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  June 26th, 2024 | Written by

How Sustainable Manufacturing Practices Are Shaping Tomorrow’s Auto Industry

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Whether people travel for work or vacation, automobiles are integral to modern transportation needs. Commuters have driven anything from the Model T to the Corvette for over a century. Now, the automotive industry is at a critical inflection point regarding sustainability.

Read also: REVEALED: How Do Disruptions in the Supply Chain Affect the Automotive Industry

Manufacturers must be more conscious of the environment or risk regulatory intervention from governing bodies. Here’s a guide to sustainable auto manufacturing and the industry’s evolution.

What Sustainable Practices Are in the Auto Industry?

Automotive manufacturers have implemented environmentally friendly strategies to promote sustainability. Here are five practices automakers use to limit their liability.

1. Renewable Energy

Improving sustainability in the automotive industry begins with the power sources at production plants. Manufacturers can produce fuel-efficient cars and electric vehicles (EVs), but the environmental effects remain if the facilities rely on non-renewable resources.

Automakers have recently turned to solar and wind technology to generate power. Last year, Ford opened a solar power plant in Valencia, Spain, intending to produce 10 megawatts by 2024.

2. Modern Materials

Manufacturers used to build cars with steel to make them sturdy, but this approach made them heavier and less fuel-efficient. Modern machines use lighter materials to improve fuel economy while maintaining safety.

For instance, manufacturers have moved away from steel to favor aluminum. This lighter material lets cars consume less fuel and generate fewer emissions. Aluminum is also beneficial because it is more recyclable than steel.

3. Reduced Waste

The EPA said auto manufacturers reduced their waste production by 17% between 2005 and 2020. Recycling has been critical to limiting trash and creating a circular economy.

Modern manufacturers follow the latter’s principles to make their vehicles recyclable and reuse old parts. For example, Stellantis has an end-of-life recycling partnership with Gallo that repurposes steel and plastic from manufacturing.

4. Improved Fuel Economy

Fuel economy is vital for automakers because it determines how efficient their vehicles are once they’ve hit the road. EVs have become more popular, but gas-powered cars still compose 92% of the automobile market. 

Improving the miles per gallon for vehicle lineups has been crucial to manufacturers as governing bodies implement stricter regulations. Modern cars have benefited from more efficient engines, improved transmissions and better aerodynamics.

5. Powerful Batteries

EVs could only last 63 to 94 miles before owners had to recharge the batteries, but evolving technology now gives the average electric car 270 miles of range. 

Thanks to innovations like denser batteries, this increase has been vital for manufacturers to get consumers on board with their EV lineups. The Lucid Air has set the standard for EV batteries, with a 500-mile capacity on a single charge.

How Have Auto Manufacturers Evolved With Sustainability?

While automakers are at the forefront of sustainability innovations, their operations haven’t always been environmentally friendly. Here are five ways auto manufacturers have improved efficiency and reduced waste.

1. Production Efficiency

Production efficiency dates back to the Ford Motor Company and its assembly lines. Through the years, manufacturers have built on these ideals by streamlining and cutting waste wherever necessary. 

Emphasizing efficiency in production lets them create more cars while reducing environmental impact. For instance, Toyota’s assembly lines utilize a just-in-time philosophy to minimize trash, trim costs and limit interruptions when building vehicles.

2. Leveraging Robotics

Robotics has long been a part of auto manufacturing. General Motors (GM) implemented a robotic arm on the assembly line and increased production speed by 67% by the early 1970s. 

The last half-century has further demonstrated the ability of artificial intelligence (AI) and machine learning (ML). Modern automotive plants leverage robotics for welding and eliminating dangerous materials. This technology also makes the job safer for employees.

3. Laser Technology

Laser technology has been another critical advancement for assembly lines because it reduces waste and improves efficiency. Factory employees use lasers to increase precision on individual parts, thus saving time and ensuring structural integrity. 

These gadgets reduce the need to touch the car part with a mechanical part and risk harming it. Automotive plants also use light detection and ranging technology to generate 3D models of their vehicles and make safety checks.

4. Crate Motors

Engines only last so long before they can no longer work. Old vehicles remain in garages, backyards and scrapyards because they can’t move anywhere else. How can people breathe life into classic cars and antique cars? Refurbishing with crate motors is an excellent start.

These engines upgrade old vehicles by letting them take advantage of new technology. For example, a collector could revamp an old Porsche by refitting it with an electric motor.

5. Blockchain

Thanks to blockchain technology, increasing supply chain visibility has become more manageable. The innovation enhances transparency by making materials more straightforward to trace, thus bringing more accountability and improved security to the industry.

While a relatively new technology, the blockchain will be integral to the automotive sector’s future. Experts say it will have a nearly 53% CAGR until 2032, reaching a $825 billion value.

What Challenges Do Automakers Face With Sustainability?

Ensuring sustainability brings long-term goals for automakers. However, these five challenges could prevent them from reaching critical benchmarks.

1. Upfront Costs

While investing in EVs and renewable energy is commendable, the price tag is a significant barrier. Manufacturers must invest a lot of capital to pay for solar panels at their plants and expensive batteries for their vehicles. These make cars more expensive and less attainable for consumers.

However, experts say the next few years will alleviate expenses. A Gartner report says electric cars will be cheaper to produce than ICE vehicles by 2027.

2. Intermittent Power

Solar and wind energy present opportunities to use renewables in automotive plants. However, manufacturers must consider the intermittency of these power sources. Cloudy or wind-free days make these technologies counterproductive to a manufacturer’s quota.

Research and development are necessary to make panels and turbines more efficient with energy storage. For instance, high concentrations make a solar panel more energy-dense and viable for large plants.

3. Sustainable Sourcing

Automakers rely on lithium, nickel and cobalt for EV batteries, and their sourcing could make electric cars less sustainable. Mining these metals raises environmental concerns because of their resource usage and CO2 emissions.

The International Energy Agency says EVs use nearly 200kg more minerals than ICE cars, thus depleting resources and harming the environment. Future mining should prioritize pollution reduction and less energy usage.

4. Supply Chain Management

An automaker is only as sustainable as its suppliers. They must be selective and ensure the companies they work with uphold strict environmental standards. Leveraging blockchain technology can be an excellent strategy to enforce sustainable practices.

Issues could arise by relying on businesses that disregard the environment. Manufacturers should audit their supply partners to ensure their vehicles maximize sustainability.

5. Privacy and Security

Connecting vehicles to grids and other cars enhances sustainability through better traffic and grid management. However, this technology opens the door to cyber theft and privacy breaches.

Automakers and EV charging stations store large amounts of data, so they must implement stringent practices to protect this information. The Identify Theft Resource Center says data breaches affected 353 million people, emphasizing the need for strong policies in the auto industry.

Enhancing Sustainability in the Auto Industry

The automotive industry relies on technological advances to increase efficiency and stay ahead. In recent years, manufacturers have prioritized lessening their environmental impact. 

While artificial intelligence and machine learning have made building cars and tracking supplies more efficient, automakers must improve their sustainability with renewable energy and constant innovation.