Stellantis and Their Effect on Climate

By Megan Lepere
MAN3025 S2023

March 3, 2023

Submitted to: Dr. Doreen MacAulay

1
 Table of Contents

Title Page Page 1

Table of Contents Page 2

Executive Summary Page 3

Introduction Page 4

Goal Summary Page 4

Company Overview Page 5

Recommendations Page 5

Suggested Recommendation Page 7

Conclusion Page 8

References Page 9

2
 Executive Summary

Stellantis, a car company that owns many popular car brands, was responsible for 11.2%

of the car sales in the United States last year. This company owns many brands including Jeep,

Dodge, Chrysler, Ram, and many more. Even though this company is extremely successful, they

have not come up with any ideas to help reduce the greenhouse gas emissions in America.

Because they have sold so many of the cars in today’s world, they should be doing something to

help our climate. There are many options for ways they can accomplish this goal, but I will be

focusing on three different options for this company. Some of these options include the

company designing an electric car, finding substitute materials for the cars that they currently

make, or using a remanufacturing process with their current vehicles. All of these will make a

significant difference in the amount of greenhouse gases that are released from these vehicles

but creating an electric car will make the biggest difference. Because of their success, it’s

important for Stellantis to follow their company values and do anything they can to help

protect the environment.

3
 Introduction

Many car companies have begun introducing electric cars in order to help the

environment by having cars that do not release greenhouse gas into the atmosphere. Stellantis

however has not designed an electrical car, yet they sold 11.2% of the cars in America last year.

Stellantis is the company in charge of 16 car brands including Chrysler, Dodge, Fiat, Jeep,

Maserati, Ram, and many more. Since this company sells such a large number of cars in the

U.S., they should be more aware of the effect these vehicles are having on the environment and

make a change to their company. Cars are one of the leading factors when it comes to amounts

of greenhouse gases released and within this company, there are multiple changes that could

be made to help reduce this percentage. In this report I will be discussing the changes that

Stellantis can make to help cut down on the harmful impacts they are having on the world and

what they can do to better help the climate and environment.

Goal Summary

The overall goal that I am focusing on is trying to combat climate change in hopes of

creating a healthier environment and cut down on harmful man-made impacts to the world.

Along with this goal as a whole, I will be specifically focusing on the target that has to do with

total greenhouse gas emissions per year. It is shown that 27% of greenhouse gas emission in

the United States comes from transportation, which makes transportation the largest

percentage of greenhouse gas emissions. (USEPA) Throughout this report, changes to Stellantis

will be discussed which will help the company work towards the goal of cutting down on these

greenhouse gas emissions.

4
 Company Overview

Having a mission statement that talks about leading the way the world moves, I think it

is important for the company to pay attention to what is happening in the world right now.

Greenhouse gases have a major negative effect on the climate, and climate change is one of the

biggest problems that the world is currently facing. In order to lead the way the world moves,

Stellantis needs to show that they are caring for the environment in all ways possible. In

addition to the mission statement, some of Stellantis’ core values include being customer

centric, winning together, being agile and innovative, and caring for the future. (Stellantis)

Caring for the future directly aligns with this problem that we are facing. The company can

show how much they truly do care for the future by doing their part in reducing greenhouse

gases in the environment.

Recommendation 1

The first recommendation that I have for Stellantis to do their part in reducing

greenhouse gas emissions is to design an electric car that would not let out any greenhouse

gases. Many car companies have started doing this and have actually had a great amount of

success with their electric cars. This probably would be the most expensive option, but it would

also be worth it because electric cars release only half as much greenhouse gas emissions than

regular cars. (USA Facts) However, it is proven that the cost of materials needed to build an

electric car is rising at a rapid pace. “The average cost in raw materials is now around $8,255

per vehicle, according to consulting firm AlixPartners.” (Business Insider) The company would

5
need to allow a fairly large budget for a project this intense. The average cost of materials is

around $8,000 and that doesn’t include the cost to actually build/manufacture all of the

vehicles. Since the company would be introducing new vehicles, they wouldn’t need to be

producing the same number of previous vehicles so some of the money used to build gas

powered cars could be put towards these new electric cars. Designing an electric car can help

Stellantis as a company do their part in reducing greenhouse gas emissions.

Recommendation 2

The next recommendation that I have for Stellantis to help reduce greenhouse gas

emission in the U.S. is for them to find substitute materials in the manufacturing process. “The

key to successful material substitution is to choose a new material with similar properties to the

original; whether that applies to mechanical properties like tensile strength, or chemical and

thermal properties.” (Industry Today) The materials that are currently used are not the most

eco-friendly and by changing these materials, we could potentially see a rapid decline in the

amount of greenhouse gas emissions coming from vehicles. This could come out to be sort of

costly because of the fact that the company would have to research which materials could be

used as substitutes, then get those materials, then manufacture cars using those materials.

Another thing about this option that the article discusses is that substitute items might not be

available in large quantities like the original materials, so it could be hard to find these

products. However, even making the slightest change with the materials used could cause a

decrease in the amount of greenhouse gas emission coming from these vehicles.

6
 Recommendation 3

Lastly, an idea of something that Stellantis can do to reduce total greenhouse gases is

use a remanufacturing process when building their vehicles. “This involves the reclamation of

used durable materials, such as steels, and products that can be reused in future manufacturing

processes.” (Industry Today) Reusing materials from old engines and other car parts can reduce

the toxic gases that are released during the manufacturing process of automobiles. The

manufacturing process alone releases insane amounts of greenhouse gases into the

environment, so cutting back on this process can help reduce the amount of these gases. “If we

consider this alongside the 1.85 tons of CO2 produced per ton of steel, as reported by the

World Steel Association, that is at least 2960 tons of CO2 emissions avoided by

remanufacturing.” (Industry Today) By reusing some of these parts and pieces, car

manufacturers are saving their company’s time and money and helping the company have a

slightly better impact on the world.

Suggested Recommendation

My suggested recommendation would be recommendation one, designing an electric

car. Although this option would be the most expensive, it would also be the most efficient when

it comes to solving the climate problems that we are facing today. Electric cars produce only

half the amount of greenhouse gases than a regular vehicle, so making more of these cars

would help this problem tremendously. Stellantis employees could come together and discuss

which of their vehicles is selling the least and start making fewer of those cars. They could then

take the money that would be going towards these vehicles to manufacture the electric cars.

7
This could end up being a very expensive adjustment for the company to make, but I think

there would be no issue with making all the money back that is spent on designing and building

these cars. Nowadays with the way that technology is taking over the world, people are

attracted to electric cars and people are starting to care a lot more about the state of our

environment so I think these cars would be a best seller. Overall, creating an electric car would

be the best way for Stellantis to meet the goal of reducing greenhouse gas emissions.

Conclusion

The company Stellantis is responsible for manufacturing some of the top car companies

in the world, and last year was responsible for 11.2% of the cars sold last year in the United

States. Even with all of their success, Stellantis has yet to create an electric car, or any car that

reduces the greenhouse gas emissions in the environment. Since this company is responsible

for a fair amount of car sales in America, they can do something to help reach the goal of

reducing greenhouse gas emissions. Some options for this company to do so include designing

an electric car, finding substitute materials for their current vehicles, or using a

remanufacturing process when building their cars. There are many ways this company can help

change the climate for the better, but the best way to do so is by creating an electric car which

releases half the amount of toxic gases than a typical gas powered car.

8
 References

Environmental Protection Agency. (n.d.). EPA. Retrieved March 4, 2023, from

https://www.epa.gov/transportation-air-pollution-and-climate-change/carbon-pollution-
transportation#:~:text=%E2%80%8BGreenhouse%20gas%20(GHG)
%20emissions,contributor%20of%20U.S.%20GHG%20emissions.

Wallace, A. (n.d.). Electric vehicles are getting more expensive because raw material costs have
more than doubled to $8,000, research finds. Business Insider. Retrieved March 4, 2023,
from https://www.businessinsider.com/cost-of-making-electric-cars-is-growing-
manufacturers-hike-prices-2022-6

5 Ways Manufacturers Can Reduce Carbon Emissions (n.d.). Retrieved March 4, 2023, from
https://industrytoday.com/5-ways-manufacturers-can-reduce-carbon-emissions/
#:~:text=Remanufacturing%20plans,reused%20in%20future%20manufacturing
%20processes.

USAFacts. (2023, March 28). How much emissions do electric cars produce? USAFacts. Retrieved
April 1, 2023, from https://usafacts.org/articles/how-much-emissions-do-electric-cars-
produce/

Taylor DesOrmeau |. “These Were the 10 Top-Selling Car Brands, Models in 2022.” Mlive, 10
Jan. 2023, https://www.mlive.com/news/2023/01/these-were-the-10-top-selling-car-
brands-models-in-2022.html.

“Menu Stellantis.” Stellantis, https://www.stellantis.com/en/company/purpose-and-values.