Audi Circular Solutions GmbH makes the circular economy a business model
AUDI AG is establishing Audi Circular Solutions GmbH, a new subsidiary that will build a new line of business. The subsidiary covers the end of a vehicle’s life cycle. It combines the purchase of used vehicles and components, vehicle dismantling, the sale of used parts, and access to recycled raw materials for the Audi supply chain. With this end-to-end approach, Audi aims to turn the circular economy into a business model, offer customers a compelling range of used parts, and secure access to recycled raw materials.
The key facts about
- Audi is establishing Audi Circular Solutions GmbH as a wholly owned subsidiary.
- The company will begin operations in early 2027.
- Audi Circular Solutions GmbH is developing the business model together with established partners.
- At first, the company will launch a central sales channel for used spare parts.
- Next, it will add the purchase of used vehicles, the dismantling of suitable vehicles and components, and the securing of selected secondary raw materials to make the Audi supply chain more resilient.
With the founding of Audi Circular Solutions GmbH, AUDI AG is pooling its expertise in the circular economy. Together with experienced partners, the subsidiary will develop a profitable business model centered on reusing vehicle parts and recovering valuable materials.
At first, it will set up a central sales channel for used genuine parts. In a second step, it will add the purchase and dismantling of used vehicles. The subsidiary will also secure access to secondary raw materials, helping make the Audi supply chain more resilient. Recycled plastics are one of the key focus areas. The goal is to prepare early for regulatory requirements and to reduce dependence on raw material markets.
To build the new business model, Audi Circular Solutions GmbH relies on a strong partner network and draws on existing know-how and infrastructure. “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, one of the two managing directors of Audi Circular Solutions GmbH.
Audi Circular Solutions GmbH is a wholly owned subsidiary of AUDI AG. It will begin operations in early 2027.
The four areas of action of Audi Circular Solutions GmbH
- Purchasing vehicles and components: Acquiring used vehicles and parts that offer economic reuse potential
- Dismantling network: Managing experienced partners who professionally dismantle suitable vehicles and components
- Used-parts sales: Building a central sales channel for used Audi spare parts and reaching new customer groups
- Raw material security: Securing materials suitable for reuse in the Audi supply chain
From successful pilot projects to a scalable business model
Sustainability is part of Audi’s corporate strategy and a key driver of this business model. Within that strategy, the circular economy is a strategically important growth area for Audi. Alongside decarbonization and efficiency, it is an essential part of how Audi understands sustainability. In this new business area, Audi aims to combine economic success with responsible use of resources. Within the Volkswagen Group, Audi is contributing to the group-wide circular economy strategy “REDUCE & GROW” and laying the groundwork for implementing the circular economy in an economically viable way. One example is the industrial dismantling line at the Zwickau plant, where the Group is pooling its expertise in vehicle dismantling.
Over the past few years, Audi, together with suppliers, research institutions, and recycling companies, has tested in several pilot projects how selected components can be reused and valuable raw materials recovered. With the MaterialLoop program, Audi has shown how material loops can work in practice and gradually be introduced 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.
Frequently asked questions
Where do the vehicles for dismantling come from?
At first, Audi Circular Solutions GmbH will dismantle vehicles that AUDI AG already owns, such as internal department vehicles. Later, it will dismantle vehicles purchased for this purpose.
Who is the used-parts offering for, and is it limited to Audi components?
Audi Circular Solutions GmbH’s used-parts sales are aimed at existing and new private and business customers in Germany and other European markets. In a later phase, the company will add used parts from other brands.
When and where can customers buy used genuine Audi parts?
Audi Circular Solutions GmbH will begin operations in early 2027. Audi will inform its business partners and customers separately about the launch and the sales channels.
