SIMS Metal Management Ltd: SRS Restructuring Initiatives and Related Charges

Sims Metal Management Limited has announced restructuring initiatives designed to reset and streamline the Sims Recycling Solutions ("SRS") business as part of a Group strategic review currently being undertaken.

The review has determined certain loss making assets to be outside of the strategic long-term interests of the Company. 

These operations include a substantial portion of SRS in the UK and all of SRS in Canada. Legislation and market dynamics in the UK and Canada have resulted in these businesses being commercially unattractive to the Company going forward. The Company will redirect its capital and resources instead to other portions of the global businesses that are more attractive as it continues to develop its platform for SRS customer relationships worldwide.

The Company's UK Metals operations, fridge recycling and IT asset management solutions are core and therefore not impacted by the restructuring activities. SRS operations outside of the UK and Canada are also core and therefore not impacted by the restructuring activities.

The Company expects to recognise restructuring charges of circa $80 to $85 million of which the non-cash portion relates primarily to fixed asset impairment and is circa $35 million. The restructuring charges will be recorded as significant items in the Company's second half results of FY14.

Parts Standards

MVDA believes that giving customers confidence in the parts they are buying, and the business selling them, is essential in increasing the use of ‘green parts’.  

As a result, MVDA will be adopting & promoting the ARA Parts Standards, and BSI’s PAS777.  

The Automotive Recyclers Association of America was established in 1943 (the same year as MVDA) and its parts standards programmes have helped to make the use of ‘recycled parts’ widespread in the insurance repair industry in the USA.  

PAS777 was developed in the UK by BSI in 2013 to help more accurately describe engines & gearboxes.

Further information about ARA parts standards can be found using this link & there are also copies in the members section of the MVDA website (Documents of Interest).

Motor Vehicle Dismantlers Association of Great Britain Office 5, Top Floor,
Charrington House, 17A Market St, Lichfield, Staffordshire, WS13 6JX, UK.

Email: info@mvda.org.uk
Tel: (01543) 254 254
Fax: (01543) 254 274 

Recycling Targets - SIMS Target Contribution

Members are reminded that the deadline for submission of 2013 85% recycling target data is 1^st July - now less than 1 week away.

It would appear that Sims has still not yet written to their ELV shell suppliers outlining Sims target contribution (last year it was 50kg/ vehicle).

We have spoken several times about this to Paul Hallet at BIS.  He is aware of the situation, and has confirmed that this will be taken into account.

We would suggest to those members that are reliant on the Sims target contribution to attain the 85% target to contact BIS ASAP and let them know.  An updated result can then be sent to BIS when the Sims ‘situation’ is clearer.  However, if you do not contact BIS and/ or submit data, then it appears that you are failing  to report at all.

If you have any queries, please call or e-mail the office.

Motor Vehicle Dismantlers Association of Great Britain Office 5, Top Floor,
Charrington House, 17A Market St, Lichfield, Staffordshire, WS13 6JX, UK.

Email: info@mvda.org.uk
Tel: (01543) 254 254
Fax: (01543) 254 274 

Allianz Announces Responsible Salvage Handling

Allianz Insurance has changed its approach to categorising salvage vehicles to help improve road safety in the UK.

The move has been prompted by concerns that other arrangements risked allowing written-off vehicles to be repaired and sold to new owners. There was also a risk that the new owner might not realise the vehicle had been written off.

To address these concerns, Allianz now categorises all total loss salvage that has suffered impact, flood, fire, or safety related damage as A, B, C or D using the ABI Salvage Code of Practice and the Engineering Technical Committee (ETC) guidelines.*

The inspecting engineer will now also consider the phrase ‘Can, Could, Would and Should’ the salvage be repaired. If it is considered irreparable, it will be categorised as ‘B’, broken and removed from the public domain.

All total loss vehicles will be fully estimated using original equipment parts and full bodyshop labour rates, and all salvage categorisation will be agreed with Allianz’s salvage partner Car Transplants Ltd. In order to enhance the inspecting, estimating and categorisation process, Allianz will now also have engineers permanently stationed onsite at Car Transplants Ltd.

The Motor Insurers Anti-Theft and Fraud Register will be notified of salvage within 48 hours following the engineer’s inspection and categorisation.

All category A and B salvage will be broken in-house by Car Transplants Ltd, and a Certificate or Notification of Destruction (COD or NOD) will be issued to DVLA within seven days following bodyshell destruction. These measures will minimise the risk of written-off vehicles returning to the road and create an audit trail improving the process of checks on second-hand vehicles.

Ian Guest, claims supply manager, Allianz Insurance, said: “While the previous arrangements were entirely legal, as a responsible insurer we have a moral duty to safeguard the public.”

He added: “Hopefully this will create a better way of working and other insurers will follow our lead. It’s a simple matter of doing the right thing.”

* Allianz will not be using the section that applies to ‘unrecorded salvage’.

Click Here for the full Press Release

Changes to Vehicle Tax

You’ll already know that from 1 October 2014, the paper tax disc will no longer be issued or need to be displayed on a vehicle windscreen.

But did you realise that from the same date, when you buy a vehicle, the vehicle tax will no longer be transferred with the vehicle?  The new owner will need to tax the vehicle themselves before they can use it.  They will be able to tax the vehicle using the New Keeper Supplement (V5C/2) part of the vehicle registration certificate (V5C) at the Post Office, online or by phone.

If a taxed vehicle is sold after 1 October and DVLA is notified in the normal way, the seller will automatically get a refund for any full calendar months left on the vehicle tax.

At this stage we understand that those members that have been reclaiming tax remaining on ELVs entering their premises will now no longer be able to do so.

Engine/Gearbox Export with a difference

BBR Procurement Ltd (BBRP) is offering members an engine-gearbox export service, but with a difference.  A number of members are already using the service.  BBRP is being run by a couple of gents that will already be familiar to many of you – Mike Rivers, ex-Ford & CTB, and Mike Booth, ex-CTB.

BBRP provide access to a website which uses ‘number plate recognition’ to identify which engines-gearboxes are required by their clients, and generates a quote for the units.  These quotes are valid for 30 days.  Currently, we understand that there are abut 600 lines required, with more being added continuously.

The emphasis is on exporting good reusable engines-gearboxes, not scrap, possibly those which members have in over-supply (e.g. certain Ford Ka engines).  So clearly, the units must start & run, and not have holes in the sumps or blocks.  Units are expected to be supplied as engine + gearbox with ancillaries (e.g. starters, alternators etc.) attached.

This offers a second or third level outlet to members, at prices better than scrap.  But it also aims to cut out all the ‘messing about’ often associated with exporting.  Once a quote has been accepted, it will be honoured for 30 days.  The supplier needs to deliver the depolluted units to the BBRP premises in Guildford, but this can be done in bulk.

There is a small monthly cost attached to the use of the website, but this depends upon the level of use by the member.

Any member interested should contact BBRP for further details

BBR Procurment Ltd.

www.bbrproc.co.uk

(01992) 568 208

Mike Rivers 07713 515 370

Mike Booth 07789 911 883

VIC - Other Government Considerations

The DfT recently wrote to MVDA in relation to the proposal to scrap the VIC scheme.  The edited extracts below indicate the thoughts of Government, particularly those areas where there are outstanding concerns and further work is required.  You will recognise many of the concerns outlined over the years by MVDA and its members.

The consultation in 2012 on the future of the VIC scheme and subsequent discussions identified major concerns with the current VIC scheme.  This reinforces consultation responses which appear to support the abolition or at the very least a radical alteration of how the scheme works.  The main issue highlighted by respondents was around roadworthiness, for which the VIC scheme was never intended to be used.  This perception of the VIC being a roadworthiness check means that we have a re-educating role to play in informing the public how roadworthiness issues should be dealt with.

The review of the VIC scheme also identified issues of consumer protection and the state of some accident damaged repaired vehicles.  Publicity following two accidents involving previously written-off vehicles has raised again concerns with the quality of some accident repaired damaged vehicles. DfT would like to discuss further with key stakeholders, including the Association of British Insurers, about how this issue can be addressed and to formulate options on taking it forward.

DfT would like to give consideration to whether the insurance industry (ABI) Code of Practice (on disposal of Motor Salvage) should be given a statutory footing, enabling more control on how repairs are carried out and the categorisation of vehicles after they have been in an accident.  The following points need particular consideration:

1. If the insurance industry has categorised a vehicle as either A and B should it ever be repaired?
2. Should it be an offence to return category A or B vehicles back to the road unless they have gone through an enhanced MOT/exceptional procedure?
3. How can we stop the few category A and B accident damaged vehicles from going back on the road when there is currently nothing legally to prevent them from doing so?
4. Do we want to license technicians/ body shops/ garages, accrediting them to undertake repairs on some types of accident damaged vehicles?
5. With the abolition of the VIC scheme there will no longer be a VIC marker flagging the vehicle as having been in an accident.  So going forward should the insurance industry be sending V5C for category C written-off vehicles to the DVLA for marking that it has sustained ‘serious damage’
6. Should we continue to use the literal wording of ‘seriously damaged’ on the re-registration document, or use different wording depending on the damage sustained?
7. How can we ensure that the buyer of a used vehicle knows the vehicle has been written-off and repaired, and that it has been done so to an approved standard?
8. Where an accident damaged vehicle has been written-off should it then undergo a MOT, irrelevant to when the vehicle last went through one?
9. Should all or some categories of written-off vehicles be inspected before going back on the road, or a sample of them depending on the nature of the damage, and who should be undertaking these inspections?  If this is implemented it may require an extra level of MOT testers and VVRA body shops with an additional layer of competence and skill to be able to identify issues on repairs where they can.
10. Should crash damaged vans and motorcycles be brought in scope of the ABI COP?
11. We would also like to explore the supposed mis-categorisation of vehicles and the alleged misuse of category D.

 The views of members on any of these points are welcome.

VIC Scheme Abolition FAQ's

1. WHY HAS THE DECISION TO ABOLISH VIC BEEN TAKEN?

At the time of its inception VIC was aimed at deterring the crime of replacing the identity of a stolen car with that of a cheaply bought total loss (write off) car of the same type.  This is commonly known as ‘ringing’.  Insurance companies operate within a Code of Practice for categorising write-offs.  The VIC scheme applied to all written off cars in salvage categories A, B or C.  Experience has shown that this has placed a burden on a large number of owners who have opted to retain the salvage (i.e. the car) because relatively minor damage can result in repairs costing more than the value of the vehicle.  For many motorists, it has become an unnecessary procedure, particularly when a vehicle has remained in the hands of the same keeper for several years and the market value is low.

2. WHY HAS THE SCHEME NOT BEEN SUCCESSFUL?

Since the start of the scheme in April 2003 less than 40 so-called ‘ringers’ have been detected from around 916,000 checks completed over the 11 years to 2013.  Data provided from the British Crime Survey has demonstrated that vehicle theft continues to fall and has been doing so since the 1990’s, prior to the VIC scheme being introduced.  The deterrent effect of the VIC scheme is difficult to quantify due to the way the police record vehicle crime related offences. Additionally vehicle technology and the processes adopted by police forces to track down organised vehicle crime are far better than they were at the inception of the VIC scheme.  About 75% of the checks were undertaken on cars which were 7 years or older, written-off because the cost of even small repairs were greater than the very low market value of the vehicle, often meaning that the cost of the check fell on the less well-off members of society.

3. WHAT WAS THE PURPOSE OF VIC WHEN IT STARTED?

The VIC scheme was introduced in April 2003 with the purpose of deterring the crime of vehicle ringing.  Typically this involved the theft of a car of significant value, which is then given the identity of a similar car (make, model, colour etc) which has been the subject of an insurance write-off.  The written-off car is obtained cheaply; it identity (Vehicle Identity Number (VIN) and Vehicle Registration Mark (VRM)) is then transferred to a higher value stolen car which, now apparently genuine, can be sold at market price.  This is known as vehicle ‘ringing’.  The check was designed to prevent vehicle ‘ringing’ by confirming that the car presented for check is legitimate.

4. HOW DID THE CHECK REDUCE CRIME?

When a car is written off or declared scrapped due to substantial damage to bodywork the V5C registration certificate is surrendered to the insurance company.  If the car is repaired with the intention of putting it back on the road, DVLA will not issue a new V5C logbook until the car passes a VIC.  If the identity of the car is in doubt it will fail the check.  This meant that DVLA will not issue a new V5C logbook or vehicle tax disc for the vehicle.

5. HOW CAN I TELL IF A VIC IS REQUIRED?

A VIC is required for all cars notified to the Driver Vehicle Licensing Agency (DVLA) as written off (category A, B or C) and returning to the road.   Since 7^th April 2003 DVLA have kept a record of all cars that require a VIC check. . You can contact the DVLA for advice on whether the car requires a VIC test (you can also check on-line)

6. HOW ARE VEHICLE IDENTITY CHECKS MADE AND WHO DOES THEM?

VICs are undertaken by the Driver Vehicle Standards Agency (DVSA) in Great Britain and by The Driver and Vehicle Agency (DVA) in Northern Ireland on behalf of the DfT.  The check will compare the car presented against information held by DVLA such as the chassis number, make, model, and colour and engine number.  Other components may also be checked to confirm the age and identity of the car.  The inspection will also compare the record of previous accident damage with evidence of the repair.

7. WHAT ARE WE GOING TO REPLACE VIC WITH?

The vehicle crime element is now largely dealt with by modern vehicle technology that has improved vehicle security over the 10 years since the inception of the VIC scheme.  This is demonstrated by the very low number of vehicles that have been discovered to be rung. Various options to modify the scheme were explored but no viable filters could be put in place without over complicating matters and imposing greater burdens on some customers.  The Department has committed to investigating further with the Home Office and industry what, if anything, will replace VIC.

8. IS THERE ANY OTHER WORK YOU ARE DOING CONNECTED WITH WRITTEN-OFF VEHICLES?

We have contacted a number of stakeholders to consider a number of issues further with them before the October 2015 abolition of VIC.  These issues include:

• considering a statutory basis for the insurance industry’s code of practice about written-off vehicles;
• information for purchasers/ consumers related to previously written-off vehicles;
• vehicle registration documentation; and
• considering measures related to very severely damaged vehicles (including category Bs)

9. WHERE DOES THE VIC SCHEME APPLY?

It is currently in operation across the United Kingdom, with checks done in Great Britain by the Driver and Vehicle Standards Agency and Northern Ireland by the Driver and Vehicle Agency.   We want to ensure a Northern Ireland perspective is included in the issues for further consideration

10. HOW WILL WE PREVENT VEHICLE RINGING IN THE FUTURE?

Since 2003 it has not been demonstrated that the scheme has not done what it set out to do.  The Department will work closely with its stakeholders to establish if anything is required in the future.

11. WHAT HAPPENS TO CARS THAT ALREADY HAVE A VIC MARKER?

The Department will be considering further with DVLA and industry how VIC markers will be treated during the period up to abolition.  The current position is that cars with a VIC marker will continue to require a VIC to remove the marker until October 2015.

12. WHAT WILL HAPPEN TO OUTSTANDING VIC FAILURES WHEN VIC IS ABOLISHED?

Any vehicles that have a VIC inspection and fail it before the abolition will be treated as they are now.  A registration certificate will not be issued until it can be demonstrated that the car is not a rung vehicle.  The process already in place will continue until the scheme is abolished.  The Department will be considering this further with stakeholders during the period up to abolition.

13. WILL VIC MARKERS STOP BEING ADDED PRIOR TO ABOLITION?

The Department will be considering this with stakeholders during the period up to abolition.

14. HOW SOON BEFORE VIC CEASES WILL DVSA STOP TAKING APPLICATIONS?

The Department will be considering this with DVSA and industry during the period up to abolition.

15. HOW WILL I KNOW THAT MY WRITTEN-OFF VEHICLE IS ROADWORTHY FOLLOWING REPAIRS WHEN VIC IS ABOLISHED?

It was perceived that the VIC scheme was to do with roadworthiness.  The scheme was never intended, or ever has been, used as a means to determine roadworthiness. During the Department’s consultation concerns were expressed that the roadworthiness and crashworthiness of rebuilt written-off vehicles should be subject to checking.  The Department is committed to investigating this further with industry. 

16. WILL ABOLISHING VIC MAKE IT EASIER TO GET WRITTEN-OFF VEHICLES BACK ON THE ROAD?

Yes, this will avoid waiting for an appointment for the VIC inspection to be undertaken, which can have a lead time of up to 6 weeks.  However, the Department will be considering further the processes for ensuring that the car has been repaired and is roadworthy prior to the issuing of the V5C.

Scrapping the VIC scheme - what happens now?

You will already know that on Monday 9^th June DfT announced that the VIC scheme was being abolished from October 2015.  This was MVDAs view in response to the 2012 VIC consultation.

However, DfT also made it clear that there were a number of other problems that had been brought to their attention during the 2012 consultation process.  They were aiming to start to address these issues immediately, so that measures could be put in place before VIC was abolished.

It is not yet clear how the VIC scheme will be phased out & any new arrangements put in place.  But MVDA has been invited by DfT to form part of a small working group to look at these problems, and their potential solutions.  The first meeting will be taking place very shortly, so the Government means to press ahead rapidly.

DfT has provided a set of VIC FAQs and we will forward these to you in a separatee-mail and also post it on the MVDA website shortly.

I will also explain some of the other issues of concern and their implications for members

In the coming weeks and months please do let us have your views on the various aspects being discussed.

These are all very important issues for members, so we will continue to keep you regularly updated.

Thank you to the CARS 2014 ‘Behind the Scenes Team'

With CARS2014 now over & thoughts turning to CARS2016 (particularly a potential location in the South of England), a quick word of thanks to some of the key people that helped organize the event, on voluntary (unpaid) basis:

•  Chris Floate, Editor of the MVDA magazine and ATF-Professional
• Terry Charlton, long-term member of the MVDA, and past MVDA Chairman
• Andy Latham, MD of Salvage Wire Consultancy (ex. Bluecycle)

And of course to:

•  Richard Martin, MD of Motorhog, who hosted the show at his fabulous site near Doncaster.

We will shortly be updating the MVDA website (members section) with images from the 2014 show

Government Competition and Markets Authority: Changes for Private Motor Insurance

The Competition and Markets Authority has today set out the changes it proposes to make in the private motor insurance (PMI) market to increase competition and reduce the cost of premiums for motorists.

The measures include:

• a cap on the charges passed to the insurer of an at-fault driver in an accident for the cost of providing a replacement vehicle to the non-fault driver, to more closely reflect the costs incurred and remove significant inefficiencies
• better information for consumers about their rights following an accident
• a ban on price parity agreements between price comparison websites (PCWs) and insurers which stop insurers from making their products available to consumers elsewhere more cheaply
• better information for consumers on the costs and benefits of no-claims bonus protection
• a recommendation that the Financial Conduct Authority (FCA) looks at how insurers inform consumers about other PMI-related add-on products

The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. From 1 April 2014 it took over the functions of the CC and the competition and certain consumer functions of the Office of Fair Trading (OFT), as amended by the Enterprise and Regulatory Reform Act 2013.

The Competition and Markets Authority (CMA) will now consult on these measures before publishing the final decision of its independent group of members in September 2014.

In December 2013, the CC’s provisional findings report found that there was a significant difference between the costs incurred by at-fault insurers in providing a replacement vehicle and the costs charged to the at-fault insurer when the replacement vehicle was provided by others. The CC found that this difference had the effect ultimately of increasing the cost of PMI to consumers.

The CC also found that some price parity clauses in contracts between PCWs and insurers had the effect of suppressing competition on price and were likely to lead to higher PMI prices overall.

In addition, the CC found that limited information in the sale of PMI-related add-on products to consumers made it difficult for them to compare the costs and benefits of products and to identify best value, in particular in relation to no-claims bonus protection.

At the time of its provisional findings report, the CC published a notice of possible remedies outlining potential measures in response to these problems and, following detailed discussions with a range of industry groups, the CMA has now identified what it considers will be the most effective actions to improve the market for motorists.

Alasdair Smith, Chair of the private motor insurance investigation group and CMA Deputy Panel Chair, said:

“There are over 25 million privately registered cars in the UK and we think these changes will benefit motorists who are currently paying higher premiums as a result of the problems we’ve found.

A cap on replacement vehicle costs will reduce the amounts charged to insurers of at-fault drivers, which will cut out some of the inefficiencies in the system and feed through to reduced premiums for all drivers. Through the measures we propose to introduce, we will address the problems that stem from those managing the non-fault accident claim having little or no incentive to keep costs down.

There also need to be improvements to the way price comparison websites operate. We believe they are great in helping motorists look for the best deal, and this in turn has driven insurers to compete more intensely, but we want to see an end to clauses which restrict an insurer’s ability to price its products differently, whether on different price comparison sites or on other channels.

We also find that the way motor insurance-related add-on products are sold makes it hard for customers to obtain the best value. We would like the FCA, as part of its on-going work looking at add-ons across all insurance products, to consider how drivers could be better informed in making their choices. We find that there are particular problems in relation to no-claims bonus protection, where both the price of this product and its benefits are often unclear to consumers, and we believe insurers should provide much better information about it.”

The CMA has also today published 2 working papers. The first contains a revised estimate of the costs to consumers which flow from the inefficiencies arising from the separation of cost liability and cost control in relation to the management of non-fault claims. The CMA finds that the costs to consumers in relation to the provision of replacement vehicles to non-fault claimants are between £70 million and £180 million per year. The second working paper presents a revised assessment of the quality of post-accident repairs. The CMA concludes that there is insufficient evidence of a problem in relation to competition with post-accident repair quality for it to intervene. Nevertheless, it observes that it is still concerned about the arrangements of many insurers for monitoring repair quality which appear to rely too much upon consumers identifying repair deficiencies.

The CMA’s investigation into PMI has focused on issues related to competition (rather than on any of the other topical issues in relation to motor insurance, for example fraud). The CMA has also not considered personal injury claims in its investigation, given recent changes implemented by the Ministry of Justice, such as the banning of referral fees for such claims, and other changes being considered.

The CMA has gathered evidence from more than 100 parties, including through multi-party hearings, individual hearings and written submissions. It has also commissioned two consumer surveys, some focus-group market research and a post-accident repair assessment.

The provisional decision on remedies, 2 working papers and all other information on the investigation are now available on the private motor insurance case page. The CMA is required to publish its final report by 27 September 2014.

News from DVLA - Newsletter June 2014

DVLA has now issued its latest industry newsletter (no 8).  It is available from the members section of the MVDA website, or it can be found following this link:

 https://www.gov.uk/government/publications/newsdvlaissue-8

Copies of previous DVLA newsletter are also available from the MVDA website or the publications section of the ‘.gov.uk’ website

The latest edition of news@dvla includes:

• an insight into the work of the project team for the abolition of the tax disc
• DVLA’s Strategic Plan outlining the goals and direction for the next 3 years
• an interview with Robert Kennedy,  a key industry stakeholders working with DVLA on first registration and licensing matters. Robert is the Society of Motor Manufacturers and Trader’s Head of Automotive Information Services
• a request for your views on how DVLA currently engage with you – what would you expect to see in DVLA’s Stakeholder Strategy
• plans to abolish the counterpart driving licence
• an update on digital exemplars, View Driver Record, Vehicle Management, Personal Registrations and Vehicle Enquiries
• changes to category restriction codes on driving licences
• details about the migration of Government Secure Intranet (GSI) and Convergence Framework (GSF) connections to the Public Services Network
• the award for vision testing services to Specsavers Optical Superstores Ltd
• the introduction of smart motorways by the Highways Agency
• keeping up-to-date on your journey by using digital radio

CARS2014 - ANOTHER SHOWCASE FOR OUR INDUSTRY

Well, the CARS event is over for another year, and it’s back to business as usual.

Did you manage to visit the show?  And did you come & see us at our stand?

We understand that visitor numbers were slightly up on 2012, with many exhibitors saying that they’d done good business.

If you did visit the show, please let us have your comments, and we will feed these back to the organisers.  We have already had messages from a number of members saying what they:

• Did and didn’t like
• Thought worked and didn’t work
• Needed improving
• Would like to see next time

We’ve also had some comments about why some people might not have attended.

So come on, don’t be shy.  Tell us what YOU thought.

Motor Vehicle Dismantlers Association of Great Britain Office 5, Top Floor,
Charrington House, 17A Market St, Lichfield, Staffordshire, WS13 6JX, UK.

Email: info@mvda.org.uk

HBC Vehicle Services win 3 year deal to handle ERS salvage

HBC Vehicle Services has today announced they have won the ERS Contract from their incumbent salvage provider, Copart.

Jim Chatten, HBC's Commercial Director comments: "The ERS business will cover the whole of the UK and encompass all 10 HBC sites. It is great testimony to all the team at HBC to win this account ahead of competition."

HBC are well placed to handle the volume of ERS vehicles, both in their established sites, and newly acquire strategic sites. HBC will continue to invest in sites throughout 2014.

Steve Hankins, Managing Director, comments: "We are thrilled to have won such a prestigious account and very much look forward to working in partnership with ERS. Now in our 50th year of business, HBC holds an unrivalled reputation for providing a friendly but professional service, never compromising on quality."

HBC has continually led the industry with innovative solutions to offer outstanding service and are currently rolling out their Launchpad - a brand new web based system that insurers will have direct access to, offering efficient and measurable business solutions.

Steve Fry, ERS Head of Strategy & Commercial comments: "Following a three month tender process, HBC proved to be the best business model to work with ERS and we too look forward to building our working relationships with HBC and to developing a rewarding long-term relationship for both companies."

HBC will take over the account with immediate effect for a period of 3 years.

DVLA: They Say No! (to category A & B vehicle export for repair)

Over the years we have been critical of DVLA for allowing category A & B vehicles to be returned to use on the road, both in the UK and overseas.  But it turns out it’s more complicated than might first appear.  Some claimants withdraw the claim and retain the damaged vehicles, and some insurers allow claimants to retain salvage as part of the claim settlement.  But if someone buys from auction and repairs a category B vehicle, then as long as the vehicle passes a VIC, DVLA are by law currently unable to refuse to issue a new V5. – their hands are tied.

In recent months, it has become clear that DVLA has been getting much tougher on this issue.  DVLA will not provide a replacement V5 or export documentation for any category A or B vehicle, irrespective of the cost/ value of the vehicle.  We understand that there has recently been a prime example of an overseas customer requesting documentation for a high value cat B vehicle purchased from a UK salvage ‘auction house’ that they wanted to repair overseas. DVLA said NO!  MVDA fully support DVLA on this.  But MVDA would like to go much further and see all category A and B vehicles destroyed in the UK & a COD issued – no category A or B vehicle should ever have a new V5 issued.

Insurers also have an critical role to play here – it is the responsibility of the insurer and its primary salvage agent to ensure that every category A & B vehicle is destroyed and a COD issued.  If the insurers primary salvage agent cannot deliver this, then an alternative salvage agent should be contracted, as there are well established examples of this ‘best practice’.  It is also essential that salvage is correctly categorised in the first place, and we all know that this is currently a widespread problem.

Motor Vehicle Dismantlers Association of Great Britain Office 5, Top Floor,
Charrington House, 17A Market St, Lichfield, Staffordshire, WS13 6JX, UK.

Email: info@mvda.org.uk
Tel: (01543) 254 254
Fax: (01543) 254 274 

VIC Scheme Update

We understand that the Department for Transport is planning to make an announcement in the next week or so on the future of the Vehicle Identity Check (VIC) scheme.  You will recall that DfT issued a consultation on this in 2012 which suggested it had achieved little and proposed 3 options:

• Retain, unchanged
• Abolish
• Retain a modified version.

Most consultation responses agreed that the scheme should NOT remain unchanged, and we understand that Government think similarly.  But as yet, although we understand Government now has a preferred option, we have no indication of their broader thinking.

We hope to hear something early next week, and will update members accordingly.

Motor Vehicle Dismantlers Association of Great Britain Office 5, Top Floor,
Charrington House, 17A Market St, Lichfield, Staffordshire, WS13 6JX, UK.

Email: info@mvda.org.uk
Tel: (01543) 254 254
Fax: (01543) 254 274 

Recycling Targets - A Reminder

BIS has recently issued a reminder to ATFs for submission of recycling target data for vehicles processed during 2013.  The deadline for submissions is 1^st July 2014.  This letter can be found in the members section of the MVDA website (documents of interest).  If you have lost your website login details, contact the MVDA office.

Members contracted to the ‘service providers’ CTB or Autogreen should make sure that they have provided all of the requested COD and vehicle information, and they will then take on the recycling target liability.

Any member not contracted to CTB or Autogreen should already have arrangements in place, with whichever shredder or metal merchant they sell shells to, for provision of recycling target contributions.

In the past, both EMR and Sims have provided a contribution of 50kg per vehicle of non-metallic post-shredder recovery to their suppliers.  Together with depollution and non-metallic parts sales, this should have been sufficient to reach the 85% target.  We understand that EMR has already sent a letter to this effect to suppliers, but we have not had this confirmed.  Sims does not appear to have yet sent out such a letter.  If you have not received a letter about target contributions from the appropriate shredder operator it would be prudent to contact them yourselves, now.

The last vehicles to which the 85% target will apply will be those processed during 2014 (and on which you will need to have reported by 1^st July 2015).

From 1st January 2015 the recycling target rises from 85% to 95%.  This extra non-metallic material can only be delivered by additional post-shredder recovery.  Never-the-less, in law any non VM-contracted ATF that accepts scrap vehicles for treatment is legally responsible for meeting the recycling targets themselves.  So it is vitally important that you make arrangements in advance.  You will not be required to report to BIS on 95% targets until 1^st July 2016 (and this will apply to vehicles processed during 2015).

We understand that CTB are planning to achieve the 95% target via Axion Polymers.  Although details are scarce, we also understand that EMR are investing in 2 plants to recovery plastic for recycling and for energy recovery from the remainder.  We have no news on what Sims is planning to do.

The recent BIS letter also includes information about meeting the 95% target.

If you have any problems with obtaining target contributions, or completing the forms, please contact Chas at the MVDA office 

                                                                  Target reporting timetable

                                Target level    Vehicles processed during         Reporting deadline
                                        85%                                      2013                                          01/07/2014
                                        85%                                      2014                                          01/07/2015
                                        95%                                      2015                                          01/07/2016