sidereal tuesday Launched an initiative for its business unit focused on the circular economy, which, in terminology, is a division of the company dedicated to sustainability and recycling.
The parent company of brands including Jeep, Dodge, Maserati and Peugeot estimates the new unit will bring in more than 2 billion euros in revenue by 2030 and propel the company to net-zero carbon by 2038.
The move comes nearly five months after Stellantis admitted to concealing the amount of pollution caused by its diesel engines and agreed to pay $300 million to settle criminal fraud charges. Like other automakers facing similar scandals (such as Volkswagen), Stellantis has pored over the room and moved towards a greener path aimed at creating value for Stellantis stakeholders.
The new division, first announced by Stellantis in March as part of its Dare Forward 2030 strategic plan, will focus on designing a circular economy and rely on the tried-and-true 4Rs strategy – remanufacture, repair, reuse, recycle.
Let’s take a closer look at what Stellantis looks like.
Designed for a circular economy
“In some ways, the circular economy actually starts at the design point, for any product or service, how do I design it to be as long-lasting as possible, whether it’s through the durability of the materials or the refreshment?” Stellantis Global Circular Economy Division Senior Vice President Alison Jones said at a news conference on Tuesday.
In a circular economy, the death of components is expected, meaning they are designed to be broken down for recycling. Jones said the sketches for the product were constructed from recycled materials.