After proving the efficiency of remanufacturing car parts, BORG Automotive Group is taking on the software inside modern vehicles
Headquartered in Silkeborg, Denmark, BORG Automotive Group (BORG) is one of Europe’s leading remanufacturers and suppliers of high-quality automotive spare parts. Built primarily on a circular business model, the group operates across three specialized business units: BORG Automotive Reman, CPI and BORG Automotive Newman, employing over 2000 people across eight countries. Jesper Møberg, CEO, tells us more about the group’s evolution as it recently marked its 50th anniversary.
“At BORG, we strive to be the best supplier of high-quality automotive spare parts, combining remanufactured and newly produced components. We offer a broad product portfolio with wide coverage across the European market, and we pride ourselves on being a responsible partner that brings new life to vehicles while continuously improving the customer experience. We were one of the first companies to focus on professional remanufacturing of automotive parts. Today, we remanufacture over two million units every year across eight product groups. With our acquisition of BORG Automotive Newman, in 2021, we expanded our portfolio further with a wide range of newly manufactured spare parts. By combining remanufactured and newly produced solutions, we provide a flexible and effective portfolio built around our customers’ needs,” he opens.
The majority of the business is directed towards the independent aftermarket, where BORG sells through both distributors and workshops while also serving OEMs. This core offering of remanufactured parts covers approximately 14,200 part numbers across eight product groups, including alternators, starters, AC compressors, brake calipers, turbochargers, EGR valves, steering racks and steering pumps. Alongside that, BORG offers an extended range of newly manufactured automotive parts spanning more than 110 product groups and 35,000 references, with the largest categories covering brake pads, clutches, electrical parts, engine components, steering parts, suspension, transmission and wheel bearings.
“We believe the combination of remanufactured and newly produced solutions is what gives us the most flexible and effective portfolio for our customers. Remanufactured parts offer well-documented environmental benefits, and we remanufacture on original equipment (OE) cores only. This is a deliberate choice, because OE cores are built to the material specifications and functional standards that car manufacturers have rigorously approved. By starting with an OE core, we lay the foundation for a remanufactured product that meets the same demanding criteria as a new OE part,” Jesper notes.
BORG’s ability to invest in and grow that offering has been significantly supported by its ownership structure. In 2017, the company was acquired by Schouw & Co, a long-term owner whose philosophy aligns closely with BORG’s own values. “They believe that results are created by people, and this fits very well with how we operate,” Jesper reflects. “We put people at the center of everything we do, and we have built a scalable organization to see our vision through. With the support of our owners, we have been able to make important acquisitions, including a turbocharger manufacturer in as well as BORG Automotive Newman. In addition, we have extended our logistics operations and, in 2024, acquired a production facility in Tunisia.”
Considerable investments in optimizing production processes and automation have also been fueling part of that growth. Remanufacturing remains a largely labor-intensive and manual process, and off-the-shelf automation solutions simply do not exist for much of what BORG does. Therefore, the company has built its own automation and embedded it into its processes. ‘Co-bots’ now assist operators in handling tasks that previously required manual intervention, such as visually inspecting and testing pistons for scratches. Furthermore, automated guided vehicles move spare parts around the factory floor to individual production cells, removing the need for staff to go on trolley runs. Every day, the team looks for small processes within the wider workflow that can be improved.
Alongside BORG’s drive for efficiency is something even more fundamental to the company’s identity: sustainability. Importantly, the firm was built on a circular business model, and that philosophy runs through everything it does. “It is worth noting that remanufacturing sits above recycling in the UN’s waste hierarchy, given that it prolongs the life of a product,” Jesper points out. “Rather than just being about breaking a product down to its components and melting the material into something new, remanufacturing takes the same product it was when it left the factory and gives it a second life, to the same standard as when it first came to market. On average, our remanufactured parts generate 60 percent less CO₂ equivalent emissions, consume 42 percent less energy and require 70 percent fewer natural reserves, compared to newly manufactured ones, and non-renewable raw materials, because we are reusing what already exists. Hence, it is safe to say that sustainability is in our DNA.”
Last year marked BORG’s 50th anniversary, a significant milestone that Jesper is keen to reflect on, outlining the key strategies that have enabled the company to prosper all those years. “Since our beginnings as a small workshop in Denmark, we have grown into Europe’s largest independent remanufacturer, and we are very proud of that. For more than 50 years, we have built the business on long-term relationships. Our local sales teams, customer service specialists, production facilities and distribution centers across Europe enable us to stay close to our customers and respond quickly to their needs. I think that is what our first 50 years have shown us; that we are nothing without our customers, and therefore we need to be close to them, ready to serve them with the right products at the right quality when they need them. Reaching half a century in business confirms to us that our core values are strong and viable. We firmly believe those values are worth protecting, because they are what will take us to the next 50 years. But it also means there is a heritage to take care of and continue to develop,” he elaborates.
Looking ahead, one of the most significant developments for BORG is the launch of RE:LAB, a major project aimed at addressing one of the defining challenges of the modern automotive industry: the digitalization of vehicles. As more and more components combine mechanical parts with software, known as mechatronic systems, the ability to remanufacture both elements becomes essential. BORG has five decades of experience in the mechanical side, and now, the company invests in building the capabilities to handle the software element too, mostly through reverse engineering of electronic components. “RE:LAB will greatly strengthen our development capabilities. After navigating an extremely volatile period in the automotive market over the last year and a half, we have maintained our focus on the future, and RE:LAB is very much at the center of that. We are dedicated to positioning ourselves at the forefront of the market for mechatronic systems,” Jesper says.
Even though it can be difficult to look at or predict the long-term future amidst such volatile times, BORG has ambitious aspirations for expanding its operations a few years down the line. Ideally, this expansion would be geographical, as the company contemplates taking its successful circular business model from the European market to apply it globally as it expands. In fact, Jesper believes the team’s unparalleled expertise in remanufacturing will open new doors for applications beyond the automotive sector itself. As both economic and environmental pressures grow, giving products a second life will become even more relevant across other industries. “Whether that happens will depend on many factors, of course, but our foundation is strong and our ambition is clear. In the meantime, we will keep doing what we do best: delivering value, thinking long-term and staying committed to continuous improvement,” Jesper concludes. Even as it expands, BORG will always be dedicated to sticking to its core values; remaining close to its customers and continuing to serve them with high-quality spare parts.
Through its 50 years of experience in the world of remanufacturing, BORG has developed a truly unique competitive edge: a circular business model that was built in long before sustainability became an industry priority. With RE:LAB now addressing the challenges of the software side of modern vehicles, the company is staying true to its pioneering roots by preparing for the next version of the car before anyone else does.
