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5.1. Introduction
This chapter is the first of a series of empirical chapters. It introduces the waste problem of
end-of-life vehicles to which car manufacturers have to find a solution. End-of-life vehicles can
be defined as those automobiles that are no longer used for their original purpose of the
transportation of persons and goods. A car becomes an end-of-life vehicle when it is
deregistered or abandoned by its last owner. End-of-life vehicles can said to be produced by
the automotive industry and by the act of vehicle disposal. They are a source of parts,
components, and materials that can be valuable in the second-hand parts and scrap metal
markets. Several industries have specialized in adding value to end-of-life vehicles in a
sequence of processing steps: essentially car dismantling and metal recovery in which parts
and materials are extracted. Section 5.2. discusses the actors and their activities in the value
chain of the processing of end-of-life vehicles.
In each of these steps, however, the natural environment is affected. The abandoned
vehicle is a source of soil contamination and scattered waste. Many car dismantling sites are
contaminated by the leaking of mineral oils. After processes of metal recovery solid waste
remains that is currently unprocessable and has to be landfilled. This waste is known as
automobile shredder residue. Section 5.3. specifies the environmental impact of processing
end-of-life vehicles.
The waste problem of automobile shredder residue is of greatest interest to this study.
Material choice in vehicle design is an important factor determining the amount and
composition (and therefore the toxicity) of shredder residue. Hence, in subsequent sections,
the dynamics of material choice in vehicle design is discussed extensively. In section 5.4.
attention is focussed on material choice in vehicle production. It is shown that since the early
1960s, the amount of non-metal materials, notably plastics, has substantially increased,
resulting in an increasing amount of shredder residue. To a large extent, substitution of plastics
for steel accounts for the dynamics of changing material choice in vehicle design. In section
5.5. it is argued that the car manufacturer is constrained in its material choice by technological
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Figure 5.1 shows the overall system of current end-of-life vehicle processing. The system is
driven by the value of parts and components and the scrap metal value of the end-of-life
vehicle. Due to the often rapid and dramatic fluctuations in scrap metal prices, the system has
become very flexible in responding to changing market demands. It is a complex system that
composes of several interdependent but competing economic agents (Groenewegen and Den
Hond, 1992; Field and Clark, 1994). The following discussion of this system is structured
according to the various (industrial) activities that are undertaken in processing end-of-life
vehicles.
E.g. CNPA estimates that in France the role of last owner is played by insurance companies
(source of 28% of discarded vehicles), individuals (17%), independent repair and body shops (17%), car
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distinguished: one in which the car is worn out after a life time of ten to fifteen years, and
another in which the car is declared total loss after a major accident. In the former case,
dealers from the manufacturers commercial networks (17%), fleet owners (17%), and the domains (6%). The
latter is to say that the last owner abandons its vehicle in some remote place.
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Disassembly
of Parts
Recycling of Components
Reconditioning of Parts
and Components
Spare Parts
Market
Shredding
Landfilling
Metal Recycling
Ferrous
Fraction
Steelworks
NonFerrous
Fraction
Inorganic
Residues
Smelters
the car might have failed to pass a regular vehicle safety test, and cost of repair is prohibitively
expensive. In the latter case, the cars life time can be substantially less then ten years. Such
cars enter the end-of-life vehicle treatment system because the cost of repair is higher than
their value. They need not be completely valueless when declared total loss, however.
Numerous undamaged parts and components might be of such a high quality that they can be
used as spare parts for other vehicles. In such cases the value of the individual parts and
components of the total-loss vehicle exceeds the scrap value of its metal contents. It is these
total-loss vehicles that offer attractive opportunities to car dismantlers. In the case of wornout vehicles, disposal can be more problematical because these vehicles represent merely the
scrap value of their metal contents. Occasionally such cars are abandoned.
During the vehicles life cycle, its owner may have changed the material composition of
the car from that originally produced by the car manufacturer. Parts may have been added,
such as a spoiler or in the interior decoration. But also changes may have been made, because
the owner wanted to adapt the vehicle to specific uses. Campers are well-known examples, but
other examples include the removal of back seats in small vehicles for commercial use. Such
changes may have an impact (either positive or negative) upon the vehicles value when it
enters the end-of-life vehicle processing system.
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shredder company. Car dismantlers play an important role in the end-of-life vehicle treatment
system for two reasons. First, they remove some parts in order to facilitate subsequent
shredding as well as for safety reasons. Several shredders refuse to accept end-of-life vehicles
if the battery, tires, and/or airbag are not removed. Second, the car dismantler disassembles
those parts and components that can generate value in the second-hand parts market (Bhakta,
1994). Some car dismantlers separate end-of-life vehicles to various metal fractions prior to
selling the hulk to the shredder. Cast iron from the engine and aluminium are separated
because these metals have a higher value in the scrap metal market. Moreover, the value of the
hulk increases.
However, despite its important role, there is relatively little information on the car
dismantling industry. Several causes can be mentioned. First, the industry is not well
organized. Only a small fraction of all car dismantlers is organized in an industry association;
those who are, represent the larger and better equipped car dismantlers. Organization of this
industry took off 10 to 15 years ago.2 Statistical information is lacking or should be treated
with caution since it is only based on estimates. Second, a relatively large part of the nonrepresented car dismantling industry operates in (semi)-illegal ways. Such car dismantlers
dont have the legally required operating licenses, or, if they do have such licenses, they dont
operate according to their terms. Thus, car dismantlers can be distinguished in two groups.
There are good guys and bad guys (Brooke et al., 1990). Only the good guys are
accepted as members of car dismantlers associations. Statistics usually do not cover the
activities of the bad guys. Finally, a clear definition of the car dismantling industry is difficult
to give; many repair shops, body shops, and scrap metal firms undertake such activities. An
operational definition might be to consider car dismantlers as those companies that make
their living primarily from the sales of second-hand car parts and components, and only
secondarily from other activities, such as selling scrap metals or repairing vehicles
(Whrmann, 1992).
In his analysis of the German car dismantling industry, Wrhmann concludes that for most
of the end-of-life vehicles disassembly and sale of second-hand parts and components is
apparently economically viable, because there are very few abandoned vehicles and only a
small percentage of the number of end-of-life vehicles do not pass via a car dismantler. The
heterogeneity of the car dismantling industry (a few large, relatively high-quality/high-cost
dismantlers, and a large number of small, low-cost dismantlers) is the main reason why for any
end-of-life vehicle a buyer can be found who anticipates being able to make a profit on this
vehicle. However, the latter do not always operate in such a way that is compatible with the
norms and regulations regarding the natural environment (Whrmann, 1992).
The industry is characterized by low degrees of concentration and capitalization. Quality
standards are only recently being defined and implemented.3 Most car dismantlers remove
valuable parts and components manually, using simple tools, such as screw drivers and socket
or monkey-wrenches. Lifts, for better access to the underbody, are rarely seen, and equipment
2
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for drainage and separate collection of fuel, oils, and systems fluids is not yet widely used,
although drainage of such fluids and their separate collection is obliged. The good guys have
an operating permit, conform to (local) environmental standards, and have invested in their
site and operation (e.g. a warehouse to stock parts and components; impermeable floors;
drainage and separated collection of fuels, oils, etc.; removal and separate treatment of
batteries). These operations increase cost. Hence, for economic reasons they are interested in
profit margins that are relatively high compared to the car dismantling industry in general.
They can realize high margins by specializing in the disassembly of total-loss vehicles, because
parts and components from these vehicles can compete with original exchange parts.
Information technology and efficient logistic systems have only recently been introduced better
serve the client better by tracking down rare parts from other car dismantlers. An increased
scale and better service to the client should cover the extra cost.
When the parts and components of the end-of-life vehicle have been extracted, the vehicle
is sold to a shredder company or a scrap metal trader for recovery of the metal content. For
reasons of reducing transportation cost, the end-of-life vehicles are often compressed,
although this limits the shredders ability to control the vehicles material composition.
E.g. copper (cables, radiators) may be removed to increase purity, and hence value of the scrap iron
and steel produced; airbags should be removed because they can explode in the shredder causing damage to the
equipment and because they are a hazard to the operators.
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The next step is recovery of iron and steel by means of magnetic separation (induction
magnets). Relatively high recovery levels are reached; it is reported that currently over 95% of
the ferrous metal contents of the shredder output are recovered. However, depending on the
ferrous metal content of the shredder input a heavy fraction remains. If this fraction is rich in
non-ferrous metals, further processing of the heavy fraction can be attractive. For reasons of
efficiency (to save on transportation cost), most shredders are vertically integrated with a
subsequent ferrous-metal separation and recovery unit based on magnetism. But one could
also speculate about the degree of complementarity between the activities of shredding and
ferrous-metal separation. The trade-off between volume of throughput and the degree of finegrained shredding is significant for the quality (purity) of the scrap metal output, as is the
level of contamination of the input into the shredder. Shredding would therefore be highly
complementary to ferrous metal recovery; controlling the input into the shredder and its
operation is essential for controlling the value added by producing scrap iron and steel.
The final step in the end-of-life vehicle treatment system is the separation of non-ferrous
metals from the heavy fraction. Several separation techniques are used, often in combination,
which are based on the metals physical properties, such as magnetism, induction, and relative
density.5 With such technologies over 90% of the aluminium fraction can be recovered.6 Other
non-ferrous metals are recovered less efficiently. The residues of these processes cannot be
further separated with state-of-the-art technology; they have to be landfilled or incinerated.
Figure 5.2. summarizes the material flows through the subsequent shredding and metal
recovery steps. The shredder output is sold to steel producers and metal refiners. The overall
process results in the following material output: 4% non-ferrous metals, 65% ferrous scrap,
and 31% shredder residue (Van Weenen et al., 1989; see also: Krummenacher, 1990; Menges
et al., 1988). Other sources estimate that the shredder residue constitutes 25% of the material
output of the shredder and metal recovery processes (PSA press release of June 18, 1991;
ELV Project Group, 1994). This might have been the case 10 or 15 years ago, but now
increasingly vehicles with high plastics and other non-metal material contents are being
discarded, reflecting the sharp increase in such materials that has been observed in the past 5
to 10 years. The shredder residue comprises both the shredder light fraction (fluff) and the
heavy fraction that remains after separation of metals.
It is the residues of the shredder and metal separation and recovery processes that
constitute the so-called shredder waste or automobile shredder residue. In the current practice
shredder residues are landfilled. In section 5.3.3. automobile shredder residue is discussed in
more detail: why it is an environmental problem and how material choice in vehicle design
affects the amount of shredder residue. However, shredder residue is also a serious cost
problem to the shredder operator (Henstock, 1988; Whittaker, 1991) due to several reasons.
First, landfill charges are rising. Shredder residues used to be discharged cheaply in landfills
Figure 5.2.: Material Flows in End-of-Life Vehicle Processing
See Rousseau and Melin (1989) for an overview of separation and recovery technologies.
The aluminium that is currently being recovered from automobile shredder operations cannot be
used for wrought applications, only for castings. Hence, it should be thought of as open loop recycling. Two
problems might jeopardize the current aluminium recycling system: alloy cross-contamination, and foreign
contamination (Automotive Engineering (1994), August, p.17). The aluminium recycling system could be
improved e.g. by marking assemblies with identification codes, much like the system for plastics identification,
and by selective disassembly (Automotive Engineering (1993), October, p.66).
6
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Light Fluff
End-of-Life
Vehicles
(100% weight)
Shredding
Shredder
Residue (31%)
Heavy Fraction
Non-Ferrous
Metals (4%)
Ferrous Metals (65%)
for ordinary household waste. However, the capacity of such landfills is diminishing, thus
raising cost. In France, CFF observed a rise in landfill charges for shredder residues from 70
FF/t to 135 FF/t from early 1990 to mid 1992. Landfill charges can vary substantially to
shredders that operate in different regions. In Germany landfill charges vary between 30-40
DM/t and 200 DM/t (Whrmann, 1992). Moreover, national authorities are increasingly
controlling the material composition of the wastes that are discharged in ordinary landfills.
Relatively high levels of PCB and mineral oils in shredder residue may be a reason to close
such landfills in Germany and the Netherlands to shredder residue (VROM, 1988; BMU,
1991; see also section 5.3.3.). If this were to happen, shredder operators would be obliged to
discharge their residues on landfills for industrial or special waste, which would increase cost
substantially, potentially up to 1,000 DM/t.
A second reason is the rising content of non-metal materials, including plastics, in end-oflife vehicles (the dynamics of material choice in car design in discussed in sections 5.4. and
5.5.), which affect the economics of the metal recovery processes negatively.7 On a per-unitof-input basis, increasing contents of non-metal materials increase the amount of residue that
has to be landfilled. In addition, they cause a reduction of returns by substituting for metals.
Thus, both diminishing value and rising cost threaten the economics of shredder
companies. The general economic position of shredders cannot be expected to compensate for
this as shredder operating and metal recovery firms are quite sensitive to the ups and downs of
economic activity. On the one hand, their input is essentially waste: large sized goods made
primarily out of metals, such as cars, white goods, bicycles and beds. In the modern welfare
state, disposal of such goods is related to the state of the national economy; in a hausse people
have a stronger inclination to replace them, then in a baisse. On the other hand, their output is
mainly used in steel making operations, whose main outputs, notably steel for the automotive
and construction industries, is itself sensitive to the ups and downs of economic activity.
A way out of this trap could be to try creating more value in the material separation and
recovery activities. However, as has been indicated already, the effectivity of metal recovery is
already quite high. Shredding and metal separation and recovery technologies are mature; in
the last decade only incremental process optimizing innovations have been introduced, and it is
not expected that major improvements in the existing technologies can be realized as several
discussions with the suppliers of shredder and metal separation equipment at international
7
Also the non-ferrous metal content, comprising metals such as aluminium and zinc and copper,
increases, but the relatively high scrap value of these metals does not off-set the overall value reduction.
Partially this is caused by the manner in which these metals are applied, e.g. zinc in the galvanizing of steel.
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exhibitions have made clear. However, some analysts see interesting options in an increased
separation of non-metal materials from shredder residue. By separating glass, plastics, rubbers,
etc. from shredder residue additional value creating activities could be initiated. A
rationalized material identification and separation would be required, as well as major
investment in upscaling the technology. According to Zeranski, laser technology, several
techniques in spectroscopy, and roentgen analysis could be readily applied (Zeranski,
1992:535). Such technologies, if successfully upscaled and marketed, would be able to change
the industry structure, because it is questionable if incumbent shredder and metal recovery
companies are capable of integrating them into their activities.
The so-called tramp metals, such as copper, chromium, molybdenum, nickel and tin.
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production process than for the BOF process.9 Second is the development of the automobile
shredder and associated metal (magnetic) separation technologies. The first shredder was
installed in the Chicago in 1963 (Curlee, 1985). This capital-intensive process has major
economic advantages over the traditional process, since it allowed for a reduction of the
contamination in automobile scrap and it created a potential to recover and recycle the nonferrous metal content, thus further enhancing the value of the shredder output. Because the
shredder output is more constant in material composition and of better quality than
unprocessed automobile scrap, shredding end-of-life vehicles adds value to the recycling
process (a high price for the high-quality #1 scrap) (Curlee, 1985). Finally, after years of
almost constant prices for automotive scrap, the 1970s price increases due to booming
industry and relative shortage of raw materials, provided the basis for an economic rationale
for processing discarded vehicle in such a way (Field and Clark, 1991).
This system has become the dominant way of treating end-of-life vehicles in North
America, Europe and Japan. Shredder technology was introduced in Europe (Germany) in the
early 1970s and spread throughout the continent. In the early 1990s, about 200 shredders
were operating in the European Union (12 countries), shredding an estimated 80-90% of all
end-of-life vehicles. The system is well-suited for vehicles that contain a large fraction of
metals (notably iron and steel). However, from the 1980s onwards changing material
composition of cars has started to trouble this end-of-life vehicle disposal system.
Recently steel makers using EAF technology have started to produce steel sheet, a product
demanding higher quality levels than their traditional products. Consequently, it is expected that tramp metal
levels in automobile scrap, the raw material input in the EAF process, will become increasingly critical,
requiring a better control of the metal separation (Field and Clark, 1994; Bhakta, 1994).
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serial numbers and product identification on the engine block and chassis. Without this
identification it is very difficult to trace back the vehicles last owner. In France, it is estimated
that 20% of the vehicles are abandoned in such a way. In major German cities the number of
abandoned cars sharply increased in 1993, due to the high cost to the last owner for disposal
of his vehicle.10
In a way, this modern junk-car problem is similar to the 1960s problem, yet the scale of
the problem is smaller. It is thought that the prevailing tax regimes that are based on the usage
of a vehicle (road tax) rather than on the ownership of a vehicle more or less permits this kind
of behavior. Abandoned cars are an environmental hazard on the one hand; and they constitute
an unused source of ferrous and non-ferrous metals on the other hand. It is for such reasons
that in the French accord cadre a clause has been included that aims at establishing a legal
framework for vehicle disposal, and that the common proposal for the treatment of end-of-life
vehicles by the German industries includes the obligation for the last owner to take his vehicle
to an officially licensed discarded vehicles treatment center where he gets the administrative
proof that relieves him from paying taxes (VDA, 1990) (see chapter 6. for a discussion of the
regulatory process).
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ways. Zeranski concludes that there is an enormous potential for innovation in the car
dismantling industry. Whrmanns (1992) analysis of the German car dismantling industry
supports these observations. The situation in other European countries does not substantially
differ from the German situation.
However, the industry is currently passing through a process of reorganization, with the
aim of upgrading, rationalizing, and demarginalizing the industry. The establishment of
national and international industry organizations indicates that the industry itself seeks to solve
the problems of the sector. This process of reorganization goes along with upscaling and
relatively large investment in site lay-out and dedicated tools and equipment. Industry
standards are being set for quality of service. Cooperation between car dismantlers has started,
e.g. in developing information systems for tracing rare parts with competitors. An increase in
prices and constraints, a concentration of the profession, and the arrival of new entrants might
be observed (Aggeri et al., 1993).
The evolution of the Dutch car dismantling industry over the past decade is a good
illustration of the industrys evolution. In the mid 1980s, the Dutch Ministry for the
Environment started to develop a waste policy for a number of problematic waste streams,
including shredder residue and end-of-life vehicles. This policy is aimed at waste prevention
and increased recycling (VROM, 1988). The Ministry believed that car dismantlers, given their
position and activities in the traditional end-of-life vehicle processing system, could play an
important role in increasing the levels of parts and material recycled. Therefore, it was
essential that car dismantlers be represented as a group in the process of strategic discussions
(section 6.4.), a policy instrument aimed at developing and implementing an industry-wide
strategy for waste prevention and recycling. However, the industry was hardly organized; the
state-of-the-art in end-of-life processing by car dismantlers was considered inappropriate for
solving the environmental issue of end-of-life vehicles (rather, most car dismantling operations
were an environmental problem in themselves); and it was thought that too many car
dismantling sites existed to support the required investment in vehicle dismantling. StiBA Stichting Belangenbehartiging Autoslopersbranche, inaugurated December 31, 1985 by a
small number of independent car dismantlers in order to modernize their industry and to
upgrade its standards, was recognized by the Ministry of the Environment as the
representative organization of the car dismantling industry in the Netherlands. Among the
objectives of StiBA are (StiBA, 1988; Heidemij, 1992; Den Hond et al., 1992):
-
In the late 1980s, StiBA represented about 150 of the total number of 1,750 car dismantlers,
while another 350 car dismantlers complied with legislation without being members of StiBA
(Den Hond et al., 1992). In 1995, the total number of car dismantlers has reduced to 825, of
which a large number is represented by StiBA.11 With the total number of end-of-life vehicles
fluctuating between 400,000 and 450,000, car dismantlers currently operate on a larger scale.
StiBA has initiated a large number of activities to stimulate the maturing of the car dismantling
industry, including the development of a quality assurance system; the formulation of minimum
11
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operating standards, and norms for site lay-out and equipment; the development of an
information system among its members for tracing uncommon or out-of-stock second-hand
car parts. StiBA participated in a Dutch end-of-life vehicle dismantling project (Heidemij,
1992). Such activities have added to the upscaling and upgrading of those car dismantlers who
specialise in disassembly and reuse of car parts. However, the less profitable activities of
drainage, disassembly and recycling of worn-out end-of-life vehicles has also matured. In the
slipstream of the industrys evolution, a number of small companies started to develop and
market dedicated equipment for improving the drainage and dismantling of a series of end-oflife vehicles. Among these companies, CRS - Car Recycling Systems of Ede seems to be the
most successful. CRS has developed and sold a small number of semi-automated disassembly
lines for the efficient, clean and ergonomic recovery of the various materials in worn-out endof-life vehicles.12
12
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Table 5.1.: Shredder Residue in EU Member States, x1,000 tons (Groenewegen and Den
Hond, 1992; ELV Project Group, 1994; BMU, 1994; El Mundo of September 16, 1994;
OVAM, 1995)
Year
Germany
France
Italy
United Kingdom
Spain
Netherlands
Belgium
Portugal
Denmark
Ireland
Greece
Luxembourg
1992
1990
1990
1990
1994
1989
1992
1991
1990
1990
Total
Shredder
Residue
Automobile
Shredder
Residue
N/A.
N/A.
N/A.
720
N/A.
140
140
N/A.
40
N/A.
N/A.
N/A.
500
400
450
420
175
115
70
30
10
10
N/A.
N/A.
total
> 2,180
Another way to proceed is to indirectly assess the amount of shredder residue by quantifying
the factors that affect the generation of shredder residue: the number of end-of-life vehicles,
their material composition, and their life span, and by then postulating the average material
efficiency in shredding and metal recovery processes. Such a method is subject to numerous
uncertainties, and substantial variations can occur when underlying data differ. Groenewegen
and Den Hond (1992) used such a method to argue that in 1990 about 3,250 kilotons of
shredder residue were generated; in a worst case scenario these quantities might rise by
another 75% before the turn of the century.13 Using a comparable method but different data,
Peugeot-Citron estimates that 1,800 kilotons of shredder residues are generated annually
(PSA press release of June 18, 1991).14 However, most sources do not explain how data have
been collected. It is unclear on what data ACEAs estimation of 2,000 kilotons of shredder
residue is based (ACEA, 1994). The same holds for Voy and Schmidt (1994), who estimate
that 2,600 kilotons of shredder residue are produced in Western Europe.
13
Assumptions are: 13.5 million of end-of-life vehicles being produced annually; 10% of vehicle
weight is plastics, an average vehicle life time of 10 years, an average vehicle weight of 1,000 kg, and an
overall efficiency in the end-of-life vehicle processing of 75% (Groenewegen and Den Hond, 1992).
14
The Peugeot-Citron estimates are based on the assumptions of 12 million end-of-life vehicles of an
average weight of 750 kg, and 20% shredder residue.
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15
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5.3.4. Summary
The system for the processing of end-of-life vehicles developed as a solution to the 1960s junk
car problem. In the system value is added to the end-of-life vehicle by disassembling and
reusing parts, components, and materials. Various steps in end-of-life vehicle processing are
distinguished: disposal of the vehicle by its last owner, car dismantling, shredding, separation
and recovery of ferrous and non-ferrous metals. Being quite efficient in the recovery of metals,
changes in the material composition of vehicles, which constitute 70-80% of the shredder
input, has increased the amount of shredder residue. This poses a cost-problem to the shredder
operator. Shredder residue is considered a waste problem because of its quantities and its
material composition. The way in which car dismantlers operate affects the amount and level
of pollution of shredder residue. Other environmental problems in the processing to end-of-life
vehicles relate to the occasional dumping of end-of-life vehicles somewhere in the countryside,
and to soil contamination at car dismantling sites.
Because material choice in vehicle design is an important factor influencing the amount
and material composition of shredder residue, the dynamics of material choice is discussed in
the following sections, first on the level of materials (section 5.4.), second on the level of
material substitution (section 5.5.). It will become clear that technological, economic, and
distribution of capabilities in material technology among the car manufacturer and suppliers
limit the car manufacturers freedom of material choice.
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non-ferrous), plastics, glass, rubbers, paint and textiles. The variety of materials is still
increasing. Table 5.2. shows the dynamic nature of overall material composition of cars from
1965 into the near future. The data cited in table 5.2. reflect an average. Among various
models the differences in material composition can be substantial.
Table 5.2.: Material Composition of European Private Cars, in percentage total weight
(Menges et al., 1988)
Plastics
Aluminium
Lead, Copper, Zinc
Steel and Iron
Others (mainly glass,
rubbers and paint)
total
1965
1985
1995 (prognosis)
2
2
4
76
16
10
4.5
3
68
14.5
13
6.5
3
63
14.5
100%
100%
100%
Table 5.2. reveals that iron and steel are the most important materials by weight. Half of the
ferrous metal content is in mechanical applications (engine, suspension, etc.), the remainder is
in body work. Aluminium is the most important light-weight metal. Its main use is as cast
aluminium in radiators and in engine parts. Sheet aluminium for body works is almost
exclusively applied in luxury and sports cars, for which a light weight is more important than
cost. Some analysts expect that the use of aluminium and also magnesium (in castings) will
increase dramatically.
Table 5.2. also seems to reveal that an increase in the application of plastics and lightweight metals (aluminium) goes along with a decrease in steel and iron. This would imply a
substitution of ferrous metals by plastics and light weight metals. Examples include the BMC
tailgate of the FIAT Tipo; the SMC body of the Renault Espace; the many applications of
plastics in bumpers (e.g. PP/EPDM, PU, PC/PBTP, PPO, PBTP, SMC); and fuel tanks
(HDPE). In the interior trim, plastics have substituted for natural materials. However, material
substitution explains only part of changes in material composition. Autonomous weight
reduction has taken place by substitution of high strength steels for ordinary steels and by
advanced design techniques, providing the same strength at a lower weight. Additionally, new
components have been introduced, such as heat and sound insulating plates, impact absorbers,
and underbody coverings. Many of these are made of plastics. The increasingly widespread
installation of electronic regulation systems, containing a complex mixture of materials, is
another example of a new class of components that were virtually unknown about one or two
decades ago. The latter two developments affect the vehicles overall material composition
without a material substitution having taken place.
Subsequent sections discuss in some detail the use patterns of different types of
automotive material: plastics; steel and iron; and non-ferrous metals.
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5.4.1. Plastics
There are an increasing number of successful plastic and plastic composite applications in cars.
Well over a dozen polymers, ranging from low-cost, mass-produced polymers (PE, PP) to
high-cost, engineering plastics (PC, PA, PBT), are widely used. The overall plastics
composition of cars is given in tables 5.3. and 5.4. About 60% by weight are thermoplastics,
20% are thermosetting, and 20% are foams. The plastics with the largest volume in use are:
PP, PU, and PVC. The largest growth has taken place in PE, PP, and PC applications. For
none of the plastics has a reduction in absolute terms taken place (Himont estimates). Future
developments of plastics in automotive applications seems to include an increase in
thermoplastics (PP, PA, PE, PC). Only PVC, phenolic and acrylic applications are not
expected to grow. Inter-plastics substitution may take place, e.g. new PP grades substituting
for some engineering plastics.
Table 5.3.: Use of Plastics in Sub-Systems, in percentage total weight (BPF, 1990; Renault)
Average
Renault
European RS5-TSE
interior
exterior
chassis
engine, transmission
electrics
total
Renault
R19-GTS
63
15
5
9
8
53
25
17
5
64
18
12
6
100%
100%
100%
The range of plastic applications is increasing, resulting in an increased volume and weight of
plastics used. While estimates differ, the average weight of polymers has increased from
around 6% in 1980 to around 10% in 1988 (figure 5.3.), or about 100 kg of plastics per car.
Recent models compose of 11-13% plastics. With respect to earlier predictions on the
development of the plastic content of cars, estimates have been adjusted downwards (Hoyle,
1995). A further growth of plastics in cars requires a technical and economic break-through.
Interviews for this study made clear that car manufacturers believe that a further increase of
plastics depends on the development of an adequate waste management system. Car
manufacturers fear responsibility for vehicle disposal. This is a barrier to a substantial increase
of plastic application in cars in the short run. Regardless of this, a minor increase might still
take place. It is estimated that the average plastic composition of European cars will stabilize
around 13-15% in the coming years (Schper, 1993).
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Table 5.4.: Polymers in Car Applications, in Western Europe (EC and EFTA countries) (BPF,
1990; Himont estimates)
Quantity per car1)
1980 1985 1990
PU
PP
PE
polyesters
PVC
ABS
acetal
PA
PPO
PC and blends
phenolics
RIM PU
PBTP
POM/PBT
acrylics
others
11.2
8.0
2.5
1.5
12.5
6.4
0.8
2.8
0.3
0.3
7.0
1.2
-
15.0
11.0
4.0
5.5
11.0
6.4
2.0
3.5
3.0
3.0
5.0
1.2
0.5
1.0
2.5
20.0
15.4
11.6
11.0
8.0
6.5
5.9
5.8
4.1
4.1
3.5
2.4
1.0
0.7
3.6
170
125
20
30
150
75
32
7
7
10
20
48
270/ 4.7
359/11.1
60/11.6
80/10.3
170/ 2.4
95/ 2.4
70/ 8.1
40/19.0
13/ 6.4
25/ 9.6
30/ 4.1
62/ 2.6
totals
54.5
74.6
103.6
694
1,274/ 6.3
The variation around the average can be rather large. For example, the use of PP is much
higher in Renault 19 and Nissan Primera (40%, respectively 50%, of polymer weight) than the
average (about 15%). Other differences are found in the use of unsaturated thermoset
polyesters (SMC/BMC). Some manufacturers, such as Citron, Renault and FIAT, apply
SMC/BMC in relatively large quantities, whereas others tend to phase out SMC/BMC
(NedCar, BMW) or look for substitutes such as aluminium (Audi).
Plastics are mainly applied in the interior trim: about 65%. This area seems to be an
almost saturated market,16 although inter-plastic substitution might take place. Other
important applications include the body, such as bumpers, lateral protections and fenders
(about 15%), engine (9%), electrics such as cable-insulation (8%) and the chassis (5%) (BPF,
1990).
For car manufacturers, the reasons for applying polymers have changed. The first polymer
applications appeared in the early 1960s. Polymers were introduced in the interior trim by
virtue of their capacity to absorb collision energy (a safety reason). This polymer application
16
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'69
'71
'73
Renault
'75
PSA
'77
'79
FIAT
'81
VW
'83
'85
BMW
'87
'89
'91
'93
Volvo
extended into increasing comfort for passengers, and car manufacturers, gaining practical
experience, developed more advanced design possibilities. The high fuel prices after the first
oil shock in the early 1970s urged the construction of lighter and more fuel efficient vehicles.
Light weight became an additional quality polymers could provide. In recent years fuel
economy and hence weight reduction has re-appeared on the agenda, but now triggered by the
greenhouse discussion.
Future prospects for plastic applications in vehicle design are modest. Several material
specialists in the automotive industry expect a stabilization at about 14% by weight at the turn
of the century (Weber, 1991; Haldenwanger and Schper, 1991). The largest growth potential
for plastics is considered to be in body applications and in the engine compartment (Weber,
1994). However, increased application of plastics depends on solving the waste problems
associated with end-of-life vehicles (Groenewegen and Den Hond, 1992).
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(Cohendet et al., 1988). However, the steel industry also developed its capabilities. Large
R&D projects were undertaken to develop new alloys and new products. The industry was
looking for higher added value in order to be able to compete with relatively new materials
such as plastics and aluminium.23 Examples of new materials that were developed as a
response to this structural change in their markets are: high-strength steel for body
applications that provide more strength at reduced weight, and pre-coated steels (galvanized 24
or painted) that reduce the number of operations in vehicle construction and hence reduce
production cost for the car manufacturer. The steel industry also engaged in vehicle design
activities to assist car manufacturers in optimizing their designs by proposing new solutions for
vehicles construction. Without such activities, the steel industry would find it much more
difficult to sell its high-performance materials in the automotive industry.
23
The situation is slightly more complex, because the car industry, and other major material buying
industries, also changed their procurement strategies.
24
Galvanizing steel in body applications is developing towards normal practice. Audi galvanizes all
its vehicles; Mercedes-Benz 45%; Renault 30-40%; FIAT 10-45%; and, Volkswagen 5-10% (F. Porter, 1990).
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5.5.1. Technology
The increased application of plastics is a consequence of several innovations in plastics science
and technology. First, the creation of new engineering polymers has enlarged the range of
technical qualities of plastics, such as high temperature resistance, resistance to chemicals (e.g.
to battery acid and automotive fuels), and increased strength. Hence, the proportion of
engineering polymers used in the automotive industry is increasing, adding to the number of
different polymers applied in cars. Second, the physical properties of bulk polymers can be
better manipulated through an improved understanding of the role of processing conditions.
The most outstanding example of enhanced properties of bulk polymers is PP. Finally,
technical properties of plastics can also be enhanced through the blending of different
polymers, hence enlarging the range of specifications of plastics. This increased tailoring opens
up even more areas where plastics can be applied (Weirauch, 1991) and increases the diversity
of polymers used. The use of fiber reinforcement in plastics to form plastic composites can
overcome the lack of stiffness found with most monolithic or chalk-filled plastics, and thus
potentially broadens the range of application for plastic based materials.
However, a number of factors still impede the widespread adoption of plastic composites,
such as the lack of appropriate low cost mass production techniques, high cost of some
polymer components relative to their steel counterparts, reliable quality (mainly in SMC
surface quality) and lack of suitable design and analysis software. The current discussions on
recycling might also limit the use of plastics for automotive applications. It should be
recognized that in the current state of the two material technologies, steel retains some
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advantages over polymers, such as reparability, low cost, a repeatable consistency and
dimensional stability, and temperature stability.25
5.5.2. Economics
Two considerations are important in discussing the economics of the material substitution of
plastics for metals. First, the possibility to integrate parts into single components when using
plastics has major economical advantages. The number of joining steps is reduced, and hence
the number of assembly steps, as is the amount of labor required. Numerous sources report
that full benefits of plastics can only be obtained if integration of parts takes off substantially.
The trade-off between plastics and metals depends on both material cost and capital
investment in machinery. On both a unit-per-weight and a unit-per-volume basis, sheet steel
for body applications is cheaper than plastics, and mass-produced polyolefins (PE, PP) are
cheaper that the engineering plastics. However, tooling cost for steel is higher than for
plastics. The main processing step for steel is stamping under heavy pressure in a die. The
quality of the product depends on the quality of the die and with decreasing thickness of the
steel processed, the effect of imperfections in the die increases. The molds that are used for
thermoset materials and thermoplastics, be it for stamping or for blow or injection molding,
are significantly cheaper, mainly due to lighter molds and equipment. Thus, while material cost
of plastics may be up to 3-4 times higher than of steel, tooling cost is lower. So, steel is
favored for large production series, since the tooling cost can be divided over more parts. For
smaller series, plastics are favored. A break-even point is found somewhere between 20,000
and 100,000 pieces In the case of SMC the break-even point is considered to be somewhere
around 50,000 pieces, depending on the specific design; above this number steel is preferred.26
A second point is that the production rate for plastics is slower than for steel. So, in order to
install enough production capacity for the number of plastic parts to be produced, more dies
and machines have to be installed. This provides a second reason why plastics are at a
disadvantage for larger series. In figure 5.4. the arguments are illustrated for a fender.
5.5.3. Capabilities
The possibility to integrate parts into single components when using plastics is an additional
advantage that pays off in a reduction of assembly steps. However, to benefit from this point,
car manufacturers need to develop experience in the engineering and processing of plastics.
Their know-how, experience and skills in design, engineering and production are based on
steel technology. Material technologies for handling plastics, aluminium, magnesium, and
ceramics, used to be relatively unknown in the automotive industry. With the increasing
application of non-ferrous metals in vehicle production, this is changing. The learning process
25
Some grades of (engineering) plastic are 3-4 times more expensive than steel. Engineering plastics
cannot withstand temperatures of greater than 170oC, while plastics such as PE and PP start to melt at about
120oC.
26
Journal de lAutomobile (1991) No.295, p.39
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Figure 5.4.: Cost versus Annual Production Volume, x1,000 units, of 5 Alternative Fender
Materials (Busch et al., 1987)
by which the car manufacturer gradually gains more experience and know-how of mastering
such materials is a three-step process. First, identical copies are made from a new material,
e.g. cylinder heads of ceramics. Second, the specific qualities of the new materials are
discovered, resulting in the integration of a part. Examples are found in SMC/BMC hoods and
tailgates, where a dramatic reduction of parts and joinings could be realized (Di Carlo et al.,
1994). Finally, when the new materials are fully mastered, it becomes possible to design and
style new parts and functions (Cohendet et al., 1988).
But the learning process of mastering new materials, as described by Cohendet et al., is
half the story. Different forms of cooperation between the car manufacturer and its parts and
material suppliers take place. There is a shift in the locus of design activities from taking place
exclusively at the car manufacturer to cooperative arrangements with material suppliers and
specialized design and engineering firms. Both steel and plastics producers installed design and
engineering capabilities, if only as a part of technical marketing. Often the activities go even
further. In very early stages of vehicle development, material suppliers seek to contact the car
manufacturers development teams, in order to assist in material choice and to propose
advanced solutions for design problems. In later stages of the development process, the car
manufacturer engages specialized design companies to assist in engineering and technical
drawings. The different forms in which these cooperative arrangements have crystallized, have
been called design contexts (Den Hond et al., 1992). Den Hond et al. focus their discussion
of design contexts on the implications of material choice, both with reference to the suppliers
and the car manufacturers discretion in material choice and as deliberate strategies by car
manufacturers for learning to master new materials. Laigle (1995) develops a framework for
analyzing supplier relationships that gives more attention to economic issues, such as cost
control, risk sharing, incitations, corrective measures, and contractual modes. Both discussions
are very close, but were developed independently. A difference is that Laigle sees an evolution
in the industrial practice with respect to increasing outsourcing in design activities, whereas
Den Hond et al. argue that despite some evolution, various design contexts continue to
coexist. Elements of Laigles discussion are integrated in the Den Hond et al. framework.
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Four design contexts can be distinguished based on the degree of outsourcing of activities
such as production, applied engineering, advanced engineering, and advanced innovation (Den
Hond et al., 1992; Laigle, 1995):
1.
traditional supply relationship between the car manufacturer and a parts supplier or
original equipment manufacturer (OEM);
co-design between the car manufacturer and the material and parts suppliers;
specialized design and engineering firms and material suppliers develop parts on
specification;
material suppliers and specialized design firms develop new vehicle concepts.
2.
3.
4.
The first design context relates to the traditionally found supply relationships between the car
manufacturer and suppliers of parts and components. Two typical situations are found: one in
which single parts or simple components constituting of a few parts are produced by the
supplier, and another one in which the supplier, or rather an OEM, produces complete
functions or systems. Yet, in both situations the car manufacturer defines the functionality of
the part at very detailed level, and sets technical and cost specifications. Because the car
manufacturer has done all the applied engineering, the supplier has to organize its production
according to the car manufacturers blue print; the supplier can be considered as an
externalized workshop that feeds the car manufacturers assembly process with parts and
components (Laigle, 1995:27). The suppliers production process is constrained by an exante definition of cost, price, volume of output, production rates, and most often even cost
reduction following the learning curve. In the case of simple parts, the car manufacturer might
want to contract a supplier (a plastics molder or metal caster) because of several reasons: cost
reduction due to lower labor cost at the supplier, or to save on capital cost for relatively small
production runs. However, complex contracting is required for controlling the suppliers
activities and ownership of dies and molds is usually treated in the contract (transaction cost
reasoning). Outsourcing of the production of complex systems and functions such as lighting,
electronics, suspension, and brakes, might be related to the lack of capabilities at the car
manufacturer in producing them, but more often outsourcing results in a rationalization of the
car manufacturers production process. Rather than controlling the production of complete
systems, only procurement of such systems needs to be matched to the rate of production.
Moreover, OEMs are characterized by substantial R&D capacity for developing innovations in
the systems they are specialized in.
Material choice for simple parts with a well-defined form, size and quality specification,
follows relatively straightforward from the parts technical specifications and a list of materials
which have been classified by the car manufacturer. For a material supplier it is thus
important that his materials (e.g. grades of different types of plastics, different steel or
aluminium alloys) be classified by the car manufacturer. In the case of complete systems,
material choice is a function of the systems functionality. Often, for specific functions material
choice is limited to those materials that exhibit specific (physical) characteristics; consequently
the car manufacturer has relatively little influence on material choice.
Co-design constitutes the second design context.27 In this context, the car manufacturer, a
material supplier, and a parts supplier are involved. An example is provided by the case of an
27
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underbody covering to protect the engine. The car manufacturer in question understood very
quickly that, given the constructive and functional specifications (stiffness, sound insulation),
the material of choice would be a plastic. However, this car manufacturer lacked the
capabilities of designing in plastics. A plastics processing company was approached to assist in
the technical development of this part, and was asked to find a plastics producer. The car
manufacturer delivered a basic design (advanced engineering); but the engineering and
technical drawings were produced, and the material choice was effectuated, with the aid of the
plastics producers advanced computerized design and engineering facilities. In this design
context, the detailed, applied engineering is outsourced. It leaves the supplier more discretion
in how to optimize a technical-economic compromise for the combination of product and
process. In comparison to the traditional supply relationships, various changes take place:
these are elaborated by Laigle (1995). She also elaborates on the different commercial role of
the supplier and the various risks for both the supplier and the car manufacturer.
With respect to material choice two remarks need to be made. First, the car manufacturer
has limited direct control on material choice, since the choice for the specific material (grade)
can be influenced by the applied engineering activities themselves. Second, such a design
context offers material suppliers better chances of introducing their new and improved
materials in the automotive industry by partially avoiding the lengthy material classification
process. If the material supplier can convince the car manufacturer that his material is the best
choice for a specific component, it is easier to have it classified. The technical marketing of
new materials by the material supplier is characterized by the slogan our materials are the
solution to your problem.
Outsourcing of advanced engineering activities is the third design context.28 When Volvo
29
Car was developing its 480-model, a small-series sports car, it wanted to gain experience in
plastics processing, notably SMC. Based on several criteria, among which are design
possibilities, weight, and corrosion resistance, it was estimated that the hood should be made
in SMC. However, Volvo Car lacked the capability to develop this part on its own. Hence, it
engaged a design company (Budd Company, USA) and the plastics division of Thyssen A.G.
(Germany) for the advanced engineering. Renault has further developed this approach by
introducing competitive bidding in the design context. Based on a functional definition of the
component, Renault invites several potential suppliers to bid for the advanced engineering in
which strict cost limitations are set ex-ante (design to cost). Material choice is open, as is the
choice for production technology. As a consequence, during the advanced engineering
activities the product definition is most likely to change a number of times. This approach
requires close cooperation between the suppliers design and engineering departments and the
car manufacturers procurement, advanced engineering, and applied engineering departments,
and has far-reaching consequences for contracting and coordination (Laigle, 1995). Midler
(1993) gives a detailed account of this approach in his study of the Twingo model. As
indicated, material choice is a function of the suppliers cost calculation, rather than the car
manufacturers.
Finally, the fourth design context is one of shared innovation (Laigle, 1995). In this
design context, material suppliers, OEMs and/or design companies develop independently of
28
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any specific demand by the car manufacturer new concepts for components, systems, or even
complete vehicles. In the words of Laigle (1995:39, emphasis added): their innovation
strategy [..] vis--vis the car manufacturer consists of proposing advanced innovations
(irrespective of any specific demand or development project on the part of the car
manufacturer), to validate them, by executing numerous trials and tests, in order to assure that
they are technically, industrially, and functionally viable with respect to the expected clients
final demand. An example in relation to end-of-life vehicle recycling are the efforts by both
DSM and Himont (both are major suppliers of PP) to develop prototypes of an all-PP
dashboard as a mono-material solution for the virtually non-recyclable traditional dashboard
that is made of ABS, PVC and PU foam. Another example in vehicle concept is Max Motors,
in the Netherlands, who developed and marketed a car that could be easily converted from a
pick-up to a cabriolet, coup or sportswagon. Their concept heavily depended on plastics
technology for the body work. Unfortunately, the concept was commercially unsuccessful.
This discussion of design contexts makes clear that material choice in vehicle design is not
only constrained by technological and economic factors, but also by the question of efficient
management of capabilities in material technology. Whereas changing material choice in
vehicle design is an important reason why the amount of shredder residues increases, the
analysis of its dynamics reveals that the car manufacturer has only partial control over the
material composition of its models. It is for this reason that, when several European
governments started to regulate waste from end-of-life vehicles (chapter 6), the automotive
industry opposed the concept of producer responsibility. Rather, the industry proposed a
common responsibility of car manufacturers, their material and parts suppliers, and the
industries active in the processing of end-of-life vehicles.
5.6. Conclusion
In this chapter both the value chain and the environmental life cycle of end-of-life vehicles are
discussed. End-of-life vehicles are produced by the last owner when he disposes of his car.
However, the automobile production system can be seen as the ultimate producer of end-oflife vehicles. When disposed off, the end-of-life vehicle is processed in a number of steps,
including dismantling, shredding, and separation and recovery of ferrous and non-ferrous
metals. The underlying technology in the car dismantling industry is in its fluid stage: it is
hardly capital intensive, general tools are used, the scale of the operations is small, quality
standards are hardly set and not widely respected. However, the industry is passing through a
restructuring process in which dedicated tools are being developed. Considerable investment
in sites, buildings, equipment, and tooling are required. Upscaling takes place and many of the
smaller car dismantlers have already disappeared or are expected to disappear in the next few
years.Quality standards are defined and implemented. The shredder and metal recovery
industries have become mature industries since they were introduced in Europe in the early
1970s. The underlying technology is highly capital intensive and no major innovations have
taken place in the last two decades.
In each step of the end-of-life vehicle processing system value is created, but also
environmental degradation can result from each of the processing steps. Not all end-of-life
vehicles are processed. At many car dismantling sites soil contamination is the result of an
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