reach around ¥300 billion in the near future," stated President Nobuo Shimizu. While part reuse in Japan is currently limited to repairing used cars, if it becomes as common as in Europe and America for new cars, the market will likely expand further.

"Reintroducing the NGP Group" Additionally, the activities of the NGP (Nippon Good Parts) Group, established in 1986 as a consortium of industry peers supporting the company's current business operations, are significant. The group currently has 107 member companies, a total of 117 distribution hubs, and possesses an inventory of 350,000 items. Its total annual sales reach ¥18 billion, making it Japan's largest "recycled parts distribution group" and playing a major role in the automotive repair market. One key feature of the group is the use of the online "Super Line" system accessible to all members. While individual member companies might hold only a few thousand items each, consolidating all member inventories online enables the group to instantly access a shared inventory of 350,000 items. Finding a single item from this inventory takes just 30 seconds. Computer access to the system reaches 200,000 times per month. The number of items traded online averages over 60,000
per month.