Read on
Changing consumer views on mobility will have implications for the car industry. As consumers increasingly will share 'vehicle time' with each other, cars will be used more intensively, hence decreasing their life spans. This in turn will foster developments to design cars more circular.
Editorial office / Amsterdam

This is one of the findings of the ABN AMRO-report ‘The circular car’ which has been published on the 3rd of August. ‘The production of cars with parts that can be re-used for similar or other high-value applications, would have a lower environmental footprint’, according to the report. This in turn would be beneficial for producers, especially when cars are not so much owned by individuals but by companies or third parties. ‘For example, private lease is a fast growing construction in the Netherlands, expecting to cover 105.000 car users in 2020.’

The shift from private towards corporate ownership implies that corporate owners become responsible for the vehicle’s life and end-of-the-life, the authors of the report say. In this scenario, the industry would be forced to rethink car design and the materials that are being used in car production. Aspects such as recycling, upcycling, modular design, biobased materials come into play. ABN AMRO expects that suppliers to the automotive sector can benefit from this development.

At the moment, suppliers are good for 65 per cent of the added value of a vehicle, which would go up to 80 per cent in the next 10 years. ‘The importance of circular production will push the industry towards its suppliers to jointly develop circular concepts ‘, David Kemps, sector banker Industry of ABN AMRO, says. ‘This in turn offers opportunities for suppliers world wide, especially the Dutch sector which is well-positioned for this transition.’