Stellantis seeks more suppliers to help it hit green goals
Stellantis plans to grow supply base for circular economy Automotive News Europe
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Stellantis Seeks to Expand Supplier Base for Green Components
TROY, Michigan
Stellantis is aiming to increase its supplier base for green components and rely on supplier innovations to achieve its sustainability targets, according to Alison Jones, the head of the automaker’s circular economy business unit. Speaking at a sustainability summit hosted by the Motor & Equipment Manufacturers Association, Jones emphasized the importance of collaboration and leveraging different expertise through an expanded supplier footprint.
Stellantis is actively working to expand its circular economy business, which focuses on extending the lifespan of parts and materials by reintegrating them into the manufacturing process for new components and vehicles. The company plans to establish regional hubs for reconditioning and parts remanufacturing, as well as develop “local loops” for parts manufacturing and reuse.
The automaker has set ambitious goals for its circular economy business, aiming to generate over $2 billion in revenue from it by 2030 and achieve carbon net-zero status by 2038. To accomplish this, Stellantis is adopting a strategy centered around the “4R’s” – remanufacturing, repair, reuse, and recycling. By maximizing the longevity of parts and ensuring their return to the manufacturing loop, the company aims to reduce carbon emissions and raw materials consumption.
Supplier Collaboration and Green Materials
Jones highlighted the crucial role of suppliers in Stellantis’ sustainability efforts. The company aims to have 40 percent of green materials in its vehicles by 2030, a significant increase from the current 15 percent. Jones emphasized the need for proactive supplier engagement and their responsibility in delivering mandatory components for remanufacturing.
Currently, Stellantis collaborates with 11 suppliers across 18 locations in North America through its circular economy unit. These suppliers provide mechanical parts such as alternators, starters, valve bodies, and turbochargers, supporting 26 product lines with 2,500 unique part numbers. Stellantis plans to expand its supplier base significantly in the future, although the exact number of suppliers is yet to be determined.
Stellantis specifically requires components like headlamps, taillamps, future transmission variants, long block engines, rear-drive modules, rear axles, steering columns, and power inverters. The company is exploring new ways to engage with suppliers and stay informed about innovative products before issuing traditional requests for quotes (RFQs).
Improving Supplier Relations and Growth Potential
Stellantis’ success in implementing its business plan will depend on its ability to improve relations with suppliers. In recent years, the automaker has performed poorly in Plante Moran’s annual automaker-supplier working relations study. However, the company’s score improved in 2023 as it increased transparency in its supply chain.
Jones emphasized that Stellantis does not intend to handle everything in-house and aims to grow through collaboration with suppliers. The company believes that expanding its supplier base is the right approach for its customers, the company itself, and the sustainability of its operations.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
- SDG 17: Partnerships for the Goals
The issues highlighted in the article are connected to these SDGs because they involve sustainable manufacturing practices, reducing carbon emissions, and collaborating with suppliers to achieve sustainability targets.
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
- SDG 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.
- SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.
- SDG 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.
The article mentions Stellantis’ goals of extending the life of parts and materials through remanufacturing, repair, reuse, and recycling. This aligns with SDG 9.4 and SDG 12.5. Additionally, Stellantis aims to reach carbon net-zero status by 2038, which relates to SDG 13.2. The company also emphasizes the importance of collaboration with suppliers, which supports SDG 17.16.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Percentage increase in the use of green materials in Stellantis’ vehicles by 2030.
- Revenue generated from Stellantis’ circular economy business in 2030.
- Carbon emissions reduction achieved through the implementation of circular economy practices.
- Number of suppliers engaged in Stellantis’ circular economy business.
- Improvement in Stellantis’ relations with suppliers, as measured by external studies or surveys.
The article mentions Stellantis’ target of having 40% green materials in its vehicles by 2030, which can be used as an indicator to measure progress towards SDG 9.4. The revenue generated from the circular economy business in 2030 can serve as an indicator for SDG 12.5. The reduction in carbon emissions resulting from circular economy practices can be measured to track progress towards SDG 13.2. The number of suppliers engaged in Stellantis’ circular economy business can be used as an indicator for SDG 17.16. Finally, external studies or surveys can assess the improvement in Stellantis’ relations with suppliers, indicating progress towards SDG 17.16.
4. Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 9: Industry, Innovation, and Infrastructure | 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. | – Percentage increase in the use of green materials in Stellantis’ vehicles by 2030. – Number of suppliers engaged in Stellantis’ circular economy business. |
| SDG 12: Responsible Consumption and Production | 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse. | – Revenue generated from Stellantis’ circular economy business in 2030. – Carbon emissions reduction achieved through the implementation of circular economy practices. |
| SDG 13: Climate Action | 13.2: Integrate climate change measures into national policies, strategies, and planning. | – Carbon emissions reduction achieved through the implementation of circular economy practices. |
| SDG 17: Partnerships for the Goals | 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources. | – Number of suppliers engaged in Stellantis’ circular economy business. – Improvement in Stellantis’ relations with suppliers, as measured by external studies or surveys. |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: europe.autonews.com
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