Stellantis Fosters Circular Economy Ambitions with Dedicated Business Unit to Power New Era of Sustainable Manufacturing and Consumption

October 13, 2022 by Stellantis

• Circular Economy plays a major role in Stellantis' effort to reach industry-leading target of carbon net zero by 2038

•'Cradle-to-cradle' business model to reach more than €2 billion in revenues by 2030 as part of Dare Forward 2030 strategic plan

•Regional hubs complemented by local loops to maximise efficiency and protect scarce resources

•New SUSTAINera label provides transparency about material and CO2 savings; represents promise of sustainable and affordable product and service solutions

Stellantis N.V. today announced a comprehensive plan for its Circular Economy Business Unit to achieve more than €2 billion in revenues by 2030 and drive the Company's aggressive decarbonisation target of reaching carbon net zero by 2038.

As one of the seven accretive business units announced in the Dare Forward 2030 strategic plan, the Circular Economy Business Unit is expanding its rigorous, 360-degree approach based on the 4R strategy – reman, repair, reuse, and recycle – to meet the Company's ethical responsibilities for the future, and to bring financial value to Stellantis.

'Stellantis is in the race to build a sustainable and profitable business based on circular economy principles in the markets where we operate,' said Alison Jones, Stellantis Senior Vice President, Circular Economy Business Unit. '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.'

The main objectives of the Circular Economy 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 methodology compliments the principles of 'Design for the Circular Economy,' which are core to the new Citroën 'oli' all-ë, a conceptual multi-activity family vehicle that uses lightweight and recycled materials, sustainable production processes, affordability, durability for an extended service life and responsible end-of-life recyclability.

Circular Economy's 4R Strategy:

Stellantis has developed a comprehensive, 360-degree business based on the 4R strategy: reman, repair, reuse, and recycle. It's an integrated ecosystem that is vital to preserving and protecting the planet's resources.

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•Reman – Used, worn or defective parts are thoroughly dismantled, cleaned and remanufactured to OEM specifications. Nearly 12,000 parts covering 40 product lines, including electric vehicle batteries, are available.

•Repair – Worn parts are repaired and reinstalled into customers' vehicles. In 21 locations around the world, e-repair centres work on electric vehicle batteries.

•Reuse – Approximately 4.5 million multi-brand parts in inventory, still in good condition, are recovered from end-of-life vehicles and sold in 155 countries through the B-Parts e-commerce platform.

•Recycle – Production scraps and end-of-life vehicles are fed back into the manufacturing process. In just six months, the business unit has collected 1 million recycled parts.

Hubs Complemented by Local Loops

Stellantis' Circular Economy Business Unit plan calls for aggressive scaling up in volumes and expansion to new countries, while ensuring constant innovation and re-skilling for new techs.

In September, Stellantis announced that its leading Circular Economy Hub will launch in 2023 at its Mirafiori Complex in Italy. The dedicated operation will enable the expansion of Stellantis' current activities and support its 'cradle-to-cradle' business model in Europe. The Hub will host vehicle reconditioning, vehicle dismantling, and parts remanufacturing activities, with the scope set to expand further globally. The business unit's ambition is also complementary to the 2016 acquisition of Aramis, a European leader in the online multi-brand purchase and sale of used cars, that will (by year-end) have seven in-house refurbishing centres, strategically placed over Western and Central Europe.

In addition to circular economy hubs, the business unit will use 'local loops,' to keep products and materials within countries, speeding deliveries for customers. In Brazil, key parts, i.e., starter motors and alternators from Stellantis brand vehicles, are remanufactured, distributed and sold across 1,000 local dealerships − supporting the Circular Economy philosophy and the drive to carbon net zero.

This builds on the skills the Company currently have and is another important step in the implementation of the strategic plan for Stellantis' Circular Economy Business Unit as it pushes to quadruple extended life revenues for parts and services and increase recycling revenues by 10 times by 2030 as compared to 2021.

Introducing SUSTAINera

With the expansion of circular economy activities, the business unit is also launching its new SUSTAINera label for parts and accessories, indicating a savings of up to 80% materials and 50% energy as compared to their equivalent new parts. The values are determined by conducting a life-cycle analysis of the corresponding best-seller in each product family in accordance with a methodology approved by Sphera, an independent company.

'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.

Chosen from among hundreds of Stellantis employees' proposals, the SUSTAINera label also embodies the Company's core value of making a better future through a responsible business entering a new era of sustainability.