Stellantis says it aims to generate more than $2 billion through its circular economy business unit by 2030 and reach carbon net-zero status by 2038.
The automaker said the main objectives of the business unit are “extending the life of vehicles and parts, ensuring that they last for as long as possible and returning material and end-of-life vehicles to the manufacturing loop for new vehicles and products.”
This circular economy unit is driven by what Stellantis calls the “4R strategy” of remanufacturing, repair, reuse and recycle. It was one of seven business units detailed in the Dare Forward 2030 strategic plan the automaker released in March.
Stellantis said regional circular economy hubs will be complemented by what it calls “local loops” to maximize efficiency and protect scarce resources.
The local loops aim to keep products and materials within countries while speeding deliveries for customers. In Brazil, for example, parts such as starter motors and alternators from Stellantis vehicles are remanufactured, distributed and sold across 1,000 dealerships.
Stellantis said its leading circular economy hub will start operating in 2023 in Italy to expand current activities and support its “cradle-to-cradle” business model in Europe. This hub will allow for vehicle reconditioning, vehicle dismantling and parts remanufacturing.
“Stellantis is in the race to build a sustainable and profitable business based on circular economy principles in the markets where we operate,” Alison Jones, Stellantis’ senior vice president of the circular economy business unit, said in a statement. “We have skilled colleagues and trusted partners tackling our current activities. With our 4R mindset, we are now scaling up with an intense rigor, building our capabilities, teams and facilities, while creating a smart, integrated ecosystem to better manage material scarcity and our drive to carbon net zero.”
Under the “recycle” piece of the 4R strategy, Stellantis said production scraps and end-of-life vehicles are fed back into the manufacturing process. The business unit has collected 1 million recycled parts in six months.
The “repair” component calls for worn parts to be repaired and reinstalled into customers’ vehicles. E-repair centers work on electric vehicle batteries in 21 locations globally.
Stellantis said the “reuse” element means that around 4.5 million brand parts that are still in good condition are recovered from end-of-life vehicles and sold in 155 countries through the B-Parts e-commerce platform.
The “reman” — short for “remanufacturing” — portion covers worn or defective parts, which are dismantled, cleaned and remanufactured to original specifications. Nearly 12,000 parts covering 40 product lines, including EV batteries, are available.
As part of its circular economy expansion, Stellantis is launching a “SUSTAINera” label for parts and accessories that it says reduces material use by up to 80 percent and uses half as much energy as making new parts.
“The SUSTAINera label represents our promise to provide customers sustainable, transparent and affordable products and services,” Jones said, “without compromising quality, while preserving the environment through decreased waste and less use of our planet’s resources.”
