Circular economy deep dive: automotive sector

The circular economy provides a financial opportunity for the automotive industry. We aim to initiate pilots that will help the industry in capturing more value in their activity by using circular principles and business models.

The challenge

The lifecycle (design, production, usage, and disposal) of  a car is inefficient. Plastic will soon account for 20% of the mass of a car and the metals and alloys used are diversifying. In addition the car sits idle 94% of the time. 

The business case

The variable cost of the car may be reduced by using circular supplies, such as reused or recycling parts and materials. This, together with the value included in the design and production of a car, presents economic opportunity for a highly competitive industry with tight margins.​

The solution

We will develop a series of circular automotive-specific “blue prints” identifying the business cases, risks and opportunities, barriers and enablers around three topics ​

  • Creation of closed loops: using plastics and metals ​

  • Second life opportunities: on tires and batteries ​

  • New ownership patterns and how they will shift value across the value chain to authorise circularities in the automotive business model​

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