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Circular economy: a major challenge for Peugeot

21 March, 2023

5 minute read

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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).

The E-LION project

The E-LION project represents PEUGEOT's vision of electrification, in response to the needs of a changing world.

 

 

PEUGEOT's objectives for the electrification of the range are ambitious:

 

  • 2023: All models in the PEUGEOT range will be electrified,
  • 2025: PEUGEOT will offer a 100% ELECTRIC range,
  • 2030: 100% of PEUGEOT cars sold in Europe will be 100% ELECTRIC.

The E-LION project represents PEUGEOT's vision of electrification, in response to the needs of a changing world.

 

PEUGEOT's objectives for the electrification of the range are ambitious:

  • 2023: All models in the PEUGEOT range will be electrified,
  • 2025: PEUGEOT will offer a 100% ELECTRIC range,
  • 2030: 100% of PEUGEOT cars sold in Europe will be 100% ELECTRIC.

The E-LION project is not only about the electrification of the range, it is a global project, a 360° approach based on 5 elements:

 

  • Ecosystem: of products and services, based on STELLANTIS solutions.
  • Experience: a complete customer experience from start to finish.
  • Electric: a commitment to a 100% electric range by 2025.
  • Efficiency: the obsession with maximum performance with minimum consumption (12.5 kWh/100 km for e-208).
  • Environment: a sustainability target and Carbon Net Zero commitment by 2038. Within the next two years, PEUGEOT will introduce five new electric models: e-308, e-308 SW (the first European electric estate car), e-408, e-3008 and e-5008. In addition, the latest generation electric motor will develop 115 kW (156 hp) and a range of over 400 km.
Carbon Net Zero target by 2038

PEUGEOT is on track to achieve its "Carbon Net Zero" goal by 2038. With the aim of reducing the global warming potential by -60% worldwide and -70% in Europe by 2030.

 

 

The "Carbon Net Zero" plan goes beyond 100% electrification to consider : 

 

  • The materials used in the design and manufacture of products, 
  • The energy used,
  • The integration of products in a circular economy approach.

PEUGEOT is on track to achieve its "Carbon Net Zero" goal by 2038. With the aim of reducing the global warming potential by -60% worldwide and -70% in Europe by 2030.

 

 

The "Carbon Net Zero" plan goes beyond 100% electrification to consider : 

 

  • The materials used in the design and manufacture of products, 
  • The energy used,
  • The integration of products in a circular economy approach.
LINDA JACKSON, CEO OF PEUGEOT: "Carbon Net Zero is not three words, it is a mindset, an approach that we all need to adopt as organisations AND as individuals. Similarly, the E-LION project is not just a strategy and a presentation. It is a project that we are committed to seeing through, as it is of crucial importance to us and to future generations."
An expert on the circular economy explains
Lucile Olivas Maynez, a specialist in the circular economy at Stellantis, gives us the keys to the green strategy of the Lion brand.

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:

1. REMANUFACTURE OR REFABRICATE. Remanufacturing goes beyond the simple reconditioning that we are familiar with, especially when talking about mobile phones or electrical appliances. Indeed, it is a matter of reusing our maintenance waste to remanufacture new parts(i) For example, in the manufacture of a REMANUFACTURE alternator, up to 84% less raw material is used and approximately 32% less CO2 is emitted* than in the manufacture of an equivalent new part . Re-manufacturing therefore offers a higher industrial quality by dismantling, cleaning all the elements and replacing all the defective components with new ones. The original specification tests are repeated to achieve the same level of performance as an original new part and REMANUFACTURE parts carry the same warranty as our new parts.
1. REMANUFACTURE OR REFABRICATE. Remanufacturing goes beyond the simple reconditioning that we are familiar with, especially when talking about mobile phones or electrical appliances. Indeed, it is a matter of reusing our maintenance waste to remanufacture new parts(i) For example, in the manufacture of a REMAN alternator, up to 84% less raw material is used and approximately 32% less CO2 is emitted* than in the manufacture of an equivalent new part.. Re-manufacturing therefore offers a higher industrial quality by dismantling, cleaning all the elements and replacing all the defective components with new ones. The original specification tests are repeated to achieve the same level of performance as an original new part and REMANUFACTURE parts carry the same warranty as our new parts.

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).

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