Thousands of companies in the automotive sector use similar innovations to produce renewable energy.įurthermore, sustainability is now becoming ingrained into organisations’ DNA. Consequently, its energy usage has fallen by 90%. A leading OEM in Europe is using groundwater to cool its computer centre. They also procure it from third parties who produce renewable energy.Īutomakers are also using other innovative means to lower emissions. This results in auto and auto component makers having a captive source of renewable energy. Automotive players are adopting other strategies as well.Īutomotive players are deploying solar panels within a manufacturing facility's premises. For these reasons, OEMs are turning to modular manufacturing. Also, modular manufacturing requires far less energy than an assembly line. As a result, very little waste is produced. In modular manufacturing, an automobile remains stationary while teams of highly skilled workers come to work on it. They’re turning to modular manufacturing, which in a sense, is the opposite of an assembly line. Therefore, some OEMs are going back to producing automobiles as they had been manufactured before the advent of assembly lines. Though assembly lines made manufacturing more efficient, they're also responsible for producing tremendous waste and using energy inefficiently. Since at least from the middle of the last century, nearly all automobiles have been produced on an assembly line. Consequently, OEMs can and, whenever possible, opt to procure components from those suppliers whose products have the lowest carbon footprint.Īnother way OEMs are becoming more sustainable is by rethinking the cornerstone of the automobile industry – the assembly line. With such end-to-end traceability and visibility of components, every component’s carbon footprint is knowable and quantifiable. Such transparency is necessary to ensure that every component is produced as sustainability as possible. OEMs are increasingly demanding transparency across entire supply chains to monitor and further improve sustainability. Supply chains are increasingly becoming circular, with components never leaving the supply chain, and having reached the end of their life, being repurposed and used again.Īuto component makers have made significant progress in eliminating waste as most of the automotive materials are recyclable. As a result, little or no waste is produced along supply chains. A circular economy is one in which products and components are used and reused multiple times - if not indefinitely.
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