Revenue in Recycling: Stellantis to expand circular economy business unit

Amsterdam, Netherlands — Stellantis has announced its mission to generate more than $2.6 billion in savings via a mission to extend the life of its vehicles and parts.

The OEM forecasts that it can save €2 billion (CND$2.6 billion) in recycling and reusing parts through its circular economy unit.

Stellantis said the main objectives of the circular economy unit–part of the OEM’s Drive Forward Strategic Plan–are to “extend the life of vehicles and parts, ensuring they last as long as possible” and to “return material and end-of-life vehicles to the manufacturing loop for new vehicles and products.”

The OEM first unveiled its Dare Forward 2030 strategic plan in March, wherein it detailed its circular economy unit and seven other net-zero initiatives. Stellantis says the circular economy division abides by a ‘4R strategy’, which stands for remanufacturing, repair, reuse and recycling.

Under the ‘recycle’ part of the 4R strategy, Stellantis will feed production scraps and end-of-life vehicles back into the manufacturing process. The OEM said it has collected one million recycled parts in a six-month period. The ‘repair’ strategy will see worn parts repaired and reinstalled into customer vehicles, said Stellantis.

The ‘reuse’ section will see approximately 4.5 million multi-brand, good-condition parts sold in 155 countries under the B-Parts e-commerce platform.

Remanufacturing–or ‘reman’, for short–will call for used, worn or defective parts to be thoroughly dismantled, cleaned and remanufactured to OEM specifications.

“Nearly 12,000 parts covering 40 product lines–including electric vehicle batteries–are available.”

The OEM will also launch a label for parts and accessories made with reduced material–up to 80 percent less material and 50 percent less energy, compared to equivalent new parts, said Stellantis. These parts will bear the label ‘SUSTAINera’.

“The SUSTAINera label represents our promise to provide customers sustainable, transparent and affordable products and services to our customers for all brands of vehicles, without compromising quality, while preserving the environment through decreased waste and less use of our planet’s resources,” said Alison Jones, senior vice president of Stellantis’ circular economy business unit.

Stellantis’ leading Circular Economy Hub will launch in 2023 at the OEM’s Mirafiori Complex in Italy. This hub will host vehicle reconditioning, vehicle dismantling and parts remanufacturing activities.

‘Local loops’ will also be employed in various countries to maximize efficiency, said the OEM.

For more information on Stellantis’ circular economy business unit and the 4R strategy, click here. 


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