Smart manufacturing builds the business case for circularity

Focusing on the circular economic practices of reform, reduce, reuse, and recycle enables the automotive industry to take more systemic action on sustainability beyond the relatively simplistic concern of tailpipe emissions. As such, it is no surprise that the circular economy featured on the COP27 agenda in November 2022.

In a February 2023 article, the Economist Intelligence Unit noted that Renault, Stellantis, and Volkswagen are among the OEMs actively exploring its implementation. However, the analyst called the COP27 discussion unconstructive and a “wasted opportunity” for an automotive industry currently beset by high costs, unstable supply chains, and challenging sustainability regulations. Ultimately, it concluded that the business case for circular economics must be more broadly understood to encourage engagement.