MONTH 2023
FROM THE EDITOR
JOHN SPROVIERI // EDITOR IN CHIEF
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Automotive Industry Prepares for Connected and Circular Economy
A typical vehicle contains some 40,000 parts supplied by dozens of global manufacturers. Managing that supply chain is becoming increasingly difficult. Each supplier has its own regulations and requirements to deal with.
To increase collaboration up and down the supply chain, a coalition of European automotive manufacturers created Catena-X, the first end-to-end, collaborative and open data ecosystem for the automotive industry, connecting all players along the value chain.
Numerous OEMs are part of Catena-X, including BMW, Denso, Ford, Renault, Volkswagen and Volvo. Many suppliers are, as well, including Bosch, Continental, Faurecia, Magna, Siemens, Valeo and ZF.
Established in 2021, the initiative is now gaining traction worldwide. In June 2025, the Automotive Industry Action Group (AIAG) was named the official North America hub for Catena-X. With this partnership, OEMs, suppliers and service providers of all sizes across North America can participate in the network.
“Catena-X is not just a technology—it’s a paradigm shift for our industry,” says Kevin Piotrowski, AIAG’s chief transformational officer. “With AIAG as the North American hub, we’re enabling OEMs and suppliers of all sizes to achieve unprecedented transparency and visibility—while retaining full control over their data. This leap forward empowers better, faster decision-making and delivers measurable business impact through enhanced supply chain visibility, accelerated compliance, and improved quality management—all without requiring companies to overhaul their existing systems or partnerships.”
Last year, Denso acquired EcoPass certification from Catena-X, the first Japanese automotive supplier to do so. Photo courtesy Denso Corp.
Catena-X supports a growing set of real-world use cases designed to address the automotive industry’s most urgent challenges and opportunities, including:
• Product carbon footprint. Standardized, auditable CO₂ tracking and reporting across suppliers and products.
• End-to-end traceability. Rapidly trace parts and materials throughout the supply chain to enable efficient recalls, compliance and transparency.
• Collaborative quality management. Real-time sharing of production and field data to accelerate root-cause analysis and problem containment, reducing risks and costs.
• Battery passport. Comprehensive life cycle data for EV batteries, supporting regulatory compliance, circularity and sustainability goals.
Catena-X connects OEMs, suppliers and service providers of all sizes in a single, interoperable ecosystem, eliminating the silos and incompatibilities common in legacy systems. Unlike proprietary or closed solutions, Catena-X is built for openness and interoperability. It works alongside established technology providers, such as IBM and SAP, so companies do not need to overhaul their existing systems.
Catena-X is the first end-to-end, collaborative and open data ecosystem for the automotive industry, connecting all players along the value chain. Photo courtesy Denso Corp.
Companies retain full control over their data—deciding what to share, with whom, and when—through permission-based, secure exchanges. This ensures both security and legal compliance, addressing concerns about data ownership and confidentiality.
Catena-X enables real-time data exchange, moving beyond slow, manual and after-the-fact reporting. This supports faster root-cause analysis, more responsive supply chain management, and the ability to anticipate and prevent problems.
Catena-X improves access to standardized, trustworthy and timely data across company boundaries, providing a reliable foundation for advanced analytics and AI tools, empowering companies to use their own technologies more effectively. Shifting from reactive decisions to predictive insights and preventive actions allows for continuous improvement and measurable business impact.
As the Catena-X North America hub, AIAG will serve as an extended board member, ensuring that standards and software are developed with direct input from North American members—from OEMs to Tier-N suppliers. AIAG will provide training, resources, and expert guidance to support organizations as they engage with Catena-X, and will unite the industry around common challenges, leveraging the Catena-X ecosystem to drive collaborative systems in quality, supply chain and corporate responsibility.
As the automotive industry shifts to a more circular economy, becoming more connected can only help. For more information, click https://catena-x.net.
The risk of China decoupling is an important consideration for companies sourcing there.
About the Author
Harry Moser is the president of the Reshoring Initiative. His column will appear every other month, alternating with Austin Weber’s “On Campus.” Has your company reshored production? Are you thinking about it? We’d like to hear of your success or help you achieve it. With your approval, we would love to report on your successes or opportunities in future issues. Contact harry.moser@reshorenow.org.
