The European Union (EU) Directive on end-of-life vehicles (ELVs) is a newly ratified legislative policy that will change the management of ELVs in Europe by forcing auto manufacturers worldwide to take financial responsibility for the proper environmental handling of their vehicles at the product's end of life (EOL). Essentially, the new policy encompasses extended producer responsibility (EPR) by requiring hazardous materials to be removed from the vehicle and specific recovery targets (focusing on reuse and recycling) to be met. This paper presents the application of an analysis tool that uses demanufacturing optimization on a dismantled vehicle to evaluate the economics and material destinations within the imposed requirements of the new legislation. The results of the current study provide insight into the future problems and opportunities that will be brought forth by the new Directive.