The transition towards a circular economy (CE) has become inevitable to mitigate challenges of resource scarcity and resource price volatility, as well as minimize the climate and environmental impact. By 2030 for the EU, CE could result in a reduction of primary material consumption by 32% [1]  and greenhouse gas emissions by 48 % compared with the 2012 levels[2]. The European Environment Agency[3] estimates that the net benefits for businesses by implementing CE measures range from EUR 245 billion to EUR 604 billion. Although these figures are promising the reality is rather bitter. Remanufacturing[4] which is one of the most important strategies in implementing CE principles in the manufacturing industry, has an intensity (ratio of remanufacturing to new manufacturing) of only 1.9%, while the intensity in the automotive sector is 1.1% in the EU[5]. This means that the remanufacturing intensity in all sectors needs to be increased significantly to exploit the untapped potential of CE. 

At Scania and many other Original Equipment Manufacturers (OEMs) and Suppliers (OESs), the flow of new components for the production of new vehicles is handled independently from the flow of remanufactured components that are intended for the aftermarket. The gearbox is one such component. For any company to intensify its circularity to the level that society needs without cannibalising the aftermarket business, integrating remanufactured components in the production of new products is essential[6]. However, OEMs have thus far not attempted to systematically integrate remanufactured components in the new products.

The iReGear project presents the first successful demonstration of integrating a remanufactured gearbox into the production line of new trucks and serves as an objective demonstration that the remanufactured gearbox performs as good as a new one. The project also investigated and confirmed that there are no legal obstacles to using remanufactured components in new trucks, provided that customers are informed about it. Additionally, it has been established that there are no existing examples of remanufactured components being used in new vehicles.

Two major Scania customers have indicated their willingness to accept remanufactured components in new trucks, as long as the performance and competitiveness of the trucks are not compromised. They also expressed a readiness to pay more for such a solution, given that it reduces overall emissions, and their customers are willing to pay for these added environmental benefits.

An attempt has also been made to formulate two basic equations and a procedure to estimate the economic and environmental potential of scaling up the use of remanufactured gearboxes in new trucks. Moreover, it is also estimated that the current remanufacturing intensity of the gearbox is only 0.4% relative to the number of new gearboxes produced by Scania each year indicating a significant potential for increasing the volume of remanufactured gearboxes.

This research makes a significant contribution to the ongoing discussion and provides the first evidence to support the argument that it is feasible to envision future manufacturing organizations seamlessly integrating manufacturing and remanufacturing operations to develop Circular Manufacturing Systems that consume fewer resources, produce fewer emissions, and cost less without compromising quality and performance. Future research should advance with a vision toward a Circular Manufacturing System, where the integration of remanufactured components becomes the status quo. Along the way, efforts should also focus on enhancing the efficiency of remanufacturing by addressing the shortcomings of conventional approaches.