Challenges and opportunities for reverse logistics initiatives in the automotive industry

Abstract

This paper investigates the main strategies automotive companies adopt to address the issue of dealing with end-of-life vehicles and spare parts. Furthermore, it investigates the reasons behind take-back strategies, i.e how and why automotive companies undertake initiatives in reverse logistics. The research findings indicate that companies are trying to respond to the end-of-life legislation based on cost-effective approaches as well as corporate environmental responsibility. Outsourcing is used when expertise is found to extract value from scrap and there is cooperation with suppliers and vendors to facilitate the dismantling of cars and recycling of parts.