HomeAutomobileStellantis and Galloo to create a joint venture to recycle old cars

Stellantis and Galloo to create a joint venture to recycle old cars

The Stellantis automobile group and the Belgian metal recycling specialist Galloo will create a company specializing in the recycling of end-of-life vehicles, in order to recover their parts, both companies said Monday.

Stellantis announced an agreement on Monday to create a joint venture with Belgian vehicle and shipbreaking specialist Galloo on end-of-life management for its vehicles, now an important part of carmakers’ decarbonisation strategy. The group born from the merger between PSA and FCA has closed 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 that value chain, especially in case materials become scarce,” Alison Jones, SVP of Global Circular Economy at Stellantis, said during a press conference.

The manufacturer has set itself the goal of multiplying by ten the 2021 turnover of its recycling activity to exceed two billion euros in 2030. The group, which is also committed to carbon neutrality by 2038, also intends to quadruple revenue related to longer parts and service life and increase the rate of green materials in its new vehicles to 40% by the end of the decade.

First in France, Belgium and Luxembourg

Starting at the end of 2023, once all regulatory authorizations have been received, the new joint venture will offer its services to owners who wish to resell their end-of-life vehicles, first in France, Belgium and Luxembourg, then in the rest of Europe, as well as to 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 center within the Mirafiori complex in Italy. This completes the system implemented with the acquisition in 2016 of Aramis, the European leader in the online sale of used cars, which has seven internal reconditioning centers in Europe.

Author: TT with Reuters
Source: BFM TV

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