JARA NEWSfrom
Japan Automotive Recyclers Alliancewww.jara.co.jp

October 2018, No. 128

Published by JARA Corporation
Tokyo Head Office: 1 F. Yaesu KT Bldg. 1-1-8,Yaesu, Chuo-ku, Tokyo JAPAN 103-0028
Phone: +81 3 3548 3010 / Fax: +81 3 3231 4690

foundation, pillars, and a roof, but no outerwall,” coverage should also be covered in theguarantee system.
To offer a worker-friendly environment
for member recyclers

It coveres various fields related toautomotive recycling

Guarantee applies to parts inventory andfacility damages

JARA expands itsguarantee for members
starting in November

Payment for property damages up to ¥500m

The Japan Automotive Recyclers AllianceC o r p o r a t i o n ( J A R A ) , a To y o t a Ts u s h o
Corporation group company, created the“JARA Comprehensive Guarantee System”
which comprehensively guarantees risks on
business of the members, and will commence
the system in November 2018. This is the firstguarantee in the auto recycling industry toprovide a wide range of coverage fromdamages to equipment and facilities, theft, toemployment practices. Although the systemwas created based on JARA’s basic guarantee
system, the insurance payment amount and thecoverage of the new system will be expanded.
Thanks to economy of scale stemming fromToyota Tsusho Corporation’s group, a JARA
member will be able to make an insurance
contract at one-half to one-third the amount of
the premium compared to a contract madedirectly by each member.

Address Change!
From October 9, JARA’s headquarters(Tokyo Head Office) is to be relocated to
the new location below.
1st floor Yaesu KT bldg., 1-1-8 Yaesu,Chuo-ku, Tokyo 103-0028
Phone (03-3548-3010) andFAX (03-3231-4690) numbers remainunchanged.

In the JARA Comprehensive Guarantee
System, liability coverage and property
damage coverage will be expanded up to\500m. The liability coverage includes“product risks,” “equipment and facility, andoperation risks,” “carrier’s risks.” As an option,“cyber risks,” and “employment practiceliability insurance” are provided. For the risks
from natural disasters, which have increased inrecent years, compensation will be applied totyphoons, tornadoes, and flood risks resulting
from record-breaking rains. On the other side,risks of earthquake, eruption, and Tsunami are
not included in the compensation.
Because some JARA members are involvedin the comprehensive recycling business,
which handles construction waste and precious
metals, thus in the new JARA guarantee,
members can choose their own coverage either
for automotive business only or all businesscategories.
As part of the nationwide guidance of
JARA’s new guarantee system, questions wereasked about instances of operational risks thatoften confront recyclers. For example, “whiletransportatiing of end-of-life-vehicles (ELVs)
on a carrier truck, parts from the vehicle
became detached and fell on the road, causing
damages to the vehicle behind the truck.” Thiscase should be included in the compensation.
On the other hand, an incident where “recycledparts that had been shipped to the customer
prior to the JARA insurance were subsequently
found to cause damage to the vehicle after thecustomer enrolled in JARA insurance.” This
incident is guaranteed under “product liability
risks.” And a situation, “property damage
occurs in the warehouse, which has a

JARA President Sosho Kitajima said, “Byreducing risks, JARA members could earn apositive reputation from non-JARA members.
We can offer a worker-friendly businessenvironment, that raises employee satisfaction(ES).” (Daily Automotive News, Sept. 20 issue)

JARA holds block
meetings in 5 regions
From August through September 2018,
JARA held its “JARA Block Meeting
FY2018” in five locations in Japan. The main
focus was a workshop for “ATRS (Automobile
Total Recycle Systems” as well as guidancefor “JARA Comprehensive GuaranteeSystem.”
The meetings were held in Nagoya,Okayama, Kumamoto, Tokyo, and Sendai. Inaddition to the five locations, Hokkaido’s
Sapporo-holding was also planned in
September, but it was prolonged due to the“Hokkaido Iburi Tobu Earthquake” that hit theregion. Representative directors and managers
of JARA member companies joined themeeting in each holding.
At the meeting held in Sendai on September
8, JARA Group Chairman Yukiyoshi Domonsaid, “Since we have seen frequently occurring
natural disasters these days, it would beappreciated if you could use the JARA’s new
guarantee system by comparing its merits toyour existing contracts.” (Daily AutomotiveNews, Sept. 20 issue)

JARA NEWS No. 128 October 2018 Page 2

The basic rule of automomobile recycling is
to be done in the domestic market

Increasing exports of usedhybrid vehicles might affectauto recycling
In fiscal year 2017 (FY2017), which ended
on March 31, 2018, exports of used hybridvehicles increased to 118,875 units, or by 25
percent compared to the previous year. On
the other hand, recycled end-of-life-vehicles(ELVs) of such hybrids in Japan were about
25,000 units, one-fifth that of exported usedhybrid vehicles. “Even vehicles that should berecycled in Japan are going abroad,” warned arecycler.
Exports of used hybrid vehicles have been
rising year by year. In 2008, exports of suchvehicles totaled only 3,417 units: this figure
jumped approximately 35 times in FY2017.
According to the trade statistics of the Ministryof Finance, used hybrid vehicles are mostly
exported to countries that encourage thePortable reader of license
plate numbers tested, to be
used nationwide this autumn
On September 14, the transport ministrytested “portable automatic readers of license
plate numbers” in Kouzaki Machi, Chiba
Prefecture. The device automatically detects
whether the car’s mandatory inspection (knownas “Shaken”) is still valid or has lapsed. This was
the first trial run of the reader. It checked 746
vehicles in two hours, and detected two vehicles
with anomalies in their record. One vehicle’s
mandatory inspection had lapsed. The Ministryof Land, Infrastructure, Transport and Tourism

A streetinspection
using aportable readerof license plate
numbers

use of fuel-efficient hybrid cars as part ofenvironmental conservation efforts, such as
Mongolia, Sri Lanka, Pakistan, and Russia.
Meanwhile, the number of accepted hybrid
ELVs by designated operators were 22,487
units in FY2017. This comprised only 0.68
percent of total accepted ELVs. Sales of newvehicles in FY2017 totaled 5.20 million units.
Of that, hybrid vehicles accounted for 21.1
percent (1.10 million units). This means that
ELVs of used hybrid vehicles are accepted at
an extremely low rate.
The first-generation Prius hybrid waslaunched two decades ago in 1997. Although
ELVs of hybrid vehicles must increase year byyear, many more are exported from Japan. This
trend may affect the hybrid battery recycling
business (Daily Automotive News, Sept. 19 issue).

Extreme summer heatincreases the sales ofrecycled electric partsdue to extremely hot weather, the car’s airconditioning system is forced to run at fullcapacity. This increases the load on thecompressor and other electric parts.
Recycled parts sales company DragonParts of Fuji Giken Co., Ltd. said, “Both sales
volumes and revenue increased in July by about
40 percent compared to those in June.” Rebuilt
parts manufacturer Shin-Etsu Denso Co., Ltd.
also said, “Sales were more than expected.”
In general, rebuilt parts manufacturers usually
have ample stocks to meet the high demand insummer. However, this summer, the company
said, “For some parts, we have back orders.”.
The recycled parts industry promotes theirproducts to end users (car owners) and repair
shops. The use of recycled parts produces
less carbon dioxide (CO2) according to thelifecycle assessment (LCA) than that of newparts (genuine parts). However, consumerawareness of recycled parts is still very low.
The industry, backed by this summer’s extreme
heat, may gear up its efforts to raise awareness(Daily Automotive News, Sept. 18 issue).

Parts recyclers accept a record numberof inquiries
The extreme heat of this summer led to thedamage and failure of many vehicles, resulting
in an increase in sales of reuse/rebuilt parts of
air-conditioning compressors, alternators, andstarters. Stocks of some parts ran out.
At a meeting about recycled parts
businesses, a recycler said, “We have arecord number of inquiries for electric parts.”
Despite increasing temperature in the engine(MILT) evaluated the results, saying, “itperformed well in terms of both detection andtarget data capturing.” The ministry plans tointroduce ten units of the portable reader withenhanced usability during nighttime operations
and inclement weather. The transport ministry
aims to prohibit the plying of vehicles whose
mandatory inspection has lapsed.
The portable reader consists of a camera,
which captures the numbers on the license plate
and personal computer (an inbuilt database),
which matches data between the license plate andvehicle registration records. Information ofapproximately 5.16 million vehicles whose
mandatory inspections have lapsed is stored in theinbuilt database. The reader can instantly
determine that the vehicle’s mandatory inspection
has lapsed. Police then stops the flagged car andasks the driver to pull over into the cheking area
where MILT staff checks the vehicle inspection
certificate. If the staff confirm that the vehicle’s
mandatory inspection has lapsed, a warningstatement is issued. Further, the plying of suchvehicles violates the Road Traffic Law. As such,the police authority arrests the driver.
The September 14 test run was carried out at“Michinoeki Hakkounosato Kouzaki,” locatedalongside national road 356. Another unregisteredvehicle was found to be using the license plate ofanother car. The police took the driver in custody

Quality of rebuit parts parallels that of new partsand retained the car.
Masatoshi Akimoto, the MILT Vice-Minister,said, “This device is small and portable. It isdifficult to find the set up place. I hope this deters
the plying of vehicles with lapsed inspections.”
Defective vehicles were also detected by thetest run. Nine vehicles were inspected out of
which, five vehicles were issued maintenanceinstructions, including an instruction in light ofexcessive loading for a dump truck with “insertframe.” (Daily Automotive News, Sept. 18 issue)

CO2 Reduction Effect(based on JARA System)

The use of Reuse Parts saved

2,938 tons of CO2 emissions
in August 2018
The reference figure represents the difference ofcarbon dioxide (CO2) emissions at the vehicle repair
using genuine (new) parts and recycled parts.**: Based on "Green Point System", which was jointly
developed by the Japan Automotive Parts Recyclers
Association and Waseda University Environmental
Research Institute using a life cycle assessment (LCA)
technique.

JARA NEWS No. 128 October 2018 Page 3

JARA NEWS No. 128 October 2018 Page 4

Dismantling process flow chart
How the Car Dismantling machine works
1. Receiving andevaluating cars
Incomingvehicles tested
on dynamometerto check engine
condition

3. Parts collection

4. Collecting
undercarriageparts and engines

Efficiently collectreusable parts

The car is turned to safely
collect engine, exhaustsystem and suspension parts

Remove fluids such as fuel, various types ofoil and chlorofluorocarbon gas

13Cu

Al

CopperAluminium

63.546

Tyres

Batteries

Doors

Seats

Bonnets

ExhaustEngine Suspension

After treating, the scrap cars
are cut up and crushed orpressed into materials thatmeet industry needs

After pre-processing,
the car is sorted into raw
components such asferrous, non-ferrous andplastics
29

2. Collecting fuel, fluids andchlorofluorocarbon gas

6.Volume
reduction
processes

5. Car dismantlingprocessHarnesses

MotorsRadiator

26.982Blocks of material can then be
distributed to smelting plants
for recycling

5. Processes
after removing
parts
Once thoroughly
cleaned, the parts
become good quality
recycled parts

The Evolution of car dismantling industry by Kobelco
Four times* the vehicle dismantlingcapability compared with hand dismantling.

EngineCatalytic
AgentsBody SteelSeats

Improved recovery
rate of rare earth metals
Windows26

1329

78

46

FeAl

CuPt

Pd

Iron

Aluminium

CopperPlatinum

Palladium55.933*In one day (Kobelco test figures)

15 vehicles >Wheels/Tyres

26.98263.546

195.08106.42

Separation of these valuable
materials is quicker and easierand can be performed with one
Kobelco machine.

Sus pension

One operative
working by hand.
Radiator

60 vehicles >One operativein a Kobelco
Car Dismantlingmachine.

BrakesFront & Rear
Bumperswww.kobelco-kenki.co.jp/

www.samjung-kenki.co.kr/

KOBELCO CONSTRUCTION MACHINERY AUSTRALIA PTY LTD
www.kobelco.com.au/

FAIR FRIEND ENTERPRISE CO.,LTD.
www.ffg-tw.com/

The machine’s special attachment
is designed to strip materials from
End-of-Life Vehicles (ELV)safely and thoroughly
Transmission

For Japan

For Korea

For Australia

For Taiwan

DoorsHarnesses

www.kobelco-jianji.com/

www.kobelco-usa.com/

www.kobelco-europe.com/

For China

For North America

For Europe