JAERA hit by Japan’s death of ELVs

Japan – Over the last few months, the Japanese End-of-life-vehicle Recyclers Association (JAERA) has lost a significant number of members owing to the decreasing generation of ELVs in the domestic market.

Originally made up of over 1000 firms spread across the country, JAERA’€™s membership numbers have dwindled to nearer 700 over a six-month period, it has been reported. A continuation of the tough conditions facing the ELV industry – including scarcity of vehicle supply and ever-rising purchasing costs – will trigger even more departures this year, it is feared.

Those companies which joined the sector after Japan’€™s Automobile Recycling Law took effect in 2004 appear to have been hardest hit, not least because more powerful brands such as Nissan and Honda are making strides to take greater control of the recycling of their vehicles. This development has put both dismantlers and sub-contractors under additional strain to meet the demands of car makers.