A careful analysis of the variation of the net cost of compliance for different cars shows that the vehicle type and location are significant factors. The research was conducted by Massachusetts Institute of Technology and focuses on the Analysis of the Cost of Recycling Compliance for the Automobile Industry. Cars are one of the most recycled items in the industry, hence that about 75% of the vehicle’s’ weight is being recycled. When talking about the net cost of compliance (NCOC) we should mention that the labor is the key cost modifier for regional variation. Cost varies by vehicle type, however weight is an additional factor that determines the final amount. From Rubbish Begone – a waste removal London company we made this infographic for you.
European Directives on ELV (end-of-life-vehicle) are to be applied when forming the final cost. Automobile manufacturers are to bound by law to comply. The cost differs depending on operating characteristics, sales, the portfolio of the sold vehicles, the sales distribution across Europe. The expected OEM and NCOC cost is a function of both vehicle type and recycling location, which is determined by the Technical Cost Modeling Technique preliminary assessment. Few factors are important when assessing NCOC. Those are vehicle type and recycling location. For instance, Germany recycles about 85% of ELV vehicles. Due to the fact different countries have varying recycling capabilities, same type of vehicle may register over $100 difference depending where it has been returned. An example for price range depending on the recycling location is that the cost of recycling a large car may differ by $55 in Poland and in Norway. Another key factor is labor cost.
As pointed out above, NCOC is location-specific. Still the compliance cost widely varies between the types of vehicles. Reaching the recycling target at a low cost will be easy for large vehicles such as trucks due to their high metal composition. In contrast, recycling SUVs is more costly than recycling cars. Anyhow, excluding trucks, standard costs for all other vehicles do not differ as much. The recycling rates would be much more difficult to reach above the 90% threshold of recycled cars. That would significantly increase NCOC. There are issues surrounding the NCOC variation by vehicle type. Depending on the vehicle portfolio the cost could vary dramatically between one manufacturer and another. Since vehicle sales characteristics have regional variations, the location effect on NCOC may be mitigated or exacerbated.
Obviously NCOC is also sensitive to costs of raw materials. Metal prices have a strong effect on NCOC. Variations of plastic prices have an effect on NCOC as well, however insignificant.
An interesting alternative to vehicle recycling is turning your old, preferably classic car into a pool table. Obviously that is not a single case, but rather a very profitable business. Watch the video below to find out more.
This guy also turned his car into a pool table, however it can still reach 100 mph. And what a success he has!