25/10/23
Stellantis bets on legal auto dismantling: Correction
Corrects attribution in introduction. Story was originally published on 22
October. Sao Paulo, 23 October (Argus) — Global automaker Stellantis in August
opened a proprietary specialized auto dismantling facility that processes 8,000
cars/yr in Brazil. The plant dismantles vehicles that have been totaled or are
near end-of-life. The facility ensures the proper disposal of 100pc of the
materials from dismantled vehicles, which are then sorted and sent to
Stellantis' various partner suppliers. In addition to playing a central role in
Stellantis' global circular economy initiatives, the site is also a "legal chop
shop", the first site of its kind owned by an automaker in South America. The
company sells all reusable parts through official e-commerce channels to help
counter Brazil's ever-growing parallel auto parts market. The Brazilian auto
parts market lost an estimated R12bn ($2.2bn) in 2024 because of counterfeit or
stolen auto parts sales, according to the country's anti-counterfeiting
association ABCF. Argus spoke via email with Alexandre Aquino, Stellantis vice
president of circular economy South America, about the initiative and to see how
it is going two months after its opening. Translated and edited highlights
follow. How does Stellantis' new dismantling center in Brazil align with the
company's circular economy strategy in South America? Circular Economy is a
strategic pillar of Stellantis' global vision, led by a dedicated business unit.
It plays a key role in positioning the company as an industry leader in
innovation and in decarbonizing the entire value chain. Anchored in the 4R
strategy — recycle, remanufacture, reuse, and repair — we aim to extend the
lifecycle of parts and vehicles, reducing waste, and accelerating progress
toward carbon emission reduction targets. Circular economy hubs are central to
scaling this model efficiently across regions. The first of these hubs was
launched in Mirafiori, Italy, and now we added the vehicle dismantling center
inaugurated in Sao Paulo to complement this strategy. With this initiative,
Stellantis becomes the first automaker in Brazil and South America to invest in
a dedicated facility for the legal dismantling of damaged and end-of-life
vehicles, reinforcing its leadership in sustainable mobility. What are the main
legal and logistical challenges in recycling and dismantling operations? In
Brazil, there is still a significant path ahead in terms of creating a more
favorable business environment for vehicle dismantling, including necessary
regulatory developments to encourage such initiatives. We believe in Brazil's
potential to have a R2bn/yr ($371mn/yr) car recycling and processing market,
which is why R13mn ($2.4mn) was invested in building our Vehicle Dismantling
Center in Osasco, on the outskirts Sao Paulo. With this operation, we plan to
create approximately 150 jobs in the coming years, with the capacity to
dismantle up to 8,000 vehicles per year, including models from all brands
available in the Brazilian market — not just those under Stellantis. How much
steel and aluminum are typically recovered per car? Do you have an annual
estimate of how much of each material is recycled? About 5,000 metric tonnes
(t)/yr of solids, including — but not limited to — 3,600t/yr of ferrous scrap,
720t/yr of plastics, 360t/yr of cast iron, 200t/yr of aluminum, and 64t/yr of
copper. Stellantis recovers, on average, about 450kg of steel and 50kg of
aluminum per dismantled vehicle. These amounts vary depending on the year,
model, powertrain, and use of lightweight alloys (e.g., utility vehicles/SUVs
use more steel; newer cars may use more aluminum). We also estimate to discard
over 200,000 liters (l)/yr of liquids, recovering 48,000l/yr of gasoline,
60,000l/yr of ethanol and 12,000l/yr of diesel. Does Stellantis profit from
selling parts/scrap? If so, is dismantling considered a profitable and relevant
business line for the company? This project is part of Stellantis' global
strategy, with a genuine commitment to sustainability and the circular economy.
The dismantling center is technically and economically viable and plays a key
role in transforming the vehicles' life cycle. Investing in circular economy
initiatives enables us to reduce the use of raw materials by reusing them
through the dismantling processes. In addition, used parts in perfect condition,
recovered from dismantled vehicles, are sold to end consumers through both
physical and digital channels. All sales adhere to [Brazilian motor authority]
Detran's traceability and safety regulations, ensuring compliance with the law
and high-quality, certified parts with proven origin. This allows Stellantis to
provide sustainable, transparent, and accessible products and services, for
vehicles of all brands, without compromising on quality. The range of
remanufactured parts is already well-established in Europe and the US, with over
10,000 parts and 40 component groups. Are there any plans to recycle batteries
from electrified vehicles? If so, is there a timeline? We are closely monitoring
market trends and demands, but this is a topic that is already on our radar. By
Pedro Consoli Stellantis Brazil annual car recycling yield Material Amount
Solids metric tonnes/yr Ferrous scrap 3,600 Plastics 720 Cast iron 360 Aluminum
200 Copper 64 Led-acid batteries 28.8 Tyres 16 Electronic components 10
Catalytic converters (units) 7,200 Total solids 4,999 Liquids liters/yr Engine
oil 32,000 Transmission oil 28,000 Power steering fluid 2,400 Brake fluid 3,600
Coolant 16,000 Gasoline 48,000 Ethanol 60,000 Diesel 12,000 Total liquids
202,000 Source: Stellantis South America's parts and services department Send
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