The future sustainability of the automobile must include an approach to handle End-of-life Vehicles (ELVs) economically and within the new requirements imposed by the new European Directive. The European Directive on ELVs will change the management of ELVs in Europe by forcing auto manufacturers worldwide to take a greater 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 discusses the findings of a study that applied a demanufacturing optimization model 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.