Stellantis announced a comprehensive plan for its Circular Economy business unit. The initiative will make it possible to obtain over 2 billion euros in revenues by 2030 and to achieve the company's ambitious decarbonization goal of eliminating net carbon emissions by 2038.
The new organizational unit is one of seven growing business units announced in the Dare Forward 2030 strategic plan. The Circular Economy business unit envisages its rigorous 360-degree approach expanding based on the 4R (reman, repair, reuse, and recycle) strategy. The goal is to fulfill the ethical responsibilities of the company and increase the financial value of Stellantis.
"Stellantis is committed to creating a sustainable and profitable business based on circular economy principles in the markets in which we operate," said Alison Jones, Senior Vice President of Stellantis' Circular Economy business unit. "Knowledgeable colleagues and trusted partners run our current businesses. Thanks to the approach based on the 4Rs, we are implementing various initiatives rigorously, increasing our teams' skills and developing the facilities' potential. We want to create an efficient and integrated ecosystem to manage the scarcity of materials and simultaneously achieve the goal of zeroing net carbon emissions. "
The Circular Economy business unit's primary goal is to extend the life of the cars and components as much as possible. At the same time, the department aims to reintroduce end-of-life materials and cars into the production flow of new vehicles and products. This methodology conforms to the principles of "Design for the circular economy," which are the basis of the new Citroen OLI [all-e]. This multifunctional family vehicle concept car uses lightweight, recycled materials and adopts sustainable manufacturing processes. The methodology aims to extend durability and enhance end-of-use recyclability.
Stellantis has developed a complete 360-degree business model based on the 4R strategy: reman, repair, reuse, and recycle. It is an integrated ecosystem of vital importance to preserve and protect the planet's resources.
- Reman (remanufacturing): Used, worn, or defective components are disassembled, cleaned, and remanufactured according to OEM specifications. Nearly 12,000 pieces are available for 40 product lines, including batteries for electric vehicles.
- Repair: Worn components are repaired and reinstalled in customers' vehicles. The e-repair centers, located in 21 locations around the world, work on the batteries of electric cars.
- Reuse (reuse): approximately 4.5 million multi-brand components in stock, still in reasonable condition, are rescued from end-of-life cars and sold in 155 nations through the B-Parts e-commerce platform.
- Recycle: production waste and end-of-life vehicles are returned to the production process. One million components were recycled by the business unit in just six months.
The Stellantis Circular Economy business unit plan envisages an ambitious volume increase and expansion into new countries. At the same time, it ensures constant innovation and the retraining of new technicians.
In September, Stellantis announced that its central Circular Economy Hub will be inaugurated in 2023 in the Mirafiori district in Italy. The trade will allow the growth of Stellantis' present activities and support Europe's "cradle-to-cradle" business model. The Hub will host vehicle refurbishment and disassembly and component remanufacturing activities., The goal is to expand the Hubs further globally and their range of performance. The ambitions of the business unit are complementary to the actions of Aramis, a European leader in the online sale of multi-brand used cars that will have seven internal reconditioning centers located in strategic locations in Western and Central Europe by the end of the year.
In addition to the hubs for the Circular Economy, the business unit will use "local circuits" to keep products and materials within countries and accelerate the delivery process to customers. In Brazil, key components such as starters and alternators of Stellantis-branded vehicles are remanufactured, distributed, and sold in 1,000 local dealerships, supporting the philosophy of the Circular Economy and the goal of zero net carbon emissions.
This enterprise is established on the skills presently held by Stellantis and represents a further step forward in implementing the strategic plan for the Stellantis Circular Economy business unit. The latter aims to quadruple the earnings deriving from the extension of the useful life of parts and services and to increase the incomes obtained from recycling by ten times, compared to 2021, by 2030.
With the expansion of circular economy activities, the business unit also launched the new SUSTAINera identity for spare parts and accessories, guaranteeing savings of up to 80% in materials and up to 50% in energy compared to equivalent new spare parts. The values were determined by conducting a life cycle analysis of the best-selling items in each product family according to a methodology approved by Sphera, an independent company.
"SUSTAINera realizes the company's promise to offer customers sustainable, transparent, affordable products and services for all vehicle brands. This is done without compromising quality and, at the same time, preserving the environment by reducing waste and using the planet's resources," said Alison Jones.
Chosen from hundreds of proposals from Stellantis employees, SUSTAINera also embodies the company's core value: creating a better future through responsible activities to enter a new era of sustainability.