Luxury auto makers can reduce waste and boost profit margins by adopting ‘circular economy’ strategies, says article in World Economic Forum co-authored by Dr Khaled Soufani of Cambridge Judge.
The luxury auto manufacturing industry can reduce waste and boost profit margins by adopting “circular economy” strategies, says an article on the World Economic Forum website by Dr Khaled Soufani, Director of the Circular Economy Centre (CEC) and Director of the Executive MBA programme at Cambridge Judge.
In the circular economy, companies seek to keep resources in use as long as possible, extract the maximum value from them, and then recover materials at the end of their service life, says the article, entitled: “How car manufacturers can reduce waste.”
As for recycling, although such programmes do exist today including at BMW, “the onus is usually on the customer to contact and locate the collection centre, thereby creating customer inconvenience,” says the article.
The article is co-authored by Khaled Soufani, Terence Tse, Associate Professor of Finance at ESCP Europe Business School, and Mark Esposito, Professor at Harvard University Extension School.