While the circular economy (CE) and Sustainability are prominent today, it is realized that network optimization studies should be given importance to ensure the transition to the CE. Overall, this study provides a comprehensive exploration of the CE concept, along with an extensive review and application focused on network optimization aligned with sustainability and CE principles. It primarily includes a comprehensive research and literature review on the CE. A review of the studies that made network optimization using reverse supply chain aiming sustainability and circularity in the production sector was made, and network design and optimization for a sector that has not been studied before was suggested based on the literature. Since transition to circular production has been started by companies in the automotive industry, this study aims to fill the gap in the literature of hybrid circular network design and optimization specific to the automotive industry. For the designed novel network, a linear programming model for profit maximization was developed, solved using optimization software, and the global optimal result was found. Results proved that hybrid network optimization reduced costs. Finally, scenario analyses related to recycling and reuse rates were made, and their effects on the objective function were determined. Scenario analyses showed that recycling rates directly affected profitability. Thus, this study represents a noteworthy contribution to the field.