Circular economy action plan and end of life directive
Examensarbete för masterexamen
Management and economics of innovation (MPMEI), MSc
Throughout the years, the European Union has enacted an enormous amount of legislation related to the automotive industry. Efforts are underway in the European Union to achieve a full Circular Economy. Regarding circularity legislation, Heavy Duty Vehicles have been overlooked or may not have been as targeted as passenger cars. Even though Heavy Duty Vehicles are excluded from the End of Life directive, and they represent a relatively small percentage of the automotive industry, a number of factors make it worthwhile to explore them further. Volvo Group, one of the key players in the market, has paid considerable attention to this issue, the Heavy Duty Vehicles industry has adopted voluntary circular activities, the second-hand market for Heavy Duty Vehicles is highly active, and the Circular Economy regulatory framework in the European Union is undergoing rapid development. A decisive aspect of this thesis focuses on End of Life because the automotive industry already has a directive regarding End of Life which excludes Heavy Duty Vehicles. Also, the End-of-Life phase must be considered when transitioning to a circular economy. This thesis draws upon three main concepts, namely the Circular Economy concept, the End-of-Life directive, and the Circular Economy Action Plan to determine whether future legislation will include Heavy Duty Vehicles and how any future End of Life legislation will affect Heavy Duty Vehicles. Since Volvo Group has an interest in this thesis, we take our final findings regarding Heavy Duty Vehicles and apply them to Volvo Group's specificities, resulting in three recommendations for Volvo Group: developing an effective reverse supply chain, changing its design strategy into a circular one, and implementing a circular business model.
Circular Economy , End-of-Life , Circular Economy Action Plan