Autocirc, a leading company specializing in reused and recycled auto parts based in Sweden, speaks to Auto Recycling World about its innovative practices. At the helm of this groundbreaking initiative is Johan Livered, a seasoned professional with a rich history in the auto recycling industry. His journey spans influential positions in companies like VEGE Group, Atracco AB, and Recopart AB, solidifying his expertise in sustainable automotive solutions.
Johan Livered – A background in Auto Recycling
Before his current position, Johan served as President of VEGE Group, one of the world’s largest independent aftermarket suppliers of remanufactured petrol and diesel engines. He has also served as CEO of Atracco AB and Recopart AB. Atracco is a car dismantling group in the Nordic region, and the business consists of recycling and selling used car parts. Recopart develops and operates a comprehensive business system for returning used car parts to workshops and consumers. Both positions give Johan broad experience in the auto recycling industry. In 2019, he founded Autocirc together with Mattias Pettersson.
Autocirc’s Evolution
The start of something big: Johan and Mattias had identified an opportunity to develop and harness the aftermarket in the auto parts industry. Bringing independent companies together within the same group allows us to link up a traditionally fragmented sector.
Our business aims to create a circular model in which we reuse and prolong the lifespan of used spare parts. In the long term, this means we can use the vehicle’s parts for an extended period.
Linking up established, independent operators with Autocirc creates opportunities to add value via shared synergies and increase circularity for the sector as a whole. Autocirc’s working model means that more auto parts are reintroduced to the spare parts market instead of being scrapped. This reduces both waste and the need to produce new parts. Parts that cannot be reused are converted into secondary raw materials with new purposes and functions in a new production cycle.
The majority of our companies are vehicle dismantlers that, together with companies in the refurbishment, scrap and metal, tyres and rims, car transport and salvage and core trading sectors, form the platform for a circular business model. By bringing together local businesses with different qualities and areas of expertise, we take a holistic approach to the automotive aftermarket.
Auto parts that cannot be optimised and reused are converted into secondary raw materials that add value in new production cycles. In this way, we are not only contributing to the circular economy in the auto parts industry – our working model also leads to a more efficient use of the planet’s resources and a reduced climate footprint in general.
Autocirc’s Philosophy
We aim to create a circular business model in the auto parts industry by building and managing a business focused on reusing automotive parts. Our objective is to become the most sought-after and successful supplier of sustainable spare parts in Europe. We have already accomplished our ambition of being Europe’s largest in our field and we continue to develop to be the most preferred partner in creating circularity in the auto parts industry.
By connecting markets and different industries that are all working to reuse car parts and materials, we can create an offer that constantly improves.
Circularity Benefits and Collaboration
Through cooperation with dismantlers, core unit distributors, remanufacturers and workshops, we are creating a platform for a kind of collateral flow. Dismantlers send items for remanufacture to core unit distributors, who are then able to build up bulk items that can be forwarded to remanufacturers, with the final destination being workshops where they are used in vehicle repairs. By creating a value chain that includes dismantling, core unit processing, remanufacturing and workshops, we are establishing an ecosystem that gives added value.
The vehicle fleet varies in different parts of Europe. Certain types of vehicles and spare parts are more common in other countries than in Sweden, an issue that can be addressed by linking the market across national borders. That’s why we also see the potential for a consensus between the various operators in the European market, and, in the long run, we can create conditions to promote reuse throughout the industry.
Best Practice Empowerment for Network Success
We identify best practice cases within our organization and in different areas of our business. By using these cases as formalising examples, we are also able to support the companies in our network in reaching their full potential.
Total Loss Vehicles: Geographical Expansion & Battery Reuse Innovation
We work mostly with Total Loss Vehicles (TLVs). In order to be an efficient partner to insurance companies, car manufacturers and other actors on the market, we believe that we need to have geographical coverage in order to collect cars in the whole European market. We are currently investing in a battery reuse facility where we use batteries for energy storage. There is also the possibility of maintaining the batteries so they can be used in cars that need a change of battery.
The possibility of reusing spent batteries as energy storage units is particularly exciting, providing a new purpose for parts that are not reused for their original function. We are proud to be leading the way in this development project, allowing us to explore the possibilities of repurposing materials from our dismantlers for new applications.
To find out more about Autocirc, please visit autocirc.com
