80 years of the circular economy

The first initiative in terms of the circular economy was launched by Volvo back in 1945. When resources became scarce during the Second World War, the company began remanufacturing gearboxes in the Swedish town of Köping. Today, more than 25 different component groups are remanufactured. The Volvo exchange system is one of the most comprehensive in the industry and covers categories such as engines, transmissions, air conditioning systems, electronics, braking and steering components.

Compared to the production of new components, remanufactured parts consume around 85 per cent less raw materials and 80 per cent less energy. In 2024 alone, the reuse of aluminium, steel and copper saved 2,947 tonnes of CO₂. A total of 22,227 parts were recycled during this period.</p

But a successful circular economy is not only sustainable, it is also profitable. On average, the production of remanufactured parts costs around 40 per cent less than the corresponding new parts. "This is how we promote our circular economy and reduce our environmental impact while increasing profitability and ensuring availability," says Christoffer Mårtensson, who works in Volvo's Circular Exchange Parts team.

Circular economy and electrification

The recycling of high-voltage batteries from electric vehicles also plays an important role when it comes to reducing costs, conserving resources and minimising the impact on the environment.

On the road to a circular economy

By 2040, Volvo wants to become a circular company. The aim is to minimise the consumption of primary resources, avoid waste and pollution, increase the use of recycled materials and recycle and reuse parts. It is also important to generate more turnover in this area in order to promote the decoupling of turnover and consumption of primary resources.

By 2030, Volvo wants to achieve some important interim targets: 99 per cent of all waste is to be reused or recycled, water consumption in the company's own plants is to be reduced by an average of 50 per cent per vehicle and the proportion of recycled materials in new vehicle models is to reach 35 per cent.

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