Renault - Fiscal Year 2004

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2004 Gb 17/03/2005 11:50 Page 1
Renault. Setting new standards in safety
RENAULT IN 2004
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Key figures 2004
Market share (Western Europe and Worldwide) Simplified structure of the Renault group
(%) 2000 2001 2002 2003 2004
Western Europe 15%

Nissan Renault
Passenger cars 10.6 10.6 10.7 10.6 10.3
44.4%
Renault
Light commercial vehicles 14.1 15.3 15.8 15.0 14.9 AB Volvo
Trucks/Mack
20% 100%
Cars + LCVs 11 11.2 11.3 11.1 10.8
Renault
Worldwide (cars + LCVs) 4.2 4.3 4.3 4.2 4.1 Dacia Samsung
70.1% Motors
99.4%
Group sales worldwide
(units) 2000 2001 2002 2003 2004
Western Europe 1,873,865 1,905,306 1,870,404 1,806,995 1,812,044
Rest of the world 481,706 507,489 534,291 581,487 677,357
Total worldwide 2,355,571 2,412,795 2,404,695 2,388,482 2,489,401
Passenger cars 2,019,902 2,074,650 2,063,979 2,055,996 2,109,209
Light commercial vehicles 335,669 338,145 340,716 332,486 380,192
Group revenues Group operating margin

(e million) (e million)
40,000 40,175 40,715 2,500 2,418

36,351 36,336 37,525
2,000 2,022
30,000
Foreign revenues
1,500 1,483 1,402
20,000 65.3
64.5 60.8 61.7 64.5 (%) 1,000
10,000 500 473
35.5 39.2 38.3 35.5 34.7 Domestic revenues
0 0
(%)
2000 2001 2002 2003 2004 2000 2001 2002 2003 2004
Renault net income Employees

(e million)
3,750 3,551 200,000

166,114
3,000 150,000
2,480 140,417 132,351
2,250 1,956 130,740 130,573
100,000
1,500
1,080 1,051
750 50,000
0 0
2000 2001 2002 2003 2004 2000 2001 2002 2003 2004
Renault share performance

(e)
CAC 40 indexed on Renault share price at December 31, 1996: e17
70
60 u61.55
50 Renault share price
(+ 12.5% in 2004)
40
30
3,821.16 points
20 CAC 40 index
10 (+ 7.4% in 2004)
1997 1998 1999 2000 2001 2002 2003 2004
Renault in 2004
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Contents
2004 in pictures 2
From the Chairman 4
Board of Directors 6
Management Team 8
The rewards of good governance 10
1. Renault's brand identity: setting the standard

in product innovation and customer service 12
A strong brand identity 14
Innovative design with a winning way 15
Modus — a new take on compacts 16
Mégane II range — top seller in Europe 18
First for safety 20
Respect for the environment 21
Renault continued and extended implementation The fullest offering of minivans 22
of its strategy for profitable growth throughout 2004. Market leader in light commercial vehicles 24
High-performance, fuel-efficient engines 25
The number-one brand in Europe — and the only Service: winning new business and building loyalty 26
automotive manufacturer to line up seven vehicles The Renault range 2004 28
with top five-star ratings in Euro NCAP crash tests
— Renault placed third in the Formula 1 constructors' 2. Competitiveness: a way of thinking and a necessity 30
championship and accelerated international growth. Speedier design and lower costs 32
Developments included the launch of Logan Platforms: building new strength 33
and the deepening of its Alliance with Nissan. The Renault Production Way to manufacturing efficiency 34
Kudos for quality 35
Results for the year bear out the pertinence of this
Purchasing: the key to competitiveness 36
strategy, with operating margin reaching 5.9% Distribution — organizing for competitive edge 37
of revenues, making Renault one of Europe’s most The Renault-Nissan Alliance — the benefits 38
profitable volume vehicle manufacturers.
Strategy is structured around five fundamental goals: 3. Internationalization: making the world our market 40
A market revolution: Logan by Renault 42
• Build recognition for our brand identity International expansion drives sales 46
• Be the most competitive manufacturer on The Group in Korea: Renault Samsung Motors 48
our markets in terms of quality, costs and Trucks — the contribution of AB Volvo 49
delivery times Motor sport: catching the public eye 50
• Extend our international reach
• Develop Renault's core values 4. Corporate values: Renault's first priorities 52
• Translate success into financial performance Safety on a broad front 54
Human resources: building growth together 56
Renault has thus chosen to present the business Fundamental rights 58
developments of 2004 in terms of these same objectives, Protecting the environment 59
as was already the case for our 2003 report.
5. Results in line with strategic priorities 62
Net income reaches all-time high in 2004 64
Looking ahead 66
1
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2004 in pictures
For Renault, 2004 was a year

of success. Modus put in
a good sales performance
from the moment it was
launched, while Logan
attracted immediate interest
at the start of what promises
to be an exceptional career
built on a groundbreaking
concept. Like the Fluence
concept car, Modus and Logan
illustrate the creativity and
drive that have won Renault
an outstanding record
of success on markets
around the world. Modus
Modus got off to a strong start in Western Europe, complementing Clio to give Renault the top place in the small-car segment.
Combining a compact format and a roomy, modular interior, its styling makes for an easy appeal, adding to its other strengths.
Logan
Dacia, the Romanian brand acquired by Renault in 1999, is now moving to take its place as the reference for new automobile markets with Logan,
launched in 2004. Robust and reliable, Logan is a modern sedan offering standards of equipment and performance at a price that make it unrivalled
value for money.
Like its forerunner Wind, the Fluence

concept car marks the beginnings of
a new direction for Renault design.
Outside, sleek, vigorous lines make
for an exclusive aura of sensual appeal,
while the interior is built for warmth,
with soft shapes and quality ergonomics
embodying the principles
of Touch Design.
Fluence
2 Renault in 2004
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With seven of its vehicles winning

the top five-star rating in Euro NCAP
crash tests, Renault boasts the safest
range on the market. Renault cars
are built to prevent accidents, correct
failings and protect all occupants.
Renault also takes the initiative
to raise awareness of road safety
issues, in particular through education-
al programs for children
and young people.
Safety
International growth
In 2004, Renault successfully continued implementation of its strategy for international expansion, working towards its goal of selling 4 million cars a year
by 2010. Total group sales were up 4.2% in 2004, while the rise outside Western and Central Europe was a vigorous 16.5%. In Western Europe, the
Renault brand took a top 10.8% of the market for passenger cars and light commercial vehicles, reflecting in particular the success of Mégane, Trafic and
Master. Shown here, Clio in Brazil.
Formula 1
The Renault F1 Team's results for

2004 match the target of ranking
in the top three set at the beginning
of the season. In 2005, Renault
will be setting its sights even
higher, battling for the world
championship title.
3
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From the Chairman
The Renault group had an excellent year in 2004.

Our results reflect the success of projects initiated some time ago to underpin our drive for profitable growth,
as well as the achievement of our targets for 2004 in terms of quality, international development and
operating income.
The quality of our products and services, recognized by both customers and distributors, has had an impact
on our warranty costs. Progress in this area is an important source of strength for the Renault range —
one of the most recent on the market. At the end of the year, our lineup was extended with the launch
of Modus, an innovative model with a special appeal that has won it a ready welcome. Marking a first
move in the renewal of our range of small cars, Modus is to be followed by an all-new Clio in 2005
and Twingo in 2006.
Our new engines, which make our range one of the most fuel-efficient on the market, enhance the
attractiveness of our models, as does our lead in safety, illustrated by five-star ratings for seven of
our vehicles in Euro NCAP crash tests. Mégane's place as the best-selling car in Europe in 2004 and
the rise in sales of light commercial vehicles bear out this appeal, consolidating Renault's ranking as
Europe's number-one brand for the seventh year running.
International expansion has continued at a sustained pace. A highlight was the successful launch of
Logan, on schedule and to targeted standards of quality, rewarding united commitment and efforts,
especially from Dacia. Logan has a key role to play in our drive to win new markets, and its very positive
reception — reflected in sales well above our expectations — augurs well for its intended international
career. Work to prepare the plants that are to produce Logan in Russia, Morocco and Colombia continued
in 2004. Our project for Iran, which involves the production of over 300,000 cars a year, is making good
headway and we have initiated promising talks in India.
In Korea, Renault Samsung Motors extended its offering with the launch of the new SM7.
All told, sales outside Western Europe, our domestic market, were up by over 16%. Sales under the Renault
brand showed vigorous rises on many markets, among them Turkey, Algeria, Russia, Mexico, Colombia
and South Africa. Deployment of the Renault brand on new markets also benefited from performances
in Formula 1 racing that matched targets with a place among the top three in 2004.
Renault is now clearly building momentum for the profitable and sustainable growth on which our strategy
is based. In this, we can build on strong corporate values and a fundamental principle: respect for
people and the environment. New initiatives in recruitment and training are under way, as well as the
adoption of tools such as the Declaration of Employees' Fundamental Rights to provide ethical
guidelines for expansion.
Turning to business results, net income reached a historic high. Our balance sheet is particularly solid.
These good results reflect the combined effects of sales performances, focused investment and cost
controls, as well as the competitiveness of our factories, which is among the highest in the world.
They also bear out the wisdom of strategic investments in the Renault-Nissan Alliance, which was
strengthened in 2004, and in the equity of AB Volvo, the world's second-largest truck maker. These
make Renault one of the most profitable automobile manufacturers in the world.
Our performances demonstrate the success of our strategy, rewarding the combined efforts of Renault,
Dacia and Renault Samsung Motors employees, to whom I would like to address my deepest thanks for
their commitment, enthusiasm and professionalism. We will continue to deploy this strategy for the
satisfaction of our customers, business partners and shareholders. In spring 2005, this will become the
responsibility of Carlos Ghosn when he takes over from me at the head of the Renault group, which will
face new challenges, but will also meet with new success.
4 Renault in 2004
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Louis Schweitzer
Chairman and CEO
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Board of Directors
on December 31, 2004
Louis Schweitzer Yves Audvard Michel Barbier

Chairman Renault Advanced Process Design Engineer Renault Working Conditions Technician
Alain Champigneux François de Combret Charles de Croisset*

Renault Engineering Project Manager Associate Director, Lazard Frères Vice Chairman, Goldman Sachs Europe
Carlos Ghosn Jean-Louis Girodolle Itaru Koeda

President and Chief Executive Officer, Inspector of Finance and Deputy Director, Co-Chairman of the Board of Directors
Nissan Motor Co., Ltd. Treasury Department, Ministry of the and Executive Vice President,
Economy, Finance and Industry Nissan Motor Co., Ltd.
6 Renault in 2004
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Marc Ladreit de Lacharrière* Dominique de La Garanderie* Bernard Larrouturou

Chairman and Chief Attorney, former Leader of the Bar Managing Director, CNRS
Executive Officer, FIMALAC (Ordre des Avocats de Paris) (National Center for Scientific Research)
Henri Martre* Jean-Claude Paye* François Pinault*

Honorary Chairman, Aérospatiale Attorney Honorary Chairman, Artémis,
Chairman of the Pinault Foundation
Franck Riboud* Georges Stcherbatcheff Robert Studer*

Chairman and Chief Executive Officer, Renault Representative Former Board Chairman,
Danone Group for Industry-wide Standardization Union de Banques Suisses
*Independent directors.
7
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Management Team
on January 1, 2005
Group Executive Committee
Louis Schweitzer Patrick Blain Georges Douin

Chairman and Chief Executive Officer Executive Vice President, Executive Vice President, Product
62 years old Sales and Marketing and Strategic Planning and
52 years old International Operations, 59 years old
École Nationale d’Administration. École des Mines de Paris. École Polytechnique.

Inspector of Finance. Joined Renault Master's Degree in Economics. Joined Renault in 1967 as a quality
in 1986. Became Chief Financial Officer Masters of Science from Stanford engineer in the R&D Department.
and Head of Strategic Planning in 1988, University. Joined Renault in 1977. Became Head of Engineering in 1988,
then Executive Vice President in 1989. Senior Vice President, Market Area then Vice President, Technology in 1989,
Appointed President and Chief Operating France and member of the Renault before being appointed Senior Vice
Officer in December 1990. Management Committee in 1998, President Product and Strategic Planning
Chairman and CEO of the Renault group then Senior Vice President, Market and Projects in 1992. He became
since May 1992. Area Europe in 2000. On January 1, Senior Vice President, Product and
2005, he was appointed Executive Strategic Planning and International
Vice President, Sales and Marketing, Operations in 1997. Appointed Executive
and became a member of the Group Vice President in 1998.
Executive Committee and the Mr. Douin will retire from his executive
Renault-Nissan Alliance Board. duties in July 2005.
Group Executive Committee and Renault Management Committee
Louis Schweitzer (1) Odile Desforges Kazumasa Katoh

Chairman and Chief Executive Officer Senior Vice President, Purchasing. Senior Vice President,
Patrick Bessy Chairman and Managing Director, Powertrain Engineering
Senior Vice President, Corporate Renault-Nissan Purchasing Philippe Klein
Communications Organization (RNPO) Senior Vice President, assigned to the
Patrick Blain (1) Georges Douin (1) Chairman's Office (effective March 1, 2005)
Executive Vice President, Executive Vice President, Product & Strategic Jacques Lacambre
Sales and Marketing Planning and International Operations Senior Vice President, Advanced
Marie-Christine Caubet Jean-Baptiste Duzan Vehicle Engineering and Research
Senior Vice President, Market Area Europe Senior Vice President, Corporate Controller Patrick le Quément
Jacques Chauvet Michel Faivre-Duboz Senior Vice President, Corporate Design
Senior Vice President, Market Area France Senior Vice President, Vehicle Benoît Marzloff
Engineering Development Senior Vice President, Strategy and Marketing
Jean-Pierre Corniou
Senior Vice President, Philippe Gamba Luc-Alexandre Ménard
Chief Information Officer Chairman and CEO, RCI Banque Senior Vice President, International
Alain Dassas Manuel Gomez Operations
Senior Vice President, Finance Senior Vice President, Northern Latin America Bruno Morange
Remi Deconinck Michel Gornet (1) Senior Vice President,
Senior Vice President, Product Planning Executive Vice President, Manufacturing Light Commercial Vehicles
8 Renault in 2004
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Michel Gornet Thierry Moulonguet Jean-Louis Ricaud Michel de Virville

Executive Vice President, Executive Vice President, Executive Vice President, Corporate Secretary General
Manufacturing, 58 years old Chief Financial Officer, 54 years old Engineering and Quality, Executive Vice President, Renault
52 years old Group Human Resources, 59 years old
École Polytechnique. École Nationale d'Administration. École Normale Supérieure, PhD in mathematics. Research engineer
Harvard Business School. Joined Renault in February 1991, Agrégation diploma in Mathematics. at the CNRS (National Center
Joined Renault in 1968. as Head of Group Financial Relations, Chief Engineer of the École des Mines. for Scientific Research). Ministry
Appointed General Manager before being appointed Vice President, Began his career at Cogema. of Labor (1986). Advisor at the Auditor-
of the Billancourt plant in 1986, then Capital Expenditures Controller in 1996. Joined Renault in early 2002 as Senior General’s Department. Joined Renault
General Manager of the Sandouville In 1999, following the signing of the Vice President, Quality, and became in 1993. Became Head of the Human
plant in 1989. He became Senior Renault-Nissan Alliance agreement, he a member of the Renault Management Resources Department in 1996,
Vice President, Manufacturing in 1994 joined Nissan Motor in Japan as Deputy Committee. He was appointed Executive and was appointed Corporate Secretary
and joined the Renault Management Chief Financial Officer. In 2000, he was Vice President, Engineering and Quality, General in 1998, with responsibility
Committee. Appointed Executive Vice appointed Chief Financial Officer and has been a member of the Group for the Group’s Human Resources.
President, Manufacturing, he became of Nissan. On January 1, 2004, Executive Committee and the
a member of the Group Executive he became Executive Vice President Renault-Nissan Alliance Board since
Committee on January 1, 2005. and Chief Financial Officer of Renault. January 1, 2005.
Thierry Moulonguet (1) Carlos Ghosn is 51 years old.

Executive Vice President, Up to December 31, 2004: He graduated from the École
Chief Financial Officer Polytechnique (1974) and
Patrick Faure (1) (2) the École des Mines in Paris (1978).
Pierre Poupel
Chairman, Renault F1 Team In 1996, after 18 years at Michelin,
Senior Vice President, Mercosur
he joined Renault as Executive
Jean-Louis Ricaud (1) François Hinfray (1)
Vice President in charge of
Executive Vice President, Executive Vice President,
Advanced Research, Car Engineering,
Engineering and Quality Sales and Marketing
Car Manufacturing, Powertrain
Yann Vincent Pierre-Alain De Smedt (1) Operations and Purchasing.
Senior Vice President, Quality Executive Vice President, Carlos Ghosn In 1999, he was appointed Nissan's
Industry and Technology President and Chief Executive Officer, Chief Operating Officer and then
Michel de Virville (1)
Corporate Secretary General, Executive Tsutomu Sawada Nissan Motor Co., Ltd. became the company's President
Vice President, Group Human Resources Senior Vice President, Advisor and Chief Executive Officer in 2001.
to the Chairman Carlos Ghosn will replace
Louis Schweitzer at the head
of the Renault group in April 2005.
(1)
Members of the Group Executive Committee.
(2)
Effective January 1, 2005, Patrick Faure resigned from the Group Executive Committee
to concentrate exclusively on his role as Chairman of the Renault F1 Team.
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The rewards
of good governance
Clear principles guide daily practice
Committed to the very highest • New independent directors of the Board’s structure and • Proposed separation of
standards of corporate The appointments of François operation — the third since Chairman and CEO functions
governance, Renault made Pinault and Charles de Croisset 1998 — with a survey In 2005, the Board will be asked
transparency in management to the Board raised the number commissioned from a specialized to separate the functions of
procedures a priority once of independent directors to eight external consultant. Results Chairman and Chief Executive
again in 2004, strengthening at December 31, 2004.To qualify bore out the 2001 evaluation, Officer, in keeping with
supervision and control as independent, directors may highlighting significant advances Anglo-American business
by appointing new not be representatives of the in the Board's consistency, practices. If this proposal is
independent directors French State, nor be elected cohesion and independence, approved, Carlos Ghosn will be
to its Board. by employees and employee as well as the confidence and asked to become CEO. In the
shareholders (these directors trust of management and its new structure, the Chairman
not being subject to management commitment to Renault-Nissan will organize and preside the
authority during Board meetings). Alliance strategy. work of the Board of Directors.
Also excluded are the Chairman The CEO will be responsible
and CEO and the two directors • New Charter defines for Group operations.
appointed by Nissan, given the role and independence
company’s ties to Renault, and of auditors
a director appointed by a bank In 2004 Renault signed a charter
doing business with Renault. setting out its relations with Group
auditors, who ensure compliance
• Board evaluation with charter provisions and with
On December 14, 2004, Renault regulations in all countries
undertook an in-depth assessment where Group companies operate.
Good governance is a question of attitude
about image, it is above all an the business from another includes a component not
open and transparent approach angle. Fresh insights can directly linked to operating
to doing business. be useful as long as Board margin. A collective component
meetings allow for a genuine is also important, since all
Franck How would you define exchange of views, which is business requires a team effort.
Riboud* the role of an independent certainly the case at Renault, The compensation system adopted
director? as it is at Danone. Independence by Renault strikes a good balance
Chairman and Rather than categories like is not the application of a quota; between these different
CEO of Danone “independent” and “dependent”, it’s the way a business deals requirements.
I prefer to look at the overall with its directors.
What are the main benefits of balance and the special
good corporate governance? contribution of each director. What guidelines do you * Independent director and chairman
Many people see a corporate An independent director has recommend for compensation? of Renault Appointments and
governance policy as a vector no conflicts of interest and risks If you limit pay to short-term Remuneration Committee.
for communication, but they’ve no sanctions for straight talking, financial compensation, your
missed the point. The real aim which makes it easier for him business will deliver short-term
is to give shareholders concrete to speak his mind. And coming financial results. So it makes
evidence of the company’s from a different industry — unlike sense to develop a system that
ability to deliver results. Renault, Danone is in mass-market takes into account short, medium
Corporate governance is not consumer goods — I approach and long-term factors, and
10 Renault in 2004
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Senior management
The Board of Directors and specialized committees compensation
policy
The Board of Directors examines - Proposed dividend for 2003. Committee (CEG) and Compensation of members
strategic priorities proposed by - Review of fees paid to auditors the corporate officer. of the Renault Management
management and ensures that and their network. - Review of the evaluation Committee (CDR) and
decisions are implemented. It is - 2003 balance sheet and of each Board member corporate officers
(mandataires sociaux)
consulted in advance on all major analysis of 2004 budget commissioned from an outside
comprises fixed and variable
decisions outside normal business prepared by internal audit. consultant in keeping with components and is rounded
strategy, and is kept regularly - Analysis of France's Financial best practice in corporate out by a stock-option system.
informed of company finances. Security Act of August 1, 2003, governance. The variable portion is based
In 1996, the Board of Directors set which imposes stricter - Stock-options program on company performance.
up three specialized committees standards for audits and for 2004. Criteria for determining
to assist it in the fulfillment of its internal control. - Renault governance. the variable component
mission and the achievement of compensation for the
Chairman and CEO are set
of its objectives. Committee • The Appointments and • The International Strategy
by the Board of Directors
chairmen are charged with Remuneration Committee, Committee is chaired by Henri on the basis of proposals
presenting relevant input which has a majority of Martre, an independent director, made by the Appointments
to the Board. independent directors and is and met three times in 2004. and Remuneration Committee.
chaired by Franck Riboud (see Main issues examined included:
• The Accounts and Audit interview opposite) met three - Renault’s international strategy
Committee, which has a times in 2004. Main issues in Iran, China and India.
majority of independent directors considered included: - Group strategy in the
and is chaired by Robert Studer, - Compensation for the Chairman Mercosur countries.
met three times in 2004. Main and CEO and members of the - Customer expectations
issues examined included: Executive Committee. and product positioning
- Financial statements for - Consideration of an additional on international markets.
the Group and for Renault SA retirement benefit program for
for 2003 and the first half senior managers, members
of 2004. of the Group Executive
The Annual General Meeting held at Maison de la Chimie, Paris, in April 2004.
11
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Stylish, innovative, fun to drive: Modus has the hallmarks of a true Renault.
12 Renault in 2004
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1 Renault's brand identity: setting the standard

in product innovation and customer service
An increasingly rich market offering can be bewildering, which means that buyers need values they can
count on. A Renault is immediately recognizable, with an attractive, modern design and innovative vehicle
architecture and features. Standards of customer service that are a benchmark for the industry also
contribute to a strong brand identity.
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1 Renault's brand identity: setting the standard in product innovation and customer service
A strong brand identity
What is a Renault?
Renault: a brand that stands Renault’s brand identity is founded road-holding and traveling the daring to offer new solutions
for daring. For vision. For on four key strengths: comfort with innovative, and the enthusiasm, passion
warmth. Three fundamental ergonomic cabin design and concern for people needed
qualities that find expression • mastery of automobile and comfort features; to convey genuine warmth.
in vehicles combining fundamentals that include
an attractive design with quality, safety and respect • market positioning with continued
comfort and convenience, for the environment; appeal for practical-minded
agility and safety. customers open to new ideas; Innovating for
• vehicles that offer driving distinctive strength
pleasure with responsive • distinctive personality with
engines, and excellent the vision to anticipate needs,
Innovative design has always
been a hallmark of Renault,
as illustrated by the first
hatchback, modular rear-seating
and the minivan concept.
The split-opening tailgate
on Modus continues this
tradition. New developments
in driving features, a special
focus of development
at Renault, make safety
the priority.
Grand Scénic carries on the Renault tradition in minivans.
Driving pleasure and a sense of safety
show. And onboard comfort must How does Renault's international longer have to drive old, second-hand
be immediately perceived, along with expansion affect products? cars with out-of-date equipment and
Rémi something extra that has to do with Well, clearly we are not making a constant risk of breakdowns.
Deconinck light and transparency. products for the same customers Does Renault have a future
Senior Vice as before. And that means we have at the top of the range?
And at the wheel?
President, to offer something different. Admittedly, Vel Satis has not altogether
Driving pleasure and a sense
The historical importance of Western lived up to our expectations, but it has
Product of safety. A Renault alerts the driver
Europe for our business must not reached the clientele we targeted.
Planning and corrects errors. Passengers
make us neglect markets in other And Espace is clearly at the upper
and driver can always count
parts of the world. On this point, end of the range. The Fluence concept
on the highest standards of safety.
Renault has really taken the lead with car could also be a sign of things
Who are Renault cars designed for?
What would be a good example the launch of Logan and I certainly to come.
For everybody with a practical, open
of that in 2004? don't think we will be going back
frame of mind.
Modus is a perfect illustration on the strategy it represents.
What sets a Renault apart? of everything I am talking about. The idea of a global car that is the
Design, styling — visible personality. It has an appealing design same everywhere is completely
A Renault has immediate appeal, with something very French obsolete. Even in France, incomes
an emotional side in keeping with about it. It is easy to handle, vary widely — which is why we have
its French origins. That is modern spacious and suited to varied decided to put Logan on the French
and dynamic. Simple and functional. needs. Modus is quick, lively market. Households with monthly
The quality and reliability of a Renault and extremely safe. incomes of around z1,500 will no
14 Renault in 2004
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Innovative design with a winning way
Design demands
The strength of Renault design lasting appeal
Stylish design has always been for an exclusive touch and

a hallmark of Renault, making seductive appeal, while design Patrick
its range immediately recognizable also factors in the highest le Quément
with lines and proportions that standards of safety. This has Senior Vice
express unmistakable personality. immediate implications for President,
In 2004, Modus and concept architecture and morphology, Corporate
cars Wind and Fluence marked as illustrated by front ends Design
the beginning of a fresh stage carefully shaped to limit the
in the history of Renault design risk of pedestrian injury. Could you tell us something
— while only the first is in full Concern for safety is thus built about the history of design
production, the other two announce into Renault models from at Renault?
Touch Design: interiors to match the same new approach to brand the very first sketch. You can distinguish three phases
customers' expectations. styling. Dynamic lines provide over the past couple of decades.
In the first, beginning in 1988,
the focus was on the development
of innovative concepts, exemplified
by Twingo and the Scénic concept
Interiors with a warm welcome car. This was followed in 1995
by a move to strong identity,
beginning with the Argos concept
car and continuing with the Initiale
and Vel Satis concept cars.
Renault's Touch Design concept appeal, while enhanced ergonomics Design, explains: “As an automobile The third phase began in 2002.
centers on the need to make contribute to peace of mind. manufacturer, our job is to ensure Here the idea was to take innovative
interiors that better match A priority is to make life simpler that technology is not a burden on concepts with a strong identity
user expectations with simpler for all on board, raising the level the driver. That is absolutely and add a seductive touch.
architecture, more intuitive controls, of equipment without creating essential if driving is to remain With more and more models on
the market, it is no longer enough
and less intrusive technology. The an impression of excessive a pleasure.”
to be liked, you have to be preferred.
cabin takes on sensual forms and complexity. As Patrick le Quément, Fluence epitomizes this third phase.
materials are chosen for tactile Senior Vice President, Corporate
How do you reconcile lasting
appeal with rapid changes in
fashion?
That can be a challenge. A car has
to be immediately attractive, but it
also has to have appeal over time.
It is a question of striking the right
balance.
What is the weight of safety

considerations?
Safety entails some important
constraints. Euro NCAP test
findings already influence
the shape of our vehicles
and the forthcoming standards
for pedestrian impact will require
some rethinking of front-end
design. Our job will be to ensure
that visual appeal does not suffer.
Fluence, a concept car, marking the beginning of a new direction for Renault design.
15
• EXE R.A. 2004 Gb 17/03/2005 11:51 Page 16
Modus —
a new take on compacts
Practical — with winning ways
Illustrating Renault's unique The Modus concept began with Patrick Lecharpy, is attached to. a modular design, allowing for
know-how in minivans, careful observation of customer “Renault's entry-level models frequent changes without having
Modus offers outstanding demand. Surveys conducted have a special warmth and charm to remove the back seat.”
interior space in a compact by the Product Planning about them,” he says.
body. Convivial and friendly, Department showed that Other practical features of Modus
it ensures standards of safety a number of would-be buyers To take its place alongside Clio, include storage space in the front
and comfort that fully match of small cars liked the idea Modus had to be roomy, practical passenger seat, a split-opening
the demands of the brand. of a minivan in compact format. and readily adaptable to different tailgate and a bicycle rack
Modus gives them what they user needs. It has gained special that can be stored in the trunk.
are looking for and more, appeal with a modular, sliding Safety is naturally a priority,
with a modular interior featuring rear bench seat. with innovations including two
ergonomic design for convivial additional cornering lights that
comfort. Body lines make As Elisabeth Bougis, product widen the driver's field of vision
for a friendly look, in keeping planning project manager, explains, in bends.
with a tradition the head “The aim was to accommodate
of the Modus design team, two or three passengers with
In Western Europe, Modus attracted a good 65,000 orders in its first three months.
16 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:51 Page 17
control on the road. Passenger seats at the rear and the passenger
protection is optimum, with Modus seat at the front are fitted with
winning the top five-star rating Isofix three-point attachments
in Euro NCAP crash tests from for child seats, with disabling
the start — the first vehicle of the front airbag, the side chest
in its category to do so. airbag and the pyrotechnic
pretensioner.
Its design draws inspiration from
Scénic, the safest car of its class,
with features that include a front
design that deforms in the event
Modus: roomy,
Créateur bright, safe.
d’automobiles of an impact, a magnesium armature
for the steering wheel, and a
collapsible steering column.
A floor-mounted parking brake
Pan-European limits the risk of leg injury, as
does padding to protect the shins
and ankles of the driver and
passenger. A stiff center pillar
Modus is the first Renault vehicle In keeping with the best Renault with programmed crumpling offers
using the Alliance's common tradition, Modus represents a optimum protection in the event
B platform. “We started working benchmark in vehicle safety, of lateral impact. Modus is also
together very early on,” explains starting with a structural design equipped with the third-generation
Anne Cormier, engineering project that ensures outstanding balance, Renault System for Restraint and
manager. “Our aim was to set road-holding, and stability, while Protection which includes up to
the example for quintessentially powerful brakes and electronic six adaptive airbags in the front
European models.” systems give drivers exceptional and sides. Finally, the two side
Reaching out to young families
and handling, acoustics, and active process. A highlight was the use of with this, we set up special teams for
and passive safety. digitized modeling and 3D imaging that all risk areas — for example, the two
Jean- allowed us to think out details in visual and three-place rear bench seat and
François What sort of buyers is it for? representations from the start. In this, the boot chute — to analyze possible
Simon Our target group is very wide. an overriding priority was to ensure a problems, adopt countermeasures and,
We want to reach young families sense of well-being and comfort where necessary require additional
Vice President,
as well as better-off customers attracted for everyone on board. tests, either in-house or at suppliers'.
B Product
by a high level of comfort and perceived In cases where defects crept in
Range Program
quality in a compact format. Did it involve any special despite preventive action, detection
initiatives on quality? in test drives and in the factory
How would you define Modus? How did the development Around 60% of problems are not a enabled us to make the necessary
Modus is a car based on an innovative project go? matter of product validation, but have corrections before the pass-off to
architectural concept. We wanted it Modus is an innovative product, and so to do with failure to apply processes sales.
to be the best in class in terms of ride development was naturally an eventful and compliance procedures. To deal
17
• EXE R.A. 2004 Gb 17/03/2005 11:51 Page 18
Mégane II range —
top seller in Europe
Proud to be a Mégane
With Mégane, Renault has benefits from innovations that with programmed deformation
the advantage of a particularly include storage space built into of the structure and the third-
broad range that has overtaken the double flat floor and generation Renault System
Volkswagen's Golf to win the accessories usually reserved for Restraint and Protection.
number-one spot on the European to segments higher up the market, The Mégane Hatch, Coupé-
market. Seven different body types an example being the hands-free Cabriolet and Scénic have been
launched in just 18 months mean Renault card. Buyers can configure awarded the top five-star rating
that Mégane II has the diversity their vehicles to suit their for crashworthiness in tests
to match varied demands and preferences, taking their pick conducted by Euro NCAP.
attract customers in growing from four trim levels, three levels The Mégane Coupé-Cabriolet
numbers. Production of Mégane II of equipment and a wide selection was the first car of its kind
topped the million mark in of diesel and gasoline engines. to win the top score.
summer 2004, 30 months
after launch. Mégane is designed to offer
all occupants the same level
The Mégane range epitomizes of safety. New technology helps
Renault's style and know-how, drivers anticipate risk, while the
combining expressive design, Electronic Stability Program (ESP)
comfort, equipment, safety, combined with understeer control
and diversity for pleasure on helps to keep the car on course.
the road. Onboard comfort Occupants get maximum protection
Scénic and Grand Scénic: the fullest offering in the compact minivan segment.
18 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:51 Page 19
The full Mégane lineup (left to right): Mégane Sedan, Scénic, Mégane Hatch, Mégane Coupé-Cabriolet, Mégane Sport Hatch, Grand Scénic, Mégane Station Wagon.
At center: Mégane Renault Sport.
The foundations of success An extended family
Mégane Hatch and Sport Grand Scénic is 23cm longer

The Mégane II development to allow for a wide range of Hatch are designed for driving than Scénic II and has two
program drew on the expertise versions without undue complication pleasure. In this, they have additional seats in a third row
of the Renault Technocentre at of production, a goal that has an edge with the Alliance's to the rear, easily making room
Guyancourt on the outskirts of been achieved with seven models C platform which offers outstanding for six or seven occupants
Paris, combined with that of the coming off the same assembly road holding with a long instead of five.
Vehicle Project Departments. Its line. “To do that,” explains Carlos wheelbase and wide tracks. Mégane Coupé-Cabriolet
success thus capitalizes on the Tavares, Director of the C Product Mégane Station Wagon offers is the first vehicle to feature a
significant potential on markets folding glass roof as standard
know-how and experience built Range Program at the time
in Northern Europe and Italy, where equipment. It can carry either
up within the Group and the Mégane II was launched, “product this type of vehicle is especially two or four people in equal
shared application of best and process development had to popular. It combines dynamic comfort.
management practice. From the be simultaneous from the start. lines with ample storage space. Mégane Renault Sport
outset, Mégane II was designed The diversification of models Mégane Sedan is mainly combines the comfort of a grand
to offer performances close is based on pre-assembly of intended for markets outside tourer with the exhilaration
to those of a vehicle in a higher modules upstream from the main Western Europe, where sedans of a sports car. A 2-liter turbo
segment. Design also had assembly line.” are the norm. It offers interior engine generates 225hp driving
space unrivaled in the segment. through a six-speed gearbox.
Scénic combines the modular
interior and onboard comfort of
a minivan with the driving pleasure
of a sedan. Like other members
of the Mégane range, it features
sleek lines and a vertical rear
window.
19
• EXE R.A. 2004 Gb 17/03/2005 11:51 Page 20
First for safety
Passive safety
The Renault range is Protection of vehicle occupants

the safest on the market has always been a priority for
with seven vehicles awarded Renault, as our history shows.
the top five-star rating in Examples include the seat-belt
crash tests carried out by load limiter introduced in 1995,
Euro NCAP — a result no and controlled deflation airbags
other manufacturer has yet in 1997. Today, the third generation
matched. Renault backs this of the Renault System for Restraint
up with initiatives that put its and Protection (SRP) equips the
expertise to work for all road range, ensuring that seatbelts
users, raising awareness and airbags work together for a
of road safety at all levels. response in proportion with the
impact. Pressures on the chest are
reduced by 60 to 70% and spread
to reduce the risk of injury, while
the impact to head and neck is
minimized.
Safety is an absolute priority for Renault. Illustration by Bertrand Dubois for

the book Driving Safety Forward: Renault and Safety (see p. 54).
Active safety Unfailing commitment to the cause of safety
Safety is a cause that is never some 20 cars from around the

Chassis features are defined forgotten. Each year, the Group world. Its ratings, represented
on the basis of detailed research by a variable number of stars,
invests some 100 million on
into driver preferences and R&D devoted to safety, ensuring are a benchmark for passive
behavior — the aim being to that its vehicles offer state-of- safety and over the past four
produce a car with predictable the-art active and passive safety. years, seven Renault cars have
responses, able to correct minor A staff of no fewer than 600 men been awarded the maximum
driving errors and equipped with and women is dedicated to this of five stars — Laguna in 2001,
continuing process of innovation, Mégane and Vel Satis in 2002,
a powerful braking system.
based on a specific Renault Espace IV and Scénic II in 2003,
Today, improving chassis design and Mégane Coupé-Cabriolet and
safety-for-all approach.
and more efficient braking are The results speak for themselves. Modus in 2004. Not that Renault's
just as important as ever, but are Each year, Euro NCAP (European commitment ends with its vehicles,
increasingly backed up with driver New Car Assessment Programme), since it is also engaged in ongoing
aids to enhance active safety. a European body supported by initiatives to raise awareness of
These alert and assist drivers, independent experts and consumer risk on the road, especially among
allowing for greater concentration groups, conducts crash tests on young people.
on actual driving.
20 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:51 Page 21
Respect for the environment
Commitment to sustainable development
At Renault, sustainable development performance in its category.

is built into design from the start, These achievements reflect a
as illustrated by unrelenting long tradition of technical
efforts to achieve the lowest expertise, with Renault putting
possible fuel consumption — a new technologies to work across
priority that has direct consequences the board. Gains are clear for both
for CO2 emissions. Worldwide, gasoline engines and diesel,
Renault’s lineup offers greater where demand is rising steadily,
fuel efficiency than any other particularly in Europe. Renault is
brand. Where CO2 emissions are a pace-setter for the reduction
concerned, the many versions of of all types of emissions.
Twingo, Modus, Mégane, Scénic Commitment to sustainable
and Kangoo all produce less development is visible at every On the market since 2001, the K9K engine offers unrivaled fuel economy.
than 140 grams/kilometer, while stage in a vehicle’s lifecycle,
Mégane’s 1.5 dCi is under including the very end, with 95%
120 grams/kilometer (fuel of vehicle content recyclable for
consumption of 4.5 litres/100km all Renault vehicles, a performance
in the full cycle) — an exceptional exceeding current requirements.
CO2 emissions are exceptionally low at under 120g/km for some Mégane II models.
21
• EXE R.A. 2004 Gb 17/03/2005 11:52 Page 22
The fullest offering

of minivans
A minivan in every segment
Renault now has at least It is now 20 years since Renault take two or three passengers, minivan sector, which accounts
one minivan in every market put the first Espace on the market, thus enabling it to carry up to for 10% of the market in
segment. Twingo, Modus, and in that time it has extended five people, innovative features Western Europe.
Scénic, Grand Scénic, Espace its offering of minivans steadily include a split-opening tailgate
and Grand Espace target to cover the full range. and an integrated bike rack. • Espace IV targets the upper
distinct customer groups, In clinic tests potential end of the market, a concern
but they have one important • Twingo, launched in 1993, customers immediately that guided every stage in the
thing in common — each is was the first small minivan and attributed Modus to Renault, development process. Product
the top seller in its category. has never gone out of fashion. showing that a minivan quickly planning project manager
Undiminished popularity after conjures up the Renault name. Dominique Lucas confirms
12 years rewards a unique as much, noting in particular
combination of affordability, • Scénic, which made its debut that “passengers in the third
modularity, easy ingress and in 1996 and was renewed in 2003, row at the back benefit from
egress, and on-board comfort. offers practical, modular design the same level of safety and
Over 2.2 million units have and is now also available in a thermal comfort as those at
been sold. longer version, Grand Scénic, the front.” The latest-generation
which has an extra 23cm allowing Espace has a healthy 20.3%
• Modus, equivalent to Clio in it to carry up to seven people. With of the European market in its
size, is Renault's latest minivan. a 23.1% market share, Scénic II segment, confirming Renault's
In addition to a sliding rear and Grand Scénic have a leading lead for top-of-the-range
bench seat that split-folds to share of sales in the C-segment minivans.
Espace, 20 years on
and 1 million sold
Since its launch in 1984,

Espace has been through
no fewer than four generations,
selling a total of 1 million
units in 20 years. Few cars
have had such an impact on
the market, with “Espace”
now often used as a generic
name for all vehicles in its
class. Over the years it has
gone from success to success,
with production rising from
196,000 units for Espace I to
365,200 for Espace III, while
Espace IV and Grand Espace
launched in 2002 continue the
move up the range that began
with Espace III in 1996. And
Espace benefits from customer
Four generations of Espace — 1 million vehicles — have revolutionized the automobile market. loyalty unmatched in its
segment.
22 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:52 Page 23
Renault minivans: Twingo, Modus, Scénic, Grand Scénic, Espace and Grand Espace.
• EXE R.A. 2004 Gb 17/03/2005 11:52 Page 24
Market leader in light

commercial vehicles
Serving the Group
Renault has a leading 14.9% The launch of new products combined

share of the European market with major technical advances explain
for light commercial vehicles. the rise in Renault’s market share
A comprehensive, up-to-date in 2004. The goal is to raise annual
range underpins a sales sales under the Renault name to
strategy based on Business 700,000 vehicles in Europe while
Centers dedicated to serving continuing to generate healthy profits.
professionals. The LCV Renault's light commercial vehicles
Division is a major contributor turned in an excellent performance
to consolidated earnings. in 2004, consolidating the deployment
of the Division-wide strategy.
Renault has remained the leading
LCV brand in Europe since 1998,
driven by a comprehensive product
offering. Kangoo Express was the
top-selling small van in its segment
in Europe in both 2003 and 2004,
with a 21.9% market share.
In the panel van category, Renault
achieved a historic first in 2004
and gained a place in the top three
thanks to Trafic and New Master.
The two models held a combined
market share of 11.6%.
Renault's industrial facilities matched
overall sales performance.
The Maubeuge and Batilly plants beat Trafic Generation — set to raise Renault's share of the market for both panel vans
and passenger-carrying vans.
production records in 2004, with more
than 230,000 units and nearly 110,000
units produced, respectively. The year
2004 also saw the ongoing New in 2004
international expansion of Renault's
range of light commercial vehicles,
with the start of Kangoo production
• Trafic Generation rounds • Master and Trafic adopt
Master and Master RWD meet varying customer requirements. in Malaysia. out the Trafic range. Similar Quickshift, a robotized gearbox
to a minivan, it combines first introduced with Twingo
exceptional roominess with and Clio. In its clutch-less
the comfort of a sedan. version, this combines the
responsiveness and efficiency
• New Master RWD, presented of manual transmission with
in 2004, is in the 3.5-7 ton the easy use of an automatic.
category and features a new With six speeds built in, drivers
3.0 dCi common-rail turbodiesel can operate in purely automatic
engine from Nissan. mode or opt for manual mode
with a sequential shift.
24 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:52 Page 25
High-performance, fuel-efficient engines
Performance and respect for the environment
The powertrain in each vehicle The 1.5 dCi K9K is the first This year the Alliance will bring
is critical to reliability, performance, in a new generation of direct- out its first engine, the M9R,
comfort, acoustics, fuel economy injection turbocharged diesel setting new standards for
and respect for the environment. engines. In its 55hp version, technology, performance
fuel consumption and CO2 and fuel consumption. Two new
Which is where the 4,200 staff emissions are the lowest 1.6- and 2.0-liter direct-injection
in Renault’s Powertrain Engineering in its categories. Within the gasoline engines co-developed
Department come in, giving the Renault-Nissan Alliance, under the Alliance will also
company critical edge. Renault’s Renault is in charge of developing be gradually introduced
mainstream K-series engine alone diesel engines and gearboxes, in the Renault range.
exists in four gasoline and four both manual and automated.
diesel models, ranging from
1.4- to 1.6-liter versions.
Engine test at Renault's technical center in Lardy near Paris.
Rise of particulate filters
Particulate filters break new the range, ensuring that Renault

ground in environmental protection, is ready for the widespread
and are now actively encouraged application of filters on diesel
by legislation in some countries. engines in Europe by 2009-2010.
Given the choice, car-owners Another aim is to consolidate
in Germany are increasingly the position of Renault’s filter-
opting for models equipped equipped diesel range on
with particulate filters. Signs the market in 2007. Experts
of support for tax incentives from the Powertrain Engineering
rewarding low emissions have Department are now hard at
also appeared in the run-up to work: G9T engines with filters
adoption of the Euro 5 standard. are already available for Laguna
Here Renault has taken a proactive and Vel Satis, with the F9Q and
approach, with plans to fit all M9R units to follow. “Today
vehicles with filters ahead of emissions from diesel engines
the standard that will make these equipped with particulate filters
mandatory. Other developments are increasingly difficult to
also help lower emissions, among measure,” note Laurent Fofana,
them second-generation common- Project Director for F and G
Heat treatment of gears at the Seville plant in Spain. rail and multi-injection technologies. Engines, and Jean-Paul Crouillère,
Under Renault’s particulate filter G9 project manager. The reason
program, filters will soon be is simple: “They are too low.”
available for every vehicle in
25
• EXE R.A. 2004 Gb 17/03/2005 11:52 Page 26
Service: winning new business

and building loyalty
A big investment
Service quality to make a difference
Service quality is a priority of technical and sales training

for the Renault brand, as each year. Documentation made Mylène
demonstrated by spectacular available to them is designed Ardito
progress in this area in under for use in 90 countries and is Manager of the
two years — from January 2003 translated into 18 languages, Dacia IPSO
to October 2004, the rate of helping to ensure the same high dealership,
returns to repair shops fell by standards of service around Bucharest
a third. The concern for customers the world. Rewarding these
this reflects is also crucial and other efforts, Renault won
to Renault's strategy for the first Customer Service Trophy How does IPSO stand on
the Romanian market?
international expansion, which awarded by France's L'Automobile
We are the leading dealership
aims to ensure that services Magazine, ranking well ahead of in Renault's Romanian network
operate profitably and match competitors. Based on car-owners’ — we accounted for 1,800 of
equally demanding standards assessments, this factors in not the 11,000 sales booked in 2003.
in all parts of the world. Renault only the number of service points We also invested r3.5 million to
currently has customer relations and the rates charged, but also prepare for the rise in Dacia sales
services in 21 countries. The the reliability of delivery times, expected to come with the Logan
18,000 Renault dealers and acceptance of repairs not covered launch in 2004. The Renault-Dacia
showroom is a good illustration
subdealers around the world by warranty, attention to customers
of the changes under way — it
receive over 1 million hours and responsiveness. bears comparison with the most
modern facilities anywhere.
How do people react?

At first Romanians found
the showroom a bit daunting —
they were afraid they might have
to pay more for their car. But now
Dacia's new image is part of daily
life and people's attitudes have
changed. As always, though, a car
is a big investment and the whole
family comes along to buy.
What's special about doing

business in Romania?
Well, you still get buyers who
want to drive away with the car
from the showroom — that's
because each Dacia was
different quality-wise.
And some will want to be there
during repair work, because
garages used to “borrow”
spare parts. Of course those
are throwbacks, but you have
to remember how fast change
has been. And be patient. I am
certainly optimistic for the future.
Quality service though an efficient, up-to-date network that is never far away. Above: the Renault dealership in Carcassonne, France.
26 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:52 Page 27
Close to customers everywhere
Renault is continuing to expand its The Motrio multi-brand repair The Renault sales network also
service offerings under the Renault network, launched in 2003, has draws support from Renaultp@rts,
Minute, Renault Minute Carrosserie posted exceptional growth, with the number-one manufacturer's
and Motrio banners. Renault 846 distributors already signed up website in Europe for spare-part
Minute, the largest repair network in France in 2004 compared with information and orders.
in Europe, now has 888 sites the initial target of 300. The network Renaultp@rts lists 120,000 items
altogether, including 466 in France, will be extended to other countries and provides access to technical
349 in other parts of Western in Europe in 2005. Sales of multi- data in 10 languages, reaching
Europe and 73 elsewhere. These manufacturer spare parts under out to customers worldwide.
are backed up by the Minute the Motrio name have risen 80%
Carrosserie rapid bodywork in five years.
repair network, which already
counts 405 sites, reflecting its These service networks also
success in attracting new help Renault dealers and
customers with outstanding value subdealers maintain business
for money and rapid repair times. flows in aftersales.
In touch on the web
In 2004, Renault's e-commerce the Renault sales network as

sites in 14 countries drew over a whole, many of them leading
30 million visits. Content is directly up to an appointment
regularly renewed with features with a sales-team member.
making the most of the potential Visitors can also enter queries
of new media. A good illustration of all kinds, including requests
is the special section devoted to for technical information, by
Modus, which attracted a strong e-mail. Renault undertakes to
flow of traffic in the closing provide an answer within
months of 2004. Visitors can 24 hours, with an internet
reach the sites via search coordinator directing the queries
engines and links appearing to the unit best able to respond.
on access providers’ advertising Responses are then collected
banners, on e-commerce sites and matched with the existing The best service to match customer expectations.
and on the sites of Renault's customer database to allow
partners. Depending on the follow-up in the next few
wording of a search, visitors may months to consolidate loyalty.
be directed to the main Renault As provided by law, visitors
site or that of the dealer closest can naturally stop Renault
to their home. In 2004, sites from sending messages
generated a total of nearly whenever they wish.
400,000 qualified contacts for
27
• EXE R.A. 2004 Gb 17/03/2005 11:52 Page 28
The Renault range 2004
Twingo
Clio Thalia / Symbol Modus
Mégane Hatch Mégane Sport Hatch Mégane Coupé-Cabriolet
Mégane Station Wagon Mégane Sedan Scénic
28 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 29
Grand Scénic Laguna Laguna Station Wagon
Vel Satis Espace Grand Espace
Kangoo Car Trafic Car Kangoo Express
Trafic Van Master Van
29
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 30
Deployment of the Renault Quality Plan has been a priority for manufacturing sites.
30 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 31
2 Competitiveness:
a way of thinking and a necessity
Quality, costs and delivery times are the three ingredients of competitiveness, and as such are central
to Renault's strategy. In each of these areas, representing the three fundamental levers for Renault's
continuing development, the Alliance supports and contributes to efforts throughout the Group. Enabling
Renault and Nissan to move ahead together, it accelerates progress for each.
31
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 32
2 Competitiveness: a way of thinking and a necessity
Speedier
design and lower costs
Modus shows the way
Reducing development Using digital technology, At the Valladolid site in Spain, This has been backed up by work
times cuts costs and allows the project team was able production of a succession with suppliers to ensure compliance
quicker responses to customer to map out Modus in 3D from of pilot lots made for a quick with specifications and quality
expectations. From Mégane I the very beginning. Anne Cormier, manufacturing release. “Clearly procedures, while in-house product
to Modus, the time from engineering project manager, defined allocation of tasks and process experts have conducted
design freeze to the start notes that “in designing the Triptic to the factory and the engineering detailed analyses of all factors
of production has been bench seat, the ‘boot chute’ team enables us to progress that could jeopardize quality.
brought down from for easy access to the trunk quickly and efficiently,” explains
46 to 28 months, despite and the ‘flip-up seat,’ we used Anne Cormier. “In the time The emphasis on shorter time
the scale of innovation digital modeling, simplified between pilot production runs, to market has not come
in each new model. modeling, and computing as we fine-tune parts and processes, at the expense of innovation
much as possible.” improving details for the next run.” with Modus, as the all-new
Vélofix bike rack shows.
Modus is produced at the Valladolid plant in Spain.
32 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 33
Platforms: building new strength
Modus is the first Renault to use the B platform. It will be followed by the successor to Clio in 2005.
Shared platforms, distinctive identities Renault Trafic is cross-badged with the Opel Vivaro and
Nissan Primastar.
In 2006, Renault and Nissan In addition to common components, the feel of a car for passengers
will be turning out nearly 1.7 million Alliance platforms are backed and drivers can vary radically A common platform
vehicles a year, with the B platform up by the development of a bank with the choice of parts such
for Renault Modus
already used for Renault Modus, of powertrains available for all as suspension springs and rubber
Nissan March, Micra and Cube, vehicles using the same platform, mountings. Settings adopted
and Nissan Micra
as well as in part for Dacia Logan. plus the convergence of industrial for shock absorbers, steering
Nissan brought out its first cars processes. Production resources are assistance parameters and other
based on the C platform, already thus shared efficiently to cut costs. features also play a role.
used for Mégane II, at the end Renault Modus and Nissan
of 2004, and all common Importantly, vehicles with the same Micra, both using
components of the future D platforms can nonetheless display the Alliance's B platform,
platform have now been defined. distinctive identities. In particular, share the same understructure
and chassis components.
The platform integrates
the powertrain and everything
connected to it, including
engine suspension, exhaust
Pooled resources, separate identities system and filters. It also
covers hidden features
such as air conditioning
How do you go about designing What does Nissan bring to Renault, and all controls: steering,
Jacques a common platform? and vice-versa? pedal assembly and parking
You start by carefully defining the needs We set very demanding standards brake. Yet while Modus and
Lacambre
of each brand, considering all the different for acoustics and passive safety, while Micra share technology, there
Senior Vice vehicles these could involve. Nissan brings new quality and durability can be no doubt about the
President, Expected levels of comfort, handling requirements. Working together we have individuality of each vehicle.
Advanced Vehicle and passive safety features are also to take a more comprehensive view
Engineering important. of different markets, an approach well suited
and Research to Renault's international expansion.
33
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 34
The Renault Production Way

to manufacturing efficiency
Competitive factories
Renault factories are today Each year, the Harbour Report Renault's manufacturing expertise The main components are
among the most competitive published by Harbour Consulting, and existing practices at Nissan. standardization of operations
in Europe, driven largely an independent firm specialized It aims to raise the Group's and the ability to analyze
by the Renault Production in the manufacturing sector, ranks production system to world-class situations — key to the success
Way (SPR). Common to all the productivity of European standards and set productivity of SPR. A major training program
Group plants worldwide, automobile sites. Renault's targets and principles for all has been set up with 150 instructors
SPR is deployed at every Valladolid plant in Spain topped production staff. SPR effectively worldwide to develop the skills
level of production, from the list of 38 body assembly sites supports the Group's international of all employees.
designers to operators and and five other Group sites ranked expansion and facilitates the
suppliers. This Group-wide in the top eight. In powertrain implementation of the Renault- Produced at the Valladolid plant
program is also a source production, five of the seven best Nissan Alliance policy of common in Spain, Modus is the Group's
of rationalization and sites belong to Renault. platforms and powertrains. first vehicle to benefit from total
a means of convergence. deployment of SPR from the very
The Group's excellent performance The Renault Production Way outset.
is largely hinged on the Renault places employees at the core
Production Way (SPR), which was of performance, harnessing
introduced in 1998. SPR draws on grassroots management.
Patterning
The term "patterning" is used

to define a thorough
understanding of the most
efficient movements and
operations required in each
function, set out in a series
of standards and taught
at SPR training sessions.
Training helps to optimize
operations and guarantee
quality, ergonomics and safety.
All Renault's production sites
use patterning.
Productivity demands training. Here the focus is on painting skills.
34 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 35
Kudos for quality
Quality — the rewards of ambition
Quality is a Renault group priority. Implementation is in three stages, it right the first time” — the only
An unswerving drive for quality the first ending in December 2004 way to deliver consistently
has been under way for several with all quantitative targets met high quality.
years. One concrete example is and in some areas exceeded —
the halving of warranty costs in the case for the Mégane, Scénic, The Renault Excellence Plan
three years. Clio and Twingo ranges. The adopted for 2005 to 2007 will
second stage runs through the consolidate progress. Main
An ambitious Renault Quality Plan end of 2006 and the third is to be objectives include continued
adopted in January 2003 calls completed in 2010, at which point reduction in the number of
for the Group to rank among the the Group will count among the incidents and further improvements
world’s top three volume car very best carmakers worldwide. to reliability, plus implementation
manufacturers for quality. This of structures for measuring Quality assessment
began with a review of corporate Initiatives have already paid incidents and breakdowns indicators
processes from the customer’s off, trimming warranty costs worldwide as part of the Group’s
point of view, focusing on four significantly as of 2003. In 2004 international expansion.
main areas: quality milestones progress was confirmed and The efficiency of aftersales AVES (Alliance Vehicle
in projects, initial product quality, enhanced as Renault continued service will also come in for Evaluation System): Used
by both Renault and Nissan to
reliability and durability, and to develop and apply methods continuing attention. evaluate the quality of vehicles
aftersales service quality. and processes aimed at “getting delivered to customers.
Demerit: Inspection and rating
of a sample of powertrain parts.
PPM (parts per million): The
ratio of parts with defects to the
total number delivered (made-in
or bought-out) expressed as a
fraction of a million.
Vehicle defect rate: The ratio
of vehicles without defects to
the total number coming off the
assembly line. Any defects
Attention to customers the key to quality
detected are corrected.
more noise than necessary. What are Renault's strong points in

A car has to look flawless and be the field of quality?
Jean-Louis reassuring. And perceptions of quality Our creativity, our capacity for innovation,
Ricaud concern not only the vehicle itself, but our technical expertise and the reach
also the way it is shown and sold. of our sales and aftersales network all
Executive Vice add up to fantastic potential. We have
President, What are the basic foundations everything we need to be the best.
Engineering of quality? Realizing that potential is a matter
and Quality Clearly you have to define relevant of management to ensure that
indicators to measure progress. everybody works together for
Why is quality so important today? But most importantly, you have customer satisfaction.
Because it is a top priority for our to factor in customer expectations
customers. They want to be sure their from the first stage in vehicle design
cars are safe, and they do not want and into every area of business operation.
35
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 36
Purchasing — the key

to competitiveness
Pooling strengths
In partnership with Purchases make up 80% of a car's Equally owned by Renault and As Odile Desforges, Senior Vice
Renault Nissan Purchasing value, and reducing the costs they Nissan, RNPO is able to reduce President, Purchasing and
Organization (RNPO), represent while at the same time total purchasing costs for the Chairman and Managing Director
the Alliance's common enhancing quality is an ongoing Alliance. In 2004, its purchases of RNPO, notes, “The underlying
purchasing subsidiary, the priority. In this the Purchasing came to over e25 billion, dynamics at RNPO ensure that
Renault group's Purchasing Department plays a pivotal role, accounting for 70% of the total each partner progresses, drawing
Department makes a vital interfacing between suppliers for the Alliance. The growing on the other's best.”
contribution to cost reduction. and Renault engineers. use of common vehicle platforms
In 2004, RNPO purchases and powertrains naturally favors Renault suppliers are true partners,
totaled over u25 billion. Through the Alliance, purchasing this increasingly unified approach keeping step with international
has taken on new scope, with RNPO, to purchasing. RNPO also makes expansion, as shown in Romania,
a joint subsidiary set up in 2001, for quicker decision-making, where seven have set up operations
pursuing a policy of shared as illustrated by its success to back the Logan project.
purchasing and building up a in building a new international
network of common suppliers supplier base.
for the two partners.
Suppliers follow as Renault sets up new plants. Above: electric wiring supplied by Valeo to the Dacia site in Pitesti, Romania.
36 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 37
Distribution—organizing for competitive edge
A network geared to performance
Renault is present in 118 countries Delivering vehicles on time not only On this hotly contested market, Distribution and sales systems
through a total of 18,000 sales helps ensure efficient inventory the Division has two core matching the highest
outlets. Reorganization management, but also contributes priorities — consolidating loyalty standards of quality are
of dealerships in Europe, a move to the brand's reputation for quality within the Renault sales network, crucial to competitiveness.
hastened by new EU legislation, and consolidates ties to customers. and winning a place with Renault has thus built up a
continues in keeping with a strategy Deployment of a worldwide network independent repairers so as closely-knit network served
that in some countries builds on of e-commerce sites is another to reach as many customers as by a high-performance
commercial synergies with Nissan. important way to build ties. Today possible through all channels logistics chain. RCI Banque,
This is based on a system of hubs, one in two European car-buyers of distribution. In this, it builds which provides financing
in turn built on a network of shared turns to the web for information, on the resources of an extensive to the Renault group, plays
dealerships and outlets that meet with Renault websites logging product offering and a policy a decisive role, as does
customer expectations while 2 million visitors a month and of partnerships with aftersales the spare parts business.
reducing distribution costs. generating 35,000 sales contacts. service and repair networks.
Other priorities in Renault’s drive Finally, Renault's Parts and

for competitive edge are raising Accessories Division plays a key
the number of cars built to order, role in sales strategy. Reporting
and meeting promised delivery directly to the Executive Vice
times — now the case in 90% of President, Sales and Marketing, it
sales. Despite the wide variety of is responsible for strategic planning,
models on offer, close links implementation and monitoring of
between dealerships reduce worldwide operations in its field.
inventory carrying costs while
guaranteeing prices.
RCI — the Renault group’s financial arm.
RCI Banque — a direct contributor to Renault's earnings
and consolidate the loyalty of existing What percentage of Renault and Nissan a subsidiary and do everything
customers. Secondly, we provide sales in 2004 included financing? ourselves.
Philippe Renault dealers with financing for Around 35%. Two-thirds of these
Gamba their inventories and working capital packages included a buy-back What do you consider the main
requirements. As a financial institution, commitment, which means we can highlights of 2004?
Chairman
RCI owes it to its shareholder, Renault, look forward to a good deal of return It was a very eventful year internationally.
and CEO, RCI to make a profit. business. RCI is now active in 18 countries. During
Banque the year, our retail leasing company in
How did RCI do in 2004? How does RCI back international Romania went into operation and we
It was a record year. Whereas Renault growth? decided to set up a subsidiary in South
What is RCI's core mission? has set us a minimum target of 12% When Renault sets up in a new Korea. We also made a first move into
We have two. In the first place, return on equity, we achieved around country, we provide for a related Slovakia. But we’ve stuck to a cautious,
we help to make sales offerings 15% in 2004, reflecting in particular financing structure, which may involve step-by-step approach, since the
of Renault, Nissan, Dacia and Samsung marked improvement in productivity either a commercial agreement with complexity of international operations
more effective, enabling them to sell within our business. a financial partner or a joint venture leaves no room for hasty action.
more cars and thus win market share with a local bank. Or we may set up
37
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 38
The Renault-Nissan Alliance —

the benefits
Deepening ties
The foundation for five years Alliance goals include a large markets and in some of these Nissan sites. The new Renault
of cooperation in all areas, number of common platforms by cross-production is already under Production Way (SPR) includes
the Renault-Nissan Alliance 2010 and good progress is being way, as in Brazil and Mexico. best practices identified at Nissan.
has enhanced competitiveness made towards this with the scope In logistics there have been a wide
for both partners, at the same of the B and C platforms expanding The Alliance's first joint company, variety of initiatives to make the
time preserving their separate steadily. After Modus, Clio will be Renault Nissan Purchasing most of synergies, reducing costs
cultures and identities. the second model developed by Organization or RNPO, now accounts and delivery times. The Alliance
It has become a benchmark. Renault on the common B platform for 70% of the combined annual Quality Charter is now operational
in 2005, following Nissan March, purchases of Renault and Nissan, for all common projects, and
Micra and Cube. Renault and generating significant savings. closer cooperation in IS/IT through
Nissan already share a good This is the best illustration of Renault Nissan Information
number of powertrains and the economies of scale within the Services or RNIS opens the way
first engines developed by the Alliance. Production has also for standardization of infrastructure,
Alliance will be ready in 2005. benefited with the Alliance combined supply chain management
The Alliance has also helped Vehicle Evaluation System (AVES) and shared IS/IT applications.
the two partners move into new now deployed at all Renault and
Creating value
What are the Alliance’s main And what are the Alliance’s goals a new century in which markets are
strengths? for the future? increasingly international, fast moving,
From the start we have focused In March 2004, we presented our vision, and fiercely competitive. It is a
Carlos Ghosn on achieving a dynamic balance which calls for deployment and demanding model — and one worth
between the two partners and implementation of a strategy of investing in. I obviously have every
President
identifying synergies — the founding profitable, sustainable growth. hope that the Renault-Nissan Alliance
and CEO,
principles of the Alliance are simple, We have three main objectives — will continue to progress in the same
Nissan Motor
clear and respected by all. But to rank among the world’s top three spirit. And I will continue to work hard
Co., Ltd.(1)
exchanging talent has also paid off, automotive groups for the quality to make that happen. Regarding
as have confronting experiences and of products and services, for the Renault, I am convinced that the
The Renault-Nissan Alliance has sharing best practices. technology we bring to our customers, Alliance will bring benefits well above
now been in place for five years. These have been critical to setting and for operating performance. those we could have achieved
How would you rate it? higher targets, moving faster and on our own.
The Alliance has proven its vitality operating more efficiently in Many observers present the Alliance
and effectiveness, strengthening a competitive environment. as a unique case in the automotive
the performance of each partner. The Alliance is a partnership of equals industry. Do you share that view?
In concrete terms, both companies in which each company retains its own I’m convinced that this type of business
have reported steep rises in revenues identity and independence. model — in which independent companies
and market capitalization in the past Our sole criteria for assessing work together, each retaining its own
five years — proof that working contributions are expertise, efficiency identity — will become a benchmark. (1) This interview took place
together has been rewarding. and performance. Our Alliance is particularly suited to in December 2004.
38 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:53 Page 39
The Renault-Nissan Alliance means constant exchange of expertise from the first stage in design to sales and maintenance.
Vision for the future Five years of success
1999: Renault acquires 36.8% Exchange of engines and common

After its first five years the Alliance • To consistently generate a total of Nissan Motor. Launch of the platforms. Capital ties strengthened,
has now entered a new phase operating profit among the top Nissan Revival Plan. with Renault raising its stake in
under the name Vision - Destination, three automotive groups in the 2000: Regional cooperation in Nissan to 44.4% and Nissan
with three goals the priorities world, by maintaining a high Brazil, Morocco, Australia, Taiwan acquiring a 15% interest in
in its pursuit of growth: operating profit margin and and Mexico. First cross-production Renault.
pursuing growth. in Mexico. 2003: Rollout of Nissan Micra,
• To be recognized by customers 2001: Common purchasing through based on the B platform and
as being among the best three Renault and Nissan will be RNPO. Preparations for the first available with a Renault diesel
automotive groups in the quality further extending cooperation, common platform. engine and Renault manual
and value of its products and particularly in research, dividing 2002: Launch of Mégane II, gearbox.
services in each region and up the workload for major areas the first vehicle built on the 2004: The Alliance defines and
market segment. such as fuel cells and hybrid C platform. Cross-production discloses Vision - Destination.
vehicles. in Mexico, Brazil and Spain.
• To be among the best three
automotive groups in key
technologies, each partner being
a leader in specific domains
of excellence.
39
• EXE R.A. 2004 Gb 17/03/2005 11:54 Page 40
Broad industrial presence makes Renault a leader in South America. Above: Brazil.
40 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:54 Page 41
3 Internationalization:
making the world our market
Renault is responding to the fast-growing demand for automobiles seen in many regions of the world
by extending the reach of its own and associated brands, in particular Dacia, which in 2004 launched Logan,
a car specifically designed for new markets. The strategy is paying off, with Group sales outside Western
Europe rising 16.5% in 2004.
41
• EXE R.A. 2004 Gb 17/03/2005 11:54 Page 42
3 Internationalization: making the world our market
A market revolution:
Logan by Renault
Breaking new ground Success built in
Developed by Renault and for both very hot and very cold
To define Logan, Renault Logan was developed with one produced and marketed by climates. “All told,” notes
conducted in-depth research simple idea clearly in mind — to Dacia, Logan is a versatile engineering project manager
into new automobile markets offer a robust, reliable, modern and economical family car. Odile Panciatici, “Logan
and customers, identifying the and affordable car. As Project Seating five comfortably and underwent thousands of hours
expectations and practices Director Jean-Marie Hurtiger featuring a roomy trunk, it offers of technical tests and
of these new motoring publics stresses, “It was essential to offer unrivaled value for money. Logan accumulated nearly a million
to gauge likely trends for a modern product. It would be has all the fundamental qualities kilometers of track tests before
of a modern car with ride and the first owner took delivery and
the near and medium term. simply unthinkable to sell an old
handling and safety equipment drove away.”
As Jean Tavarès, Director model on emerging markets as meeting EU standards. Equipment Initially available with either
of Customer Surveys, explains, was done before.” is naturally adapted to conditions a 75hp 1.4-liter or a 90hp 1.6-liter
“Our findings enabled us The decisive importance of in the countries where it will gasoline engine, Logan will also
to define a list of requirements affordability was reflected in be sold. To ensure smooth, offer a diesel option in 2005.
matching customer expectations, the way the development teams reliable handling whatever the Additional versions will follow
and Renault's teams used their worked, with their three key goals state of roads, Logan was tested to round out the industrial project
creative flair and capacity for being to: over nearly 470,000km on a track and sales lineup, with a station
at Renault's Aubevoye road- wagon and a van version
innovation to come up with an • design a simple product.
proving site specially designed to the first in line.
effective response.” • make the most of low replicate the extreme conditions
production costs in Romania. found in Russia or on the Persian
• optimize costs by applying Gulf. Tests were thus conducted
design-to-cost methods. This
requires the closest possible
cooperation among all those
involved to ensure that savings
in one area do not create added
costs in another. Quality manufacturing
A fundamental design priority was

to make production of Logan as
simple as possible. In this digital Logan's outstanding value for sites and the production quality
technology provided essential money has not been achieved of Logan equals that of the latest
support. “We would never have to the detriment of production Renault vehicles. As Jean-Michel
been able to do it without the quality. In developing its industrial Aimé, Dacia's Quality Director,
resources of the Renault processes, Dacia never lost sight explains, “We integrated self-
Technocentre,” explains Jean- of Renault fundamentals and monitoring techniques into
Marie Hurtiger. “It was absolutely target market expectations in operations at every stage and
essential for staff in Romania terms of durability and reliability. implemented all organizational
to share Renault's culture and Application of strict quality requirements of the Renault
working methods — for them standards in production facilities Production Way. We also set
to make the project their own.” and organization played a critical up a quality management institute
To this end, the Technocentre part in the success of the project. to provide training for in-house
provided training for 150 operators, The Pitesti plant now meets the teams and suppliers.”
BWT leaders and engineers from same standards as other Group
the Pitesti site. The initiative
was all the more needed as
Logan is Dacia's first really
new product in 20 years.
42 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:54 Page 43
Logan: modern, reliable and affordable. Cold-climate testing shown here.

• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 44
A market revolution:
Logan by Renault
Producing close to customers
During 2004, work continued • Morocco: e22 million have • Iran: Renault Pars, a joint
or started up to prepare for been earmarked for a production venture alongside the state
the extension of Logan production line at the Somaca plant, of Iran and automobile
from Romania to Russia, with an annual capacity manufacturers Iran Khodro
Morocco, Colombia and Iran, of 30,000 vehicles. Morocco and Saipa, will be coordinating
with the worldwide target of over offers significant sales potential local assembly of Logan in
700,000 vehicles a year by 2010. itself and prospects for exports 2006. Initial annual capacity
to other parts of North Africa of Saipa and Iran Khodro plants
• Russia: An investment of and to the Middle East are will be 300,000 vehicles for
e230 million is to be made an added advantage. an investment of e300 million.
for the construction of a new Iran's automobile market has
factory in Moscow. Initial • Colombia: An investment grown by an annual average
capacity in 2005 will be of e16 million will allow of 33% for the past three years
60,000 vehicles a year. the Sofasa plant in Medellin with sales nearing 1 million
Renault's interest in Russian to start assembling Logan in units. Iran is central to
subsidiary Avtoframos stood 2005 with an annual capacity Renault's strategy for the
at 76% at the end of 2004. of 44,000 vehicles. Exports internationalization of Logan.
to other parts of Latin America
are planned for 2006.
Gérard Detourbet, Vice President of the Dacia program, and Jean-Marie Hurtiger, director of the X90 project, with the Logan team at the Renault Technocentre
in Guyancourt outside Paris.
44 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 45
Sales policies to meet ambitious targets
The Logan program is at the heart Europe, Turkey, North Africa and
of Renault's drive to expand its the Middle East and Sub-Saharan
international presence. As Africa, rounding out Renault's
development got under way, Dacia presence with a lineup designed
Sales Director Jean-Frédéric Piotin for a market segment where
and his team began paving the demand is particularly vigorous.
way for a successful launch backed In other countries, such as Russia
up by flawless aftersales quality. and Iran, the car will be selling
“The sales network in Romania under the Renault name.
was expanded and upgraded to Subsidiaries will offer a range
match Renault quality standards,” adapted to local market conditions.
he explains. “To take one important In Iran, for example, customers
example, we organized 65,000 will be able to opt for a 16-valve
hours of training. We have also engine and a specific NGV
arranged for sales representation version. And in response to
of Dacia in each country where demand, as of 2005 the Group
Logan is distributed.” will be selling Logan under the
The Dacia brand will win access Dacia brand throughout most
to new customer groups in Central of Western Europe.
More than 700,000 Logans will be manufactured worldwide by 2010.
Dacia: looking to the future
In mid-2004 the first Logan standards on a 290-hectare site that it market leader in Romania. Plans now call for new station
rolled off the production line at includes a supplier park. An additional Robust demand in 2004 fueled wagon and van versions of the
Dacia’s Pitesti plant, designed e360 million has gone to finance strong growth at Dacia, where Logan sedan to be rolled out in
to produce 200,000 vehicles a year development of the Logan by sales soared 39.1% and exports 2007. The Renault 65hp 1.5 dCi
along with 150,000 CKD kits and Renault in France. rose a healthy 26.2% full year. diesel engine will also be available
160,000 engines and gearboxes. Logan received rave reviews and This, in turn, led the Pitesti plant in the near future, and an additional
Since taking over the Romanian sales took off immediately when it to arrange for a third shift to start e300 million will be invested in
carmaker in 1999, Renault has hit the market in autumn 2004. up in February 2005, a move that ongoing upgrades to Dacia facilities.
invested e489 million to bring Four months later, 40,000 units will boost output from 300 to 500
operations up to international had been sold or ordered, making units a day.
45
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 46
International expansion
drives sales
2.5 million cars sold
Group sales of passenger Renault continued international 108,746 vehicles sold, and was • In Africa and the Middle
cars and light commercial expansion in 2004, with sales the top-selling brand in Slovenia. East, sales rose 33.5%
vehicles under the Renault, worldwide up 4.2% and nearly to 91,628 vehicles, with a steep
Dacia and Renault Samsung 2.5 million vehicles sold. • In Eastern Europe, 91.6% surge to 28,252 units
Motors brands rose Group sales rose 32.6%, with in Algeria and a 40.4% increase
4.2% altogether in 2004, • In Western Europe, 1,812,044 the Renault brand up 27.5% in Morocco. In South Africa,
with growth outside Western new Renault passenger cars and Dacia 34.6%. In Russia, 14,152 vehicles were sold for
Europe reaching 16.5%. and light commercial vehicles Renault saw a strong 42% a rise of 65.1%.
These results are an were registered during the year. increase, while in Turkey sales
encouraging sign for Renault's Successes reflected in sales surged 98.3%. • In Asia-Pacific, the Group
strategy of profitable growth, growth of 18.7% for Mégane sold 95,808 vehicles. Renault
aimed at selling 4 million — the region’s top-selling • In Latin America, Group Samsung Motors held 9.3%
vehicles a year by 2010. model — and 16.2% for Trafic sales were up 15.5%. Sales in of the Korean passenger car
confirmed Renault’s leading the Mercosur headed up sharply, market, which contracted
position in Western Europe rising 69.1% in Argentina, 30.7% 13.5%.
for the seventh year running, in Mexico and 7% in Colombia. The successful launch of the
with 10.8% of the passenger In Brazil, where 53,588 new new SM7 sedan should make
car/LCV market. Renaults were registered during for renewed sales growth
the year, the focus was on cost in 2005.
• In Central Europe, Renault reduction.
won 10.3% of the market with
Turkey — Renault leads the field
Renault has consolidated its Exports account for over 80%

top ranking in Turkey with the of production at the Oyak Renault
production of the Mégane sedan plant in Bursa, with output of
at the Oyak Renault plant in some 700 vehicles a day
Bursa. Launched in September including the Clio Symbol sedan
2003, this new model is in a as well as the Mégane sedan.
segment that accounts for 40% The site, which has now
of all automobile sales in Turkey. integrated the Renault Production
It is thus well-placed to help Way, multiplied export sales by
Renault make the most of a 10 between 1998 and 2002, with
market representing an estimated destinations in Western and
450,000 passenger cars in 2004, Eastern Europe, the Middle East
but where there are still only and North Africa. Highly
67 cars for every 1,000 people. competitive, it is part and parcel
Manufactured exclusively of Renault’s strategy for
in Turkey and exported to profitable growth, aimed
84 countries, the Mégane sedan at generating half of all sales
reinforces Renault’s place as Turkey's outside Western Europe in 2010.
top exporter of passenger cars.
Thalia/Symbol, the sedan version of Clio, is manufactured in Turkey, Brazil, Argentina and Colombia.
Its success in Central Europe has been a driver for Renault's expansion in the region.
46 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 47
In 2004 Renault consolidated its presence in Latin America. Above: Clio in Mexico.
High growth potential
Sales outside Western Europe Europe, will make its first full-year followed by Colombia.
should continue to rise as a contribution. Further impetus will Expansion stands to benefit from
percentage of the Group total come from the renewal of Clio scope for moves into China and
in 2005 and beyond, with markets scheduled for the second half of India, while in Iran production
in Russia, Eastern Europe, North 2005, along with rollouts of new of Logan will start up in 2006.
Africa and Latin America offering versions of Laguna and Vel Satis.
strong potential. Growth will be
underpinned by development of Meanwhile, Logan will continue
Renault group sales worldwide
the Renault brand, with several to expand its reach, with first-half Passenger cars + LCVs (units) 2003 2004 % change
new products making a key launches in some 15 countries, Renault group 2,388,482 2,489,401 + 4.2%
contribution. Mégane now offers including Russia, Syria, Slovenia, o/w
customers a complete lineup, Poland, the Baltic States and • Renault 2,208,310 2,308,728 + 4.5%
while Modus, which got off to Lebanon. It will be sold in • Dacia 68,741 95,627 + 39.1%
• Renault Samsung Motors 111,431 85,046 - 23.7%
a strong start on markets in Morocco as of the second half,
Western Europe 1,806,995 1,812,044 + 0.3%
Rest of the world 581,487 677,357 + 16.5%
47
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 48
The Group in Korea:

Renault Samsung Motors
Efficient
Renewing the range manufacturing
The creation of Renault Integrating the latest technology, In September 2003, a new version In 2005, Renault Samsung Motors
Samsung Motors is often cited the Renault Samsung Motors plant came out, featuring added aims to consolidate its place on
as an example of success in Busan produced 117,630 vehicles equipment and enhanced safety. the Korean market, Asia's second
in South Korea, a country long in 2004. The site assembles SM3 SM3 has been on the market largest, and at the same time
closed to foreign investment. and SM5, plus the new SM7, since September 2002 and expand export sales. The company
This Renault subsidiary builds a roomy sedan equipped with development took only 21 months. targets annual sales of 300,000
on strengths that include 3.5 V6 and 2.3 Neo VQ engines A compact sedan with up-to-date vehicles in 2010.
a recent range, ultra-modern developed through the Renault- styling, SM3 targets younger drivers
production facilities and Nissan Alliance. Designed and in the 25-to-35 age bracket. In this, it will be drawing on the
a state-of-the-art technical developed in 24 months on the resources of the Giheung technical
center. Renault Samsung Nissan Teana base for an With the successful launch center, which brings together
Motors, in which Renault investment of e220 million, SM7 of SM7 at the end of 2004, engineers and technicians from
has held a 70% equity interest is a luxury offering that marks Renault Samsung Motors will Korea, Japan and France.
since 2000, also benefits Renault Samsung Motors’ debut have the benefit of a revamped The center has the scale and
from synergies within at the upper end of the market. lineup in 2005, a position equipment to provide effective
the Renault-Nissan Alliance. reinforced by the addition support for ongoing development
The SM5 sedan has won a deserved of the new version of SM5 of the range.
reputation for quality and in 2003 at the beginning of the year.
output topped the 350,000 mark. Renault Samsung Motors is also
laying the foundations for future
success with training assistance
and materials to familiarize South
Korean students with automobile
technology. Korea will also be
the site for the production of the
Renault group's future SUV.
High environmental standards
are an integral part of business
development. Renault Samsung
Motors has already obtained ISO
14001 environmental certification
for its production site and the
certification process is under way
for the sales network, while
implementation of eco-design
principles continues for new
offerings.
Samsung's SM7 is the new standard-setter for luxury sedans in South Korea.
48 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 49
Trucks —
the contribution of AB Volvo
Growth quickens
In 2002, Renault moved and revenues in 2004, while have a combined 25% share with Dongfeng Motors, the world's
to consolidate its truck business, operating income was up by more of the market for trucks over largest truck manufacturer, with a
giving it the backing of AB Volvo, than 70%. Its strategy is based on 16 tons. Renault Trucks holds view to starting joint production
a world leader in the field, and a presence in over 130 countries a clear lead in France with market in China.
at the same time took a 20% worldwide, with its three brands share ranging from 35 to 45%,
interest in the Swedish firm. complementing each other's depending on the segment, and
geographical reach and ranges. is reinforcing its positions in other
The benefits of synergies between It is also active in other fields parts of Europe, as illustrated
the Renault Trucks, Mack Trucks including buses, marine engines, by a steep rise in sales outside
and Volvo Trucks brands within aero engines and construction Western Europe. The Group has
the AB Volvo group are now equipment. signed a framework agreement
apparent.
Renault Trucks and Volvo Trucks
As in 2003, AB Volvo reported enjoy a dominant position in
a healthy rise in sales volumes Europe, where the two brands
Asia a focus for AB Volvo's worldwide expansion
generate sales on a sufficient scale,

Patrick we will need to build our presence
Faure there on partnerships with local
manufacturers. Nissan is present in Radiance, the concept truck developed by Renault Design, embodies the three
Director, these markets, via Nissan Diesel in core values of Renault Trucks: efficiency, warmth and innovation.
AB Volvo and Japan, in which Renault also has an
Chairman, equity interest, and via its equally-
Renault owned joint venture with Dongfeng
F1 Team in China. Japan and China account
for the largest sales volumes in the
How has the image of Renault region. Dongfeng focuses on mid-
The Radiance concept truck
Trucks and Mack Trucks shaped range 17- to 25-ton trucks, a segment
up with AB Volvo? where Volvo Trucks is practically
It may seem surprising, even unrepresented and the production The Radiance concept truck in cooperation with Product
paradoxical, but the new links have of Renault Trucks is too low to carry developed by Renault Trucks Planning and Marketing
enabled both brands to consolidate much weight on the world market. illustrates the brand’s three Departments. Embodying a
their distinctive identities. Renault core values — efficiency, commitment to making Renault
Trucks is centered on its headquarters How would you sum up the warmth and innovation. Trucks the pacesetter for truck
near Lyon more firmly than ever, while impact of the sale of Renault This project anticipates the future design the Radiance truck is in
Mack Trucks has maintained its focus Trucks to AB Volvo? of road transport and began perfect keeping with the spirit of the
on heavy-duty and special trucks. It was a very wise decision for Renault with a request from Volvo Trucks, Renault brand, featuring harmonious
At the same time, Volvo Trucks has in industrial terms, but also in terms reflecting AB Volvo's search for lines and a cab built in accordance
successfully consolidated its worldwide of the impact on finances and the distinctive styling to set Renault with Renault's Touch Design concept.
reputation as a leading contender in workforce. AB Volvo has seen results and Volvo models apart. It fully achieves the three goals
long-distance road hauling. improve steadily and turned in a defined at the outset of the project,
particularly good performance in 2004. The Radiance was designed combining the easy handling of a
Where are the most promising Truck markets are starting to pick up and developed by Renault passenger car with the efficiency
markets for the future? and the link-up with AB Volvo has Corporate Design teams headed of an office environment and
In Asia. And to be competitive and helped to accelerate the process. by Patrick le Quément, working comfort of a home.
49
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 50
Motor sport:
catching the public eye
Formula 1: Renault joins the top three
Enhancing Renault's image Results for the 2004 season match In 2005, the aim defined know-how and technical backup
in France and around the goals stated at the beginning by Patrick Faure, Chairman so vital to victory. As Patrick Faure
the world, participation of the year, with Renault placed of the Renault F1 Team, is to be explains, “It took two or three
in motor sport opens in the top three. Fitted with a in the running for the two years to get the needed
the way into new markets. new engine, the R23 significantly championship titles — the cooperation really going, but
improved performances to take constructors’ and the drivers’. now it works perfectly.
the Renault F1 Team to the podium Progress has been built on close Everybody wins, since the racing
six times, placing third in Australia, cooperation between team team benefits from the advanced
then third in Spain, first in Monaco, headquarters at Enstone in the engineering capacities of
second in France, third in Germany UK, where the car chassis are the Technocentre and Renault
and third in Hungary. The Renault assembled, and Renault's Viry- as a whole from the culture
F1 Team thus clearly showed Châtillon site near Paris, where of tight deadlines that is part
that it is a competitor to be the engines are developed. and parcel of Formula 1 racing.”
reckoned with, providing much Renault's wealth of engineering
of the excitement for the season. resources provides the advanced
The Renault F1 Team's results in 2004 signal its ambitions for 2005, when it will be in the fight for both the constructors' and the drivers' championships.
50 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 51
Set to fly Renault's colors on the track — Mégane Trophy weighs in at around 950kg and has a 3.5-liter 24V V6 engine developing over 320hp connected
to a semi-automatic six-speed gearbox.
From rallies to the track: present worldwide
Already French Champion in 2003 Championship, plus 13 national In 2005 these will be joined by
with a Clio Super 1600 developed championships, including France. the Mégane Trophy and the World
by Renault Sport Technologies, Last but not least, the Clio Cup Series by Renault as part of our
Simon Jean-Joseph won the Rally gave younger drivers a Renault Days event. Such races
European Rally Championship in chance to test their mettle. put vehicles designed and built
2004, a victory that has raised the Also through Renault Sport by Renault in the spotlight.
profile of the Renault brand on Technologies, the Group organizes With Renault Sport Technologies,
promising markets such as Poland, racing championships in 15 Renault is able to organize races
the Czech Republic and Turkey. countries under the Clio Cup, for its brand in virtually any part
Clio Super 1600 also competed Formula Renault 1600 and of the world — reinforcing its
in the Junior World Rally Formula Renault 2000 banners. international image in the process.
51
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 52
Safety is a fundamental commitment for Renault. Above: primary-school children participating in a “Safety for All” contest.
52 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 53
4 Corporate values:
Renault's first priorities
For Renault, good corporate citizenship is a matter of strong values underpinning a strategy of sustainable
development — producing safe vehicles, promoting road safety among current and future drivers, and
striving to reduce health hazards, improve working conditions, and preserve the environment.
53
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 54
4 Corporate values: Renault's first priorities
Safety on a broad front
Innovating to serve
all road users
The Renault range is the Each year, Renault invests some

world's safest, with seven e100 million in safety research
vehicles awarded top five-star and development, pursuing
ratings in crash tests a strategy of integral safety.
conducted by Euro NCAP. This means factoring in safety
But Renault's commitment issues from the earliest stages
to road safety goes beyond of a vehicle's design and
the standards built into its development.
vehicles, since it also involves
initiatives to raise awareness Prevention
and promote more responsible To limit risks, Renault fits vehicles
behavior on the road. with systems that enable drivers
to assume their own responsibilities
more effectively. To take just one
example, speed limiters available
on nearly all Renault models allow
drivers to concentrate on the road
without any risk of exceeding
speed limits. Other features such
as Xenon headlights and the tire
pressure monitoring system make
for more accurate perception of
the environment, thus helping
drivers to avoid risks. Since 2000, Renault has promoted road-safety awareness among children from
the earliest age.
Correction
Renault cars offer outstanding road- — programmed crumpling (body
holding and braking performances structure made from high-strength
— fundamental factors in active steel), reinforced cabin structures
safety. These features are backed and equipment including advanced
up with driver-assistance systems restraint systems and airbags.
that swing into action in difficult
circumstances — ABS with EBD, Awareness
Emergency Brake Assist, Electronic Since 2000, Renault has actively
Stability Program (ESP) and ASR promoted awareness of road
(traction control). safety among children — future
road users — under an
Protection international program dubbed
Renault vehicles are designed "Safety for All". Deployed
to provide all occupants with in 12 countries, this
maximum levels of protection. has already reached nearly Spreading the word
This protection is of three kinds 6 million youngsters.
In 2004, Renault teamed up
with French publisher Hachette
to bring out a book reviewing
the current situation and prospects
for road safety around the world
under the title "Driving Safety
Forward". Translated into six
languages, it has been widely
circulated both within the Group
and among the general public
with 120,000 copies printed.
54 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 55
A culture of safety
In industrialized countries, injuries organize a special road safety

sustained on the road between week, contributing to the
home and work are more common development of a culture of safety
than any other type of work-related that has already reduced the
accident. Within the Group, tens number of days of absence
of thousands of employees use resulting from road accidents by
a car for their job every day and close to 32% over the past three
Renault has thus developed an years. Group policies in this area
in-house program for road-safety are clearly defined, calling for
education and training. Each year, continued efforts on a broad front
all Group sites systematically to achieve measurable results.
Renault vehicles are designed to ensure maximum safety for all occupants.
Safety: everyone's concern
sales network. We have to ensure that Would human and social sciences With the internationalization of
people in contact with customers have have something to contribute? Renault's operations, is the promotion
the information and material they need That's a touchy point. Social sciences of road safety also being extended?
Jean-Yves to make those customers more aware don't work like, say, physics with a set Our aim is to be at the highest level of
Le Coz of safety issues. Safety needs to be of clearly defined equations. safety on each market, even where
perceived as a function naturally Developing systems to assist drivers safety is not a big selling point. Road
Director, associated with the automobile. demands an understanding of accidents are now the ninth cause of
Road Safety extremely complex factors shaping mortality worldwide, but by 2020 they
Policy Wouldn't you agree that better patterns of behavior. are likely to be the third main cause.
driver behavior is now the key The number of deaths on the road has
Your job is very unusual in automobile to greater safety on the road? How can behavior be influenced? risen by 60% over the past few years
manufacturing. Could you tell us There is no secret to the laws of physics One simple way is to reduce as more and more people in developing
something about your mission? applied to absorb energy on impact demands on the driver — to take countries have cars. Here we are
There is a technical side to it, regarding and bring a moving body to a halt. the stress out of driving and make it working with authorities, offering the
the definition and implementation And we are probably nearing a point more relaxed. But while drivers support of our expertise to develop
of Renault's technical safety strategy. where research into passive safety will need information and support, it road safety awareness. Renault's
But I am also a spokesman, presenting no longer be the main source of progress. would be a dangerous mistake to concerns in this area are part of our
Renault's positions on safety issues Instead, we have to focus on active reduce their sense of personal commitment to good corporate
to people inside and outside the Group. safety — on ways to prevent accidents responsibility. As you can imagine, citizenship. And failure to act could only
Then there is training to raise awareness from happening. Which means ways to striking the right balance is not easy. encourage rejection of the automobile.
in the public at large and within our avoid and correct driver error.
55
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 56
Human resources:
building growth together
Renault recruits
To meet growth objectives, Renault's recruitment policies it needs to progress effectively training, working conditions,
continue renewal of its range reflect factors that include business towards its strategic goals. employee representation,
and innovate, the Renault expansion and the implementation And with Renault's increasingly pension rights and other areas
group needs to reinforce of a strategy for profitable growth international business base, of general interest.
the expertise on tap. as well as demographic trends recruitment is now worldwide
To this end, it will be hiring and the renewal of age groups. in scope. • Other policies concern the many
10,000 people in 2005, From 1999 to 2004, 40,000 people specific areas of expertise
including 5,000 outside France. joined the Group, including nearly To keep step with international involved in Renault's operations.
The drive concerns staffing 24,000 in France. Pace will remain expansion and ensure smooth These policies apply to all
in all areas of operation, brisk, with 10,000 recruitments integration of new recruits, Renault employees in a given business
from engineering and planned for 2005, which will also deploys human resource policies function worldwide.
production to sales and see sub-dealers and dealers in at three complementary levels:
support functions. Renault's French network take • Finally, local policies integrate
on an estimated 4,000 new • Group-wide policies applying constraints and opportunities
employees. This vigorous drive uniformly to all employees in each country, in particular
will give Renault the resources around the world concern applicable labor law.
Our employees’ skills set will make a difference
HR rules for the Group worldwide.

Renault has worked with union
representatives to draw up
Jean-Marie a declaration of fundamental
Kerebel employee rights. This defines global
Vice President, rules and principles, such as
Central Human Renault’s commitment to working
Resources conditions and equal opportunity.
What about training?

What would you say was the most Training is absolutely essential,
important development in 2004? because we know that it is the skills
The Logan launch, new projects and expertise of our workforce that
for China, Russia and Iran — in 2004 will really make the difference in
Renault became truly international. the years ahead. The right for all
employees, whatever their age and
What does that entail in terms position, to have access to training
Dacia and Renault teams share expertise at the Technocentre in Guyancourt, of human resources? throughout their working life is also
France. The challenge for human resources included in our declaration of
is to provide Renault with the skills fundamental employee rights.
it needs in order to grow and define
56 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 57
International recruitment
We also send around a hundred

Anne-Sophie interns abroad each year under
Belloc the government-sponsored VIE
corporate volunteer program.
Recruitment They are often excellent recruits.
Officer,
Employee Does Renault have a good image
Management with students?
Department With the Renault-Nissan Alliance
and projects like Logan, Renault's
How important is international international reach is now well
1 2
recruitment? recognized. Our ties to leading
Our aim is for recruits with an engineering and business schools
international profile to account also help to give us a high profile
for a quarter of our total intake. with students.
What exactly does that involve? What new trends are emerging?
These recruits may be from France In 2004, we started focusing more
or other countries. We want them to on some nationalities, particularly
build up their professional know-how Iranian and Chinese, in keeping
in France, then take up a position with the direction of our international
in another part of the world. expansion.
What sort of background do you

look fort?
We start out with leading engineering
and business schools. Subsidiaries
are another source of recruits.
3 4
Renault offers career opportunities in many different sectors.

(1) Valérie Jean (Technocentre in Guyancourt outside Paris) - (2) Marc Depire (Technocentre)
(3) Ludovic Loison (Flins) - (4) Laure Dutronc (Technocentre)
The men and the women of Renault
International recruitment raises excellence with a congenial retirement of older employees Now an integral part of corporate
questions of the Group’s image atmosphere. The Group’s and accelerate renewal of culture, this defines specific
and identity, including what it human resources policy the workforce and skills (priority 1). objectives that lead up to
means to be part of Renault. has four priorities: strengthen As a matter of fairness, it was concrete initiatives for training,
Renault offers all employees and competitiveness, support decided to phase this out by recruitment and career planning in
job applicants three commitments international expansion, develop November 30, 2006 rather than each sector. On February 18, 2004
— to open opportunities for skills and attract and motivate impose an abrupt halt. another important agreement
progress in their careers, to give employees. During the year, the Competencies was signed with unions, this time
them access to training throughout In France, a highlight of 2004 2010 program continued (priority 3), to reinforce the principle of equal
their working lives and to provide was the signature of an agreement underpinning the development treatment for men and women
a working environment that on the end of the program of the skills Renault needs to (priority 4).
combines commitment to initiated in 1999 to favor early fulfill its strategic goals for 2010.
57
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 58
Fundamental rights
Fundamental
Putting values to work employee rights
On October 12, 2004, Renault,

On October 12, 2004, Renault has for many years applied in automobile manufacturing, the Renault Group Works
Renault Chairman and CEO a Code of Good Conduct, which will have been implemented Council and the International
Louis Schweitzer and union outlines the rules to observe at all Group sites. Metalworkers' Federation
signed a declaration of
representatives signed when dealing with third parties
employee rights to be respected
the Renault Group Employees' both within and outside the Group. The Employees' Fundamental worldwide. Comprising 10
Fundamental Rights Rights Declaration will reinforce points, this reflects Renault's
Declaration. Concerning The “Renault Management action in this area and extend continuing support for
all Group employees and System for Safety and Working it to suppliers, who are required sustainable development and
suppliers, it defines the rules Conditions” defines strict in particular to satisfy the criteria the highest standards of
and principles Renault applies requirements in these areas, regarding forced labor, child labor corporate responsibility.
throughout the world in the which are backed up by regular and working conditions. The Renault group
undertakes to:
areas of health, safety audits. By the end of 2005, the
1. Make improved health,
and working conditions. system, a recognized benchmark safety and working conditions
a priority, underpinned by
a Group-wide policy.
2. Not to employ people
younger than the mandatory
school-leaving age or below
the age of 15.
3. Not to discriminate for any
reason whatsoever and treat
employees with dignity.
4. Condemn the use of forced
labor and agree not to make
use of such labor.
5. Commit to protect jobs and,
if necessary, train workers for
other jobs or find other jobs
for them within the Group.
6. Provide every one of its
workers, worldwide, with
the training necessary to
properly perform their job
and build a career.
7. Develop a policy to adjust
working hours in line with
the needs of the company's
various sectors, taking into
account employees' wishes.
8. Recognize the principle of
fair compensation for work.
9. Ensure that employees
are represented in all Group
companies and strictly
respect freedom of
association.
10. Inform its suppliers of
the contents of this
declaration and urge them
to consider adhering to it.
Renault makes an active contribution to training and education programs around

the world. Above: Nelson Mandela inaugurating construction of a school in South
Africa in September 2004.
58 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:55 Page 59
Protecting the environment
Environmentally responsible manufacturing
A regularly updated and extended cataphoresis and factories that do 18kg of recycled plastic built into Environmental protection
subsidiary-risk database enables not release any waste water. each Modus. Recycled materials are is a core value for Renault
Renault to keep precise track of Similarly, the products used in now used to make bumpers and and an essential part of its
health and ecotoxicity hazards vehicle components are selected to dashboard components, whereas commitment to sustainable
relating to all products entering and avoid any that could cause pollution they had previously been used development as a socially
leaving the company. Now in the at the end of the vehicle lifecycle. To for hidden parts. responsible firm. In this,
process of international deployment, this end, we work in close cooperation Finally, all Renault industrial sites it sets ambitious targets
the database is to be extended to with suppliers, achieving results that have been audited to identify risks for concrete, measurable
products used in dealerships. include the near-elimination of heavy of leftover pollutants seeping into results at every stage
Expertise in this area, which metals. Recycling is naturally the soil or groundwater. In Romania, in the vehicle lifecycle.
concerns over 3,000 substances, another prime concern, which raises Dacia's Pitesti plant is undergoing
provides the basis for effective the issue of how materials are to be extensive decontamination.
initiatives to eliminate toxic hazards, reused. In this area, too, Renault has
with examples including lead-free taken the lead, as illustrated by the
More than 95% of the materials in a Renault vehicle are recyclable. Above: Espace IV's front bumper.
59
• EXE R.A. 2004 Gb 17/03/2005 11:56 Page 60
Protecting the environment
Environmental
Using energy wisely management
A network of some 1,500

Energy conservation begins with switched from oil to natural gas, people is charged with
careful monitoring of each stage cutting greenhouse emissions, implementing Renault's
in the manufacturing process. and Renault is developing vehicles environmental policy
throughout the company.
While steadily enhancing levels that run on alternative sources
The scope of management
of equipment, Renault nonetheless of energy. An example of this is in this area has expanded
aims to reduce the energy required the Mégane sedan with a 1.6-liter to cover areas set to undergo
to produce a vehicle by 2.5% 16-valve flex-fuel engine, powered changes as a result of
a year. To take just one example, solely by sugar-cane alcohol. environmental concerns, as
when heating systems are replaced, The car will be launched in Brazil well as operations to emerge
combined heat and power systems in the second half of 2005. with technologies such as
using energy already produced hybrid drive units. A review
to identify all areas concerned
is systematically preferred to Finally, effective preservation
was completed in 2004 and
traditional boilers. of resources calls for the active, will be followed up in 2005
day-to-day commitment of all with training programs
Renault vehicles are also designed Renault employees, from designers to prepare staff for the
with energy savings in mind, as to assembly workers. Renault has developments ahead.
seen in the low fuel consumption moved to underpin this with a Environmental management
of the K9 engine, representing close steady flow of communications to also concerns suppliers, more
to 60% of Renault's diesel sales. develop awareness and encourage specifically joint development
of related material and
respect for the environment,
implementation of common
Reduction of CO2 emissions is part including the dedicated website: training programs, plus
of the same process. Many www.sustainability.renault.com. sharing of training material
Renault factories have already developed by Renault.
In addition, Renault has
launched initiatives targeting
dealerships with advice
on maintenance and repair
methods, as well as customers
with information on recycling.
For Alice de Brauer, Director,
Environment Policy for Industrial
Sites, this is all part of a much
broader process. As she says,
“Continuous progress hinges
on unfailing management
commitment.”
Renault production sites are closely watched to avoid any risk of pollution. Above: settlement tank at the Palencia plant in Spain.
60 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:56 Page 61
Many of the materials used to make

vehicles are now recyclable. Before
reuse, they are processed into pellets,
as shown above.
• EXE R.A. 2004 Gb 17/03/2005 11:56 Page 62
A strong market start for Modus contributed to the overall rise in Renault's 2004 sales.
62 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:56 Page 63
5 Results in line
with strategic priorities
The profitable growth strategy that Renault has implemented for several years has translated into a steady
rise in earnings. Renault in 2004 reported its best-ever results, which back up the wisdom of strategic decisions
and enable the Group to view the future with confidence. Renault plans to pursue its international
development and forge ahead with its range renewal.
63
• EXE R.A. 2004 Gb 17/03/2005 11:56 Page 64
5 Results in line with strategic priorities
Net income reaches

all-time high in 2004
Revenues by Division Revenues up 8.4%(1)

(e million)
40,000 40,715 + 8.4%

37,564
In a context marked by modest market and a move higher up the range in
30,000
growth in Western Europe and vigorous Western Europe, with the Mégane
trends on some other markets, particularly lineup and light commercial vehicles doing
20,000 Turkey, Renault sold 2.5 million vehicles especially well, plus firm trends in spare
35,566 38,645 + 8.7%
worldwide in 2004 — 100,000 or 4.2% parts business and quickening sales in
10,000 more than in 2003. Growth in its two the rest of the world.
business divisions brought an 8.4%(1) • Revenues of the Sales Financing Division
0 1,998 2,070 + 3.6% rise in total revenues to e40.7 billion. rose 3.6% to e2.1 billion, buoyed by rises
2003 2004 Change • Revenues of the Automobile Division rose in outstanding customer financing and
restated* published 2004/2003
8.7% to e38.6 billion. This reflects the associated services.
Automobile success of the Renault product offering
Sales Financing
(1) On a consistent basis.
* 2003 data restated on a consistent basis with 2004
(published 2003 revenues: r37,525 million).
Operating margin by Division Operating margin surges 72.5%

(e million)
2,500 2,418
2,000 Operating margin, the litmus test for European factories and a rise in the
Renault's business performance, rose by over contribution of business in other parts
1,500 1,483 1,402 e1 billion to e2.4 billion, representing 5.9% of the world, in turn due to strong sales
of revenues compared with 3.7% in 2003: growth in Turkey and lower losses on
1,000 1,974
• The Automobile Division generated an business in Mercosur countries.
1,035
1,189 operating margin of close to e2 billion, • The Sales Financing Division contributed
500
representing 5.1% of revenues compared e0.4 billion or 21.4% of revenues with
0 294 367 444 with 2.9% in 2003. In addition to an margins holding steady, while outstanding
2002 2003 2004 improved product mix and prices in customer financing was on the rise and
% of revenues 4.1 3.7 5.9 Western Europe, this reflects continued risk remained under firm control.
cost cutting, higher productivity in
Automobile
Sales Financing
Summary income statement Net income up 43.2% to u3.5 billion

(e million) 2002 2003 2004
Revenues 36,336 37,525 40,715
Operating margin 1,483 1,402 2,418
Other operating Alongside operating margin, main items of income from Nissan in 2004 to allow
income and expenses (266) (168) (270) affecting results for the year were: recognition of this income to cover the same
Operating income 1,217 1,234 2,148 • A e270 million net charge under "Other 12-month period from 2005 on. The extra
Financial expense (91) (71) (348) operating income and expenses", compared quarter recognized in 2004 represented an
Share in net income with e168 million in 2003. This includes in amount of e0.4 billion.
of Nissan Motor 1,335 1,705 2,199
particular charges for early retirement of • A tax charge of e634 million, compared with
Pre-tax income 2,457 3,023 4,252
older employees. e541 million in 2003.
Taxes (447) (510) (634)
• A charge of e343 million relating to the cash Net income for the year thus reached a record
Renault net income 1,956 2,480 3,551 tender offer for Renault's redeemable shares e3,551 million, compared with e2,480 million in
in the first half of 2004. 2003. This set earnings per share at e13.35,
Earnings
• Income of e2,199 million from Renault's compared with e9.32 in 2003.
per share (in euros) 7.53 9.32 13.35
interest in Nissan. Renault booked 15 months
64 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:56 Page 65
Financial structure strengthened further and debt almost eliminated Net financial debt of the Automobile Division
(e million)
2,500 2,495
2,000 1,748
Strong results for the year allowed further At that date, net financial debt of the
1,500
reinforcement of the balance sheet: Automobile Division represented no more
• Net financial indebtedness of the than 3.4% of equity compared with 12.9% 1,000
500 541
Automobile Division fell e1.2 billion a year earlier.
from December 31, 2003 to e0.5 billion 0
at December 31, 2004, a sharp decline Net return on equity came to 28.4% in 2004, 2002 2003 2004
reflecting the combined effects of strong exceeding Renault's minimum target of 11%
operating performances and disciplined by a wide margin. Return on equity* (%)
28.4
investment.
• Group shareholders' equity rose e2.5 billion 25 22.3
19.8
to e16.1 billon at December 31, 2004. 20
15
10
5
2002 2003 2004

* Before appropriation of net income for the year.
Forging lasting ties to shareholders
Renault shareholders Fresh rise in dividend Communications — transparency

at December 31, 2004 The Annual General Meeting and accessibility
on April 29, 2005 will be asked Renault demonstrates its active commitment
62.2% 15.7%
to approve a dividend of e1.80 to transparent communications with a steady
15% per share. This represents a further flow of publications backed by the resources
rise of 28.6% after 22% in 2003 of its renault.com site, which includes
and 25% in 2002. a section dedicated to shareholders.
A wide range of events and meetings are
also organized each year for shareholders
Dividend per share (e) in France and other countries. The Renault
shareholder club set up in 1995 now counts
2.0 1.8 (1) 10,000 members and since 1996 Renault
1.6 1.40 has also had a Shareholders' Advisory
1.2 1.15 Committee. Services to individual
3.3%
0.8 shareholders include a toll-free information
3.8%
0.4 line (0 800 650 650 in France) and a dedicated
French state Treasury stock 0 e-mail address
2002 2003 2004 (communication.actionnaires@renault.com).
Nissan Public
(1) Subject to decision of Annual General Meeting
Employees on April 29, 2005. In October 2004, Renault communications
for individual shareholders won the third
A survey of the ownership Distributed earnings will thus Fils d'Or prize awarded by French weekly
of Renault bearer shares at represent 14.4% of net income. La Vie Financière, daily Le Figaro and
December 31 provides a reliable Synerfil, a consultancy specializing in
guide to the breakdown of shares Payout (%) shareholder relations. This annual award
held by the public. At that date, is for the best shareholder communications
20
French and foreign institutional 16.8 16.1 from the companies in the CAC 40
investors held some 57% of equity 15 14.4 stock-market index.
and individual shareholders 10
approximately 5%. 5
0
2002 2003 2004
65
• EXE R.A. 2004 Gb 17/03/2005 11:56 Page 66
5 Results in line with strategic priorities
Looking ahead
Financial outlook
In 2005, Renault expects the development outside Europe (1)

The main impact of the application
automobile market to remain thanks to the vitality of its current of IFRS on Renault's operating margin
stable in Europe and to grow range and the rollout of the Logan is the retrospective application of IAS
slightly in the other main countries program in many countries, 38 (capitalization of development
costs). The application of this
in which the Group operates, with including the production start-up
standard to the 2004 financial
the exception of Turkey. in Russia, Morocco and Colombia. statements would have reduced
operating margin by approximately
Against this background, Renault Overall, in a sluggish market r300 million, or 0.75% of revenues.
will benefit in 2005 from the and an environment impacted
ongoing renewal of its range. by the rise in raw material prices,
Building on the success of the Renault intends to continue to
grow its global sales and report
Mégane family and light a Group operating margin —
commercial vehicles, Renault will under IFRS (1) — higher than
profit from the first full year of 4% of revenues.
Modus sales and the launch of
the all-new Clio in the second Approved by the Board of
half. The Group will pursue its Directors on February 7, 2005.
Product outlook
Renault will continue to renew The X90 program will take an momentum over the year. It is
and expand its range in 2005. important new step forward with joined by the new-generation
the production of Logan, which SM5, a family sedan embodying
A main highlight will be the launch made a strong start in 2004, set the highest standards of comfort
of the replacement for Clio in the to get under way in Russia in the and safety that was unveiled in
second half, targeting a strategic first half, in Morocco in the second January 2005.
segment of European and world half and in Colombia at year end.
markets to spearhead growth. Offering unrivaled value for money, The Renault group is thus well
This marks a fresh phase in the Logan will also go to market in placed to move ahead with its
renewal of Renault's range of Western Europe at the end of the strategy of profitable growth
compact cars that began with first half and will later be available and international development,
Modus in 2004. The release in in a 65hp 1.5 dCi diesel version. drawing on the strength of a
January 2005 of an Initiale version renewed range that has the
will extend appeal to new Renault Samsung Motors, too, breadth to meet varied customer
customers and build on its continues renewal of its range. expectations and needs.
excellent start. The SM7, a luxury sedan designed
at the Renault Samsung Motors
Renault will also be bolstering R&D center in South Korea and
positions higher up the range with equipped with the latest technology,
new versions of Laguna and Val made its debut in December 2004
Satis to be rolled out in spring. and will be building market
66 Renault in 2004
• EXE R.A. 2004 Gb 17/03/2005 11:56 Page 67
The new concept car Zoé makes city driving pure pleasure.
New Laguna — innovative design and new advances in road handling and interior comfort.
67
• EXE R.A. 2004 Gb 17/03/2005 11:56 Page 68
Photo credits and illustrations:
O. Banet: pp. 28-29,

L. Benevello: p. 55,
A. Bernier: pp. 1, 2, 15, 17, 23, 28,
P. Castano: p. 59,
P.D. Casteran: p. 29,
B. Chimènes: pp. 15,
F. Christophoridès: pp. 30-31,
P. Curtet: p. 2,
B. Decout (Rea): p. 26,
H. Desdemaines: p. 28,
Dingo: pp. 16, 24,
DPPI: pp. 3, 50,
Dream On: p. 55,
B. Dubois: cover, pp. 20, 54,
D. Dumas: pp. 28-29,
S. Franklin (Magnum): pp. 25, 33, 60,
E. Guilloux: p. 3,
A. Grouet: p. 9,
H. Gruyaert (Magnum): pp. 3, 40-41, 47,
K. Hyun-Phil: p. 48,
F. Janin: pp. 27, 37,
T. Jung: p. 67,
B. Lachaud: pp. 52-53, 54,
J.F. Lange: p. 25,
LAT Photographie: p. 49,
G. Lefauconnier: p. 61,
P. Lesage: pp. 9, 34,
A. Lesieur: p. 28,
B. Martinez: pp. 17, 33,
S. Millier: p. 5, 8, 14, 44, 57,
M. Moesch: pp. 12-13, 14, 18, 62-63,
S. Neri: p. 37,
Mineko Orisaku: p. 38,
Pagecran: p. 19,
A. Perus: p. 45,
C. Podetti-Ngono: p. 58,
Studio Pons: pp. 11, 26, 32, 34, 35, 36, 43, 56,
Renault Design: p. 15,
Rens Van Mierlo: pp. 6-7, 8-9, 10,
S. Ruau: p. 7,
P. Sautelet: pp. 21, 22, 33, 46, 49, 51, 67,
P. Zackmann (Magnum): p. 39,
Anonymous (all rights reserved): pp.24, 29.
• EXE R.A. 2004 Gb 17/03/2005 11:57 Page 69
Design and production: alliance design / Cover: Bertrand Dubois / Comelli Printing
RENAULT
13-15, quai Le Gallo
92513 BOULOGNE-BILLANCOURT Cedex
France
Tél. : 33 (0)1 76 84 04 04
www.renault.com
INVESTOR RELATIONS DEPARTMENT

CORPORATE COMMUNICATIONS DEPARTMENT
4939 9C0 002

Renault - Fiscal Year 2004

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• EXE R.A.

2004 Gb 17/03/2005 11:50 Page 1

Renault. Setting new standards in safety

Key figures 2004

Western Europe 15%

Group revenues Group operating margin

40,000 40,175 40,715 2,500 2,418

Renault net income Employees

3,750 3,551 200,000

Renault share performance

1997 1998 1999 2000 2001 2002 2003 2004

1. Renault's brand identity: setting the standard

For Renault, 2004 was a year

Like its forerunner Wind, the Fluence

With seven of its vehicles winning

The Renault F1 Team's results for

From the Chairman

The Renault group had an excellent year in 2004.

Louis Schweitzer Yves Audvard Michel Barbier

Alain Champigneux François de Combret Charles de Croisset*

Carlos Ghosn Jean-Louis Girodolle Itaru Koeda

Marc Ladreit de Lacharrière* Dominique de La Garanderie* Bernard Larrouturou

Henri Martre* Jean-Claude Paye* François Pinault*

Franck Riboud* Georges Stcherbatcheff Robert Studer*

Group Executive Committee

Louis Schweitzer Patrick Blain Georges Douin

École Nationale d’Administration. École des Mines de Paris. École Polytechnique.

Group Executive Committee and Renault Management Committee

Louis Schweitzer (1) Odile Desforges Kazumasa Katoh

Michel Gornet Thierry Moulonguet Jean-Louis Ricaud Michel de Virville

Thierry Moulonguet (1) Carlos Ghosn is 51 years old.

Clear principles guide daily practice

Good governance is a question of attitude

1 Renault's brand identity: setting the standard

A strong brand identity

Grand Scénic carries on the Renault tradition in minivans.

Driving pleasure and a sense of safety

Innovative design with a winning way

Stylish design has always been for an exclusive touch and

What is the weight of safety

Practical — with winning ways

Reaching out to young families

The foundations of success An extended family

Mégane Hatch and Sport Grand Scénic is 23cm longer

First for safety

The Renault range is Protection of vehicle occupants

Safety is an absolute priority for Renault. Illustration by Bertrand Dubois for

Active safety Unfailing commitment to the cause of safety

Safety is a cause that is never some 20 cars from around the

Respect for the environment

Commitment to sustainable development

At Renault, sustainable development performance in its category.

The fullest offering

A minivan in every segment

Since its launch in 1984,

Market leader in light

Serving the Group

Renault has a leading 14.9% The launch of new products combined

High-performance, fuel-efficient engines

Performance and respect for the environment