A new business is going great for a well-known manufacturer: These cars are a hit!

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A new business is going great for a well-known manufacturer: These cars are a hit!

Renault has equipped a special factory that deals exclusively with the editing of used cars. Interestingly, Toyota has also announced that it will start focusing on car recycling. The French carmaker launched its program a year and a half ago in Flins, northern France, where Renault also has a new car factory.

Now the Refactory, as Renault calls the factory, is still a small part of the Flins plant, but the business is expected to grow more and more in the future, writes the Dutch Autoweek. Factory VO has been operating since September last year and can process 45,000 used cars a year.

These are mostly cars that are three to five years old, cared for by experts in four different departments. Workers repair minor dents, join parts, replace parts, re-polish the varnish and do everything else needed during the inspection.

The process is cost-effective only nearby

The whole process of restoring a car is cost-effective only if you are working with cars that are close to the factory. That's why Renault is already thinking about other locations.

At the top of the list are Turkey, Spain and Portugal. “Think of it as a big factory doing the work that dealers typically undertake on a much smaller scale,” explains Gilles Mériadec, the business director for the facility and a 32-year employee of Renault with a background in running dealerships.

“Today our goal is to prove that we can do that job to a higher quality and lower cost because of our specialisms and scale. Today we are breaking even, but in time we must make profit to survive”. The time saving is enormous, and that is one of the largest benefits we deliver,” says Mériadec.

“The move to leasing – accelerated by the sale of more electric cars – means that a lot of vehicles are returned to dealers in large quantities at quite frequent intervals. These cars tend to join a queue to be re-prepared for sale, where they take up space and manpower."