Toyota's UK arm has prepared a program that involves “remanufacturing” vehicles after a "use cycle." While unclear if this idea will be employed in other markets as well, it sounds attractive at first, especially since it will happen through its mobility arm called Kinto.
The idea behind the program is that Toyota has found that most of the vehicles it sells in the United Kingdom are used in cycles of two to three years. The Japanese marque has identified the link between the pattern and the average length of a lease contract in the United Kingdom.
Toyota wants to refresh a car twice thought its life, which would mean that three separate clients would lease it for up to three years. Once the cycle is complete, instead of “remanufacturing” it, Toyota would then recycle the vehicle.
The Japanese marque already collects and recycles batteries used by its hybrid vehicles. Offering a remanufacturing plan is a captivating idea when customer satisfaction is concerned. The company would be sure that each of the three leasing clients would be happy in the same vehicle, as the latter two users would get a refreshed car that would be as close as possible to a new one.
Going through a “remanufacturing” would allow Toyota to offer a new standard in the field of “certified pre-owned” vehicles. Moreover, it would bring new business opportunities for leasing companies, as well as provide extra confidence to those who would otherwise never lease a three-year-old or a six-year-old vehicle.
As Toyota explained its Kinto Mobility Arm, which was first announced in Europe back in 2020, it will have four key pillars. The first, Kinto One, involves having a single monthly payment for lease, service, and insurance, making it optimal for companies and individuals on a strict budget.
The second branch of Kinto is Share, which employs hybrid vehicles. This pillar is suited for the remanufacturing part, and it might use the cars that have already concluded their first "use cycle."
The other two pillars of Kinto are called "Join" and "Flex." The first is a carpooling service, which may not have its best time because of the pandemic, while the latter is a subscription-based leasing program that enables easy and simple car ownership. The latter would work great with remanufactured vehicles since monthly would outweigh the desire to have newly released vehicles.
Photo: Toyota
Moreover, if the program does not involve lengthy wait periods for delivery, it could prove to be a solid business line for the company. Imagine signing up on an app and having a vehicle delivered to your door for use for as long as you need it. Sounds like a better deal than all leasing contracts at the moment, right?
Since Toyota takes back all the vehicles used in the program, nobody would have to worry about resale values, and no customer will be ever offered the possibility of purchasing the vehicle after the lease is over.
Both situations described have the potential to reduce the monthly payment for the lease, even though Toyota seems to be in a tight spot with two “remanufacturing” jobs for each vehicle that need to obtain profit to justify their existence.
The best part of the deal is that the vehicles would retain value better than anything else on the market while also ensuring their quality and performance even after three, four, or even six years since they first left the factory.
By connecting the dots, the company has developed a way that would ensure that each customer of the same vehicle will get a similar user experience, as the “remanufacturing” would “comprehensively refresh” the vehicles, as Agustín Martín, the president and managing director of Toyota GB explained to the Brits at Autocar.
Toyota's idea of remanufacturing vehicles has limitations that are not explained, along with restrictions that have yet to be mentioned. Most likely, only some models will be included in the program (at least at first), and configurations would be more restricted than they are today, just to keep things simple.
Vehicles that get significant crash damage will not follow the program to its end and get recycled if that happens. Moreover, users will not be allowed to perform any work or modifications that would traditionally void a warranty.
All things considered, this might be a brilliant idea for those who just want a hassle-free experience with a car without having to rent one from a company.
Editor's note:
For illustration purposes, the photo gallery features images of Toyota's production facility in the UK, as well as some of the models it made a few years ago.
Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland. Full profile
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