Galloo to team up with Stellantis on ELVs

Global automaker Stellantis N.V. and Belgium-based scrap recycler Group Galloo say they intend to create a joint venture (JV) to provide recycling services to manage end-of-life vehicles (ELVs) for Stellantis and other automakers conducting business in Europe.

The two companies say they expect their JV service to launch late this year “with an initial focus on France, Belgium and Luxembourg, then expanding across Europe.”

Stellantis, which is based in Hoofddorp, Netherlands, and Galloo say they have signed a memorandum of understanding “to enter into exclusive negotiations” to form the JV.

The Stellantis-Galloo JV will work with specific authorized treatment (auto salvage) facilities to collect ELVs from the vehicle’s last owner, enabling the recovery of parts for reuse, remanufacturing and recycling, the companies say.

“Making it easy for customers to recycle their end-of-life vehicles is a crucial element to reduce the environmental impact of our vehicles,” says Alison Jones, Stellantis senior vice president for global circular economy. “Returning parts and materials to the value chain preserves scarce resources and helps our drive to reach carbon net zero by 2038. We look forward to implementing the program this year and quickly expanding.”

Rik Debaere, CEO of Galloo, says, “We are delighted to announce a new step forward in our long relationship first with Peugeot and Citroën, and now Stellantis, as we continue to lead the way in sustainable and responsible business by taking ELV recycling to a next level. Together with Stellantis, we are driving innovation and ensuring a more sustainable future for all.”

Stellantis calls recycling an integral part of its Stellantis Circular Economy business unit’s 4R strategy: reman, repair, reuse, recycle. The firm estimates its involvement in the ELV recycling program will contribute to increasing recycling revenues tenfold and parts revenues fourfold by 2030 compared with its 2021 figure.

“The ELV recycling program also supports the Stellantis goal of having 40 percent green materials in new vehicles by 2030,” the firm says.

The establishment of the JV is subject to “agreement on definitive documentation and customary closing conditions, including regulatory approvals,” the auto producer adds.

Stellantis vehicle brands include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.

Founded in 1939, Galloo operates a network of 42 subsidiaries in Belgium, France and the Netherlands set up to manage the recycling of ferrous and nonferrous metals and marketable plastic scrap. The company says it handles more than 1 million metric tons of ferrous and more than 60,000 metric tons of nonferrous metal each year and another 35,000 metric tons of plastic scrap.