Volvo Cars to lower CO2 emissions and save billions in circular business aim

Dubai, UAE, 29 April 2021: Volvo Cars, exclusively distributed in the UAE by Al-Futtaim’s Trading Enterprises, aims for annual savings of SEK 1 billion (over USD $119m) and reductions of

million tonnes in carbon emissions from 2025 using circular business principles. Supporting the company’s long-term goal of becoming a circular business by 2040, Volvo Cars will create closed material loops for emission-heavy materials such as steel and aluminium, as well as remanufacture, repair, reuse and refurbish parts.

“Volvo Cars has one of the most ambitious climate plans in the car industry, and if we are to reach our goals, we need to embrace the circular economy,” said Anders Kärrberg, Head of Global Sustainability at Volvo Cars. “This requires us to rethink everything we do and how we do it. We put a strong focus on integrating sustainability into the way we think and work as a company, and we are making it as important as safety has always been to us.”

To become a circular business by 2040, Volvo Cars is convinced that every part in its cars should be designed, developed and manufactured to be used and re-used, either by the company or its suppliers.

By focusing on resource efficiency and retaining the value created in materials and components for as long as possible during the lifecycle, the company wants to optimise the use of materials, components and cars and eliminate waste in the process. This will lead to financial savings and new revenue streams as well as significantly lower our environmental impact.

Already now, Volvo Cars remanufactures parts such as gearboxes and engines to make better use of material and reduce emissions. In 2020, around 40,000 parts were remanufactured, saving nearly 3,000 tonnes of CO2 emissions. By 2025, Volvo Cars aim to more than double its remanufacturing business. To ensure that valuable material can be kept in circulation the company recycled 95 per cent of its production waste last year. This included 176,000 tonnes of steel, avoiding the generation of nearly 640,000 tonnes of CO2.

In 2020, Volvo Cars became a member of the Ellen MacArthur Foundation, which is the world’s leading circular economy network.

“We welcome Volvo Cars’ commitment to design, develop and manufacture their products to be used and re-used. It is very encouraging to see the link being made between circular solutions, business strategy and a reduction in carbon emissions,” said Joe Murphy, Network Lead at the Ellen MacArthur Foundation. “The circular economy offers companies a framework for viable long-term growth that also benefits society and the environment.”

New business models such as giving electric vehicle batteries a second life are important from a circular business perspective. By using batteries in energy storage applications outside of cars, new revenue streams and cost savings can be realised while also extending the batteries’ lifecycles.

Together with suppliers and partners, Volvo Cars is exploring the potential in second-life applications for its high voltage batteries. A current example is the collaboration with BatteryLoop, a company within the Swedish Stena Recycling Group that re-uses batteries from the automotive industry.

BatteryLoop and Volvo Cars use batteries from electrified Volvo cars for a solar-powered energy storage system. Starting in April, the system will power charging stations for electrified cars and electric bikes at Swedish hygiene and health firm Essity’s business centre outside of Gothenburg.

In a similar project, Volvo Cars, Comsys AB, a Swedish cleantech company, and Fortum, a European energy company, are engaged in a commercial pilot project. It aims to increase supply flexibility at one of Fortum’s hydropower facilities in Sweden while contributing to a second life for electric vehicle batteries at the same time. Battery packs from Volvo plug-in hybrid cars will serve as a stationary energy storage unit, helping to supply so-called ‘fast-balancing’ services to the power system.

Through these and other projects, Volvo Cars is investigating how batteries age when re-used in second-life applications that have significantly less aggressive cycling compared to in-car use. They also allow the company to gain more knowledge about the commercial value of batteries after use in cars and identify potential future revenue streams.

A subsidiary of the Al-Futtaim Automotive Group, Trading Enterprises was established in 1970s in Dubai and is the exclusive authorised distributor for Volvo in the UAE. It is empowered by a highly skilled and trained professional team to provide a complete car buying experience. Al-Futtaim Automotive is one of five divisions within the Al-Futtaim Group which provides quality products and services that enrich people’s lives and aspirations each and every day

About Trading Enterprises – Volvo

Trading Enterprises, part of Al-Futtaim Automotive, is the exclusive distributor of Volvo cars in the UAE since 1985. The ISO9001:2008 company represents the world-renowned Volvo cars brand well known for its intuitive innovations, safety, environmental performance and Scandinavian design through its sales and after-sales network in Dubai and Abu Dhabi.

Trading Enterprises – Volvo offers a complete range of premium mobility solutions in the premium segment that includes: Sedans (S60 and S90), Versatile estates (V60 and V90) and SUV vehicles (XC40, XC60 and XC90). Trading Enterprises is regarded as pioneers in the region by Volvo when it comes to adopting Volvo best practices and has introduced the region’s first Volvo Retail Experience Showroom and Volvo Personal Service – which offers a human-centric approach to sales and service.

About Al-Futtaim Automotive

Al-Futtaim Automotive, one of the main five operating divisions within the UAE-based Al-Futtaim Group of companies, is a conglomerate of motoring-related businesses, franchising some of the world’s most-recognised automotive brands and services.

Operating in 10 countries across the Middle East, Asia and Africa and empowered by around 9,000 associates, the UAE-headquartered Group’s services span across distribution of new and used vehicles, manufacturing, leasing, and aftersales.

Ranging from passenger cars to SUVs, commercial vehicles, industrial and construction equipment as well as motorbikes and quads, Al-Futtaim Automotive Group offers an integrative customer-centric experience for motorists, fleet operators and contractors alike, and strives to become the leader in tailor-made mobility solutions

About Al-Futtaim

Established in the 1930s as a trading business, Al-Futtaim Group today is one of the most diversified and progressive, privately held regional businesses headquartered in Dubai, United Arab Emirates.

Structured into five operating divisions; automotive, financial services, real estate, retail and health; employing more than 42,000 employees in more than 20 countries in the Middle East, Asia and Africa, we partner with over 200 of the world’s most admired and innovative brands.

Al-Futtaim’s entrepreneurship and relentless customer focus enables the organization to continue to grow and expand; responding to the changing needs of our customers within the societies in which we operate.

By upholding our values of respect, excellence, collaboration, integrity; Al-Futtaim continues to enrich the lives and aspirations of our customers each and every day. For more information visit: www.alfuttaim.com

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