PARIS, June 5 (Reuters) – Stellantis announced on Monday an agreement to create a joint venture with the Belgian vehicle and ship dismantling specialist Galloo in the management of the end of life of its vehicles, now an important element of the decarbonization strategy of automobile manufacturers.
The group born from the merger between PSA and FCA has concluded a memorandum of understanding to enter into exclusive negotiations with Galloo, already a long-standing partner of the Peugeot and Citroën brands, to improve the collection and recovery of components that can be recycled or reused .
“We want to be in this value chain, especially in the event that materials become scarce,” said Alison Jones, senior vice president of Global Cicular Economy at Stellantis, during a press conference call.
The manufacturer has set itself the objective of multiplying the 2021 turnover of its recycling activity tenfold to bring it to more than two billion euros by 2030.
The group, which is also aiming for carbon neutrality by 2038, also intends to quadruple revenues linked to an extended lifespan of parts and services and increase the rate of green materials in its new vehicles to 40% at the end of the decade.
From the end of 2023, once all regulatory authorizations have been received, the new joint venture will offer its services to owners wishing to resell their vehicles destined for scrapping, first in France, Belgium and Luxembourg, then in the rest of Europe as well as other manufacturers.
The financial terms of the partnership have not been made public.
Last September, Stellantis announced the opening in 2023 of its main circular economy hub within the Mirafiori complex in Italy. This completes the system put in place with the acquisition in 2016 of Aramis, European leader in the online purchase and sale of used cars, which has seven internal reconditioning centers in Europe. (Report by Gilles Guillaume and Giulio Piovaccari, edited by Blandine Hénault)