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To delineate typologies that capture the relationship between closed‐loop supply chains and value‐added business models, and thereby to suggest a research agenda for the transition to sustainable business.

Develops four new theoretical categories or typologies of closed‐loop systems and applies them to the context of the automotive industry. Conceptual, rather than empirical.

That hybrid closed‐loop systems can be combined with innovative non‐linear value configurations to enable the transition to more sustainable production and consumption.

Identifies research agenda to explore how novel business models can integrate with various closed‐loop systems. Theoretical, but grounded in research into the automotive industry.

That closed‐loop systems are best implemented outside traditional linear value added structures.

Places closed‐loop systems at the heart of the (redesigned) business model rather than as an accessory that must be adapted to the demands of existing approaches. Suggests scholars should be part of this innovative process, not merely observers.

To provide in‐depth insights into one specific product recovery operation (remanufacturing) in the automotive sector, taking the example of original equipment manufacturers (OEM).

The research was undertaken within the engine remanufacturing facilities of a major European car manufacturer. The main data collection methods were open‐ended, non‐directive interviews and process observation. In addition, secondary data (internal company reports and documentation) were collected. Overall, a total of 64 interviews were conducted within the engine remanufacturing plant.

The case study revealed that the remanufacturing processes included challenges that have been traditionally investigated within “conventional” operations and supply chain management, such as high inventory levels or process through‐put times. It was also found that product take‐back and recovery in the automotive sector do not necessarily stem from a company's mission statement that includes (sustainable) responsibility, but are based on other motives. These motivations include the long‐term supply of spare parts, for example.

The findings are limited to one specific European car manufacturer and may therefore not necessarily apply to the independent automotive remanufacturing sector or to other OEM remanufacturers.

The case study gives an in‐depth insight into the issues within automotive product take‐back and recovery, the types of obstacles that may occur as well as how these may be overcome in the real world.

The findings provide new, real‐world insights for academia, but also feedback to industry by providing an in‐depth account of current automotive remanufacturing practices undertaken by the OEM.