Stellantis bets on legal auto dismantling: Correction

Corrects attribution in introduction. Story was originally published on 22 October.

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