Presentation is loading. Please wait.

Presentation is loading. Please wait.

Implementing Mobile A/C Refrigerant Service Environmental Enhancements Jim Resutek OTB Consultants June 2008.

Similar presentations


Presentation on theme: "Implementing Mobile A/C Refrigerant Service Environmental Enhancements Jim Resutek OTB Consultants June 2008."— Presentation transcript:

1 Implementing Mobile A/C Refrigerant Service Environmental Enhancements Jim Resutek OTB Consultants June 2008

2 Purpose Provide opportunity to implement new technology and enhanced dealer service capabilities with both environmental and cost benefits.

3 Key Topics  Government/Industry Drivers  Current A/C Warranty Process  Industry Changes and New Technology Provide Cost Savings Opportunities for OEM’s  The Opportunity

4 Government/Industry Drivers  Government  609 Regulations  Technician Certification  Recovery & Reuse Requirements

5 Government/Industry Drivers  Industry  SAE  Enhanced service leak detection standards (J enhanced to J- 2791)  Enhanced Recovery/Evacuation/Recharge standards (J-2210 to J-2788)  OEM  Enhanced system designs – less refrigerant, tighter charge tolerances, tighter systems

6 Enhanced Recovery/Evacuation/Recharge standards (J-2210 to J-2788) (J-2210 to J-2788)

7 SAE Enhanced service leak detection standards (J enhanced to J- 2791)

8 Service Equipment Suppliers Conundrum  Invested several millions of dollars in development, implementation and marketing to meet new standards  Leveraged “Opportunity Costs” to accelerate market release of new product  Limited support from OEM’s and Government agencies to drive need for new equipment

9 Implementation Motivation Issues  Requirements to manufacture equipment to new standards – BUT – no requirements for service community to rush into equipment implementation  Industry OEM’s reluctance to mandate dealer/fleet compliance  Continued competition from non compliant a/c service operations

10 Business Case Examples  Employing Warranty cost reduction to implement dealer/fleet service equipment upgrades – OEM application  “Out of the Box” service tool/procedures Vehicle Recycle Industry

11 Business Case Examples  A few OEM’s have reviewed the options of implementing warranty reductions towards offsetting service tooling costs

12 Current A/C Warranty Process  Labor  100’s of warranty operations require refrigerant removal  A/C  Powertrain  Suspension related  Reimbursement time: .6-1.2hr for single A/C systems  hr for dual A/C systems

13 Current A/C Warranty Process  Material  Refrigerant recovered is reimbursed to 100% vehicle A/C refrigerant capacity  Government Regulation  EPA mandates that mobile refrigerant MUST be recovered and recycled

14 Current A/C Warranty Process  Million’s of A/C recovery operations per year is the Service Requirement estimate ( --- xxxx dealers x 2/day x 260 days/yr ) ( --- xxxx dealers x 2/day x 260 days/yr )  Average Refrigerant charge:  Front system only 2 lb = 90% of production  Front and rear system combined 3 lb = 10% of production

15 Current A/C Warranty Process  Validated Example  Labor operation Over 12 months had 67,500 payouts (~142,000lb $6.50 * = $923,000) * Estimated warranty national mean amount paid July ‘07 ** Composite –90% +.10%

16 Current A/C Warranty Process  Sample Estimated Yearly Warranty Refrigerant Usage  A/C recovery operations  90% of single system vehicles = 6.5 M lb  10% of dual system vehicles = 1.1 M lb 7.6 Million pounds of R-134a per year 7.6 Million pounds of R-134a per year

17 Current A/C Warranty Process  Economic Impact R-134a Pricing  July ’07 - Dealer cost per pound $3.14  Warranty reimbursement cost $6.50 per pound – includes dealer markup

18 Current A/C Warranty Process $8.50 # $6.50 # $4.50 #

19 Background  J-2210  State of the art equipment provided to dealers in 1993  Meets SAE J-2210  Smaller vehicle A/C charge requirements need equipment meeting SAE J-2788 to maintain system integrity/performance

20 Background  Governmental Regulation  Manufacturers can only build J-2788 compliant equipment effective January 2008  EPA and other environmental groups highly recommend implementation of J-2788 equipment due to higher recovery (95%+ of refrigerant vs. J % recovery)  EPA has not mandated J-2210 replacement

21 Technology Highlights  New SAE J-2788 Compliant Equipment  Recovers 95%+ of R-134a  Scale accuracy of +/- 0.5oz  Encrypted code for warranty tracking and authentication  Ability to work with Hybrid vehicles (PAG/Ester oil separation)  Quicker recovery time

22 Today’s Reality…  Current J-2210 is over 15yrs old  Can’t be re-worked/retrofitted to meet new SAE J-2788 requirements  Doesn’t meet new charge accuracy requirement  Maintenance expenses increase with age  Fully depreciated by dealers  New Vehicle A/C Requirements  Require increased charge accuracy for optimum performance  Greater percentage of vehicles will incorporate electrical hybrid A/C systems requiring oil separation

23 …Present New Opportunities  Opportunity to:  Reduce refrigerant charges  Provide enhanced equipment to dealer  Continuous yearly savings  Payback range for 100% funding with equipment rollout 6-12 months

24 Opportunity  Implementation  Estimated cost of replacing J-2210 to meet new J-2788  $4500 per unit* (Based on dealers receiving one unit per) * Average Industry cost  Implementation of encrypted code - cross check on warranty RO payment  Dealer resistance to purchasing a new machine  Dealer investment subsidizing OEM savings  Offset via N/C equipment  No Dealer capital investment  Lower equipment maintenance charges  Enhanced recovery increasing customer pay return  OEM’s reimbursing dealers only for Refrigerant loss (similar to current engine coolant policy)

25 Savings Potential  Estimated Savings  R-134a  Quantity Range million to 10 million pounds  Cost Range --- $4 --- $10 per pound $33 - $65 million per year warranty savings

26 Business Case Example - 2  “Out of the Box” service tool/procedures Vehicle Recycle Industry  Reduce the amount of time to recover  Reduce the equipment investment  Enhance the residual payback

27 Vehicle Recycle Industry

28 “Out of the Box” service tool/procedures Vehicle Recycle Industry  Reduce the amount of time to recover  Check quickly for charge presence  Pierce line/hose to recover – units will be scraped once recovery completed – eliminates time to locate and connect to service ports

29 “Out of the Box” service tool/procedures Vehicle Recycle Industry  Reduce the equipment investment  Standardize equipment employed at recovery sites  Review need to identify gases

30 “Out of the Box” service tool/procedures Vehicle Recycle Industry  Enhance the residual payback  Segregate recovered refrigerant  Employ company wide standardization and purchasing

31 Summary  Industry Service Tools & Equipment Implementation  OEM pro-active implementation throughout their service facilities will provide a large footprint impact into reducing emission.  OEM participation will provide volume discounts and trickle down of older equipment to the servce aftermarket

32 Summary (cont)  Industry Service Tools & Equipment Implementation  Business cases drive OEM actions

33 Questions?


Download ppt "Implementing Mobile A/C Refrigerant Service Environmental Enhancements Jim Resutek OTB Consultants June 2008."

Similar presentations


Ads by Google