As we enter the second half of the year, it’s a good time to reflect on the progress we’ve made so far in 2025 and what’s on the horizon in the weeks and months ahead. When I stepped into the role as ARC Chair, one of my objectives was to provide clear and consistent communication among the member associations across the country. One way we’ve done that is by reaching out to each jurisdiction individually and discussing with them the issues that are impacting their operations and from that, get an understanding of what’s happening across Canada.
Similar themes
Low parts utilization is an issue affecting recyclers across the country. What we’ve found so far, is that while there are situations that are unique to respective provinces as they relate to auto recycling, a different flavour if you well, overall, we find that many jurisdictions are dealing with essentially the same issues. A key one is that utilization rates are still too low and finding good salvage vehicles continues to be a challenge. Another issue that continues to be a problem is auto theft, particularly in areas such as Ontario and Quebec.
In joining the dots together it has revealed some interesting trends, in that some of the issues we’re facing, such as auto theft can be encouraged by others such as poor branding of vehicles. What we’re seeing is that industry is being pinched on both sides, by inadequate supply of quality salvage vehicles on one end, and low utilization rates on the other. In some cases, we’re seeing rates as low as 3-4% on insurance estimates.
Collective approach
We’ve seen the spotlight on what’s happening in Ontario and conversations have been taking place at the provincial level between OARA and associations such as OMVIC and the UCDA, but when you zoom out you start to see that this issue isn’t restricted to a single city or province but rather is impacting multiple jurisdictions across the country. This is why, following on from OARA’s lead on insurance parts utilization, it’s becoming increasingly critical for ARC to have these conversations at the national level, so that collectively we can tackle the challenges facing our member associations and the businesses they represent.
Another focus for OARA and by extension, ARC, is updating our parts grading system. This means looking at our model in how we price parts, and ensuring the industry is properly compensated when it comes to using those recycled parts and that each component is properly and accurately graded to reflect that.
National platform
Other developments include progress on EV recycling, with the launch of the national Electrified Vehicle Battery Program in June, which follows on from a two-year trial in Quebec. This program is jointly led by the Canadian Vehicle Manufacturers Association (CVMA), the Global Automakers of Canada (GAC), with Call2Recycle Canada, a non-profit entity that specializes in battery collection and recycling serving as the facilitator. This represents an encouraging first step for the industry and has the potential to be highly successful if it can ensure timely, no cost battery pickup to all ARC members, irrespective of value or location.
We’ve also been looking at ways to help members who are facing insurance renewals, including higher costs. We have been working with several insurance brokers and providing information to members to ensure they’re prepared for when that next renewal comes due, and that facilities which were having issues have a plan to get those challenges addressed.
CAREC review
On a final note, we are looking to update the Canadian Automotive Recyclers Environmental Code (CAREC). The original standard was introduced in 2012 and is due for an update to better reflect the changes we’ve seen in the industry including new technologies as well as the growth in EV and battery recycling. OARA has been leading the charge on this, but here at ARC we’ve been working with other jurisdictions to participate in getting this updated and sending out the right message that today’s auto recycling facilities, are clean, efficient and well-run businesses that are among the most ardent advocates of the circular economy and environmental sustainability.
Article originally appeared in Autosphere July 11, 2025