The latest product in Stellantis’ SUSTAINera European REMAN range underscores the automotive industry’s commitment to circular economy practices.
Remanufacturing—the process of restoring used parts to like-new condition with an accompanying warranty—plays a pivotal role in the circular economy. This practice, alongside recycling, reducing, and repairing, fosters responsible resource consumption, reduces waste, lowers pollution, and enhances environmental sustainability within the automotive industry.
Globally, nearly 55 million tons of electrical and electronic equipment waste is generated on an annual basis. By 2030, the electronic content in vehicles is expected to increase two-fold, highlighting the urgent need for the automotive industry to adopt circular economy practices driven by the principles of Reduce, Reuse, Recycle, and Remanufacture.
Embracing these principles, a strategic partnership between leading European automaker Stellantis and French Tier 1 supplier Valeo has resulted in the development of the industry’s first remanufactured windshield-mounted video camera. Remanufactured at Valeo’s advanced Circular Electronics Lab in Nevers, this product is part of Stellantis’ SUSTAINera European REMAN range, which is dedicated to advanced driver assistance systems (ADAS). This innovation positions Stellantis as the first automaker to offer remanufactured windshield-mounted video cameras.
Commitment to Decarbonization and Circular Economy
Decarbonization remains a top priority in the automotive sector. Stellantis aims to achieve Carbon Net Zero by 2038, while Valeo targets carbon neutrality by 2050. Remanufacturing is crucial in reducing the industry’s carbon footprint. Valeo currently remanufactures one million products annually, with plans to double this capability by 2030. Through the SUSTAINera label, Stellantis merges sustainability with affordability, offering over 13,000 remanufactured parts across 38 categories, including mechanical, electrical, maintenance, entertainment, connectivity, and body parts.
Achieving Success through Collaboration and Innovation
The collaboration between Stellantis and Valeo has yielded significant success, resulting in the launch of a remanufactured video camera within a year. This innovation saves up to 99% of natural resources compared to producing new cameras. The remanufactured camera offers the same two-year warranty and performance as new parts. Rigorous product development and testing processes at Valeo’s Circular Electronics Lab ensure uncompromised safety, quality, durability, reliability, and performance in real-world operations. Customers benefit from affordable, warranted parts that extend the lifespan of their vehicles, with remanufactured components that provide the same quality as new parts but at significantly reduced cost.
Beyond product processes and solutions, a comprehensive approach to sustainability includes using eco-friendly packaging solutions for SUSTAINera products. Moreover, recognizing it as a foundational element in building a sustainable ecosystem, employee upskilling is a key focus area. If Valeo has the Circular Electronics Lab, then Stellantis set up its first SUSTAINera Circular Economy Hub, in Turin (Italy) in November 2023 to drive forward the company’s circular economy agenda.
Our Perspective
Adopting sustainable practices enables manufacturers to meet net-carbon goals, offset volatile energy and raw material costs, and address surging demand in the automotive aftermarket.
Research by Frost & Sullivan indicates that remanufacturing revenue in key markets is projected to increase from $27 billion in 2022 to $42 billion by 2030. North America and Europe will see the remanufacturing industry mature, while the Asia-Pacific region presents significant growth potential provided stakeholders can actively promote remanufactured components to consumers.
Over the next 3 to 5 years, suppliers and aftermarket value chain enablers will introduce early-stage programs in their bid to become first-movers in delivering robust remanufacturing initiatives. Legacy components such as engines and transmissions, alongside emerging electronic components like control modules and engine control units (ECUs), are poised to experience substantial growth in the next 5 to 8 years. OEMs, suppliers, retailers, and wholesalers will develop and market remanufactured private-label or value-line products to increase retail margins, while minimizing operational costs by avoiding the need for new manufacturing.
As supply chains and reverse logistics improve, value chain participants will identify more parts suitable for remanufacturing, strengthening the business case for reman practices. Meanwhile, establishing sustainable, long-term core acquisition strategies will require investing in innovative backward integration or reverse logistics programs. OEMs and Tier I suppliers will also need to develop consistent quality and regulatory frameworks to standardize the reusability and remanufacturing of parts, aligning with the environmental goals of the circular economy. Ensuring easy serviceability and maintenance through component modularization will, moreover, be crucial for the success of remanufactured components. Tier I suppliers will need to develop core authentication protocols to facilitate recall, warranty, and lifecycle management of remanufactured components.
The partnership between Stellantis and Valeo represents a pioneering effort in the development of innovative remanufacturing solutions, placing sustainability at the core of ongoing transformation in the automotive industry.
With inputs from Amrita Shetty, Senior Manager, Communications & Content – Mobility
