Volkswagen launches car dismantling line – Car manufacturer seeks new business models from circular economy

Car manufacturer Volkswagen plans to conquer a new business area by expanding into the circular economy. Volkswagen invests in the industrial vehicle dismantling business.

Volkswagen has launched a new industrial vehicle dismantling line at its Zwickau car plant in Germany.

The new line consists of eight dismantling stages. Its goal is to recover original parts suitable for reuse and return materials to the automotive value chain.

In 2027, Volkswagen plans to dismantle approximately 4,100 end-of-life vehicles at the facility. The dismantling will initially employ approximately one hundred people.

Unloading capacity increases to 15,000 vehicles

Volkswagen plans to establish a Europe-wide network of circular economy partners, which will help expand operations to an industrial scale.

The Zwickau vehicle plant will become Volkswagen's center of excellence for the circular economy.

The plan is to increase the unloading capacity to up to 15,000 vehicles per year by 2030.

The increasingly strong role of car manufacturers in material recovery and end-of-life vehicle management can open up new opportunities to increase closed material cycles. Recovered parts and materials can be returned directly to the manufacturer's own production or to the aftermarket.

The development may change the operating logic of traditional car dismantling shops, spare parts stores, and material recycling.

New business for the car manufacturer from the circular economy

Volkswagen sees new markets and revenue potential in the circular economy. The group is interested in new business models such as recycling, vehicle reconditioning and reuse applications.

Cooperation with the University of Saxony helps in business development, says a spokesperson for the Volkswagen Saxon management team. Danny Auerswald:

“We were the first factory to switch completely to e-mobility. We are now capitalizing on the important business area of ​​the circular economy. Thanks to our experience in large-scale production and the excellent university environment in Saxony, we are exploring these new business areas for the group, introducing them in an economically viable way and expanding them.”

Investment reserve of up to 90 million euros

The company has invested eight million euros in the modification of the production line.

In the coming years, a total of up to 90 million euros in investments are planned for the development of the Zwickau factory, some of which will be directed towards circular economy activities.

The state of Saxony is supporting the project with up to 10,7 million euros.

“With the establishment of the circular economy center, Volkswagen is breaking new ground in the traditional automotive industry region of southwest Saxony. The Zwickau-Mosel plant is once again taking on an important pioneering role within the group. The circular economy for vehicle components opens up new business areas, creates added value and offers long-term employment prospects,” said the Saxony State Minister for Economic Affairs. Dirk Panter at the opening ceremony According to a statement from the Chancellor of Saxony.

Text: Elina Saarinen, Uusiouutiset

Photo: Volkswagen. The engine was removed from an old Volkswagen T6 before it was dismantled.