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EUDR IN AUTOMOTIVE

THE GUIDE

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The European Union Deforestation Regulation (EUDR) presents unprecedented compliance challenges for automotive manufacturers. Automotive companies must establish comprehensive due diligence systems to trace deforestation-risk materials throughout their complex, multi-tier supply chains.

Automotive manufacturers face unique compliance requirements due to their extensive use of natural rubber, leather, wood, and soy-based components. The regulation prohibits placing products on the European market that originate from lands deforested, requiring precise geographic documentation and supply chain transparency.

This checklist provides automotive industry stakeholders with actionable steps to achieve EUDR compliance while maintaining operational efficiency and competitive advantage.

Who is Affected by EUDR in Automotive

Large Enterprises Small and Medium Enterprises
Original Equipment Manufacturers (OEMs) Tier 2 and Tier 3 suppliers
Tier 1 suppliers with ≥500 employees or ≥€150M revenue Specialized component manufacturers
Major automotive importers and distributors Regional automotive distributors
FIG2_EUDR_Deforestation-Risk Materials in Automotive_EN_MKT_11473

Key EUDR Requirements for Automotive

Covered Materials in Automotive Applications

  • Natural Rubber: Tires, seals, hoses, vibration dampeners
  • Leather: Seat coverings, steering wheels, interior trim
  • Tropical Wood: Decorative inserts, luxury interior components
  • Soy: Bioplastics, foam cushioning, lubricants

Due Diligence Obligations

Automotive operators must implement comprehensive due diligence systems encompassing:

  • Material-by-product traceability: Link each component to its raw material origin with batch-level precision
  • Geographic proof: Provide GPS coordinates or polygon data for production sites
  • Legal compliance verification: Ensure materials comply with applicable local laws
  • Risk assessment protocols: Evaluate deforestation and legality risks across supply tiers

Documentation Requirements

  • Due Diligence Statements (DDS) for each product batch
  • Supplier certification and origin documentation
  • Geolocation data for raw material production sites
  • Supply chain mapping from OEM to raw material source

Common Challenges in Automotive EUDR Compliance

  • Multi-Tier Supply Chain Complexity
    Automotive supply chains typically span multiple tiers, creating visibility gaps between OEMs and raw material producers. This opacity makes it difficult to obtain reliable geographic and compliance data from indirect suppliers.
  • Limited Supplier Digitalization
    Many suppliers, particularly in developing regions, lack the technological infrastructure to provide GPS coordinates or certified traceability data, requiring significant capacity building and system integration efforts.
  • Scalability Requirements
    Automotive manufacturers must process thousands of components and materials across global supply networks, demanding automated systems capable of handling large-scale data collection and verification.
  • Integration with Existing Systems
    EUDR compliance systems must integrate seamlessly with established PLM, ERP, and quality management platforms to maintain operational efficiency and data consistency.
FIG3_EUDR Automotive Compliance Steps_EN_MKT_11473

EUDR Compliance Checklist for Automotive

A. Internal Risk Assessment

  • Product Identification: Map all products containing natural rubber, leather, wood, or soy components
  • Material Nomenclature Review: Verify material classifications include supplier and origin information
  • Supply Chain Mapping: Document Tier 1, Tier 2, and Tier 3 supplier relationships for high-risk materials
  • Risk Categorization: Classify products by deforestation risk level based on origin countries and supplier profiles

B. Supplier Data Collection

  • Geographic Documentation: Obtain GPS coordinates or polygon data for all production operations
  • Certification Verification: Collect environmental certifications and deforestation compliance documents
  • Portal Implementation: Establish dedicated EUDR data collection workflows for supplier engagement
  • Data Validation: Implement verification processes for supplier-provided information accuracy

C. System Integration and Governance

  • Cross-Functional Team Formation: Establish EUDR project team including compliance, procurement, and quality representatives
  • Technology Platform: Deploy centralized data management system for EUDR information consolidation
  • DDS Generation Testing: Validate ability to generate Due Diligence Statements for representative components
  • Compliance Monitoring: Implement ongoing monitoring protocols for supply chain changes and risk updates

Next Steps for Automotive EUDR Compliance

Automotive companies must act decisively to meet EUDR requirements. The regulation’s complex demands require specialized technology solutions capable of managing multi-tier supply chains while maintaining operational efficiency.

Optchain’s automotive-focused platform addresses these unique challenges through proven traceability technologies and seamless integration capabilities. With over 35 years of compliance expertise, Optchain enables automotive manufacturers to transform regulatory requirements into competitive advantages.

Begin your EUDR compliance journey by conducting a comprehensive risk assessment and engaging with technology partners who understand automotive supply chain complexity. The companies that prepare now will be positioned to thrive in the evolving regulatory landscape.

FIG5_EUDR_Challenges vs Optchain Solutions_EN_MKT_11473 (1)

Optchain Solution for Automotive EUDR Compliance

Optchain provides a comprehensive platform designed specifically for automotive supply chain complexity:

  • Material-Product Analysis Engine
    Automatically identifies EUDR-subject products within existing nomenclatures using customs codes and material classifications.
  • Multi-Channel Data Collection
    Captures supplier information through various channels including questionnaires, ERP APIs, certification databases, and EDI systems.
  • Dynamic Supply Chain Mapping
    Creates real-time visibility from finished components down to production plots, enabling precise geographic tracking and risk assessment.
  • Automated DDS Generation
    Prepares Due Diligence Statements in EUDR-compliant formats with multilingual support and direct export capabilities.
  • System Integration Capabilities
    Native integration with SAP, Teamcenter, Windchill, and other industrial platforms ensures seamless data flow and operational continuity.