Audi is founding Audi Circular Solutions GmbH, a wholly owned subsidiary that will buy used vehicles, dismantle them, sell used genuine parts and recover recycled raw materials. The company starts operating in early 2027. Audi says it wants to make the circular economy profitable and depend less on raw material markets.

AUDI AG is creating a new business unit for the last stage of a car’s life. The new company is called Audi Circular Solutions GmbH and is wholly owned by AUDI AG. It will handle four connected tasks: buying used vehicles and components, dismantling them, selling used parts and returning recycled materials to Audi’s supply chain. According to the manufacturer, the goal is a circular economy that makes money as well as meeting sustainability targets.

The subsidiary will begin operations in early 2027. It is building the business with established partners rather than starting from scratch.

A step-by-step rollout

Audi plans to launch the business in phases. The first service will be a central sales channel for used genuine parts. After that, the company will start buying used vehicles and dismantling suitable cars and components. It will also secure selected secondary raw materials for Audi production.

Recycled plastics are one of the main focus areas. Audi says the aim is to prepare early for regulatory requirements and to reduce its dependence on raw material markets.

Four areas of activity

The company lists four core areas:

  • Purchasing vehicles and components: buying used vehicles and parts that can be reused profitably
  • Dismantling network: managing experienced partners who dismantle suitable vehicles and components professionally
  • Used-parts sales: building a central sales channel for used Audi spare parts and reaching new customer groups
  • Raw material security: securing materials that can be reused in the Audi supply chain

Partners rather than new plants

Audi Circular Solutions will use a partner network and existing know-how and infrastructure. Michael Gick is one of the subsidiary’s two managing directors.

“Our collaboration model combines Audi’s strengths with the expertise of specialized partners working locally across Europe. This lets us move quickly to implement the circular economy consistently and, step by step, build a scalable, profitable business model,” says Michael Gick.

At first, the company will dismantle cars that AUDI AG already owns, such as internal department vehicles. Later, it will dismantle vehicles bought specifically for this purpose.

Who can buy the parts

The used-parts business is aimed at existing and new private and business customers in Germany and other European markets. Audi says it will also sell used parts from other brands in a later phase. The company has not yet named the sales channels. It will inform business partners and customers about them separately before launch.

Built on earlier pilot projects

The new company follows several years of pilot projects with suppliers, research institutions and recycling firms. These projects tested how selected components could be reused and how valuable raw materials could be recovered. Audi’s MaterialLoop programme showed how material loops can work in practice and be introduced gradually into series production.

“We are building on the knowledge and experience from numerous Audi initiatives. Over the past few months, together with an interdisciplinary team, we have turned this into a viable business model and put it into practice. The enthusiasm of our team and partners shows me how much potential this project holds,” says Philipp Eder, Managing Director of Audi Circular Solutions GmbH.

What it means

Audi describes the circular economy as a strategically important growth area. Within the Volkswagen Group, the new company contributes to the group-wide circular economy strategy “REDUCE & GROW”. The Group already runs an industrial dismantling line at its Zwickau plant, where it pools its expertise in vehicle dismantling.

For drivers, the most visible change will be an official source of used genuine Audi parts. These may offer a cheaper alternative to new components, though Audi has not announced any prices. For the industry, the move is another sign that carmakers want control over their recycled material supply instead of leaving end-of-life vehicles entirely to independent recyclers.

Audi Circular Solutions GmbH is due to begin operations in early 2027.

Source: www.audi.com