Analyzing Critical Factors for the Automotive Industry’s Transition to a Circular Economy: A Multi-Attribute Decision-Making Analysis Approach

The automotive industry is at a critical juncture, facing increasing pressure from stringent environmental regulations, resource scarcity, and global supply chain disruptions. This study aims to identify, model, and prioritize the key factors influencing the adoption of circular economy principles in the automotive sector. The Decision-Making Trial and Evaluation Laboratory method was applied to analyze the interdependencies among ten critical factors. Based on a contribution from a panel of six experts from a European automotive distributor with its main operating points in France and Romania, the study reveals a clear cause-and-effect relationship among the factors. Causal factors such as organizational culture, internal integration, regulatory policies, circular business models, and R&D capacity were identified as key drivers. Conversely, factors like top management commitment, stakeholder engagement, technological capability, sustainable materials management, and ecodesign were classified as effect factors, meaning they are influenced by other variables. The key practical contribution of this research is a strategic prioritization framework for decision-makers, offering guidance on how to effectively boost key factors, either directly or indirectly, to achieve a more efficient alignment with circular economy principles. By strategically leveraging these interdependencies, organizations can trigger a positive chain reaction, leading to improved performance in the dependent effect factors and ultimately accelerating the transition to a circular economy.