The Stellantis group is establishing itself as a player in the recycling of old cars by creating a joint venture with a Belgian specialist in the sector, Galloo.
What if Stellantis became a major player in car recycling? This is the ambition of the Franco-Italian-American group, which announced on Monday that it had reached an agreement with the Galloo company to create a joint venture for the recycling of old cars. The idea, for the manufacturer, is to recover the parts and thus promote a circular economy of the automobile, which is increasingly essential.
Stellantis anticipates the scheduled end of the heat engine
The context is as follows: 2035, at the latest, will mark the end of the era of the heat engine. And for Stellantis, the time has come to anticipate by concentrating more forces and resources on recycling. For this, it will found, with the Belgian company specializing in the dismantling of vehicles, Galloo, a joint venture dedicated to the management of the end of life of vehicles.
Galloo is obviously no stranger: she is a long-time partner of Peugeot and Citroën, the two French brands of the PSA subsidiary, which itself gave birth to the Stellantis group, after its merger with Fiat Chrysler Automobiles in January 2021.
Stellantis and Galloo will together improve the recovery of parts that can be recycled or reused in future vehicles. And ambitions are not limited to the automotive group alone.
Stellantis wants to increase its revenue from recycling tenfold by 2030
Stellantis and Galloo are going to set up a real end-of-life metal recycling service for vehicles, but the future joint venture will also offer its services to other manufacturers. For this, it will work with several approved and carefully selected processing centers, which will be responsible for recovering each vehicle from its last owner. This will be followed by the repair, reuse and recycling of the various parts that can be recovered from the car.
The Stellantis group, which is already aiming for carbon neutrality by 2038 and is seriously committed to the development of electric vehicles, should launch this joint venture by the end of the year, initially in France, in Belgium and Luxembourg. The activity could be quickly extended to the rest of Europe. Stellantis is thus taking advantage of the French boom in batteries and its own rather favorable news, the hexagon having inaugurated a gigafactory of electric batteries a few days ago.
Remember that the company that manages this new site in the North, Automotive Cells Company (ACC), was co-founded in 2020 by Stellantis and TotalEnergies/Saft. The German Mercedez-Benz joined the project last year.
The manufacturer intends, thanks to this program, to multiply by ten the turnover of its recycling activity between 2021 (which serves as a base) and 2030. It would thus exceed 2 billion euros, making Stellantis a heavyweight in the market. The automotive group is committed to increasing the rate of green materials in its new vehicles to 40% by 2030.
Sources: StellantisClubic
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