Automotive replacement component business framework review

The automotive Replacement Component (RC) industry is a low volume, high profits business. Since RCs are used to replace failing, failed, or worn components for in-service vehicles, it is a business that is needed to support the vehicle for its entire life duration. RCs also requires no component de...

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Bibliographic Details
Main Authors: Mat Jusop, Mohamad Hanapiah, Hamzah, Halim Shah, Haron, Habibah @ Norehan
Format: Conference or Workshop Item
Language:English
Published: 2015
Subjects:
Online Access:http://eprints.utm.my/63353/
http://eprints.utm.my/63353/1/HalimShahHamzah2015_AutomotiveReplacementComponentBusinessFrameworkReview.pdf
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Summary:The automotive Replacement Component (RC) industry is a low volume, high profits business. Since RCs are used to replace failing, failed, or worn components for in-service vehicles, it is a business that is needed to support the vehicle for its entire life duration. RCs also requires no component development cost thus making it a business that any manufacturer can easily enter, resulting in a variety of price-quality option in the market. Furthermore, RCs can also be remanufactured from recovered End-of-Life Vehicle (ELV) components. This paper reviews relevant literature on the topic and introduces the types of Replacement Equipment Manufacturers (REMs) available, the perception of its RCs, and the ecosystem it operates in. Gap in current literature in terms of existing frameworks will then be discussed as to justify the need to develop a dedicated framework on the RC business in order to support existing automotive industry ecosystem frameworks.