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The Powertrain Remanufacturing Project of Volkswagen FAW Engine (Dalian) Co., Ltd. has commenced production in Dalian.
Release date:
2014-01-08
Source:
"Editor's Note": Remanufacturing is a production process that restores used products to technical performance and quality standards comparable to those of new, original items—while significantly reducing costs and ensuring durability, reliability, and longevity. In the following article, we introduce a remanufacturing project focused on automotive engines. As the saying goes, "Learning from others can help us achieve our own success." We hope this piece will offer you fresh insights, broaden your perspective, spark innovative ideas for your work, and ultimately pave the way for HHH Machinery & Electronics' own thriving remanufacturing business. On behalf of everyone, we extend our heartfelt gratitude to Mr. Chen, the contributor of this valuable content.
"Editor's Note": Remanufacturing is a production process that restores used products to technical performance and quality standards comparable to those of their original counterparts—while significantly reducing costs and ensuring durability, reliability, and longevity. In the following article, we introduce a remanufacturing project focused on automotive engines. As the saying goes, "Learning from others can help us achieve our own success." We hope this piece will offer you fresh insights, broaden your perspective, spark innovative ideas for your work, and ultimately pave the way for HHH Machinery & Electronics' own thriving remanufacturing business. On behalf of everyone at HHH, we extend our heartfelt gratitude to Mr. Chen, the contributor of this valuable content.
Volkswagen FAW Engine (Dalian) Co., Ltd.
Powertrain remanufacturing project begins production in Dalian
On August 27, the powertrain remanufacturing project of Volkswagen FAW Engine (Dalian) Co., Ltd. (hereafter referred to as Volkswagen FAW) was launched and began production in Dalian. This marks China's first passenger vehicle powertrain remanufacturing project—and it is also one of the 14 national pilot projects for automotive parts remanufacturing, as outlined by the National Development and Reform Commission.
Volkswagen FAW is a joint-venture powertrain manufacturing company established by the Volkswagen Group and China FAW Group. Currently, its Dalian plant has an annual production capacity of 300,000 engines and supplies automatic transmissions for all Volkswagen models sold in China.
Ceremony Marks the Launch of Volkswagen FAW Engine (Dalian) Co., Ltd.'s Powertrain Remanufacturing Project
On the same day, Dalian Mayor Li Wancai, speaking at the production launch site, emphasized that the commissioning of this remanufacturing project is not only a significant initiative for the local energy-saving and environmental protection industry but also signals Dalian's strategic decision to position the automotive sector as a key pillar industry for future growth.
According to reports, remanufacturing is a production process that restores used products to technical performance and quality levels comparable to those of the original products. In developed countries like Europe and North America, remanufactured car engines already account for more than 85% of the aftermarket parts market.
In fact, in the commercial vehicle sector—particularly among heavy-truck manufacturers—engine remanufacturing technology has already seen widespread adoption. FAW Xichai Engine Remanufacturing Base, Yuchai Engine Remanufacturing, and Cummins Engine Remanufacturing Base are all projects that were launched relatively early.
However, these engine remanufacturing projects are all focused on heavy-duty truck engines, as the production-oriented nature of heavy-truck products makes their consumers more price- and cost-sensitive. As a result, remanufactured engines that offer a price advantage while maintaining the same performance level have become particularly popular.
Two years ago, the National Development and Reform Commission signed commitment letters with 14 companies, including FAW Group, officially launching a pilot program for the remanufacturing of auto parts.
The remanufacturing project of Volkswagen FAW Engine (Dalian) Co., Ltd. has an initial investment of approximately RMB 100 million, starting with engine remanufacturing and later expanding to include transmission remanufacturing as well. The project will initially have an annual production capacity of 5,000 units, growing to 15,000 remanufactured engines per year by 2014.
According to reports, the Volkswagen FAW Remanufacturing Project will initially produce more than 20 products based on the EA888 series engine. These engines are primarily compatible with models such as the Magotan, Golf, Audi Q5, and A4L under FAW-Volkswagen, as well as the Tiguan, Passat Lingyu, and Octavia from Shanghai Volkswagen.
Gao Deli, General Manager of Volkswagen FAW Engine (Dalian) Co., Ltd.
Dr. Kai-Ming Ni, President and CEO of Volkswagen Group China, stated at the production launch ceremony: "The Dalian engine remanufacturing project marks Volkswagen's first-ever engine remanufacturing initiative in China—and also represents the first time Volkswagen has introduced this cutting-edge remanufacturing technology outside of Germany."
Although the remanufacturing program is just beginning in China, Volkswagen boasts over 60 years of experience in remanufacturing, with its product lineup now spanning more than 10,000 models. To date, the company has produced a cumulative total of 7.7 million engines and 2.8 million transmissions—many of which are exported to numerous countries around the globe.
Qin Huanming, Deputy General Manager of FAW Group, stated that remanufacturing powertrains aligns with the nation’s energy-saving and environmental protection policies, contributing to the accelerated development of a resource-efficient and environmentally friendly society. As the Volkswagen Group’s sole powertrain remanufacturing facility in China, the process currently begins with engines but will soon expand to encompass the entire range of engines and transmissions.
An Xin, Director of the Remanufacturing and Aftermarket Parts Center at Volkswagen FAW Engine (Dalian) Co., Ltd., explained that remanufacturing in China is still in its early stages, and most Chinese consumers remain largely unfamiliar with remanufactured products. In fact, a key characteristic of remanufacturing is that the quality of the reconditioned products meets the standards of brand-new ones.
The main process includes steps such as pre-cleaning, disassembly, cleaning, inspection, machining, assembly, and debugging. As Anxin puts it, remanufacturing engines offers customers whose engines have been damaged a highly cost-effective alternative—situated between brand-new, factory-made engines and overhauled ones. "Overall, remanufactured engines clearly outperform new engines in terms of price, while also providing shorter turnaround times and longer-lasting spare parts compared to traditional engine overhauls."
All remanufactured products offered by Volkswagen FAW Engine (Dalian) Co., Ltd. strictly adhere to the quality standards of the Volkswagen Group. Compared to newly produced engines, remanufactured products boast a significantly competitive price. As An Xin explains, none of the remanufactured automotive components are ever used in new vehicles—they are exclusively intended for the after-sales service segment.
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