Chairman John Elkann and CEO Carlos Tavares inaugurated the operations and attended the ribbon cutting for Stellantis’ Circular Economy Hub in Turin, Italy.

Stellantis Opens Circular Economy Center for Autos, Parts

Nov. 28, 2023
The automaker intends to achieve a 360-degree approach to production, implementing remanufacturing, repair, reuse, and recycling to its design, production, and distribution programs.

Stellantis N.V. inaugurated a Circular Economy Hub at its manufacturing complex in Turin, Italy, demonstrating its commitment to a “360-degree approach” to automotive production, involving a strategy of remanufacturing, repair, reuse, and recycling, (4R.) The automaker claims it is adopting capabilities and facilities “to change its consumption model, creating a smart, integrated ecosystem to reduce the environmental impact and better manage the company’s aggressive decarbonization target of reaching carbon net zero by 2038.”

“Circular economy” describes an economic concept for production and consumption that preserves the value of energy, materials, and labor as products move from design through to end-of-use handling and recycling.

The SUSTAINera CE Hub represents a €40 million investment, covering 73,000 sq. meters, of which 55,000 sq. meters have been recovered from a partially unused facility. Equipment and machinery were repurposed from other locations, representing a 55% saving over the purchase of new machinery and equipment, Stellantis reported. The site employs 170 workers, and that figure is projected to rise to approximately 550 by 2025.

“The Circular Economy Hub brings together a powerhouse of skills and activities aimed at creating a high-performing center of excellence in Europe,” stated Stellantis CEO Carlos Tavares. “We are industrializing the recovery and sustainable reuse of materials, building new technologies and advanced capabilities as we grow in this area.”

The automaker stated its primary objectives for the CE Hub are to extend the life of parts and vehicles, ensuring that they last for as long as possible; or, failing that, to recycle those materials and others from end-of-life vehicle dismantling for remanufacturing as new parts and/or vehicles.

In terms of targets, the goal for the first operation, “Reman,” is to manage over 50,000 remanufactured parts annually by 2025, rising to 150,000 by 2030. For the Hub’s Sorting Center, the target is to process an estimated 2.5 million worn parts annually by 2025, increasing to 8 million by 2030.

The Vehicle Reconditioning activity will undertake aesthetic and/or mechanical repair of remanufactured or used parts and then reintroduce those to the supply chain through Stellantis’ manufacturer-certified used-vehicle program (SPOTiCAR) and sales and services network.

Last, the Vehicle Dismantling activity will convert end-of-life vehicles into resources for parts to be remanufactured, reused, or recycled.

Stellantis intends for the CE Hub to generate “efficiencies and synergies” among these activities, and through vertical integration of materials and processes.