In June 2001, Jean-François Hilico, industrial project manager at Renault Trucks, had to recommend to his board a development strategy for the company's truck remanufacturing business.
Remanufacturing consisted of rebuilding used parts to bring them to a level of performance just beneath that of new parts, at a much lower cost. After having analyzed the pros and cons of three investment options, participants are asked to make a recommendation.
This case invites participants to take into account other investment criteria than just profitability, such as environmental protection, safety and the competitive implications of offering remanufactured parts. It is supplemented with a video of Renault Trucks remanufacturing activities.