Rising cost for raw material, insecure supply chains and ever-increasing pressure on sustainability goals: The need and the upside for sustainability in the value chains are increasing drastically. Recalibrating the value chains and transforming towards a circular economy becomes a must for those who want to last.
Four pillars define the circular economy in the automotive industry: Refurbishment, Remanufacturing, Reuse and Recycling. These 4Rs differ according to the product level which they address (vehicle, module, or parts) and the respective activities: All allowing for a better utilization of resources. To make the different elements work two aspects are critical: A functioning ecosystem and suitable products.
While refurbishment is a powerful lever on the vehicle-level and recycling is the way to go when it comes to raw material on a part-level, remanufacturing and reuse are in scope when considering the module or component-level. While reuse is often applied to second-life applications and parts where a certain wear is acceptable, remanufacturing is a powerful approach when modules lose certain performance characteristics over time but can be reconditioned to return to their original purpose.
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