Remanufactured cars: Renault launches its circular economy subsidiary

Remanufactured cars: Renault launches its circular economy subsidiary

The circular economy is the new ecological frontier for manufacturers. Renault thus announces this Thursday, October 13th, the creation of a new entity dedicated to the famous circular economy, responding to the sweet Anglo-Saxon name The future is neutral (to water carbon neutral). That subsidiary could also be open to outside investors “like Nissan or Suez” for a “minority of its capital,” said Luca De Meo, general manager of the diamond-tipped manufacturer. The Tricolor Group aims to achieve a turnover of 2.3 billion euros by 2030 – ie 4% of the group’s turnover in 2021 – in this circular economy, with the company aiming to be “the leader in industrial scale” and European remanufacturing To become “with an operating margin” of more than 10% in 2030,” Renault said during a press conference. The former Régie expects investments of around 500 million euros by 2030.

The group is already active in recycling in partnership with Suez in two companies that it will merge The future is neutral: Indra, French leader in the recovery of end-of-life vehicle parts, and Boone Comenor, expert in the recycling of industrial scrap. The future is neutral will also include the Gaia subsidiary, based at the Renault car plant in Flins (Yvelines), specializing in the collection and recycling of end-of-life parts and materials, as well as battery repairs.

Stellantis is also renovating

Against the background of the energy transition characterized by resource scarcity and raw material price inflation, this unit will enable players in the automotive world to significantly increase their share of recycled materials from the automotive industry in the production of new vehicles. . Today, a new Renault vehicle contains up to 20% recycled materials from all sectors. The company is targeting 33% by 2030. And if currently an average of 85% of new vehicles are recyclable, less than 30% of them use recycled materials.

The problem: Recycled materials “cost more than new goods,” emphasized Luca De Meo. A central problem, because every year eleven million vehicles in Europe reach the end of their service life. With the advent of electric vehicles, the demand for materials such as cobalt will increase fivefold and eightfold for nickel. All the more reason to get her back! The Stellantis Group announced on Tuesday that it has set a target of €2 billion in sales per year in the circular economy by 2030, particularly in the processing of used vehicles.

Renault had already launched the project at the end of 2020 Factory in Flins (Yvelines). This factory, once among the manufacturer’s most important, was doomed for the long term at the end of life of the Nissan Micra – a semi-failure – in 2023, the electric Zoé the following year. It must save its transition to the circular economy. The basic idea: to make Flins, which produced 128,000 new cars in 2020, “the first plant in Europe specialized in the preparation of used cars on an industrial scale”, according to Jean-Dominique Senard, President of the Group.


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