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Circular Economy

What is a circular economy?

A circular economy is a shift from our current economy, where we take material from the earth, make products, use it, and throw them away as waste – this process is linear. A circular economy is a contrast to a linear economy where, for example, products circulate at their highest value. Resources are used and reused in a loop rather than being extracted, used, and then discarded. This approach gives a more efficient and effective use of available resources, retains a resource’s value for as long as possible, and generates less waste than the “take-make-use-dispose” models.

In a circular economy, there is a number of activities that businesses can adopt to improve circularity:

  • Repair – extend the life cycle of the product.
  • Reuse – the product is used again for the same purpose in its original form.
  • Remanufacturing/refurbishment – established a new, full product life cycle by disassembling and renovating the product into a condition at least quality to a newly manufactured product.
  • Recycling – recovering materials.

How are we circular?

At BORG Automotive Group, we are proud of our contribution to a circular economy. Most of our products are remanufactured automotive parts, meaning that used parts are taken through a highly specialised renovation process to make them match OE standards (Original Equipment parts).

Our products are part of a loop, and our business model ensures an extended lifecycle of automotive parts. This maximises the lifetime of products, thus reducing waste and the negative impact on the environment. In fact, remanufacturing saves, on average, 96% of the raw materials used in manufacturing the original automotive part*.

*Based on the currently available data related to BORG Automotive reman product groups (starters and turbochargers). Furthermore, the CO2es are reduced by approximately 40% and the energy by approximately 38%. The transport capacity is more or less the same with a reduction of 0,12%.

How do we work with circularity?

BORG Automotive, as a company, is founded on a circular economy, and for more than 40 years, we have worked to deliver the best remanufactured OE-certified automotive parts for the European aftermarket. Circularity is thus a part of our DNA, and it encapsulates the way we work.

Our circular business model is based on sales of remanufactured, high-quality auto spare parts combined with a return system that is the platform for the recirculation of products.

The circular process

  • Input: The distributor returns defective spare parts to BORG Automotive Group.
  • Remanufacturing: Brings new life to defective spare parts.
  • Distribution link: Sales of remanufactured spare parts to distribution link.
  • At the garage: The consumer brings the car to the garage. The garage orders remanufactured spare parts from the distribution link.
  • Replacing spare parts: The consumer gets spare parts replaced and can continue driving the vehicle.