Circular economy: a major challenge for Peugeot

Repairing used products, trading second-hand clothes, organic food, recovering heat from wastewater... The circular economy is an economic model that consists of producing goods and services in a sustainable way.

At STELLANTIS, the circular economy starts from the design of vehicles for a longer life (the life span is now about 15 years) by employing increasing amounts of recycled materials and integrating the repair, remanufacturing, reuse and recycling of cars and parts (including high voltage batteries).

What is the problem with our consumption patterns today for the environment?

Our mode of consumption poses a problem if we remain in a linear economy which can be summarised as follows: "I buy materials, I produce, I dispose of them and I throw them away. Today, the first problem is the future (in)availability of materials and resources. Here are some alarming figures on the level of global reserves of certain raw materials used in the automotive industry, if we maintain our current consumption:

• Oil: less than 50 years

• Gold: under 17

• Copper under 40 years

Moreover, our consumption patterns today result in excessive CO2 emissions and climate change. We are really putting biodiversity and the balance of our beautiful planet at risk. 

The circular economy allows us to use the resources we already have and our waste by reusing, repairing, remanufacturing or recycling them. This avoids the extraction of new or fossil materials as much as possible. Everyone wins by protecting people and preserving the planet.

What actions has STELLANTIS taken to move towards a circular economy?

At STELLANTIS, we adopt a strategy based on what we call the 4Rs:

2. REPAIR. Take the example of a radio that no longer works in a vehicle. Rather than replacing it with a new radio, we repair it. We send it to a STELLANTIS-approved repairer: this is a manufacturer's guarantee of the quality and repair level. The radio will then be refurbished and reinstalled in the vehicle.

3. REUSE. This is the used part guaranteed by the repairer. Customers are usually afraid to use second-hand parts because there is no guarantee. They are often not sure of the origin of the products. At PEUGEOT, for example, a second-hand part has the same guarantee as a new part (2 years): we make sure that it is an original part and that it is fitted by a PEUGEOT repairer. Moreover, the financial advantage is undeniable: a used part can be up to 70% cheaper than a new one. Sometimes the price is a barrier to repairs because replacing a new original part is too expensive, especially when your car is older. So REUSE is a good way to extend the life of vehicles.

4. RECYCLE. Recycling is a vast subject. One of the first actions to be taken in order to recycle is to recover: some raw materials are rare and precious (as in a catalytic converter for example). By recovering as much of the raw materials as possible, new parts are created for new vehicles or for maintenance. This is virtuous because it is put back into the production circle without extracting new materials. 35% recycled material in the manufacture of a vehicle and cars that last longer (up to 25 years): these are PEUGEOT's objectives in terms of recycling.

^{* Values are for information only, corresponding to the main vendor of similar products and determined according to a methodology approved by an independent company (Sphera).}