Groupe Renault - 2019 Universal Registration Document

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OVERVIEW OF RENAULT AND THE GROUP GROUPE RENAULT

Business-to-business powertrain activity The powertrain business is an important sector in implementing effective industrial R&D synergies with Renault’s partners, including the Nissan-MMC Alliance partners. A dedicated department oversees this B-to-B powertrain activity, both in respect of exchanges of powertrain parts with partners, and for related engineering activities. The aim of these synergies is to pool development costs, to absorb fixed production costs, to generate economies of scale in the industrial activities of Renault and its suppliers, and ultimately, to improve free cash flow at Renault. In addition to the Alliance with Nissan and Mitsubishi Motors that enables the companies to share a common range of products, an industrial system and a supplier network, this B-to-B activity seeks to promote and offer Renault’s powertrain units in the context of automotive cooperations or third-party sales. They enable our partners to benefit from Renault technology and give Renault access, where useful, to its partners’ developments and manufacturing capacity. This activity also serves as a basis on which to identify and set up one-off cooperation projects and to evaluate our competitiveness and level of quality compared to our competition. Advantages A modern, CO 2 efficient powertrain range: with its internal combustion, hybrid and electric range, Renault has once again demonstrated its commitment to taking the lead in reducing the environmental footprint of vehicles. The qualities of the Renault powertrain range have convinced our partners of the advantages of using our engines for their vehicles. Partnerships have been developed for petrol and diesel engines, as well as for gearboxes. Nissan, Renault’s partner in the Alliance, has thus relied on the latest generations of Renault engines to reduce average CO2 emissions in its range of passenger cars in Europe. Following the partnership agreement signed in 2010 between the Renault-Nissan-Mitsubishi alliance and the Daimler group, diesel engines from the Renault range also allow Mercedes to offer versions of its Class A and B with low CO2 emissions. The Renault Group is one of the most efficient manufacturers in Europe in terms of consumption and approved CO2 emissions (for more details, see chapter 2.3.3.A, Vehicle use section). The organization In Renault’s Strategy, Business Development and Business Management department, dedicated teams work to detect opportunities, prepare bids, and negotiate contracts. Sensitive to the expectations of OEM customers, these teams allow for optimized responsiveness by interfacing with all Renault Engineering departments. 1.1.4.3

Main manufacturing sites 1.1.4.4 To meet the demands of our customers, Groupe Renault relies on an industrial footprint consisting of 38 industrial sites located around the world as close as possible to the markets in which we sell our brands’ vehicles. All Groupe Renault sites operate under common principles: making employee safety a priority, a desire to satisfy our customers, and continuous work on improving the competitiveness of our sites, in particular through convergence toward our industry 4.0 vision. Utilization rates for production capacity, down slightly from 2018, were 97% in 2019 globally (including AVTOVAZ, which was not the case last year) and 94% in the Europe Region, based on a standard figure of 3,760 hours per year (one year’s production based on two eight-hour shifts a day, five days a week, for 47 weeks a year). Utilization rates for production capacity are calculated using the Harbour method, i.e. , on the basis of two teams. The enlarged Alliance and Renault’s numerous strategic partnerships offer opportunities for synergies through the sharing of manufacturing facilities. In 2019, for example: Renault-Nissan vehicles are produced by AVTOVAZ in Russia; P Flins, Batilly, Sandouville, Moscow, Busan, Curitiba LCV and P Cordoba are Renault plants that produce vehicles for Nissan. In 2019, Maubeuge became a supplier to Nissan, for which it produces a small van; the Renault plants in Maubeuge and Novo Mesto produce vehicles P for Daimler; Sandouville and Batilly are two vehicle assembly plants that P produce vehicles for other partners including Opel, RVI and Fiat; finally, in India, Renault and Nissan share a plant common to both. P As regards engines, gearboxes and chassis, the cross-use of the Alliance’s plants makes it possible to offer regional manufacturing opportunities for the powertrain parts necessary for each market, while reducing investments and optimizing the use of our production capacities. The following is a selection of examples: for Nissan and Daimler, diesel engines are produced in the P Renault plants in Cléon and Valladolid and gasoline engines in Valladolid and Pitesti; in Europe, Nissan’s Sunderland plant produces engines for P Renault. In Japan, Nissan’s Yokohama plant also produces a gasoline engine for Renault; gearboxes are assembled for Daimler and Nissan in Cléon, for P Nissan in Pitesti, Seville, Cacia and Los Andes; AVTOVAZ assembles engines and gearboxes for Renault and P Nissan; As for chassis or front and rear suspensions, the Le Mans plant P manufactures for Nissan, Daimler and GM as well as for Groupe Renault brands.

38 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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