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 maximize 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
AMSTERDAM – 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 decarbonization 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.Video: Stellantis Circular Economy – Overview by Alison Jones
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.
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 centers 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 centers, 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.Go to Circular Economy Event page
About Stellantis
Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) is one of the world’s leading automakers and a mobility provider. Its storied and iconic brands embody the passion of their visionary founders and today’s customers in their innovative products and services, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Powered by our diversity, we lead the way the world moves – aspiring to become the greatest sustainable mobility tech company, not the biggest, while creating added value for all stakeholders as well as the communities in which it operates. For more information, visit www.stellantis.com.
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements. In particular, statements regarding future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, future financial and operating results, the anticipated closing date for the proposed transaction and other anticipated aspects of our operations or operating results are forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on Stellantis’ current state of knowledge, future expectations and projections about future events and are by their nature, subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them.
Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the impact of the COVID-19 pandemic, the ability of Stellantis to launch new products successfully and to maintain vehicle shipment volumes; changes in the global financial markets, general economic environment and changes in demand for automotive products, which is subject to cyclicality; changes in local economic and political conditions, changes in trade policy and the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the enactment of tax reforms or other changes in tax laws and regulations; Stellantis’ ability to expand certain of their brands globally; its ability to offer innovative, attractive products; its ability to develop, manufacture and sell vehicles with advanced features including enhanced electrification, connectivity and autonomous-driving characteristics; various types of claims, lawsuits, governmental investigations and other contingencies, including product liability and warranty claims and environmental claims, investigations and lawsuits; material operating expenditures in relation to compliance with environmental, health and safety regulations; the intense level of competition in the automotive industry, which may increase due to consolidation; exposure to shortfalls in the funding of Stellantis’ defined benefit pension plans; the ability to provide or arrange for access to adequate financing for dealers and retail customers and associated risks related to the establishment and operations of financial services companies; the ability to access funding to execute Stellantis’ business plans and improve its businesses, financial condition and results of operations; a significant malfunction, disruption or security breach compromising information technology systems or the electronic control systems contained in Stellantis’ vehicles; Stellantis’ ability to realize anticipated benefits from joint venture arrangements; disruptions arising from political, social and economic instability; risks associated with our relationships with employees, dealers and suppliers; increases in costs, disruptions of supply or shortages of raw materials, parts, components and systems used in Stellantis’ vehicles; developments in labor and industrial relations and developments in applicable labor laws; exchange rate fluctuations, interest rate changes, credit risk and other market risks; political and civil unrest; earthquakes or other disasters; and other risks and uncertainties.
Any forward-looking statements contained in this communication speak only as of the date of this document and Stellantis disclaims any obligation to update or revise publicly forward-looking statements. Further information concerning Stellantis and its businesses, including factors that could materially affect Stellantis’ financial results, is included in Stellantis’ reports and filings with the U.S. Securities and Exchange Commission and AFM.