Carmakers Embrace Sustainability
Growing use of recycled materials, parts in vehicle manufacturing could bring a significant market shift, report says.

Kia introduced a matt for its EV3 last fall that's made from plastic from the Great Pacific Garbage Patch.
Kia
Automakers are increasingly incorporating recycled materials into their vehicle manufacturing in response to consumer interest, a new report shows.
The trend stands to reshape market competition, according to the analysis by GlobalData, a London-based data analytics provider and consultant.
A “considerable shift” is taking place in the industry when it comes to materials sourcing and production processes as automakers prioritize recycled and sustainable materials, the report says.
Incorporating such changes, in addition to reducing environmental impacts, can reduce production costs and make operations more efficient, says GlobalData, which adds that for the consumer lighter-weight materials, including recycled plastics, improve fuel efficiency.
It points out efforts by multiple major automakers:
Toyota, Mazda and Honda programs to use recycled plastics in vehicle manufacturing
Ford’s seat cushions that incorporate plastic recycled from water bottles
Volvo’s use of recycled material from fishing nets and ropes in one model’s interior components
Jaguar’s application of vehicle fabric made from ocean debris plastics
Toyota announced a new program this month to recycle vehicles and their parts to make new ones. The Toyota Circular Factory starts its first operation this fall at a Corolla plant in England.
Automakers are collaborating with recycling companies to source materials, says GlobalData, which expects the efforts to influence auto consumer buying habits and bring a “significant” shift to the industry.
“As manufacturers adapt to these sustainable practices, we may observe a transformation in consumer preferences, with buyers increasingly favoring brands that prioritize environmental responsibility,” said company Automotive Analyst Madhuchhanda Palit.
Increased demand for recycled material for auto manufacturing could also increase demand for more electric and hybrid vehicles, feeding industry growth, Palit says.
More Industry

Two New Rides Earn Safety Awards
Thanks to vehicle redesigns, two more vehicles have earned IIHS’ Top Safety Pick+ award that builds on the criteria of the lower Top Safety Pick award.
Read More →
How A Simple Phone Call Can Cause a Dealership Data Breach
Despite the sophisticated techniques fraudsters often employ today to gain access to dealerships’ valuable information, they sometimes use a somewhat old-fashioned approach.
Read More →
Texas Rooftop Gets New Owner, Name
Family-owned Lumos Auto Group acquired Acura of the Rio Grande Valley from Bill Bird and will operate the dealership as Lumos Acura.
Read More →
Hyundai Feeling Electric
As the automaker looks to the balance of the decade, it plans to significantly boost its electrified powertrain lineup, including more hybrids and its first extended-range EVs.
Read More →
Dealer Debrief: Luxury Brands are Losing Ground
The quality gap between luxury and mass-market auto brands is narrowing. Today, Lauren is discussing why.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
Longtime Ford Store Changes Hands
The Virginia dealership joins a small area automotive group in a one-dealership transaction, moving from one family franchisee to another.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
ASE Seeks Accurate Technician Pay, Benefits Data
New free membership trial removes cost barrier for dealerships and shops willing to contribute anonymous information to the industry data exchange.
Read More →
No Longer Worth the Price?
Mass-market auto brands are gaining ground on luxury competitors with what used to be premium features, helped along by the pressure of high vehicle prices dogging budget-conscious shoppers.
Read More →
