Circular, November 4, 2022, Peter Dennis
Renault Group is creating The Future Is NEUTRAL, which it says is the first company operating across the entire automotive circular economy value chain to move the automotive industry towards resource neutrality.
The car manufacturer says that by bringing together all the existing expertise of the group and its partners in this activity, this new entity offers closed-loop recycling solutions at each stage of a vehicle’s life.
Renault Group says this entity will develop more technological and industrial solutions thanks to the expertise of its subsidiaries and its network of partners already operating.
It continues that the entity will also enable the automotive industry to significantly increase the proportion of recycled materials from the automotive industry in the production of new vehicles. In the short term, the entity is aiming to grow its existing companies with a dedicated business model and develop new opportunities in the automotive industry.
With the objective of the business portfolio reaching a turnover of more than €2.3 billion and an operating margin of more than 10% by 2030, The Future Is NEUTRAL aims to be the industrial and European leader in the closed-loop automotive circular economy.
Renault Group says The Future Is NEUTRAL is opening up a minority of its capital to outside investors with a view to co-financing investments of around €500 million until 2030.
The company’s strength lies in its ability to mobilise a network of subsidiaries and partners to collect parts, materials and batteries throughout the automotive lifecycle, from scrap cars, factory rejects and garages, the car manufacturer says.