Volvo Cars

Remanufacturing and the circular economy.

Volvo Cars creates mobility solutions that aim to bring back the freedom to move in a safe, sustainable and personal way.

Remanufacturing – restoring a component to its original specification with the same quality as a new part – has been part of Volvo Cars’ operations since 1945. The company has a well-established, incentivised system through which damaged or non-functioning parts can be returned in exchange for a discount on new parts. The damaged or non-functioning parts are then remanufactured and returned to their original specification after which they can be used in another car. 

In the remanufacturing process, parts are disassembled and thoroughly cleaned, while components that are subject to wear and tear are exchanged according to a predefined specification. After reassembly, all parts are tested for quality assurance before they are used again.

Volvo Cars remanufacturing operations reduce the requirement for raw materials by 85 per cent and energy consumption by 80 per cent when compared with manufacturing a new part. This has a profound effect on the levels of carbon dioxide (CO2) emissions produced.

One example of this is Volvo Cars MSP clutch kit. Between 2016 and 2021, remanufacturing of this item resulted in a reduction of around 250 tonnes of CO2. In total, the company currently remanufactures over 50 different parts and components, and in 2020 remanufactured nearly 40,000 parts. This resulted in a saving of almost 3,000 tonnes of CO2. 

Today, parts that are subject to remanufacturing include engines, gearboxes, AC compressors, drive shafts, turbo compressors and clutches – and Volvo Cars is continuously adding new products to its remanufacturing portfolio.

Furthermore, in line with the company’s wider sustainability ambitions, focus is gradually shifting towards remanufacturing hybrid and fully electrical components.

Remanufacturing is one initiative that will facilitate Volvo Cars’ efforts to move from a linear to a circular economy. It also makes a significant contribution to the company’s commitment to become climate neutral by 2040.

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