The measure will drive a reduction in spare parts prices, provide greater security in marketing and will create about 20 thousand jobs.
The new 100% digital dismantling system announced by the Ministry of Justice of the Nation, added to the provision that allows the number of parts recovered from retired used cars to be increased from 35 to 142, will promote a price drop of the spare parts.
The measure will also provide greater security in marketing, will create about 20,000 jobs and will put a stop to the illegal market, according to estimates from Carva, the chamber that brings together legal dismantling yards in Argentina and which carried out coordinated work with the national government to achieve this system.
“Digitization reduces the cost of parts. If we add to that that there will now be more recovered (used) auto parts due to the expansion of the list of 30 to 142 piecesthat will impact the cost of spare parts in general. This is a hard blow to the illegal market, because previously, authorized scrapyards could not recover certain parts, so those parts were obtained on the black market,” explained José Luis Álvarez, head of CaRVA.
On Thursday, the Ministry of Justice, together with the DNRPA, officially presented the new 100% Digital Scrapyard System, with the presence of authorities from the Ministry and the DNRPA, members of the CaRVA Board of Directors, and a selection of scrapyards invited by the Ministry. “This milestone represents ahistoric ogre for our sectorpositioning Argentina among the five countries with the most modern and efficient disarmament systems in the world,” they said in the Chamber.
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The benefits of the new system
This measure will bring a series of facilities and benefits:
- Faster procedures for vehicle owners and insurance companies.
- Significant reduction in process costs.
- Enabling dismantling yards and sellers of used auto parts, more dynamic and without administrative bureaucracy.
- Greater traceability of parts and better control of the market for recovered parts.
- Increase in recovered auto parts and consequently reduction in the public price due to an increase in supply.
- Placing legal parts on the market reduces the illegal market, and consequently lowers the rate of car theft, which reduces the cost of insurance policies (In Brazil, five years ago the number of parts that can be recovered from written-off used cars was increased and the car theft rate fell by 50%).
- Increase in employment: estimated 4,000 direct positions and another 16,000 indirect.
Savings for users and dismantlers
Álvarez estimates that users will save about $753,900,000 per year between wafers, vehicle registration procedures and tariffs. But, in addition, the cost that will be avoided in dismantling totals $1,620 pesos, including forms, postal mail and the printing of annexes and photographs. In total, the entire system will save about $2,409,520,000.
Furthermore, another important fact is that vehicle owners will no longer need to attend the Motor Vehicle Registry, but everything can be done online.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
