Groupe Renault - 2020 Universal Registration Document

43 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2020 01 OVERVIEW OF RENAULT AND THE GROUP GROUPE RENAULT GROUPE RENAULT: A COMPANY THAT ACTS RESPONSIBLY CORPORATE GOVERNANCE FINANCIAL STATEMENTS RENAULT AND ITS SHAREHOLDERS ANNUAL GENERAL MEETING OF RENAULT ON APRIL 23, 2021 ADDITIONAL INFORMATION Business-to-business Powertrain 1.1.3.3 activity The powertrain business provides major manufacturing R&D synergies with the other Alliance members and Groupe Renault 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, absorb fixed production costs, and generate economies of scale in the industrial activities of Renault and its suppliers in order to optimize Groupe Renault's free cash flow. In addition to the Alliance with Nissan and MMC, which share a common range of products, an industrial system and a supplier network, this activity seeks to promote and offer Renault’s powertrain units in the context of automotive cooperations or third-party sales. These operations 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 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 reducing the environmental footprint of vehicles throughout their life cycle. The qualities of the Renault powertrain range have convinced our partners of the advantages of using our engines for their vehicles. Nissan, Renault’s partner in the Alliance, has thus relied on the latest generations of Renault engines to reduce average CO 2 emissions in its range of passenger cars in Europe. Groupe Renault is one of the most efficient manufacturers in Europe in terms of consumption and approved CO 2 emissions (for more details, see chapter 2.2.3.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 carmaker customers, these teams allow for optimal responsiveness by interfacing with all Renault Engineering departments. Main manufacturing sites - 1.1.3.4 production figures To meet the demands of its 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 it sells its brands’ vehicles. All these sites operate under common principles: making employee a priority; P a desire to satisfy our customers; P constantly working to improve the competitiveness of our sites, in P particular through convergence toward our industry 4.0 vision. (see section 2.2.3 "Plants that are transforming"). Our production capacity utilization rate in 2020 is 88% worldwide and 68% in France (using the Harbour method on the basis of two shifts, calculated on the standard of 3,760 hours per year). The Alliance and Renault’s strategic partnerships offer opportunities for synergies based on the pooling of production resources and enable us to increase the industrial activity of our sites. Therefore: Renault-Nissan vehicles are produced by AVTOVAZ in Russia; P Flins, Batilly, Maubeuge, Sandouville, Moscow and Cordoba are P Renault plants that produce vehicles for Nissan. In 2020, Sandouville started the production of a van for Mitsubishi; the Renault plants in Maubeuge and Novo Mesto produce vehicles P for Daimler; Sandouville and Batilly produce light commercial vehicles for P other partners such as GM, Renault Trucks or Fiat; finally, in India, Renault and Nissan share a plant common to both. P For the production of powertrain parts, the cross-utilization of Alliance plants provides manufacturing opportunities that allow us to share investments and optimize the use of our production capacities. Some 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. In India, Nissan's Chennai plant produces powertrains 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; the Le Mans plant manufactures chassis for Nissan, Mitsubishi, P Daimler and GM as well as for Groupe Renault brands.