While internal combustion engines are a major contributor to automobiles’ carbon footprints, manufacturing the vehicles is also a large source of CO2. That’s why Stellantis has announced new plans to make it easier for customers to recycle their vehicles when they come to the end of their usable life.
The automaker announced today that it has signed a memorandum of understanding with Galloo, a leading European vehicle recycler. The companies aim to create a joint venture that specializes in recycling older vehicles.
“If we want to reduce our vehicles’ impact on the environment, it is essential that customers be able to easily recycle their end-of-life vehicles,” said Alison Jones, Stellantis’ senior VP of Global Circular Economy. “Reintegrating parts and materials in our value chain allows us to preserve our planet’s limited resources and contributes to our goal of achieving carbon neutrality by 2038.”
Read: Renault Targets $2.2 Billion Annual Revenue By Recycling Old Cars
With that, vehicle owners could drop their vehicles off at a dismantling center where their parts will either be resold, refurbished, or recycled, the company says. It is unclear if the people dropping their vehicles off will receive a fee for this.
For its part, Stellantis expects to make money off this joint venture, though. The recycling centers will contribute to its “circular economy” portfolio, from which it expects to earn $2 billion in revenue by 2030.
By that time, the automaker expects this joint venture to increase its recycling revenues tenfold, and to increase its parts revenue by four times. Specific financial targets for these joint venture plants have not yet been revealed.
However, the company says that the first recycling plants opened with Galloo will serve Belgium, Luxembourg, and France. After that, it will expand across Europe, with one of the centers being opened at Stellantis’ Mirafiori factory, in Italy.
“We are thrilled to announce this new step in our longstanding partnership with Peugeot and Citroën, as well as with Stellantis, and to continue to open avenues towards sustainable and responsible business activities by giving a whole new meaning to recycling end-of-life vehicles,” said Rik Dabaere, Galloo’s CEO.
