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Global automaker Stellantis opened its own specialized car disassembly facility in August, which recycles 8,000 vehicles per year in Brazil. The plant is dismantling vehicles that have been disposed of or whose service life is about to expire.
The company ensures that 100% of the materials from the dismantled vehicles are properly disposed of, which are then sorted and shipped to various Stellantis partner suppliers.
In addition to playing a central role in Stellantis' global initiatives to create a closed-loop economy, it is also a "legal store," the first of its kind owned by an automaker in South America. The company sells all reusable parts through official e-commerce channels to help counter the ever-growing parallel auto parts market in Brazil.
The Brazilian auto parts market lost about 12 billion reais ($2.2 billion) in 2024 due to the sale of counterfeit or stolen auto parts, according to the country's Ministry of Commerce. ABCF Anti-Counterfeiting Association.
Argus spoke via email with Alexander Aquino, Stellantis vice president of closed-loop economics in South America, about this initiative and how it is progressing two months after its launch. Below are the translated and edited highlights.
How does the new Stellantis dismantling center in Brazil align with the company's strategy for a closed-loop economy in South America?
The closed-loop economy is the strategic foundation of Stellantis' global vision, led by a dedicated business unit. This plays a key role in positioning the company as an industry leader in innovation and decarbonization of the entire value chain.
Based on the 4R strategy — recycling, remanufacturing, reuse and repair — we aim to extend the life cycle of parts and vehicles, reduce waste and accelerate progress towards achieving carbon reduction goals.
The centers of a closed-loop economy play a central role in effectively scaling this model across regions. The first of these centers was opened in Mirafiori, Italy, and now we have added a car dismantling center opened 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 to legally dismantle damaged vehicles. and cars with expired service life,