The Automotive Parts Remanufacturing Recycling Model Analysis

The development of economy and the improvement of mass consumption’ level greatly stimulate the people’s demand for private cars. With the sustaining growth of car ownership, discarded quantities are increasing at the same time. All this leads to a fact that wastes are piled up at will, and some environmental problems such as heavy metal pollution. As an emerging industry in China, remanufacturing of auto parts can provide a best solution to solve serious problems of environmental pollution brought by the scrapped automobiles and waste of resources, which not only has the remarkable social benefits and economic benefits, but also has very important environmental benefits. It plays a significant role in promoting developing circular economy and building energy-efficient and environment-friendly society.At present, the development of auto parts remanufacturing industry is still at its preliminary stage. There exist many problems, such as not sound relevant recycling management system, lack of corresponding incentive policy, and low public approval of remanufacturing products, which seriously restrict the development of this industry. As strong promoters of auto parts remanufacturing industry, government and other environmental protection agencies of society should take certain incentive and promotional measures to participants of the closed-loop supply chain to accelerate the rapid development of remanufacturing industry. This article mainly analysed from two aspects.In the study of mode of incentive measures implanted by the government, let us assume that there exists a manufacturer and two retailers in the market. Under this prerequisite, the corresponding recycling model is built according to the recycling subject of old parts and different objects of the government rewards and punishment. Through the comparative analysis, we can get optimal revenue recycling model under different conditions.In the study of public service advertising’ impacts on auto parts remanufacturing market, the author applies the theory of consumers’ expectations, establishes the corresponding utility function, and puts consumers’ expectation of remanufacturing quality into the model. The study indicates that the marketing demands of remanufacturing parts will reduce with the increasing of selling price, and increase with the improvement of remanufacturing products’ quality. Under the influence of public service advertising, the promotion of consumers’ recognition for remanufacturing products will increase the marketing demand.