As part of its decarbonisation strategy and commitment to sustainability, Stellantis today inaugurated its first Vehicle Dismantling Center in Osasco (São Paulo, Brazil). With this pioneering initiative in the automotive sector, the Company will become the first automaker in South America to invest in a dedicated facility for the dismantling of end-of-life or damaged vehicles.
In addition to promoting a more sustainable consumption model, the project is part of Stellantis’ global Circular Economy plan. A total of R$ 13 million was invested in the construction of the centre, which is expected to create around 150 jobs in the coming years.
With the capacity to dismantle up to 8,000 vehicles per year, the new centre focuses on automotive recycling and parts reuse, aiming to extend the lifespan of components and significantly reduce environmental impact.
Where to buy used parts
Used parts in optimal condition, recovered from dismantled vehicles, will be available for sale to end consumers through both physical and digital channels. In Osasco (SP), customers will be served at the physical store located at the Dismantling Center, set up inside a dedicated sales container that has also been reused. Online, the components will be sold through the Circular AutoPeças store on Mercado Livre (an e-commerce and marketplace platform in Latin America) and soon, via a proprietary e-commerce platform. All sales comply with Detran’s (local vehicle authority) traceability and safety standards, ensuring legal compliance and parts in excellent working condition, with verified quality and origin by Stellantis, and follow all applicable laws and regulations set by local authorities.
How does the Stellantis Dismantling Center work?
The Circular AutoPeças Vehicle Dismantling Center (Official local designation of the global SUSTAINera Circular Economy activities) receives multibrand vehicles, classified as total loss, or cars that have reached the end of their useful life. These vehicles are acquired through auctions and go through a structured and regulated dismantling process that ensures the environmentally responsible disposal of parts and materials.
Upon arrival at the facility, each vehicle first enters a decontamination area, where all fluids such as oils and fuels are safely removed. It then moves to the dismantling line, where technicians assess the vehicle’s overall condition and that of its components through detailed inspections and testing.
Parts that are suitable for reuse are separated for either direct reuse or remanufacturing. Reusable components go through a cleaning process using biodegradable products and are assigned individual identification, including classification, market value, and a tracking label issued by the local vehicle authority (Detran).
Each vehicle is linked to a “dismantling certificate,” issued by an authorised supplier, listing up to 49 traceable items. This includes information about the original vehicle, the technician responsible for the dismantling, and the part’s provenance. In addition to complying with regulatory requirements, Stellantis uses its proprietary system for coding and quality control, ensuring standardisation across the entire process.
“Today,100% of the materials from dismantled vehicles are correctly processed. From fluids like oils and fuels to raw materials such as steel, iron, aluminium, copper, and other valuable metals—everything is reused. The materials are sorted by type and sent to Stellantis’ various partner suppliers, ensuring recycling and contributing to the reduction of environmental impact,” explains Paulo Solti, Vice President of Parts and Services for South America.
The reuse and proper disposal of vehicle parts and components still face major challenges in Brazil. It is estimated that the country’s fleet currently consists of around 48 million vehicles. Each year, approximately 2 million vehicles reach the end of their useful life, yet only 1.5% are disposed of in an environmentally responsible manner. Furthermore, the Brazilian car recycling market is estimated to have the potential to reach up to R$ 2 billion per year.
“In a world increasingly affected by material scarcity, securing access to critical resources is a strategic imperative besides lowering environmental impact. By internalising dismantling operations, Stellantis gains access to the flow of vehicles’ components and materials while reducing waste,” said Laurence Hansen, SVP Global Circular Economy.
Stellantis’ circular economy eco-system in South America
The Circular AutoPeças Vehicle Dismantling Center in São Paulo is part of Stellantis’ Circular Economy industrial expansion in South America operating through different locations in Brazil, aiming to create an eco-system of activities, being the first OEM implementing facilities dedicated to the circular economy focused on sustainability and innovation.
The goal is to extend the lifespan of products, reduce environmental impact, and promote a more conscious consumption model. Another part of this ecosystem is the Vehicle Reconditioning Center inaugurated in 2024 at Stellantis Betim (Minas Gerais, Brazil) plant — a specialised workshop dedicated to restoring and revitalising vehicles, bringing cars back to the market in conditions equivalent to those of a certified pre-owned vehicle by Stellantis.
“Circular Economy plays a strategic role in Stellantis’ business, driving innovation, sustainability, and efficiency across the entire automotive value chain. Based on the 4R strategy (Remanufacturing, Repair, Reuse, and Recycle), we aim to extend product life, reduce waste, and reintegrate materials into the production cycle — forming an integrated ecosystem essential for preserving the planet’s resources. The Dismantling Center, together with the Reconditioning Center, represents another decisive step in our global journey,” said Emanuele Cappellano, President of Stellantis South America and Global Head of Stellantis Pro One, the commercial vehicles unit.
The facility provides full services, including bodywork, painting, mechanical maintenance, repairs, parts replacement, cleaning, inspection, and certification. Everything is done with a focus on safety, quality, and sustainability — extending vehicle lifecycles and reinforcing Stellantis’ commitment to responsible practices.
“In addition to its environmental and economic impact, the Reconditioning Center also plays an important social role. In Betim, the workshop currently trains 18 young apprentices from the local area, most of them women, equipping them with technical skills to enter the job market. The facility also returns vehicles to the market, including for resale to our employees. These initiatives position Stellantis as a benchmark in the Circular Economy in the region,” Cappellano concluded.
The new dismantling centre, in addition to the Reconditioning centre and the leadership in the OEM parts Remanufacturing, form an efficient eco-system of circular economy activities implemented in Brazil with a strategic role that strengthens the Company’s ability to serve the South American market and customers with sustainable solutions, while contributing to the global effort to decarbonise the automotive industry.
SOURCE: Stellantis
