Over 2 billion euros in revenues by 2030 and decarbonisation, eliminating net carbon emissions by 2038. These are the results that Stellantis aims for with the complete plan for its Circular Economy business unit.
The new organizational unit is one of seven growth business units announced in the Dare Forward 2030 strategic plan. “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. “Our current businesses are run by knowledgeable colleagues and trusted partners. Thanks to the approach based on the 4Rs we are implementing various initiatives with rigor, increasing the skills of our teams and developing the potential of the facilities. We want to create an efficient and integrated ecosystem to manage the scarcity of materials and at the same time, achieve the goal of zeroing net carbon emissions. “
The main objectives of the Circular Economy business unit are to extend the life of the cars and components as much as possible. At the same time, the unit aims to reintroduce end-of-life materials and cars into the production flow of new vehicles and products. Stellantis has developed a complete 360-degree business model based on the 4R strategy:
• Reman: used, worn or defective components are disassembled, cleaned and remanufactured according to OEM specifications. Nearly 12,000 components 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 vehicles.
• Reuse (reuse): approximately 4.5 million multi-brand components in stock, 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 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.
With the expansion of circular economy activities, the business unit also launches 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.
As Banca Akros pointed out, Stellantis has not provided details on investments for the Circular Economy Business Unit and on profit margins and as such they evaluate the news neutral by assigning a BUY rating to the Stellantis share.