2007 Interactive Registration Document - Renault

01 PRESENTATION
RENAULT AND THE GROUP
OF RENAULT AND THE GROUP
In co-design and manufacturing, the main partnerships
are as follows:
n Renault has entered into a number of cooperation agreements with PSA
Peugeot Citroën. The two groups have worked together since 1966 on
developing powertrain components: notably engines at their jointly-owned
affiliate, Française de Mécanique, in Douvrin (France), and automatic
transmissions at Société de Transmissions Automatiques in Ruitz (France);
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Renault has also signed a number of commercial agreements for the sale
of subsystems, notably transmissions and engines for Volvo and MMC and,
since January 2004, a diesel engine for Suzuki Jimny;
for light commercial vehicles, Renault and General Motors signed a framework
agreement in 1996 and confi rmed it with a cooperative undertaking in 1999.
In 2006, the two manufacturers renewed their agreement on co- d evelopment
and production, thus increasing their market presence in Europe.
Phase 2 of compact vans: Renault Trafi c and Opel/Vauxhall (GM) Vivaro have been
produced at the GM Europe plant in Luton (UK) since 2001, and at the Nissan
plant in Barcelona (Spain) since 2002, thus grouping the three manufacturers.
Phase 3 of large vans: Renault Master and Opel/Vauxhall (GM) Movano
have been produced by Renault at its Batilly plant (France) since 2000.
These two phases reached the market in September 2006.
To accelerate the pace of international expansion ✦
Renault is regaining control of its network:
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in Ireland at end-October 2007, Renault acquired Glencullen Distributors
Ltd., its vehicle and spare parts importer for 21 years. On November 1,
2007, it set up a Renault Ireland subsidiary. The aim is to implement Renault
Commitment 2009 on this promising market, which totaled 230,000 units in
2007, and to signifi cantly increase Renault’s car/LCV market share (3.7% in
2007). Renault has been present in Ireland since 1956, when the fi rst 4CV
was imported. Renault’s full range of right-hand drive vehicles (car/LCV) is
currently on sale here;
in the Nordic countries (Sweden, Norway, Finland and Denmark), Renault
is making investments and gearing up for an sales drive of unprecedented
magnitude, in terms of both products and service quality. Renault is aiming to
sell 45,000 vehicles (cars/LCVs) in 2009, compared with around 35,000 in
2006. On January 1, 2008, Renault started distributing its vehicles through
its Renault Nordic subsidiary in which it will invest €24 million. Since1982
Volvo Car had been in charge of marketing Renault vehicles on these markets.
The agreement expired on December 31, 2007 and was not renewed;
in Greece, Renault signed an agreement with the PGA Motors group to take
over distribution of new models in this country from February 2008 (New
Twingo, New Laguna, New Kangoo, New Clio Grand Tour and Koleos).
Renault signed a series of agreements with local partners in 2007, including
manufacturing companies, private investors and local authorities:
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in India:
Renault made its debut on the Indian market with the launch of Logan, in
partnership with Mahindra & Mahindra. After six months on the market, it
already ranks among the top three in its segment with market share of 15%.
At the same time, it is leading the fi eld for initial quality (JD Power),
to extend its development on this strategic market, Renault is pursuing
plans to set up a second industrial site in India, as part of a project that
now includes its partner Nissan. A Memorandum of Understanding (MOU)
was signed in February 2007 with the Government of Tamil Nadu to build
India’s biggest automotive industrial plant in the region of Chennai. This
will also be the fi rst site designed jointly by the Alliance,
Renault and Nissan also began discussions with a new partner, Bajaj –
India’s second biggest motorbike producer and leader in the 3-wheeled
vehicle segment – concerning the launch of an ultra-low cost vehicle,
beyond these commercial and industrial activities, Renault and Nissan set
up a joint venture, RNTBCI, also based in the Chennai region in Mahindra
World City, to bring together engineering activities and information systems
from 2008;
in Iran, the framework agreement for the Logan project, signed in
October 2003 by Renault and IDRO (Industrial Development and Renovation
Organization – a holding company linked to the Iranian ministry of industry
and mines) – makes provision for the redeployment of the Renault brand
in Iran, based initially on the 90 family and the 90 platform (Logan) . The
plan is to assemble and distribute L90s to each of the two main Iranian
manufacturers (Iran Khodro and SAIPA/Pars Khodro). The installed capacity
will be 300,000 vehicles/year split equally between the two manufacturers.
The joint venture Renault Pars founded in May 2004, 51% owned by
Renault and 49% by AIDCo (Iran Khodro 26%, SAIPA 26%, IDRO 48%),
is managing the industrial project. The specifi c roles assigned to Renault
Pars mainly concern purchasing, engineering, processes, quality procedures
and sales coordination. The partners have agreed to cover the investments
and expenses incurred before launching the fi rst vehicle through a capital
increase. Pars Khodro started operations in March 2007 and Iran Khodro in
May. More than 15,000 Tondars (Iranian name for the L90) were produced.
At the same time, Renault is pursuing a project to assemble Mégane in
partnership with Pars Khodro;
in Russia, Renault initiated two major projects in 2007 in order to take
advantage of the fast-growing Russian automotive market:
Renault reinforced its partnership with Moscow City Hall in May through
an agreement to increase the production capacity of the Moscow plant to
more than 160,000 vehicles/year from mid-2009. Renault plans to invest
US$ 150 million in new installations. Moscow City Hall will provide the land
and buildings. This increased capacity will support the success of Logan
on the Russian market and make it possible to introduce new economic
models based on the Logan platform,
in December, Renault signed a memorandum of understanding through
which Russian Technologies and Renault will become equal shareholders
of AvtoVAZ as part of a long-term partnership that will seek to accelerate
the transformation of AvtoVAZ into a global automotive player, with
a production capacity of more than one million vehicles/year,
o n February 29, 2008 several agreements were signed. Renault invested
one million US$ (659.38 million euros) for 25% plus one share of AvtoVAZ
capital. The partnership includes plans to accelerate the development of
AvtoVAZ, to renew and expand the vehicle range, to develop the Lada
brand – while respecting its identity – enabling it to maintain its leading
position on the Russian market, and also to exchange technological
expertise and to share know-how,
18 Registration Document Renault 2007
Find out more at www.renault.com
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