Truck Parts and Service

February 2013

Truck Parts and Service | Heavy Duty Trucking, Aftermarket, Service Info

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Remanufacturing Update third, progression of vehicle ownership. These vehicle owners are looking for the most cost-effective ways of servicing and repairing their vehicles without compromising turbo quality or warranty protection. This makes the older vehicle a key target for remanufactured turbo opportunities. Turbochargers remanufactured by Detroit Diesel and BorgWarner are tested to original OE speci���cations before being sold. remanufactured turbo is the cost advantage over a new turbo. Because we are able to recover many components, the savings are passed on in the end price to the customer who wants a high-quality part at a competitive price. The bene���t of a remanufactured turbo versus a repaired turbo is a guarantee that each component in the remanufactured turbo has been tested and is as good as a new component. A repaired turbo is not tested to OEM standards like a reman product. From environmental and corporate perspectives, there are tremendous bene���ts. Because our raw material is an existing core component, not only does remanufacturing drastically reduce the number of used parts that goes to scrap or land���lls, it also saves energy and material that would normally be required to build a new component. Miles: All participants in the sales channel, as well as the reman turbo consumer, experience a lower cost of component bene���t with a same-as-new warranty. Remanufacturing also ���ts nicely with BorgWarner���s environmentally friendly ���green��� culture. Fleet customers, in numerous cases, have adopted the same green practices. W W W . T R U C K PA R T S A N D S E R V I C E . C O M TPS0213_Remanufacturing.indd 23 One key step in the remanufacturing process of a turbocharger is cleaning the core and bringing it back to its original state. How do remanufactured turbochargers ���t into a distributor���s parts strategy? Ballard: Stocking and selling remanufactured turbochargers allows distributors to offer a spectrum of price points to customers. The remanufactured product is a cost-competitive option compared to new. The customer is able to get a quality part with comparable warranty at a less expensive price. Miles: Reman turbos offer a great ���t for distributors looking for pro���table new business opportunities. Engine parts sold by the distributors can be bundled easily with reman turbos to maximize the ticket, while offering a cost savings to the customer. Moreover, remanufactured turbochargers offer OE quality products at a competitive price, enabling the distributor to compete in the turbo service market. Does the aging truck population present opportunities for remanufactured turbochargers? Ballard: Yes. Truck owners are holding on to their trucks a lot longer now, and they are looking for less expensive components. The reman turbocharger ���lls that need. Miles: Absolutely. Many vehicles have now aged out of warranty protection and may be in the second or, in some cases What do you see in the future for remanufactured turbochargers? Ballard: Turbochargers on Detroit engines will continue to be sophisticated. While the complexity of the assembly will be easier to deal with, tolerances within the turbo have become tighter to improve wear and overall turbo ef���ciency. This shift has allowed Detroit Reman to focus efforts on improving machining and measurement capabilities. The future for remanufactured turbos includes advanced metal options and additional computer controls. The use of remanufactured turbos and remanufactured products in general will continue to grow as customers better understand the quality and value of a remanufactured product. Miles: Factory remanufactured turbo programs still are in their infancy of revival, even though BorgWarner has specialized in the remanufacturing of turbochargers since the early 1980s. The age of the trucks, the cost of ownership for new trucks ��� coupled with the mindset of the cost-conscious buyer ��� has created a condition where demand for reman turbos will be around for a while. Vehicle complexity will continue to increase the cost of replacement parts, making remanufactured turbochargers an attractive replacement part option. Moreover, improved reman turbocharger application coverage will continue to help improve vehicle uptime at a lower cost. ��� F e b r u a r y 2 0 1 3 | T R U C K PA R T S & S E R V I C E 23 1/22/13 1:59 PM

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