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Why does the failure of cheap ESP modules cause serviceable vehicles to be scrapped?

My guess is that the price out of the factory for ESP modules is not much more than a few pounds. Presumably there is no real competition for replacement units because of trade restrictions and practice. No doubt otherwise perfectly serviceable vehicles are wasted due to this. It is ironic that the government encourages or sometimes enforces safety systems which the manufacturer uses, when they fail, as a means to firstly gouge customers when their vehicles are young enough and ensure premature scrapping later (when the car's value is low making repair uneconomic), which is an unnecessary waste of the worlds limited resources. But that’s life.

Asked on 29 September 2012 by Nick, Thailand

Answered by Honest John
In Europe the big industrial companies get together with the Eurocrats and cobble up new automobile safety and emissions laws that compel new equipment to be fitted to vehicles that effectively shortens the lives of the vehicles. By the time they are 7 - 10 years old the vehicles can need repairs that cost more than they are worth, so either the vehicles are scrapped or the manufacturer makes twice as much as he made originally by selling overpriced components.
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