2007 Interactive Registration Document - Renault

2007 

REGISTRATION 

DOCUMENT


REGISTRATION DOCUMENT 

INCLUDING THE MANAGEMENT REPORT APPROVED BY THE BOARD OF DIRECTORS ON FEBRUARY 12, 2008 

This Registration Document is on line on the website www .renault.com (French and English versions) 

and on the AMF website www .amf- france.org (French version only).

TABLE OF CONTENTS 

01 

RENAULT AND THE GROUP 5 

1.1 Presentation of Renault and the Group 6 

1.2 Risk factors 24 

1.3 The Renault-Nissan Alliance 25 

02 

MANAGEMENT REPORT 43 

2.1 Earnings report 44 

2.2 Research and development 62 

2.3 Risk management 66 

03 

SUSTAINABLE DEVELOPMENT 79 

3.1 Employee-relations performance 80 

3.2 Environmental performance 94 

3.3 Social performance 

3.4 Table of objectives (employee relations, 

109 

environmental and social) 120 

3.5 Renault, a responsible company 124 

04 

CORPORATE GOVERNANCE 129 

4.1 The Board of Directors 130 

4.2 Management bodies at February 1, 2008 139 

4.3 Audits 142 

4.4 Interest of senior executives 

4.5 Report of the Chairman of the Board pursuant 

144 

to Article L. 225-37 of the Commercial Code 

4.6 Statutory Auditors’ report on the report 

148 

of the Chairman 155 

05 

RENAULT AND ITS SHAREHOLDERS 157 

5.1 General information 158 

5.2 General information about Renault’s share capital 160 

5.3 Market for Renault shares 163 

5.4 Investor relations policy 167 

06 

MIXED GENERAL MEETING 

OF APRIL 29, 2008: PRESENTATION 

OF THE RESOLUTIONS 171 

The Board first of all proposes the adoption 

of eleven resolutions by the Ordinary General Meeting 172 

Next, six resolutions are within the powers of 

the Extraordinary General Meeting 174 

Finally, the Board proposes the adoption 

of two resolutions by the Ordinary General Meeting 176 

07 

FINANCIAL STATEMENTS 

7.1 Statutory Auditors’ report on the consolidated 

179 

financial statements 180 

7.2 Consolidated financial statements 

7.3 Statutory Auditors’ reports on the parent 

181 

company only 237 

7.4 Renault SA parent company financial statements 240 

08 

ADDITIONAL INFORMATION 255 

8.1 Person responsible for the Registration Document 256 

8.2 Information concerning FY 2005 and 2006 257 

8.3 Internal regulations of the Board of Directors 258 

8.4 Appendices relating to the environment 264 

8.5 Cross-reference tables 270

TABLE OF CONTENTS > 

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01 

Renault 

and the Group 

< TABLE OF CONTENTS > 

1.1 PRESENTATION OF RENAULT AND THE GROUP 6 

1.1.1 Key figures 6 

1.1.2 Background and highlights 7 

1.1.3 Main activities 9 

1.1.4 Main subsidiaries and organization chart 19 

1.2 RISK FACTORS 24 

1.3 THE RENAULT-NISSAN ALLIANCE 25 

1.3.1 Objectives of the Alliance 25 

1.3.2 Operational structure of the Alliance 28 

1.3.3 The status of Alliance projects 30 

1.3.4 Nissan’s strategy and results in 2007 34 

1.3.5 Alliance c ombined sales performance and financial indicators 37 

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Registration Document Renault 2007 5

01 PRESENTATION 

RENAULT AND THE GROUP 

OF RENAULT AND THE GROUP 

1.1 PRESENTATION OF RENAULT AND THE GROUP 

1.1.1 KEY FIGURES ✦ 

THREE-YEAR CONSOLIDATED FIGURES – PUBLISHED DATA (1) 

(€ million) 2007 2006 2005 

Revenues 40,682 41,528 41,338 

Operating margin 1,354 1,063 1,323 

Share in Nissan Motor – net income 1,288 1,789 (2) 1,825 

Renault net income 2,669 2,869 3,367 

Earnings per share (Euro) 10.32 11.17 13.19 

Capital 1,086 1,086 1,086 

Shareholders’ equity 22,069 21,201 19,661 

TOTAL ASSETS 68,198 68,766 68,411 

Dividends (euro) 3.8 (3) 3.1 2.4 

Cash flow, Automobile 4,552 4,313 4,470 

Net financial debt, Automobile 2,088 2,414 2,252 

Total staff at December 31 130,179 128,893* 126,584* 

* Excluding CASA. 

(1) This information is for reference only and is not always directly comparable year-on-year, since it may include changes in scope and/or changes in accounting practices. 

(2) Excluding non-recurring income of €82 million in 2006 compared with €450 million in 2005. 

(3) Dividend proposal to Combined General Meeting of April 29, 2008. 

RENAULT SHAREHOLDERS AT DECEMBER 31, 2007 

BREAKDOWN OF CAPITAL IN % OF SHARES BREAKDOWN OF CAPITAL IN % OF VOTING RIGHTS 

For more information, see c hapter 5, paragraph 5.2.6. 


6 Registration Document Renault 2007 

Find out more at www.renault.com 

77.99% 

Public 

18.22% 

French state 

3.78% 

Employees 

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1.1.2 BACKGROUND AND HIGHLIGHTS 

1898 

Société Renault Frères was formed to manufacture motor vehicles, taking 

advantage of patents such as the fi rst direct-drive transmission. Based in the 

Paris suburb of Billancourt, the company achieved international renown through 

its success in motor sports, and initially specialized in the construction of 

passenger cars and taxis. During the First World War, it produced substantial 

volumes of trucks, light tanks and aircraft engines. 

1922 

Having expanded strongly in the passenger car and commercial vehicle markets, 

Renault became a limited company. Establishing production centers in France 

and abroad, Renault gradually emerged as the French market leader. 

1945 

The company was nationalized in January, renamed “Régie Nationale des Usines 

Renault”, and concentrated on producing the 4 CV. 

1972 

Renault 5 arrived on the market. It remains one of the Group’s best-selling 

models ever. 

THE 1980s 

Through to the mid 1980s, Renault followed a strategy of diversifi cation in the 

industrial, fi nancial and service sectors, while at the same time growing its 

industrial and commercial activities internationally. But in 1984, the company 

ran into fi nancial diffi culties. As a result, it concentrated on restructuring and 

refocusing on core activities, and returned to profi t in 1987. 

THE 1990s 

In 1990, Renault became a limited company once again. In the same year, 

it signed an agreement for close cooperation with the Volvo group. In 1991, 

the two groups linked their automobile and commercial vehicle businesses via 

cross-shareholdings. This arrangement was unwound after plans to merge the 

two groups were shelved in late 1993. 


PRESENTATION OF RENAULT AND THE GROUP 

On November 17, 1994 the French government opened Renault to outside 

capital, a fi rst step towards privatization, which took place in July 1996. 

In 1998, the year of its centenary, Renault opened the Technocentre in 

Guyancourt for its design and development teams, and a bodywork/assembly 

plant in Curitiba, Brazil. 

The year 1999 marked the start of a new era in Renault’s history with the signing 

of an Alliance with Nissan, on March 27 in Tokyo. In the same year, Renault 

acquired a new brand by taking a 51% stake in Romanian carmaker Dacia. 

2000 

Renault raised its stake in Dacia to 80.1% and acquired a new brand – Samsung 

Motors – in South Korea. 

2001 

Renault and Volvo joined forces to form the world’s second-biggest truck 

manufacturer. Renault became the main shareholder in the Volvo group, 

with a 20% stake, after selling the Renault V.I./Mack group to Volvo. 

2002 

Renault and Nissan implemented the second stage of their Alliance, aimed at 

strengthening their equity ties and creating a joint strategic structure. Renault 

raised its stake in Nissan from 36.8% to 44.4%. At the same time, Nissan 

took a 15% ownership interest in Renault. The French government’s ownership 

interest was reduced to 25.9% and then to 15.7% in 2003 by selling shares 

both to company employees and on the market. 

2003 


This was the year of Mégane II. With fi ve body styles (Scénic II, Grand Scénic, 

Mégane coupé-cabriolet, Mégane 4-door sedan and Mégane Station wagon) 

completing the two models launched in 2002, a total of seven models were 

launched in 17 months. Mégane II became Europe’s best-selling model. 

✦ Global Reporting Initiative (GRI) Directives Registration Document Renault 2007 7 

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2004 

The year was marked by two major product launches: Modus and Logan. 

Modus is Renault’s entry-level MPV. It was the fi rst Renault-badged vehicle 

built on the B platform shared with Nissan, and the fi rst vehicle in its class 

to score fi ve stars in Euro NCAP crash tests. Logan, developed by Renault 

and manufactured and marketed by Dacia, offers excellent value for money. 

It has enjoyed great success since its launch, both on its domestic market of 

Romania, and on export markets. The car will spearhead Renault’s international 

expansion in the years ahead. 

2005 

At the Annual General Meeting on April 29, Carlos Ghosn was named Chief 

Executive Offi cer of Renault. Louis Schweitzer retained his position as Chairman 

of the Board of Directors. The Group pursued its international expansion 

with the development of industrial facilities for Logan in Russia, Colombia 

and Morocco. Renault signed an agreement with Mahindra & Mahindra to 

manufacture and market Logan in India from 2007. It launched two landmark 

products: Clio III, the eighth Renault vehicle to obtain fi ve stars in Euro NCAP 

crash tests and “Car of the Year 2006”, and the 2.0 dCi engine, the fi rst 

diesel powerplant developed by the Renault-Nissan Alliance. Also this year, 

the Renault F1 Team scored a double win, taking the World Constructors’ 

and Drivers’ Championship titles. 


2006 

On February 9, Carlos Ghosn announced Renault Commitment 2009, a plan 

based on three key commitments: quality, profi tability and growth. The aim is 

to position Renault as Europe’s most profi table volume auto maker. For the 

second year running, the Renault F1 Team scored a double win with the new 

R26, taking the World Constructors’ and Drivers’ Championship titles. At the 

Paris Motor Show, Renault unveiled the Twingo Concept show-car, and Koleos 

Concept, the fi rst future cross-over vehicle in the range. 


The product offensive began with the launch of New Twingo (produced in 

Slovenia) in May and of New Laguna (produced in France) in October. Both 

vehicles aim to achieve the highest standards of quality and reliability. In Korea, 

Renault Sa msung Motors began production of QM5, a Koleos-based crossover 

vehicle, designed by Renault and developed by Nissan. Half of the total output 

is scheduled for export. Expanding its international presence, Renault founded 

new subsidiaries in Ireland and Scandinavia, increased its production capacity 

in Russia, and signed a memorandum of understanding for a future industrial 

complex in Morocco. In May, Renault launched the eco² label for its most 

ecological and economical vehicles. Eco² vehicles are produced in certifi ed 

plants and emit less than 140 g of CO 2 per km or run on biofuel. They also 

include at least 5% recycled plastics, and are 95% recyclable. 



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1.1.3 MAIN ACTIVITIES 

Since the fi nal agreement signed with Volvo on January 2, 2001, the Group’s 

activities have been divided into two main activities: 

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a utomobile; 

s ales fi nancing. 

In addition to these two activities, Renault has two strategic shareholdings: 

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n 

in AB Volvo; 

in Nissan. 

These holdings are accounted for by the equity method in the Group’s fi nancial 

statements. 

STRUCTURE OF THE RENAULT GROUP ✦ 

SIMPLIFIED ORGANIZATION CHART AT DECEMBER 31, 2007 (AS A % OF SHARES) 

20.7% 

44.3% 100% 

Nissan Renault s.a.s. 

Volvo 

Associated companies 

Automobile 

Sales financing 

100% 

RCI Banque 

( * ) Company indirectly owned by Renault s.a.s. 

1.1.3.1 AUTOMOBILE 

Renault SA 

80.1%* 


Samsung 

Motors ( * ) 

99.4% 

Dacia 

Other industrial, 

commercial, 

financing and cash 

management 

companies 

Renault designs, develops and markets passenger cars and light commercial 

vehicles. 

Following the acquisition of the Romanian carmaker Dacia and of Samsung 

Motors’ operating assets in South Korea, Renault has three automobile brands, 

Renault, Dacia and Samsung. 


RENAULT GROUP RANGES ✦ 



Renault brand 

Renault is a full-range automaker present on most market segments. It has 

a broad passenger and light commercial vehicle offering. Most models are 

available in multiple versions that vary by body style, engine, equipment levels 

and interior trim. This differentiation is achieved by means of a platform system. 

Eight platforms are used as the basis for passenger and light commercial vehicle 

production. Renault vehicles are equipped with seven families of gasoline and 

diesel engines. 

Passenger cars 

In the small-car segment (A and B segments, and passenger-carrying vans), 

Renault markets six complementary models: Logan, Twingo, Clio II and III, Modus 

and Kangoo. 

Logan is the main driving force behind Renault’s international development. 

It is sold under the Renault brand name in Russia, Colombia, Venezuela, Ecuador, 

Brazil, Argentina, Iran (under the name Tondar) and India (in partnership with 

Mahindra). With this broad industrial deployment, Renault is able to produce 

Logan close to its main markets in Russia, India, Iran, Brazil and Colombia. 

(Also see the deployment of Logan in c hapter 2.1). An affordable, spacious and 

robust vehicle, offering unbeatable value for money, Logan is a real success. 

In the A segment of city cars, New Twingo is following in the tire tracks of its 

predecessor. It was launched in June 2007 in France, Italy, Belgium and Slovenia, 

and in most other European countries (Germany, UK, Ireland, Netherlands, 

Spain, Portugal, Austria, Switzerland, etc.) between September 2007 and 

January 2008. With a production of more than 2.4 million units, the fi rstgeneration 

Twingo enjoyed an exceptional career lasting more than 14 years. 

Currently marketed in around fi fteen countries, Twingo II received a warm 

welcome from both customers and the network. It has market share of 7.4% 

in its segment in France and Europe. Twingo II has also successfully expanded 

its customer base, attracting former Twingo I owners as well as younger buyers 

and a higher percentage of men (GT version). 

Twingo I is still produced and sold in Colombia, while New Twingo is produced 

at the Novo Mesto site (Slovenia) for all other countries where this model is 

available. 

In the B segment, Clio III consolidated its success in 2007 – its third year 

on the market – despite a widely renewed offering from the competition. 

It has market share of 8.7% in France + Europe. Voted Car of the Year 2006, 

Clio III is considered as the benchmark in its segment in terms of quality and 

performance. In 2007 Clio III was equipped with the new TCE100 gasoline 

engine, combining the performance of a 1.6 l engine with the consumption of a 

1.2 l engine. Renault also launched a number of limited series models (RipCurl, 

Exception, Clio RS R26) with great success. At the start of 2008, the Clio range 

gained a station wagon version (the “Estate” or “GrandTour”). This attractive new 

version meets the requirements of customers looking for a car that combines 

dynamic design with generous load space. Most models in the Clio range carry 

the eco² label, and both the hatchback and estate versions boast CO 2 emissions 

of less than 120 g/km for two of the three diesel engines. 


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Clio III is manufactured at Flins (France), while the Renault Sport model is 

produced in Dieppe (France). In 2006, Clio III also went into production at the 

Bursa site (Turkey) for the hatch and estate versions, and at Valladolid (Spain). 

For a wider offering, Renault elected to continue manufacturing Clio II, renamed 

Clio Campus, with a focus on entry-level versions. Clio II is manufactured at 

the Novo Mesto site (Slovenia), as well as outside Europe, at the Bursa plant 

(Turkey) for the Thalia sedan, and in Mercosur countries – Cordoba (Argentina), 

Envigado (Colombia), and in Nissan’s Aguascalientes plant (Mexico) – for the 

hatch and sedan versions. 

In September 2004, Renault expanded its B-segment range with Modus, a 

subcompact minivan combining exceptional interior space with a remarkably 

compact size. Modus is the fi rst vehicle in its class to score fi ve stars in Euro 

NCAP crash tests. The Modus range was renewed in early 2008 with the launch 

of New Modus, a vehicle featuring new design, and, more particularly, Grand 

Modus. This is a highly versatile MPV with a generous boot, sliding, modular 

rear bench, generous stowage and wide range of practical features such as 

fl ipdown trays. Grand Modus boasts real on- road performance and has all the 

qualities necessary to become the main family car. Modus and Grand Modus 

are produced at the Valladolid site (Spain). 

Launched in late 1997, Kangoo car is a practical, economical, nonconformist 

vehicle that expands Renault’s offering in the passenger-carrying vans 

segment. Kangoo car scored four stars in Euro NCAP crash tests, setting 

the standard for safety on this segment. It is the fi rst model after Mégane to 

integrate life-cycle environmental management. For its last full year on the 

market in 2007, Kangoo car was available in a simplifi ed range for easier 

distribution. With market share of 10.9% in France and Europe, Kangoo car is 

second in this segment. 

Kangoo car is produced in Maubeuge (France) and Cordoba (Argentina), as 

well as at the Somaca plant (Morocco) and Kuala Lumpur (Malaysia). It is sold 

in more countries worldwide than any other Renault vehicle. 

On the lower mid-range C segment, the biggest in the European automotive 

market by volume, Renault launched the Mégane II program of fi ve-door 

and three-door hatches in October 2002, kicking off the complete renewal 

of its range on this segment. This is the fi rst program to be produced on the 

Alliance’s new joint C platform. It comprises eight models 1 with highly individual 

personalities, launched over a period of less than 18 months, between fall 2002 

and spring 2004. European Car of the Year in 2003, Mégane II was awarded the 

maximum fi ve-star rating by Euro NCAP, with the additional privilege of being 

named as the safest car in its class. 

January 2006 saw the launch of phase 2 (New Mégane) equipped with the 

new Alliance diesel engine, the 150 hp 2.0 dCi. Three other Mégane II models 

(a coupé cabriolet, a station wagon (Estate) and a four-door sedan) were 

successively launched in Europe. Mégane II was Europe’s third best-selling 

vehicle in 2007, all categories combined, with 3% of the market. 

In June 2003, Scénic was replaced by Scénic II, renewing Renault’s offering in 

the compact minivan segment. Scénic II scored fi ve stars in Euro NCAP crash 

tests, becoming the safest compact minivan on the market. September 2006 

saw the arrival of Scénic phase 2, with the ninth version in the program 1 , 

the fi ve-seater Grand Scénic. Scénic remains the leader on the compact minivan 

segment. 


In 2007, more than 650,000 Mégane I and II vehicles were sold worldwide. 

Mégane II is produced in France at Douai (sedan, coupé-cabriolet, Scénic II 

and Grand Scénic) and Dieppe (Renault Sport hatch and coupé), in Spain at 

the Palencia plant (fi ve-door hatch, coupé and station wagon), in Turkey at 

the Bursa plant (four-door sedan) and in Brazil at the Curitiba plant (four-door 

sedan). Mégane I (Classic and sedan) continues to be manufactured in Argentina 

(Classic and sedan) and in Colombia (Classic), while Scénic I is produced at 

the Curitiba plant (Brazil). 

In 2008, Renault will continue to build on its complete, reliable, high-performance 

range in order to remain at the forefront of this keenly competitive segment. 

Koleos, Renault’s first cross-over, will be launched during the year. 

This model combines the genes of Renault’s MPVs with Nissan 4x4 technology. 

Also in 2008, renewal of the Mégane family is scheduled to begin in a number 

of European countries. 

I n the upper mid-range D segment, New Laguna made its debut in 2007. 

It replaced Laguna II, of which over in more 1,106,000 units were produced 

during its six-year career, and sold in more than 50 countries. 

Launched in fall 2007, Laguna III is spearheading Renault’s drive to meet 

stringent new quality criteria. The vehicle was designed to rank among the top 

three in its segment for product and service quality. It ships with a three-year/ 

150,000 km manufacturer’s warranty. At end-2007, after just a few months on 

the market, 22,595 Laguna III vehicles had been sold in 25 countries. 

Available in two versions from launch, hatch and sport tourer, Laguna III 

delivers an enjoyable and relaxing drive, combining top-level safety (fi ve stars 

in Euro NCAP), unbeatable comfort (driving comfort, excellent acoustics, air 

conditioning, etc.) and easy use (ergonomics, navigation system, automatic 

parking brake, easy break function). It is an eminently drivable vehicle, with 

its high-quality engines (including a 1.5 dCi with very low CO 2 emissions and 

a 2.0 dCi recognized by the trade press as one of the best in its category in 

terms of driving pleasure and performance) coupled with 6-speed manual or 

automatic transmission, and with a precise, responsive chassis. 

Laguna GT, scheduled for launch in fi rst-half 2008, takes drivability one step 

further and sets new standards in active safety. It is equipped with the active 

drive four-wheel steering system. This allows the rear wheels to move both in 

parallel and in opposition to the direction of the front wheels, depending on 

vehicle speed and the angle of the steering wheel. At low speeds, Laguna GT 

is exceptionally nimble and easy to handle. At higher speeds, the active drive 

chassis keeps the car on course when sudden changes in direction are made, 

as in swerving maneuvers. Laguna GT ships with two engines specifi c to this 

model: a 2.0 l turbocharged gasoline engine developing 205 hp and 300 Nm. 

and a 2.0 l dCi engine developing 180 hp and 400 Nm. 

The Laguna range will be completed by Laguna Coupé, scheduled for launch 

at the end of 2008. The Coupé features clean, elegant fl owing lines, similar to 

the concept-car presented at Frankfurt. Its active drive chassis and V6 gasoline 

and diesel engines will make it the Marque’s fl agship vehicle. 

(1) Five-door hatchback, three-door hatchback, Scénic (five-seater) and Grand Scénic (seven-seater), coupé-cabriolet, station wagon, four-door sedan, Renault Sport. 



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I n the luxury E segment, Renault launched Vel Satis in Europe in 2002. Vel Satis 

was awarded the maximum fi ve-star rating by Euro NCAP, ranking best in class. 

Renault launched New Vel Satis in April 2005. In 2006, alongside the V6 diesel 

3.0 dCi 180 combined with the 6-speed proactive gearbox, Vel Satis gained two 

new diesel engines developed through the Alliance: the 2.0 dCi equipped with 

a particulate fi lter and available in 150 hp and 175 hp versions. 

Vel Satis is produced at Sandouville (France), like New Laguna. It therefore reaps 

the full benefi ts of the progress made in terms of quality. On January 1, 2008, 

Vel Satis gained the same manufacturer’s warranty (three years or 150,000 km) 

as New Laguna. 

At end-2002 Renault launched Espace IV , the fourth generation of a vehicle 

launched in 1984 in partnership with Matra Automobile. Espace was Europe’s 

fi rst minivan. More than 1.1 million vehicles have been manufactured, across 

several generations. Espace IV “phase 2” was launched in March 2006. 

It features the new 2.0 dCi diesel engine developed by the Alliance, available 

in 150 hp and 175 hp versions, with a particulate fi lter. A version combined 

with an automatic transmission was also introduced in 2007. Squaring up to 

increased competition, with Ford S-Max’s fi rst full year on the market, Espace 

nevertheless stabilized sales volumes with respect to 2006. Espace ranks 

second in Europe’s large MPV segment with market share of 14.7% in a stable 

segment. This result was achieved by simplifying the range, introducing the 

entry-level Emotion version and bringing out limited series. 

In 2008, Espace is set to remain the benchmark in its segment. To this end, 

a particularly attractive limited series called Argos, aimed mainly at business 

customers, was launched in January 2008 in nine European countries. 

It includes a 7” 16/9 color Navigation screen, a 4x20 mono CD radio with 

an MP3 player, Bluetooth, two-tone dark carbon/ash upholstery, fog lamps, 

a pearlescent black cowl vent grille, and wing trim and exterior rearview mirror 

housings in the same shade. 

Espace IV is produced at Sandouville (France). It therefore reaps the full benefi ts 

of the progress made in terms of quality. Like Vel Satis, Espace gained the 

same manufacturer’s warranty (three years or 150,000 km) as New Laguna 

on January 1, 2008. The same terms and conditions thus apply to all Renault’s 

executive vehicles. 

Light commercial vehicles 

Renault has one of the newest and most extensive ranges of light commercial 

vehicles in Europe. Vehicle sizes range from 1.6 to 6.5 tons, thus matching the 

needs of a broad customer base. Renault set a new record in 2007, with sales 

up 1.3% and more than 324,000 vehicles sold. It thus remains the market 

leader in France + Europe with market share of 14.2%. 

I n the small van segment (under 2 tons), Renault is present with Kangoo 

Express. Now manufactured on four continents (Europe, Asia, South America 

and Africa), Kangoo remained the leader in 2007. In its tenth year on the market, 

Kangoo Express maintained segment share of 18.3%, prior to the arrival of the 

new-generation Kangoo, which made its debut in France and Western Europe 

in January 2008. 

I n the fleet vehicle segment, Clio Van (Clio II and Clio III) remains in the lead 

with segment share of 14.8%. The launch of New Twingo Van, which received 

a particularly warm welcome from potential customers at its presentation, began 

at end-December 2007. The range (Twingo, Clio II and III) thus delivers a set of 

complementary services to meet all needs. 



I n the van segment (between 2 and 7 tons), Renault renewed its range in 

2006 with New Trafic and New Master. Available with the 2.0 dCi (90 hp and 

115 hp) and 2.5 dCi (100 hp and 120 hp) engines, these two vehicles are now 

B30 compatible. They run on 30% biodiesel, thus paving the way for a 20% 

reduction in “well to wheel” emissions of CO 2 . This offering, the fi rst of its type, 

refl ects the aims of Renault Commitment 2009, which states that all diesel 

engines sold in 2009 must satisfy these running conditions. In 2007, Renault 

ranked third in this segment, with market share of 12.4%. As a result , the plants 

making Trafi c and Master reported record-breaking production fi gures. 

Dacia brand 

At end-2007, the Dacia brand was available in 44 countries (Europe, Maghreb, 

Turkey, Africa). Its remit is to develop sturdy, modern and roomy vehicles at 

affordable prices for new automotive markets as well as for Western Europe. 

In September 2004, Dacia launched Logan, developed on the Renault-Nissan 

Alliance’s B platform, used for Nissan Micra and Renault Modus. The Dacia 

range was expanded with the launch of Dacia Logan MCV end-2006 and Dacia 

Logan Van (commercial vehicle) in 2007. Two new models are set to arrive on 

the market in 2008: Sandero and Logan Pick-up. Dacia vehicles ship with a 

wide range of Renault powertrains, both gasoline and diesel. 

Dacia is seeing steady sales growth. In 2007, the brand sold more than 

230,000 vehicles, a 17.2% increase on 2006. In France + Europe, 

Dacia grew sales by 67.9% in 2007, on the back of the success of the 

Dacia Logan MCV. 

Dacia models are manufactured at the Pitesti plant in Romania, which has 

undergone radical modernization and restructuring since 1999. Since secondhalf 

2005, the Dacia-badged Logan has also been produced at the Somaca 

site in Casablanca (Morocco). Pitesti supplies CKDs to all other Group sites 

producing Logan. 

Renault Samsung brand 

Renault Sa msung Motors sells four passenger cars in South Korea, including 

a new cross-over model launched in 2007, the QM5: 

n 

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launched in December 2007, the QM5 is Korea’s fi rst real cross-over. It gives 

Renault Sa msung Motors a foothold in the SUV segment, which accounted 

for 21.3% of sales in Korea in 2007; 

SM5, an executive sedan derived from a Nissan sedan, which has enjoyed 

growing success since 2001. A new version of SM5 was launched in 

January 2005 and restyled in June 2007. With over 73,000 units sold (73,016 

in Korea and 274 in export markets), this model enabled Renault Sa msung 

to consolidate its No. 2 position in the mid segment; 

a second Nissan model, SM3, launched in September 2002 to expand 

the Renault Sa msung Motors range, was restyled in August 2005. A total 

of 29,709 units was sold in 2007 (27,461 in Korea and 2,248 in export 

markets); 

SM7, a roomy sedan with a comfortable and luxurious interior and high-end 

safety features, launched in November 2004. This executive vehicle, fi tted 

with 3.5 V6 and 2.3 Neo VQ engines, incorporates the latest technology from 

the Renault-Nissan Alliance. With 14,238 vehicles sold in 2007, SM7 claimed 

market share of 7.9% in the “Large and Luxury” segment. 


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From February 2006, as part of an agreement with the Alliance, RSM began 

exporting SM3 to other countries, particularly Russia, under the Nissan brand 

name. More than 52,000 vehicles were exported in 2007. 

The four models in the range, along with Renault Koleos, are manufactured 

at the Busan plant in South Korea. Renault Koleos is the fi rst vehicle in the 

Renault range to be produced in this plant. Designed by Renault and developed 

by Nissan, Renault Koleos will be exported to more than 40 countries worldwide 

by 2009. With 119,748 vehicles sold in 2007, of which more than 117,125 

in South Korea, RSM is fourth on its domestic market. 

POWERTRAIN RANGE 

The powertrain range is moving upmarket 

Efforts are focused on the deployment of a range of engines delivering enhanced 

driving pleasure. 

At the Frankfurt Motor Show, Renault presented the V6 dCi Concept. This engine 

heralds the new generation of V6 3.0 dCi diesel engines, which will be fi tted 

on Renault’s executive vehicles. It develops 195 kW over an operating range 

extended to 5,200 rpm. Featuring maximum torque of 550 Nm from 1,750 rpm, 

this engine offers unbeatable drivability. With its particulate fi lter and NOx trap, 

it combines performance with respect for the environment. It already satisfi es 

Euro 6 emission standards. 

2007: environmental issues take center stage 

With its range of high-performance powertrains, Renault already ranks among 

the leaders for effi cient fuel consumption and CO emissions. 

2 

The TCE 100 engine launched in May 2007 on Clio, Twingo and Modus, 

is a perfect illustration of Renault’s expertise. Developed using downsizing 

technology, this gasoline powerplant combines the power of a 1.4 l engine with 

the torque of a 1.6 l engine, alongside the fuel consumption characteristics of 

a 1.2 l engine. Emitting 140 g/km of CO 2, and consuming 5.9 l/100 km on a 

combined cycle, this engine is one of the most effi cient on the market. 


This expertise also applies to diesel powertrains. With the 105 hp 1.5 dCi 

engine and particulate fi lter, Mégane emits just 120g/km of CO 2 . This same 

engine (with horsepower increased to 110 hp) makes New Laguna the market 

leader in terms of environmental performance. With emissions at a record 

low of 136g/km of CO 2 on a combined cycle, New Laguna 110 hp carries the 

Renault eco² label. The press has acclaimed its performance. 

In Europe, Renault was one of the few vehicle manufacturers in 2007 to 

bring out a double biofuel offering of vehicles compatible with bioethanol and 

biodiesel. 

In June 2007, the 105 hp Mégane 1.6 16v. compatible with E85 bioethanol, 

arrived on the market. This was Renault’s fi rst venture into bioethanol in Europe, 

whereas in Brazil it has been marketing Clio and Mégane models that burn 

E100 since 2004. At end-2006, Renault launched 90 hp and 115 hp versions 

of Trafi c 2.0 dCi and 100 hp and 120 hp versions of Master 2.5 dCi, both 

compatible with B30 biodiesel, for companies with their own vehicle fl eets. 

The fi rst passenger cars running on biodiesel will arrive on the market in 2008. 

New Twingo, for example, will be available with the 65 hp 1.5 dCi engine, 

compatible with B30 biodiesel. 

In terms of emission control, the 2.0 dCi engine also available on New Laguna 

already satisfies the Euro 5 emission standard, which comes into force 

in 2009. 

MAIN MANUFACTURING SITES 

Renault has more than 30 manufacturing sites for its automobile business. 

Under cooperative cost-sharing agreements, the Group also uses facilities 

operated by other manufacturers, notably General Motors Europe’s site 

in the U.K. 

Also, thanks to the 1999 Alliance with Nissan, Renault can take advantage of 

its partner’s industrial facilities in areas where Nissan already has operations, 

such as Mexico. In Spain, Renault uses Nissan’s Barcelona plant to manufacture 

Trafi c. 

In 2007, the bulk of production by the three brands making up the Renault 

group was managed primarily by the following plants: 



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PRODUCTION OF THE MAIN MANUFACTURING SITES BY BRAND ✦ 

RENAULT BRAND 




Renault sites 

Flins (France) Clio III 

Douai (France) Mégane II (hatch, coupé-cabriolet), Scénic II (five- and seven-seater) 

Sandouville (France) Laguna III (hatch, Estate, Coupé), Vel Satis, Espace IV 

Maubeuge (France) Kangoo Express (1) , Kangoo Generation 2006, Kangoo II 

Batilly (France) Master II (2) , Mascott II (3) 

Dieppe (France) Clio III Renault Sport, Mégane II Renault Sport (hatch, coupé) 

Palencia (Spain) Mégane II 

Valladolid (Spain) Clio III, Modus, engines 

Novo Mesto (Slovenia) Clio II, Twingo II 

Bursa (Turkey) Mégane II (four-door sedan), Clio II sedan, Clio III, engines, transmissions 

Cordoba (Argentina) Clio II, Clio II sedan, Mégane I (hatch, sedan), Kangoo, Kangoo Express 

Curitiba (Brazil) Scénic I, Clio II, Clio II sedan, Mégane II (hatch), Master II (4) , Logan (Renault), engines 

Casablanca (Morocco) Logan (5) , Kangoo Generation 2006 

Avtoframos (Russia) Logan (Renault) 

Envigado (Colombia) Twingo, Clio II (hatch and sedan), Mégane I sedan, Logan (Renault) 

Cléon (France) Engines, transmissions 

Le Mans (France) Front/rear axles, subframes, bottom arms, pedal assemblies 

Choisy-le-Roi (France) 

European center for reconditioned powertrain components (engines, transmissions, injection pumps, nozzle holders, sub-assemblies), 

new engines and powertrain components, Twingo rear axles 

Grand-Couronne (France) Shipment of CKD kits 

Seville (Spain) Transmissions 

Cacia (Portugal) Transmissions, powertrain components 

Los Andes (Chile) Transmissions, powertrain components 

Teheran (Iran) Logan (Renault) (6) 

India Logan (Renault) 

Nissan sites 

Barcelona (Spain) Trafic II (7) 

Aguascalientes (Mexico) Clio II (8) 

General Motors Europe sites 

Luton (UK) Trafic II 

DACIA BRAND 

Pitesti (Romania) Logan, Logan van, Logan station wagon, engines and transmissions 

RENAULT SAMSUNG BRAND 

Busan (South Korea) Engines, SM7, SM5, SM3, QM5 (Koleos) 

(1) Maubeuge also builds Kangoo vehicles for Nissan, sold under the name Kubistar (a Nissan brand). 

(2) Batilly also manufactures Master for General Motors Europe and Nissan. These vehicles are sold under the name Movano for the Opel and Vauxhall brands, and Interstar for the Nissan brand. 

(3) Mascott has been distributed by Renault Trucks (formerly Renault V.I.) since 1999 and, by Renault since January 1, 2003, under the name Master Propulsion. 

(4) The Curitiba LCV plant also produces Nissan’s Frontier pickup and Xterra. 

(5) Dacia-badged Logan. 

(6) In partnership with the Iranian companies Pars Khodro and Iran Khodro. 

(7) Nissan’s Barcelona plant also manufactures compact vans marketed under the names Primastar and Vivaro by Nissan and Opel respectively. 

(8) Nissan’s Aguascalientes plant in Mexico also makes Platina (Nissan brand) on a Renault Clio Thalia base. 


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THE RENAULT DISTRIBUTION NETWORK IN EUROPE 

Organization of the Renault network in Europe 

The Renault group distributes its vehicles in Europe through a primary and a 

secondary distribution network. 

The primary network is contractually linked to Renault and comprises: 

n 

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dealers who can sell and service Renault vehicles; 

branches belonging to the Renault group’s business distribution unit, 

REAGROUP, which changed its name on January 1, 2008, to become Renault 

Retail Group; 

partners from the primary network specialized solely in after-sales (approved 

repairers). 

THE RENAULT DISTRIBUTION NETWORK IN EUROPE (1) 

2007 2006 

NUMBER OF RENAULT CONTRACTS EUROPE (1) o/w FRANCE EUROPE (1) o/w FRANCE 

Branches and subsidiaries 36 1 (3) 48 10 (2) 

Dealerships 1,371 (4) 311 1,220 309 

Subdealerships 8,411 4,698 8,496 4,720 

TOTAL 9,818 5,010 9,764 5,039 

(1) Europe: includes the ten Western European subsidiaries plus Poland, Hungary, Croatia, the Czech Republic, Slovenia and Slovakia. 

(2) REAGROUP, wholly owned by Renault SA, had 65 outlets organized into one subsidiary 

(3) A single Renault Retail Group contract covers 62 outlets. 

(4) Including 124 contracts for the NORDIC subsidiary. 

Renault Retail Group 

This fully owned Renault commercial subsidiary is the Group’s biggest in 

terms of revenues (€8.2 billion in 2007) and workforce (14,800 employees). 

It distributes products and services for the Renault, Nissan and Dacia brands 

on around 300 sites in 14 European countries. 

The product range covers new vehicles, used vehicles and spare parts. It also 

includes services: servicing, powertrains, bodywork, express repairs (Renault 

Minute and Renault Minute bodyshops), short-term rental (Renault Rent), 

fi nancing and brokerage. 

The Renault Retail Group Vision 2009 plan is part of Renault Commitment 2009. 

It is based on three commitments: 

n 

quality: be consistently better than private dealerships; 

The secondary distribution network is made up of Renault’s subdealers, generally 

small businesses with contractual ties to a dealer in the primary network. 

Renault’s distribution network In Europe complies strictly with regulations 

(EC 1400/2002): 

in sales, Renault has opted for a selective distribution system, based on 

qualitative and quantitative factors, which authorizes the Group to choose 

its distributors and establish the numbers required; 

in after-sales, Renault selects its approved repairers on the basis of qualitative 

criteria with no restriction on numbers. 

RENAULT RETAIL GROUP 

FIGURES AT END-2007 FRANCE + EUROPE FRANCE EUROPE 

New vehicles (Units) 283,132 158,209 124,923 

Used vehicles (Units) 194,200 125,385 68,815 

New and used vehicles (Units) 477,332 283,594 193,738 

Consolidated revenues (€ thousands) 8,262,377 4,900,754 3,361,623 



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profi tability: achieve operating margin of 6% on the additional revenues 

created for Renault; 

volumes: sell 300,000 new vehicles by the end of the plan. 

The action taken in 2007 achieved the following results: 

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in terms of quality, signifi cant progress was made in six countries (France, 

Spain, Hungary, Portugal, UK and Switzerland), where the subsidiary scored 

higher than the dealers. Austria and Poland are close behind; 

profi tability increased strongly, following the improvement in the operating 

margin, which was positive at €8.2 billion in 2007; 

volumes were down in France (158,209 new vehicles) despite an increased 

share in Renault s ales (from 34.6% to 35.20%). Figures were nevertheless 

on target in Europe, with sales of 124,923 new vehicles. 

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HIGHLIGHTS IN GROUP NETWORK STRATEGY IN 2007 

Changes to Dacia network strategy 

For the roll-out of Logan in Western Europe, the distribution networks were 

structured using the existing Renault networks. The approach adopted keeps 

the brands separate (different contracts and images). 

To ensure that sales outlets provided suffi cient coverage, and to minimize 

investments, a number of Dacia corners were set up in Renault showrooms. 

The roll-out of the Dacia brand in Western Europe has proved to be a huge 

success. In France, Dacia ranked fourteenth on the market in 2007 with 

32,637 car/LCV registrations. 

Additional NV display areas are required to underpin the drive to double Dacia’s 

European sales volumes between 2007 and 2009, and support the launch 

of two new models, alongside the accelerated development of the Renault 

range. A pragmatic approach has been adopted, through which separate Dacia 

showrooms will gradually be put in place, according to the potential of local 

markets. 

CASH MANAGEMENT IN AUTOMOBILE 

For Automobile, the Renault group has established a fi nancial organization 

whose aims are to: 

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automate the processing of routine cash infl ows and outfl ows, with improved 

security and reliability; 

pool the surplus cash of Group subsidiaries and meet their refi nancing 

requirements; 

centralize the handling of euro-denominated and foreign-exchange 

transactions for better management of currency, interest-rate and counterparty 

risks, while reducing fi nancial and administrative costs; 

centralize all fi nancing operations, including securities issuance, bank loans 

and credit agreements, at parent-company level. 

Within this framework, Renault’s Corporate Treasury Department, in charge 

of cash management and fi nancing for the Group’s industrial and commercial 

activities in France and Europe, has two entities specialized in: 

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the centralization of Group cash fl ows (Société Financière et Foncière); 

capital market trading, after intra-Group netting: forex, fixed-income 

securities, short-term investments (Renault Finance). 

In 2007 Renault’s Corporate Treasury Department reviewed its arrangements 

for centralizing Group cash fl ows. This will involve closing Société Financière 

et Foncière in 2009, and increasing the involvement of Renault Finance in 

cash fl ow management. 

Renault Finance 

Renault Finance, a Swiss corporation based in Lausanne, is an active player on 

the forex and fi xed-income markets and in the market for hedging industrial 

metals transactions. It respects strict rules on risk management in all its trades. 

Through its arbitraging business, it can obtain competitive quotes for all fi nancial 

(2) For more information about RCI Banque and its business, visit www.rcibanque.com. 



products. The company is therefore Renault’s natural counterparty for most of 

Automobile’s capital market transactions. By extending that service to the Nissan 

group, Renault Finance has become the Alliance’s trading fl oor. 

As part of the reorganization of cash flow management procedures for 

Automobile, Renault Finance will manage foreign-exchange payments 

for French and European subsidiaries. It could thus contribute to managing 

the cash balances of some subsidiaries. 

At end-December 2007, parent-company net income was €40.3 million 

(against €41.8 million at end-December 2006) and total parent-company assets 

amounted to €4. 218 b illion (versus €5. 287 b illion at end-December 2006). 

Société Financière et Foncière 

Société Financière et Foncière (SFF) is a fully-fl edged bank within the Renault 

group. 

SFF is in charge of virtually all cash fl ows of Renault as well as the fi rst-tier and 

second-tier subsidiaries of Automobile in France and Europe. It also processes 

commercial cash fl ows for Nissan France and equalization payments for Nissan 

in Europe. 

The current system, through which SFF centralizes cash fl ows for Renault and 

its subsidiaries, will gradually be replaced by a cashfl ow platform involving 

almost 200 Group entities and managed by Renault SA. 

The decentralization of cash fl ows processed by SFF, including commercial cash 

fl ows for Nissan France, started in 2007 and will be completed at end-2008. 

In 2007, SFF reported parent-company net income of €6.15 million, compared 

with €4.33 million in 2006. Total parent-company assets at December 31, 2007 

amounted to €340 million (€314 million at December 31, 2006). 

1.1.3.2 SALES FINANCING ✦ 

Sales Financing’s activities are handled by RCI Banque 2 and its subsidiaries. 

RCI Banque is the entity that fi nances sales and services for the Renault group 

brands (Renault, Dacia, Samsung) worldwide and for the Nissan brand, mainly 

in Europe. 

The role of the RCI Banque group is to provide a full range of fi nancing solutions 

and services for its three main customer constituencies: 

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consumers and corporate clients, for which RCI Banque provides credit 

solutions for the acquisition of new and used vehicles, rental with purchase 

option, leasing and contract hire, as well as the associated services, namely 

contracts for maintenance, extended warranty, insurance, assistance and 

fl eet management; 

the networks that distribute Renault, Nissan and Dacia brands, for which RCI 

Banque fi nances inventories of new and used vehicles and spare parts, as 

well as their short-term cash fl ow needs. 

RCI Banque is thus a key partner in Renault Commitment 2009. 

At December 31, 2007 the RCI Banque group had total assets of €25.7 billion, 

and a workforce of 3,116, of which 44.1% was based in France. 


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The RCI Banque group operates: 

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in France; 

in nineteen European countries: Austria, Belgium/Luxembourg, Croatia, 

Czech Republic, Denmark, Finland, Germany, Hungary, Italy, the Netherlands, 

Norway, Poland, Portugal, Slovenia, Slovakia, Spain, Sweden, Switzerland, 

and the UK; 

in the Euromed R egion: in Romania, Morocco, Algeria, Russia and Ukraine; 

in the Americas R egion: in Argentina, Brazil, Colombia and Mexico; 

in the Africa-Asia R egion: in South Korea. 

In 2007, RCI Banque fi nanced 33% of new vehicles sold by the Renault group 

and Nissan brands in the Western European countries in which it operates. 

By setting up business locations in new countries, the RCI Banque group helps 

to boost the sales of both manufacturers. In 2007 RCI Banque began customer 

fi nancing activities in Scandinavian countries, with a branch in Sweden, and 

also in Ukraine, as part of trade agreements with local partners. 

CONSUMER MARKET 

Consumer-related business accounts for 54% of RCI Banque’s average loans 

outstanding, or €12.3 billion. 

In this fi eld, RCI Banque plays a three-fold role: 

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offer and develop fi nancing solutions to facilitate and accelerate sales of 

Renault and Nissan vehicles; 

integrate fi nancing solutions and services to encourage car use and build 

loyalty to Group brands; 

help automakers organize sales promotions. 

CORPORATE CLIENTS 

Consumer-related business accounted for 22% of RCI Banque’s average loans 

outstanding, or €5.1 billion at end-2007. In this fi eld, RCI Banque has fi ve 

aims: 

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establish RCI Banque’s financial and business-services strategy and 

implement it in the subsidiaries; 

plan the marketing strategy and brand policy for the corporate market; 

implement best practices for business-oriented products and services 

wherever RCI is present; 

help Renault and Nissan establish international protocols; 

monitor and guide economic performance by ensuring that profi tability is in 

line with Group targets. 

NETWORKS 

At end-2007, network fi nancing accounted for 24% of average loans outstanding, 

or €5.5 billion, RCI Banque has a four-fold remit in this fi eld: 

fi nance inventories of new and used vehicles and spare parts, and fund 

dealers’ long-term fi nancing operations; 

manage and control risks; 

secure the network’s future by standardizing fi nancial procedures and 

monitoring them on a regular basis; 

act as fi nancial partner to the network. 

1.1.3.3 ASSOCIATED COMPANIES, 

PARTNERS AND COLLABORATIVE 

PROJECTS 

RENAULT’S HOLDING IN AB VOLVO 

With a 21.8% stake in Volvo and 21.3% of voting rights on outstanding shares, 

Renault is the principal shareholder in Volvo, the leading truck manufacturer in 

Europe and number two worldwide. Volvo celebrated its eightieth anniversary 

in April 2007. 

Renault is represented on Volvo’s Board by Louis Schweitzer, Chairman of 

Renault’s Board of Directors, and by Philippe Klein, Senior Vice President, 

CEO/ COO Offi ce and Corporate Administration, Nissan. 

The strategic acquisition of Japanese manufacturer Nissan Diesel in 2007 

added a fourth brand to the three currently in the group (Volvo, Renault Trucks 

and Mack). The vehicle offering ranges from light commercial vehicles to heavy 

trucks, sold through a vast network covering more than 130 countries in Europe, 

Russia, and North and South America, as well as in Asia, where the Group is 

increasing its presence. 

Worldwide deliveries in 2007 totaled more than 236,000 vehicles 

(219,931 in 2006), with Nissan Diesel included from April 2007. Demand was 

strong on the main global markets (particularly in Europe where deliveries rose 

by 12%, in South America (+31%) and Asia (+211%) , with the exception of 

North America (-53%) and Japan. 

International expansion continued. In April 2007, Volvo decided to invest in 

a new truck assembly unit in Russia to satisfy demand on the fast-growing 

Russian and CCEE markets. In July the Renault Trucks subsidiary signed a 

cooperation agreement with Turkish manufacturer Karsan to produce trucks 

for the local market and bordering countries. A major product offensive has 

been scheduled with the production start-up of the Volvo FH12 and FH16 

from Fall 2008, a major range renewal at Mack and a new generation of 

Renault Magnum. 



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In April 2007, in addition to an ordinary dividend of SEK 25 per share, a superdividend 

was paid out. Volvo made a six-for-one stock split with one share 

being automatically redeemed at SEK 25. Renault thus received €477 million 

in dividends in 2007. 



A dividend of SEK 5.5 per share for 2007 will be submitted for the approval of 

the next General Meeting. 

In 2007, Volvo’s contribution to Renault’s net income was €352 million, 

compared with €384 million in 2006 (see c hapter 7, note 14 in the notes to 

the Consolidated Financial Statements). 


(million) SEK EUR* % CHANGE SEK EUR* 

Net revenues 285,405 30,848 10.00% 258,835 (1) 26,832 

Operating income 22,231 2,403 9% 20,399 2,205 

Net income 15,029 1,624 -8% 16,318 1,765 

Dividend per share in SEK 

Super dividend in SEK 

25 

25 

for fiscal year 2006 

198.50% 

16,75 for fiscal year 2005 

Closing at Dec. 31 in SEK Volvo A share 108 15.50% 93.52 

Volvo B share 108.5 19.70% 90.67 

* 1 EUR = 9.25 SEK. 

(1) R estated. 

At December 31, 2007, based on a share price of SEK 108 for Volvo A 

shares and SEK 108.50 for Volvo B shares, Renault’s holding in AB Volvo was 

valued at €5,067 million (€4,650 million at December 31, 2006). The market 

capitalization of Volvo at this date was €24,452 million. 

NISSAN 

Renault’s shareholding in Nissan is described in detail in sub-c hapter 1.3.4 

on the Alliance. 

The market capitalization of Nissan at December 31, 2007 was €34.2 billion, 

based on a closing price of ¥1,230 per share. 

Renault holds 44.3% of the capital of Nissan. At December 31, 2007 the market 

value of the shares held by Renault totaled €14.9 billion. 

Renault accounts for its shareholding in Nissan by the equity method, as 

described in c hapter 7 note 13 of the notes to the consolidated fi nancial 

statements. 

PARTNERSHIPS AND COLLABORATIVE PROJECTS 

To maintain and enhance its competitive edge in the automotive industry, 

Renault is continuing its policy aimed at optimizing purchases. As part of Renault 

Commitment 2009, it has stepped up efforts in terms of profi tability and quality, 

in close relation with suppliers. 

Renault has outlined relations with suppliers in a common charter with Nissan 

called the Renault-Nissan Purchasing Way. The charter is based on two key 

principles: 

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achieve a high level of performance in quality, costs and delivery times, 

respecting clear processes that are deployed globally; 

share Alliance values such as trust, respect and transparency. 

Renault views supplier relations over the long term, and is conducting a policy 

of active support in the following areas: 

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product development: Renault works in close cooperation with its suppliers 

at the very start of projects, with a view to meeting price and quality targets 

and cutting development times; 

quality: Renault has seconded 120 quality experts, of whom half are outside 

France, to work with its suppliers. These experts aim to boost quality by 

implementing strict tools and processes from the very start of the project, 

during service life, and for after-sales parts; 

competitiveness: Renault has seconded 40 experts to supplier development, 

to improve their competitiveness and that of their own supply chain; 

logistics: Renault is implementing EVALOG – a tool designed to improve 

logistics performance – with suppliers; 

innovation: Renault is implementing co-innovation contracts with its most 

innovative suppliers. These contracts clearly set out the objectives pursued, 

the breakdown of costs, ownership rights, exclusivity periods, etc. 

In return for the resources supplied by Renault and the prospects of increased 

volumes linked to a broader range, suppliers agree to improve their performance 

and contribute to Renault’s international development. 


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In co-design and manufacturing, the main partnerships 

are as follows: 

n Renault has entered into a number of cooperation agreements with PSA 

Peugeot Citroën. The two groups have worked together since 1966 on 

developing powertrain components: notably engines at their jointly-owned 

affiliate, Française de Mécanique, in Douvrin (France), and automatic 

transmissions at Société de Transmissions Automatiques in Ruitz (France); 

n 

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Renault has also signed a number of commercial agreements for the sale 

of subsystems, notably transmissions and engines for Volvo and MMC and, 

since January 2004, a diesel engine for Suzuki Jimny; 

for light commercial vehicles, Renault and General Motors signed a framework 

agreement in 1996 and confi rmed it with a cooperative undertaking in 1999. 

In 2006, the two manufacturers renewed their agreement on co- d evelopment 

and production, thus increasing their market presence in Europe. 

Phase 2 of compact vans: Renault Trafi c and Opel/Vauxhall (GM) Vivaro have been 

produced at the GM Europe plant in Luton (UK) since 2001, and at the Nissan 

plant in Barcelona (Spain) since 2002, thus grouping the three manufacturers. 

Phase 3 of large vans: Renault Master and Opel/Vauxhall (GM) Movano 

have been produced by Renault at its Batilly plant (France) since 2000. 

These two phases reached the market in September 2006. 

To accelerate the pace of international expansion ✦ 

Renault is regaining control of its network: 

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in Ireland at end-October 2007, Renault acquired Glencullen Distributors 

Ltd., its vehicle and spare parts importer for 21 years. On November 1, 

2007, it set up a Renault Ireland subsidiary. The aim is to implement Renault 

Commitment 2009 on this promising market, which totaled 230,000 units in 

2007, and to signifi cantly increase Renault’s car/LCV market share (3.7% in 

2007). Renault has been present in Ireland since 1956, when the fi rst 4CV 

was imported. Renault’s full range of right-hand drive vehicles (car/LCV) is 

currently on sale here; 

in the Nordic countries (Sweden, Norway, Finland and Denmark), Renault 

is making investments and gearing up for an sales drive of unprecedented 

magnitude, in terms of both products and service quality. Renault is aiming to 

sell 45,000 vehicles (cars/LCVs) in 2009, compared with around 35,000 in 

2006. On January 1, 2008, Renault started distributing its vehicles through 

its Renault Nordic subsidiary in which it will invest €24 million. Since1982 

Volvo Car had been in charge of marketing Renault vehicles on these markets. 

The agreement expired on December 31, 2007 and was not renewed; 

in Greece, Renault signed an agreement with the PGA Motors group to take 

over distribution of new models in this country from February 2008 (New 

Twingo, New Laguna, New Kangoo, New Clio Grand Tour and Koleos). 

Renault signed a series of agreements with local partners in 2007, including 

manufacturing companies, private investors and local authorities: 

n 

. 

in India: 

Renault made its debut on the Indian market with the launch of Logan, in 

partnership with Mahindra & Mahindra. After six months on the market, it 

already ranks among the top three in its segment with market share of 15%. 

At the same time, it is leading the fi eld for initial quality (JD Power), 

to extend its development on this strategic market, Renault is pursuing 

plans to set up a second industrial site in India, as part of a project that 

now includes its partner Nissan. A Memorandum of Understanding (MOU) 

was signed in February 2007 with the Government of Tamil Nadu to build 

India’s biggest automotive industrial plant in the region of Chennai. This 

will also be the fi rst site designed jointly by the Alliance, 

Renault and Nissan also began discussions with a new partner, Bajaj – 

India’s second biggest motorbike producer and leader in the 3-wheeled 

vehicle segment – concerning the launch of an ultra-low cost vehicle, 

beyond these commercial and industrial activities, Renault and Nissan set 

up a joint venture, RNTBCI, also based in the Chennai region in Mahindra 

World City, to bring together engineering activities and information systems 

from 2008; 

in Iran, the framework agreement for the Logan project, signed in 

October 2003 by Renault and IDRO (Industrial Development and Renovation 

Organization – a holding company linked to the Iranian ministry of industry 

and mines) – makes provision for the redeployment of the Renault brand 

in Iran, based initially on the 90 family and the 90 platform (Logan) . The 

plan is to assemble and distribute L90s to each of the two main Iranian 

manufacturers (Iran Khodro and SAIPA/Pars Khodro). The installed capacity 

will be 300,000 vehicles/year split equally between the two manufacturers. 

The joint venture Renault Pars founded in May 2004, 51% owned by 

Renault and 49% by AIDCo (Iran Khodro 26%, SAIPA 26%, IDRO 48%), 

is managing the industrial project. The specifi c roles assigned to Renault 

Pars mainly concern purchasing, engineering, processes, quality procedures 

and sales coordination. The partners have agreed to cover the investments 

and expenses incurred before launching the fi rst vehicle through a capital 

increase. Pars Khodro started operations in March 2007 and Iran Khodro in 

May. More than 15,000 Tondars (Iranian name for the L90) were produced. 

At the same time, Renault is pursuing a project to assemble Mégane in 

partnership with Pars Khodro; 

in Russia, Renault initiated two major projects in 2007 in order to take 

advantage of the fast-growing Russian automotive market: 

Renault reinforced its partnership with Moscow City Hall in May through 

an agreement to increase the production capacity of the Moscow plant to 

more than 160,000 vehicles/year from mid-2009. Renault plans to invest 

US$ 150 million in new installations. Moscow City Hall will provide the land 

and buildings. This increased capacity will support the success of Logan 

on the Russian market and make it possible to introduce new economic 

models based on the Logan platform, 

in December, Renault signed a memorandum of understanding through 

which Russian Technologies and Renault will become equal shareholders 

of AvtoVAZ as part of a long-term partnership that will seek to accelerate 

the transformation of AvtoVAZ into a global automotive player, with 

a production capacity of more than one million vehicles/year, 

o n February 29, 2008 several agreements were signed. Renault invested 

one million US$ (659.38 million euros) for 25% plus one share of AvtoVAZ 

capital. The partnership includes plans to accelerate the development of 

AvtoVAZ, to renew and expand the vehicle range, to develop the Lada 

brand – while respecting its identity – enabling it to maintain its leading 

position on the Russian market, and also to exchange technological 

expertise and to share know-how, 



n 

n 


. 

. 

. 

. 

. 

. 

01 

02 

03 

04 

05 

06 

07 

08

n 

n 

in Morocco, Renault signed a memorandum of understanding with the 

Kingdom of Morocco to build an industrial complex in the region of Tangiers, 

using the TangerMed port platform. This industrial complex will use the 

advanced logistics infrastructure developed by the Kingdom of Morocco in 

the northern part of the country. It will have an industrial capacity of 400,000 

vehicles/year, making it one of the biggest automotive production centers 

in the Mediterranean basin. It will have an operational capacity of 200,000 

vehicles in the fi rst instance, from 2010. Total investments in capacity for 

this project are estimated at €600 million, including €350 million for the fi rst 

phase. A further investment of between €200 million and €400 million will 

be made, depending on the variety of vehicles produced; 

in South Africa, a cooperation agreement was signed with Nissan in May for 

the local assembly of vehicles from the Logan range (Pick-up and Sandero) 

from end-2008. The pick-up will be assembled by Nissan, which will sell it 

under its own brand name. Sandero, which will also be assembled by Nissan, 

will be sold by the subsidiary Renault South Africa. Nissan will purchase CKD 

parts from Renault and will cover all specifi c investments; 

1.1.4 MAIN SUBSIDIARIES AND ORGANIZATION CHART ✦ 

1.1.4.1 MAIN SUBSIDIARIES 

Unless otherwise specifi ed, statutory information is restated for Renault group 

requirements. 

RENAULT S.A.S. 

13-15. quai Le Gallo 

92512 Boulogne Billancourt Cedex – France 

Wholly-owned subsidiary of Renault SA. 

Business: design, manufacture, sale, repair, maintenance and leasing of motor 

vehicles (commercial, light commercial and passenger vehicles, tractors, farm 

machinery and construction equipment) as well as the design and production 

of spare parts and accessories used in connection with the manufacture and 

operation of vehicles. Also, all types of services relative to such activities and, 

more generally, all industrial, commercial, fi nancial, investment and real-estate 

transactions relating directly or indirectly, in whole or in part, to any of the above 

purposes (see Article 3 of the articles of incorporation). 

2007 revenues: €31,734 million. 

Workforce at December 31, 2007: 44,793. 

n 

n 




in Malaysia, the company TC Euro Cars Sdn.Bhd (TCEC), based in Kuala 

Lumpur, has worked in partnership with Renault since June 2003. 

It distributes Renault vehicles and manages the brand’s after-sales activities 

in this country. At end-2004, Renault began producing Kangoo in the TCEC 

Plant. The aim is to reach annual output of 4,000 units by 2008; 

in Singapore, a sales subsidiary was set up in June. Its role is to import Renault 

vehicles/spare parts and sell them to the local distributor, Wearnes. 

In distribution 

The Mascott van, manufactured at Renault’s Batilly plant, has been distributed by 

the Renault Trucks network since 1999, and also by Renault, since January 2003 

under the name Master Propulsion. 

RENAULT ESPAÑA 

Carretera de Madrid, km 185 

47 001 Valladolid – Spain 

99.73% owned by Renault s.a.s. 

Business: manufacture and marketing, via its sales subsidiary Recsa, of Renault 

passenger cars and light commercial vehicles in Spain. 

Plants in Valladolid, Palencia and Seville. 



RENAULT DEUTSCHLAND A.G. 

Renault-Nissan strasse 6-10 

50321 Bruhl – Germany 

60% owned by Renault s.a.s. 

Business: Renault Nissan commercial organization in Germany. 


Workforce at December 31, 2007: 556. 


01 

02 

03 

04 

05 

06 

07 

08




OYAK-RENAULT OTOMOBIL FABRIKALARI 

Barbaros Plaza C blok No 145 K/6 

80 700 Dikilitas Besiktas, Istanbul – Turkey 


Business: assembly and manufacture of Renault vehicles. 

Plant in Bursa. 

2007 revenues: TRL 4,324 million. 


DACIA 

Calea Floreasca 

Nr. 133-137 – Sector 1 

Bucharest – Romania 

99.43% owned by Renault SA 

Business: manufacture and marketing of motor vehicles. 

Plant in Pitesti. 

2007 revenues: ROL 6,682 million. 


RENAULT ITALIA 

Via Tiburtina 1159 

Rome – Italy 


Business: marketing of Renault passenger cars and light commercial 

vehicles. 



REVOZ 

Belokranska Cesta 4 

8000 Novo Mesto – Slovenia 


Business: manufacture of vehicles. 

Plant at Novo Mesto. 




RENAULT FINANCE 

48, avenue de Rhodanie 

Case postale 1002 Lausanne – Switzerland 


Business: Capital market transactions (foreign exchange, interest rates, hedging 

of industrial metals transactions) for Renault and Nissan; interbank dealing for 

own account. 

Total assets at December 31, 2007: €3,858 million 


RCI BANQUE 

14, avenue du Pavé Neuf 

93168 Noisy-le-Grand Cedex – France 


Business: Holding company for the sales fi nancing and customer services 

entities of Renault and Nissan. Inventory fi nancing (vehicles and spare parts) 

for Renault and Nissan Europe. 

Net fi nancings in 2007: €9.6 billion. 

Total assets (RCI group) at December 31, 2007: €25,738 million. 


RENAULT SAMSUNG MOTORS 

17th FL. HSBC Building 

25, Bongrae-Dong 1-Ga, Jung-Gu 

Seoul 100-161 – Korea 

80.10% owned by Renault group 

Business: manufacture and marketing of motor vehicles. 

Plant in Busan. 

2007 revenues: KRW 2,763 billion. 


RENAULT UK LTD. 

The Rivers Offi ce Park 

Denham Way Maple Cross 

WD3 9YS Ric kmansworth, Hertfordshire – United Kingdom 

100% owned by Renault group 

Business: marketing of Renault passenger cars and light commercial 

vehicles. 

2007 revenues: GBP 1,574 million. 




01 

02 

03 

04 

05 

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08

RENAULT RETAIL GROUP SA 

117-199, avenue Victor Hugo 

92100 Boulogne Billancourt – France 


Business: trade, repair, maintenance and leasing of passenger cars and light 

commercial vehicles. 

65 branches in France. 



AVTOFRAMOS 

35, Vorontsovskaia 

109 147 Moscow – Russia 


Business: assembly, import, marketing and sale of Renault vehicles. 

2007 revenues: RUB 31,278 million. 



RENAULT DO BRASIL 

1300 av Renault, Borda do Campo 

Sao Jose dos pinhais, Parana State – Brazil 




Business: vehicle production and assembly, production of equipment, parts 

and accessories for vehicles. 

2007 revenues: BRL 3,674 million. 


RENAULT ARGENTINA 

Fray Justo Santa Maria de Oro 1744 

1414 Buenos Aires – Argentine 

100% owned by Renault group. 

Business: manufacture and marketing of Renault vehicles. 

2007 revenues: ARS 3,959 millions. 



01 

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1.1.4.2 ORGANIZATION CHART 

RENAULT GROUP MAIN CONSOLIDATED COMPANIES AT DECEMBER 31, 2007 

100% 

44.3% 

RENAULT-NISSAN b.v. 

RDIC 

50% 

100% 

ACI 

Le Mans 

100% 

ACI 

Villeurbanne 


Group b.v. 

(Netherlands) 

80.1% 


Hungaria 

ACI Romania 


Samsung 

Motors 

(South Korea) 

50% 

NISSAN MOTOR (2) 

100% 

NISSAN FINANCE CO Ltd. 

1% 

99% 


Flins 

PEUGEOT 

ACI Valladolid 

(Spain) 

Motor Reinsurance 

Company 

(Luxembourg) 


Nissan 

Bulgaria 

ACI Pars 

(Iran) 

100% 

100% 

1% 


Le Mans 

99% 


Osterreich* 

GmbH 

(Austria) 

100% 


Deutschland 

AG* 

(Germany) 

40% 

Grigny UK Ltd. 

(United 

Kingdom) 

100% 


Polska 

98% 

Renault do 

Brasil Com. E. 

Particip. Ltda 

RENAULT-NISSAN 

PURCHASING 

ORGANIZATION (RNPO) 

RENAULT-NISSAN 

INFORMATION 

SERVICES (RNIS) 

50% 50% 

Française 

de Mécanique 

50% 50% 

1% 

99% 


Cléon 

RFA Simcra 


Belgique* 

Luxembourg 

100% 


Nederland* 

NV 

Renault F1 Team 

Ltd. (United 

Kingdom) 

Renault Ceska 

Republica 

Renault do 

Brasil SA 

OYAK 


(Turkey) 

GIE TA 96 

1% 


Sandouville 

99% 

100% 100% 

Arkaneo 


Industrie 

Belgique 

Renault UK 

(United 

Kingdom) 


Slovakia 

(Slovakia) 

Cofal 

(Luxembourg) 

AFM 

Industries 

(Russia) 

20% 

Société de 

Transmissions 

Automatiques 

Maubeuge 

Construction 

Automobile 

ETG Sovab I-DVU Alpine 


Switzerland 

SA 


Finance 

(Switzerland) 

Groupe 


Argentina 

Avtoframos 

(Russia) 

RENAULT SA 




Douai 


Italia* 

FRANCE 

100% 


Algérie 


Maroc 

Sirha 

Technologie et 

Exploitation 

Informatique 

Carlife* Sofrastock 

100% 

SNR Aviation 

65% 

EUROPE 

100% 

AMERICAS 

EUROMED 

ASIA-AFRICA 

Groupe SNR 


Croatia 

100% 


Nissan 

Slovenia 


Nordic AB 


Irlande 

AB Volvo (1) 


Mexico 


Mécanique 

Romanie 

SOMACA 

(Morocco) 

Alpine 

Renault Group 

b.v. (Netherlands) 

Negocios de 

Automacion 

SA 

Cacia 

(Portugal) 

Revoz 

(Slovenia) 

100% 


Corporativo 

(Mexico) 


Technologie 

Romanie 

99% 

Promaghreb 

(Morocco) 


South Africa* 

Renault Pars 

(Iran) 

51% 


Private Limited 

100% (India) 

Mahindra 

Renault P.L. 

(India) 

Mahindra Renault 

Automotive Private 

Ltd. JV (India) 

51% 49% 50% 

80% 

100% 

15% 

100% 100% 100% 

20,74% 100% 

100% 

Sodicam 2 

80% 100% 100% 100% 

1% 

100% 

99% 

100% 

100% 100% 94% 5% 

60 % 60 % 60 % 

100% 40% 40% 

RDIC 

(France) 

100% 

100% 

100% 

70% 

100% 

100% 100% 

2% 100% 

Mais 

(Turkey) 

1% 

100% 49% 51% 

REAGROUP (3) 

100% 100% 

100% 

99.8% 48% 11% 

10.4 % 

100% 83.7% 

100% 


41% 

AUTOMOBILE 

RDIC 

(France) 

100% 

Meconsa 

(Spain) 


Venezuela 


Industrie 

Romanie 

100% 


Ukraine 


Espana SA* 

Recsa* 

(Spain) 

Sofasa 

(Colombia) 

100% 100% 36% 

100% 99% 

1% 1% 

71% 100% 

8% 45.8% 

RDIC 

100% 

100% 

RENAULT s.a.s. 

100 % 

72% 


Portuguesa 

28% 

100% 

Renault SA 

24% 

Renault- 

Nissan 

Romania 

100% 

100% 

99.4% 

Dacia* 

(Romania) 

01 

02 

03 

04 

05 

06 

07 

08

* 

REAL ESTATE 

AND IT FINANCING FOR 

THE RENAULT GROUP 

Siam 

Immobilière 

d’Epone 

45% 

Sicofram 

SCI Parc 

Industriel 

du Mans 

SCI 

Plateau de 

Guyancourt 

Fully-consolidated 

companies 

Companies accounted 

for by the equity method 

Proportionately-consolidated 

companies 

Non-consolidated 

companies 

and subsidiaries 

AUTOMOBILE SALES FINANCING 

100% 

100% 100% 

55% 

100% 

100% 

100% 

(1) Renault owns 20.7% of AB Volvo’s equity. 

After taking into account Volvo’s treasury stock, 

Renault’s stake in Volvo is 21.8%. 

(2) Renault owns 44.3% of Nissan’s equity. 

After taking into account Nissan’s treasury stock, 

Renault’s stake in Nissan is 45.6%. 

(3) REAGROUP: entry of one entity within the South West pole. 

REAGROUP was renamed Renault Retail Group as of January 1, 2008. 

CASH MANAGEMENT 

AND REFINANCING 

FOR THE RENAULT GROUP 


Finance 

(Switzerland) 

SFF 

Sofasa 

(Colombia) 

RCI 

Versicherungs 

Service GmbH 

(Germany) 

RCI 

Leasing GmbH 

(Germany) 

RCI Gest 

Leasing 

S.I.F.M. SA 

(Portugal) 

RCI Gest 

Seguros- 

Corretores 

L.D.A. 

(Portugal) 

Overlease 

SA (Spain) 

Artida SA 

(Spain) 

100% 

RCI Finance 

SK S.r.o 

(Slovakia) 

RCI Services 

Algérie SARL 

(Algeria) 

100% 

100% 

100% 

100% 




FRANCE 

50% 100% 

Sygma SNC Diac SA 

RCI USLUGE 

d.o.o 

(Croatia) 

1% 

99.92% 

Corretora 

de Seguros 


do Brasil SA 

(Brazil) 

95.05% 

99% 

Administradora 

de Consorcio 

Renault do Brasil 

S/C Ltda 

(Brazil) 

4.95% 

RCI Servicios 

Colombia SA 

(Colombia) 

Rombo 

Compania 

Financiera SA 

(Argentina) 

60% 

100% 

100% 


RCI Bank AG 

(Austria) 

RCI Zrt. 

(Hungary) 

100% 

RN Finance 

RUS SARL 

(Russia) 

RCI Leasing 

Romania IFN SA 

(Romania) 

RCI Financial 

Services Korea 

Co. Ltd. 

(Korea) 

RCI Banque SA 

and 

subsidiaries 

EUROPE 

100% 

100% 

100% 

AMERICAS 

EUROMED 

100% 

ASIA-AFRICA 

100% 

Sigma 

Services SA 

100% RCI Financial 

Services Ltd. 

(UK) 


100% acceptance Ltd. 

(UK) 

100% 

50% 

Renault Leasing 

C.Z. S.r.o. 

(Czech Republic) 

60.12% 

Companhia de 

Arrendamento 

Mercantil 

Renault do Brasil 

(Brazil) 

RDFM SARL 

(Morocco) 

Sogesma 

SARL 

50.1% 

100% RCI Finantare 100% 

Romania S.R.L. 

(Romania) 

100% 

100% 

94.81% 

100% Renault Autofin 

RCI 

Finanzholding 100% 

GmbH 

(Germany) 

100% 

SA (Belgium) 

RCI Financial 

Services SA 

(Belgium) 

0.05% 

99.95% 

100% RCI 

Finance SA 

(Switzerland) 

100% RCI 

Financial b.v. 

(Netherlands) 

RCI Gest IFIC 

SA (Portugal) 

100% 

100% Renault Credit 

Polska Sp.z.o.o. 

(Poland) 

RCI Bank 

Polska SA 

(Poland) 

100% 

49% 

RCI Finance 

C.Z. s.r.o. 

(Czech Republic) 

Renault Crédit 

Car (Belgium) 

60.09% 

Companhia de 

Credito Financiamento 

e Investimento 

do Brasil (Brazil) 

15% 

NR Finance 

Mexico SA 

de C.V. Sofol 

(Mexico) 

RCI Finance 

Maroc 

(Morocco) 

RFS Ltd. 

(UK) 

RCI Broker de 

asigurare S.r.l. 

Romania) 

5.2% 

Cogera SA 

100% 100% 

100% 

Diac 

Location SA 


Service SA 

(Belgium) 

Overlease 

S.r.l. 

(Italy) 

100% 100% 

RCI Financial Services 

Ukraine, Limed Liability 

Company (Ukraine) 

01 

02 

03 

04 

05 

06 

07 

08

01 RISK 


FACTORS 

1.2 RISK FACTORS ✦ 

In the course of its business, the Renault group is exposed to a number of 

risks that can affect its assets, liabilities and fi nancial performance. These 

risks are outlined below. Details on how they are managed can be found in 

c hapter 2.3. 

1. The Group has commercial and/or industrial operations in countries outside 

Europe, notably South Korea, Romania, Brazil, Argentina, Turkey, Colombia, 

Chile, Russia, Morocco, India and Iran. These operations account for 25% of 

revenues. The main risks are GDP fl uctuations, economic and political instability, 

regulatory changes, payment-collection diffi culties, labor unrest, major swings 

in interest rates and exchange rates, and currency controls. 

2. Risks affecting the quality of its products, which involve a wide variety 

of complex technologies, mean that quality is a top priority and that special 

attention is paid to the reliability of mechanisms and equipment providing active 

and passive safety. 

3. Purchases account for a substantial portion of vehicle production costs, so it 

is vital for Renault to choose suppliers of the highest caliber, i.e. companies that 

are fi nancially fi t, comply with rules and regulations on sustainable development, 

deliver high-quality products, and so on. ✦ 

4. The Group’s exposure to industrial risk is potentially signifi cant because its 

industrial operations are highly concentrated and its plants are interdependent. 

It is also dependent on its main suppliers. 

5. There are three main aspects of environmental risk for Renault: 

. 

. 

. 

environmental impact of malfunctions in its plants, 

harm to individuals (personnel and people living near the plants), 

past pollution of subsoil and groundwater. 

6. Renault depends on the orderly operation of its IT systems. Most of the 

Group’s functions and processes rely on the software tools and technical 

infrastructure connecting its sites. The main risks pertain to the disruption of 

IT services, and the confi dentiality and integrity of data. 

7. In terms of product distribution, the type of risks to which Renault is exposed 

depends on the distribution channel involved: 

. 

. 

. 

at the commercial import subsidiaries, the main risks are related to 

the commercial resources allocated to these fi rms, 

at its own distribution subsidiaries, organized under the umbrella of Renault 

Retail Group in Europe, the risks are primarily related to the diversity of 

these decentralized entities, 

for dealerships, the risks arise from the financial health of these 

networks. 

Further, in connection with its commercial activities, the Group may have to 

cope with customer payment defaults. 


8. Automobile operations are naturally exposed to foreign exchange risk through 

their industrial and commercial activities. Exchange rate fl uctuations can have an 

impact at fi ve levels: operating margin, fi nancial income, income of associated 

companies, shareholders’ equity, and net fi nancial debt. 

9. The Group is exposed to counterparty risk in its fi nancial-market and banking 

transactions, in its management of foreign exchange and interest rate risk, and 

in the management of payment fl ows. 

10. Because raw materials account for a substantial proportion of vehicle 

production costs, the Group is exposed to commodity price risk. 

11. Through the sales fi nancing business of RCI Banque, the Group is exposed to 

risks arising from the creditworthiness of its customers (consumers , corporates 

and dealers). 

12. The Group’s 44.3% holding in Nissan Motor Co. Ltd. (“Nissan Motor”), 

accounted for by the equity method in its consolidated fi nancial statements, 

has a major impact on its fi nancial results. 

13. Since the Group generates 51.9% of its sales in the compact and mid-size 

vehicle segments, its fi nancial results depend on the success of these two 

product lines. 

14. The European Commission has issued recommendations for amending 

Directive 98/71 on the legal protection of designs and models. These 

recommendations call for the abolition of protection of spare parts under design 

and model law. If the amended version of the Directive is adopted, it could have 

a negative impact on the earnings of the Group. 

15. Renault is exposed to a material change in the regulations applicable to 

automobiles. 



01 

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08

1.3 THE RENAULT-NISSAN ALLIANCE 

On March 27, 1999 Renault acquired a 36.8% equity stake in Nissan, together 

with Nissan’s European fi nance subsidiaries, for a transaction amount of 

¥643 billion (approximately €5 billion or $5.4 billion). 

Renault now holds 44.3% of Nissan and Nissan owns 15% of Renault. 

Each company has a direct interest in the results of its partner. 

1.3.1 OBJECTIVES OF THE ALLIANCE 

1.3.1.1 VISION – DESTINATION OF THE 

RENAULT-NISSAN ALLIANCE 

March 27, 2004 marked the fi fth anniversary of the agreement heralding the 

creation of the Renault-Nissan Alliance. Both Renault and Nissan took this 

opportunity to restate the values and principles underpinning the Alliance and 

to announce new ambitions for the future in the shape of a common “Alliance 

Vision – Destination” document. 

Vision – Destination of the Renault-Nissan Alliance 

The Renault-Nissan Alliance is a unique structure of two global 

companies linked by cross-shareholdings: 

n they are united for performance through a coherent strategy, 

common goals and principles, results-driven synergies and shared 

best practices; 

n they respect and reinforce their respective identities and brands. 

The principles of the Alliance 

The Alliance is based on trust and mutual respect. Its organization 

is transparent. It ensures: 

n clear decision-making for speed, accountability and a high level 

of performance; 

n maximum effi ciency by combining the strengths of both companies 

and developing synergies through common organizations, crosscompany 

teams, shared platforms and components. 

The Alliance attracts and retains the best talents, provides good 

working conditions and challenging opportunities: it grows people 

to have a global and entrepreneurial mindset. 

The Alliance generates attractive returns for the shareholders of 

each company and implements the best established standards of 

corporate governance. 

The Alliance contributes to global sustainable development. 



THE RENAULT-NISSAN ALLIANCE 

The Alliance has demonstrated its capacity to improve the individual performance 

of both partners, while protecting their respective corporate and brand identities, 

as the result of founding principles chosen to promote balance within the 

partnership and to capitalize on the complementary strengths of two groups 

with a global presence. 

Renault and Nissan sold a total of 6,160,046 vehicles in 2007, up 4.2%, giving 

global market share of 9.1% and a new annual sales record for the Alliance. 

“Alliance Vision – Destination” was approved by the Alliance Board and has 

been distributed to all employees in both groups. 

The Fourth Alliance Convention was held in Paris in September 2006. The event 

was attended by top management and key Alliance players, with representatives 

from all sectors of Renault and Nissan. 

The Convention provided an opportunity to reaffi rm the Alliance’s founding 

principles and its three objectives. 

Three objectives for the future 

The Alliance develops and implements a strategy of profi table growth 

and sets itself the following objectives: 

n to be recognized by customers as being among the best three 

automotive groups in the quality and value of its products and 

services in each region and market segment; 

n to be among the best three automotive groups in key technologies, 

each partner being a leader in specifi c fi elds of excellence; 

n to consistently generate a total operating profi t among the top three 

automotive groups in the world, by maintaining a high operating 

profi t margin and pursuing growth. 

The objectives of “Vision – Destination of the Renault-Nissan 

Alliance” were confi rmed at the Third Alliance Convention in Tokyo 

on October 18, 2005, which was attended by some 300 senior 

executives from Renault and Nissan and other key players in the 

Alliance. In his opening speech, Carlos Ghosn, President and CEO 

of Renault and Nissan, repeated that the groups were united in 

their quest for performance, while each company retained its own 

identity. Mr. Ghosn also unveiled the Alliance’s new organization (see 

c hapter 1.3.2). 


01 

02 

03 

04 

05 

06 

07 

08

01 THE 



1.3.1.2 RENAULT’S MAJOR BENEFITS 

FROM THE ALLIANCE 

The conclusion of the Alliance with Nissan accelerated Renault’s development 

into a worldwide group. Since the agreements were signed, Nissan has 

experienced a remarkable fi nancial recovery and Renault has strengthened 

the foundations of its operational performance as well as its geographical 

footprint. 

In 2007, the cooperation took further signifi cant steps forward in several 

areas: 

IN ENGINEERING 

n Renault is capitalizing on Nissan’s acknowledged expertise in 4x4 designs. 

Nissan actively participated in the development of the cross-over vehicle, 

styled and defi ned by Renault and that is built by Renault Sa msung in 

Korea. It was shown as the Koleos concept vehicle at the Paris motor 

show in September 2006 with sales starting in Korea as the QM5 from 

December 2007 and in Europe as the Koleos from the second quarter of 

2008; 

n 

n 

n 

n 

This concept of co-development and sharing of tasks among three companies 

from bac kgrounds and cultures as radically different as those found in 

France, Japan and Korea, is an exciting challenge for the Alliance as well 

as a demanding exercise in multicultural management. Co-development is 

one of the Alliance’s most valuable assets, as it rises to the challenges of 

globalization; 

In Chennai, India, the Alliance is creating a new technology and business 

center. The Renault Nissan Technology and Business Center India Private 

Limited (RNTBCI) will be structured as a 50-50 joint venture between both 

Alliance partners. It is designed to support a wide range of engineering and 

business services for Renault and Nissan facilities around the world. When 

completed, the new business center will provide services including product 

and manufacturing engineering, purchasing, design, cost management and 

information systems development. In 2010, RNTBCI is expected to have a 

workforce of more than 1,500 employees; 

In Pune, India, a delegation from Renault and Nissan visited the Bajaj Auto 

Chakan plant to further review the proposed project for an ultra low-cost car 

with Bajaj, and studies are ongoing; 

In Russia, the partnership with AvtoVAZ will benefi t the Alliance in many 

areas. It will significantly contribute to enhancing the Renault-Nissan 

Alliance’s competitive position in the Russian market, as well as opening 

new development opportunities for component sharing activities or utilizing 

their capacity. 

IN POWERTRAINS 

n A new Alliance diesel engine was unveiled at the Renault booth at 2007 

Frankfurt motor show as the “V6 dCi Concept”. This new engine, with 

several power output levels, will be available on Laguna III and Renault’s 

high end vehicles of the future, as well as Nissan models. It was announced in 

September that it will be used on Nissan Maxima in the USA in 2010. The new 

2,993 cc block is derived from the M1D Alliance diesel engine, with which it 

shares 25% of its components. The engine has been designed so as to be 

particularly compact, in order to be installed in the engine compartment of 

Laguna III whilst also meeting regulatory requirements related to pedestrian 

protection. This new V6 engine develops a power output of 195 kW (265 hp), 

a wide range of engine speeds peaking at 5,200 rpm and a punchy maximum 

torque of 550 Nm at 1,750 rpm, V6 dCi Concept complies with Euro 6 and 

US standards; 

Adding to the existing applications to Nissan models in Europe, the fi rst 

Alliance-developed diesel engine (M1D) will make its debut also in Japan 

on the Nissan X-TRAIL from the fall of 2008. 

IN MANUFACTURING 

n Quality assessment processes have gained from expert input from Nissan 

and the exchange of best practices that have since been incorporated in the 

Renault Production Way (SPR). Nissan helped considerably with the upgrading 

of the Renault plant in Novo Mesto, Slovenia, in readiness for the launch in 

2007 of the new Twingo; 

In Curitiba, Brazil, production of the Nissan Aprio, a subcompact car for the 

Mexican market based on the Renault Logan began at the passenger car 

plant; 

In Johannesburg, South Africa, Renault announced that a new hatchback 

model named Sandero will be introduced in 2009. Sandero will compete in 

the AB segment and will provide the South African public with a big-size car 

of 4.02 metres in length at a small price. It will be produced locally in the 

Nissan plant in Rosslyn from early 2009; 

In Tangier, Morroco, the Alliance and the Kingdom of Morocco will develop 

one of the largest vehicle manufacturing facilities in the Mediterranean with 

an eventual capacity of 400,000 vehicles a year; initial planned capacity 

is 200,000 a year from 2010. Planned investments are estimated at 

€600 million, with an initial phase of €350 million; 

This will create a strategic global base within the Alliance’s manufacturing 

system. It will be managed by Renault, and produce vehicles derived from 

the Logan platform and Nissan’s system for the production of new-generation 

light commercial vehicles. 90% of these vehicles would be exported; 

Almost 6,000 direct jobs and 30,000 indirect jobs will be created, making the 

Renault-Nissan Alliance one of the principal employers in the Tangier region. 

Further investment has been committed by the Alliance to train and support 

the skills and educational development of its local employees. 

AND FOR SHAREHOLDERS 

n Renault is creating value for its shareholders: both Renault and Nissan have 

increased their base of international investors attracted by the success of the 

Alliance and its outlook. Their share prices have risen signifi cantly during the 

eight years of the Alliance, with a 150% increase for Renault and a 172% 

increase for Nissan. During the same period, i.e. since March 29, 1999, the 

CAC 40 and Nikkei 225 indexes gained only 36% and 8% respectively. Over 

the same period, Renault’s market capitalization has more than tripled, 

growing from €8.4 billion when the Alliance agreement was signed to 

€27.6 billion on December 31, 2007. On this measure, Renault now ranks 

sixth, compared with its eleventh-place ranking at the beginning of 1999. 



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RENAULT SHARE PRICE FROM MARCH 29, 1999 TO END DECEMBER 2007 

Source: Reuters 

Automakers market capitalisation – March 1999 vs December 2007 



(€ million) MARCH 29, 1999 RANKING (€ million) DEC. 31, 2007 RANKING 

Toyota 96,736 1 Toyota 134,156 1 

Daimler 81,541 2 Daimler 68,373 2 

Ford 59,848 3 Volkswagen 55,321 3 

GM 52,518 4 Honda 42,334 4 

Honda 39,961 5 NISSAN 34,212 5 

VW 22,159 6 RENAULT 27,642 6 

BMW 16,277 7 BMW 27,430 7 

Fiat 13,522 8 Volvo AB 24,452 8 

Volvo (A+B) 10,439 9 Porsche 24,253 9 

NISSAN 9,049 10 Fiat 22,011 10 

RENAULT 8,393 11 Hyundai Motor 13,189 11 

Peugeot 6,615 12 Peugeot 12,147 12 

Suzuki 6,065 13 Suzuki 11,252 13 

Mazda 4,459 14 Ford 9,735 14 

Porsche 3,990 15 GM 9,656 15 

Fuji Heavy 3,521 16 Mitsubishi Motors 6,440 16 

Mitsubishi 3,043 17 Mazda 4,870 17 

Hyundai Motor 


678 18 Fuji Heavy 2,514 18 

Nissan also achieved a remarkable share price performance during the same 

eight-year period. The Group’s market capitalization increased from €9 billion 

to more than €34.2 billion, and Nissan is now one of the most profi table volume 

manufacturers in the world, with one of the highest operating margins in the 

automotive sector. 

NISSAN SHARE PRICE FROM MARCH 29, 1999 TO END DECEMBER 2007 



Nissan’s fi nancial recovery enabled it to resume dividend payments in 2000. 

The dividend rose from ¥7 in 2000 to ¥34 in fi scal year 2006, which ends in 

March 2007. 


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01 THE 



1.3.2 OPERATIONAL STRUCTURE OF THE ALLIANCE ✦ 

1.3.2.1 MAIN STAGES IN THE 

CONSTRUCTION OF THE ALLIANCE 

In accordance with the principles set out in the initial agreement signed in 

March 1999, the second stage of the Renault-Nissan Alliance was engaged in 

2002. This phase strengthened the community of interests between Renault 

and Nissan, underpinned by stronger equity ties. It involved establishing an 

Alliance Board tasked with defi ning Alliance strategy and developing a joint 

long-term vision. 

On March 1, 2002, Renault increased its equity stake in Nissan from 36.8% 

to 44.3% by exercising the warrants it had held since 1999. 

At the same time, Nissan took a stake in Renault’s capital through its whollyowned 

subsidiary. Nissan Finance Co, Ltd, which acquired 15% of Renault’s 

capital through two reserved capital increases, on March 29 and May 28, 

2002. 

By acquiring a stake in Renault, Nissan gained a direct interest in its partner’s 

results, as was already the case for Renault in Nissan. Nissan also obtained a 

second seat on Renault’s Board of Directors. 

The purpose of the second phase of the Alliance in 2002 was to provide the 

Alliance with a common strategic vision, which resulted in the creation of 

Renault-Nissan b.v. and a specifi c corporate governance policy. 

1.3.2.2 GOVERNANCE AND OPERATIONAL 

STRUCTURE 

CREATION OF RENAULT-NISSAN B.V. 

Formed on March 28, 2002 Renault-Nissan b.v. is a joint company, incorporated 

under Dutch law and equally owned by Renault SA and Nissan Motor Co., Ltd., 

responsible for the strategic management of the Alliance. 

This structure decides on medium - and long -term strategy, as described 

below under “Powers of Renault-Nissan b.v.”. It bolsters the management of 

the Renault-Nissan a lliance and coordinates joint activities at a global level, 

allowing for decisions to be made while respecting the autonomy of each 

partner and guaranteeing a consensual operating procedure. 

Renault-Nissan b.v. possesses clearly defi ned assets and powers over both 

Renault and Nissan Motor Co., Ltd. 

Renault-Nissan b.v. holds all the shares of existing and future joint subsidiaries 

of Renault and Nissan Motor Co., Ltd. 

Examples include Renault-Nissan Purchasing Organization (RNPO), which has 

been equally owned by Renault and Nissan since its creation in April 2001. 

These shares were transferred to Renault- Nissan b.v., which has owned 100% 

of RNPO since June 2003. 

Renault-Nissan Information Services (RNIS) is a common information systems 

company, created in July 2002 and wholly owned by Renault-Nissan b.v. 

FINANCIAL STRUCTURE OF THE ALLIANCE 

POWERS OF RENAULT-NISSAN B.V. 

Renault-Nissan b.v.’s decision-making powers with respect to Nissan Motor Co., 

Ltd. and Renault s.a.s. are limited to the following areas: 

adoption of three-, fi ve- and 10-year plans (strategic company projects, 

with quantifi ed data); 

approval of product plans (parts of strategic projects corresponding to the 

design, development, manufacture and sale of current or future products, 

vehicles and components); 

decisions concerning the commonization of products and powertrains (such 

as platforms, vehicles, gearboxes, engines and other components); 

fi nancial policy, including: 

. rates of discount used for ROIC studies and hurdle rates, applicable to 

future models and investments, 

. risk-management rules and the policy governing them, 

. rules on fi nancing and cash management, 

. debt leverage; 

management of common subsidiaries, and steering of Cross-Company Teams 

(CCT) and Functional Task Teams (FTT) including CCT/FTT/TT (Task Teams) 

creation, modifi cation or disbandment; 

any other subject or project assigned to Renault-Nissan b.v. on a joint basis 

by Nissan Motor Co., Ltd., and Renault s.a.s. 

Renault-Nissan b.v. also has the exclusive power to make a range of proposals 

to the two operating companies, Nissan Motor Co., Ltd. and Renault s.a.s. 



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These two entities are free to accept or reject these proposals. Renault- 

Nissan b.v.’s power of initiative ensures that the two partners harmonize their 

policies. 

These include : 

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creation and scope of joint subsidiaries; 

supplementary fi nancial incentive schemes; 

signifi cant changes in scope, whether geographic or in terms of products, 

for total amounts of $100 million or more; 

strategic investments, i.e. investments other than product-related investments, 

amounting to $500 million or more; 

strategic cooperation between Nissan Motor Co., Ltd. or Renault s.a.s. and 

other companies. 

All other aspects relating to Renault s.a.s. and Nissan Motor Co., Ltd., whether 

operational, commercial, fi nancial or labor-related, are managed independently 

by each company and the corresponding decisions will be taken independently 

by these companies’ respective governing bodies. The two companies retain 

their autonomy of management, the identity of their respective brands, their 

employee-representative bodies and their employees. They are also responsible 

for their own results. 

THE ALLIANCE BOARD 

The role of the Alliance Board 

The Alliance Board (AB) held its fi rst meeting on May 29, 2002. AB is the 

decision-making body for all issues affecting the Alliance’s future, and meets 

eight times a year. 

Both Renault and Nissan continue to manage their business and perform 

as two separate companies. The operational management of each group 

remains in the hands of senior management accountable to their own Board 

of Directors. 

Alliance Board members 

As of April 29, 2005, the Board is presided by Carlos Ghosn, CEO of Renault 

and President and CEO of Nissan. The Alliance Board also includes three other 

members from Renault (Patrick Pélata, Patrick Blain and Jean-Louis Ricaud) 

and three from Nissan (Toshiyuki Shiga, Mitsuhiko Yamashita and Hidetoshi 

Imazu). 

The Alliance Board Meeting (ABM) focuses on strategic matters and is attended 

by all the members of Renault’s and Nissan’s Executive Committees, the Alliance 

Board secretary and heads of CEO Offi ces. Decisions taken at the meetings are 

offi cially approved by the Alliance Board. 

To ensure that both parties share the fruits of the Alliance’s performance, 

the Renault-Nissan agreement provides for reciprocal grants of stock options 

(or warrants, then Share Appreciation Rights, SAR, in the case of Nissan) to 

members of the Alliance Board. 

COORDINATION BUREAU 



A single representative of Renault and Nissan is responsible for the two Alliance 

Coordination Bureau Offi ces in Paris (CBPO) and Tokyo (CBTO) which include 

the support function of the Alliance Board Meeting (ABM), human resources 

and communications. 

The Coordination Bureau is tasked with the following missions: 

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planning the agendas for and preparing the ABM; 

providing functional support for the Steering Committees (SC), Cross- 

Company Teams (CCT), Functional Task Teams (FTT) and Task Teams (TT); 

centralizing and publishing recent and relevant information about the 

Alliance; 

assessing the workings of the Alliance, making occasional surveys and 

reporting on changes; 

managing the Alliance Steering Committees at Renault (RASC) and Nissan 

(NASC), sharing information with the representatives of the Steering 

Committees, CCTs, FTTs and TTs and drawing up clearly defi ned action 

plans to implement the decisions taken by the ABM; 

promoting the cross-functional visibility of the Alliance and joint actions 

together with the Corporate Communications Departments at Renault and 

Nissan. 

The Alliance Coordination Bureau reports to the Alliance Board. 

STEERING COMMITTEES (SCs ) 

The Steering Committees are tasked with defi ning the Alliance’s cross-functional 

strategic operational priorities, submitting topics to the ABM that may be given 

priority status in the agenda and coordinating the activities of the Cross- 

Company Teams, Functional Task Teams and Task Teams that fall within the 

scope of the Steering Committees. They take operational decisions that are not 

within the scope of the CCTs, report on progress to the ABM and, wherever 

necessary, seek arbitration on and/or confi rmation for decisions. 

There are nine Steering Committees, each focusing on a different fi eld, that 

support the CCTs and FTTs in the implementation of Alliance projects: 

1. Planning 6. Support Functions 

2. Product Development and Manufacturing 7. Asia, Africa and Middle East 

3. Control and Finance 8. America 

4. Sales and Marketing 

5. Information Systems 

9. Europe 


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01 THE 



CROSS-COMPANY TEAMS (CCTs ) 

The CCTs are working groups comprising staff and experts from both companies 

that are tasked with exploring possible areas of cooperation and synergy 

between Renault and Nissan, defi ning and concretely specifying projects 

and then monitoring the implementation of projects approved by the Board. 

There are 10 teams working in the following areas: 

1. Product Planning 6. Process Engineering 

2. Light Commercial Vehicles 7. Manufacturing 

3. Research & Advanced Engineering 8. Logistics 

4. Vehicle Engineering 9. Parts and Accessories 

5. Powertrains 10. Purchasing 

The CCTs are headed by two co-leaders, one from Renault and one from 

Nissan. 

The 10 CCTs report to the Alliance Board on the state of progress of their work 

and their results through the Steering Committees. 

FUNCTIONAL TASK TEAMS (FTTs ) 

The FTTs are made up of experts from both Renault and Nissan and provide the 

CCTs with essential support in terms of benchmarking, the promotion of best 

practices and the harmonization of tools used in the support functions. 

1.3.3 THE STATUS OF ALLIANCE PROJECTS 

Since the Alliance agreement was signed in 1999, Renault and Nissan have 

initiated cooperation programs in a broad range of fi elds of activity. The synergies 

generated can be classifi ed into two categories: 

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structural cooperation; 

regional cooperation. 

1.3.3.1 STRUCTURAL COOPERATION 

VEHICLE ENGINEERING 

The sharing of platform or engineering architecture and, more signifi cantly, the 

sharing of major components have been a key element of the Alliance’s success. 

The partners can develop this sharing as they renew their line-ups. 

B and C Platforms 

An initial common platform (a Nissan-led project), the B platform, has been used 

by Nissan since 2002 with the new March (Micra in Europe) and Cube. This 

was followed in 2004 by the launch of the Tiida and Tiida Latio in the Japanese 

domestic market and the Nissan Note launched in January 2005. Tiida has 


There are 11 FTTs that continue to cover the following key areas: 

1. Corporate Planning 7. Marketing 

2. Product Engineering Performance 8. Sales & Service 

3. Quality 9. Legal & Intellectual Property 

4. Industrial Strategy 10. Communications 

5. Cost Management & Control 

6. Customs, Trade & Global Tax 

11. Human Resources 

TASK TEAMS (TTs ) 

As soon as a specifi c issue is identifi ed, a Task Team (TT) is appointed to work 

on the issue within a certain timeframe. 

There are currently 12 TTs working on the following topics: 

1. Europe 7. Korea 

2. Eastern Europe 8. Africa & Middle East 

3. Maghreb 9. Mexico 

4. China 10. Mercosur 

5. ASEAN 11. Business to Employee 

6. Asia/Oceania 12. New Market Standards 

subsequently gone on sale in selected global markets, including the US where 

it is sold as the Versa. Two additional vehicles, the Nissan Wingroad (launched in 

November 2005) and the Nissan Bluebird Sylphy (launched in December 2005), 

are also based on the B platform. 

On May 19, 2004, Renault unveiled a new model, Modus, its fi rst vehicle to 

use the common B platform. It was marketed mainly in Europe from September 

of the same year. In September 2005, Renault launched Clio III, also built on 

this platform. 

The Logan, initially marketed under the Dacia and Renault brands, but to 

be sold as a Nissan in certain markets and as a Mahindra Renault in India, 

was launched in September 2004. The Logan is based on a derivative of the 

common B platform. 

A second common platform (a Renault-led project), the C platform, 

was launched by Renault at end-2002 for production of its new Mégane II. 

In December 2004, the Lafesta, a new minivan, was launched in Japan as the 

fi rst model in Nissan to adopt the common C platform. Nissan launched the 

new Serena minivan in May 2005, and the new Nissan Sentra in October 2006 

in the United States; both vehicles are also based on this platform. In 2007, 

the Nissan Qashqai (Dualis in Japan and Australia) and Renault Samsung 

QM5 were launched, based on the same platform. 



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Interchangeable components 

Complementary to the common platform strategy, Renault and Nissan have 

implemented a new approach to enable the exchange of components across 

platforms: the Interchangeable Components Policy (ICP). This strategy is 

based on a functional analysis of customers’ needs and goes beyond sharing. 

ICP consists of using same parts or fi ttings on different models, across several 

platforms and segments of the Renault-Nissan Alliance. Expanding the scope 

of common platforms by designing components that can be used for different 

platforms or segments, this offers greater scope for vehicle and market 

differentiation. 

This contributes to improving cost effi ciency, enhancing manufacturing fl exibility 

and supporting global expansion while preserving the specifi c identity of each 

brand and the features of each vehicle. 

Common powertrains developed jointly by Renault and Nissan 

S2G 1.5-LITER – 1.6-LITER 

GASOLINE ENGINE 



The result is a variable level of commonality for each component allowing 

greater fl exibility for vehicle differentiation, while aiming for cost reduction 

and quality improvement. 

POWERTRAINS (ENGINES AND GEARBOXES) 

The Alliance is generating economies of scale for the future. Renault and Nissan 

are jointly developing new engines and gearboxes that fi t in both Renault and 

Nissan models. Substantial economies of scale are expected, especially in terms 

of the recovery of development costs, but also in the areas of manufacturing 

and logistics. This is already the case for the co-developed M1D (diesel) and 

M1G, S2G (petrol) engines and a 6-speed manual transmission. 

M1G 1.8-LITER – 2.0-LITER 

GASOLINE ENGINE 

M1D 2.0-LITER 

DIESEL ENGINE 

MT1 240 NM 6-SPEED 

MANUAL TRANSMISSION 

RENAULT MODELS 

Clio III *(M4R) * 

Laguna III *(M4R) *(M9R) * 

Megane II *(M9R) * 

Espace *(M9R) 

Vel Satis *(M9R) 

Trafic *(M9R) 

Modus * 

NISSAN MODELS 

March/Micra *(HR15DE, HR16DE) 

Cube *(HR15DE) 

Tiida/Tiida Latio/Versa *(HR15DE, HR16DE) *(MR18DE) * 

Note *(HR15DE, HR16DE) 

Wingroad *(HR15DE) *(MR18DE) 

Bluebird Sylphy *(HR15DE, HR16DE) *(MR20DE) 

AD-Van *(HR15DE) 

Lafesta *(MR20DE) 

Serena *(MR20DE) 

Sentra *(MR20DE) * 

Livina Geniss *(HR15DE) *(MR18DE) * 

Qashqai/Dualis *(MR20DE) *(M9R) * 

X-trail *(MR20DE) *(M9R) * 

Primastar *(M9R) 

* Specific engine codes used in each company are mentioned in brackets. 



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01 THE 



RESEARCH AND ADVANCED ENGINEERING 

Optimizing the allocation of resources 

Renault and Nissan are co-operating in strategic fi elds of research and advanced 

engineering in which they have common interests. This co-operation aims to 

optimize the allocation of resources of both groups covering a broader range 

of potential technical solutions and accelerating work to achieve technology 

breakthroughs to bring new products to the market. 

Renault and Nissan have a technology plan [T] which is composed of four 

common pillars. These are Safety, Environment-CO 2, Life-on-Board and Dynamic 

Performance. These four pillars determine the priority areas of investment for 

key technologies and innovations. 

By using their unique strengths and international market knowledge and 

networks, the two groups are well positioned to increase their technological 

portfolio and deliver innovative solutions to place the Alliance among the best 

three automotive groups in key technologies. 

Facing Environmental challenges 

As part of Renault Commitment 2009, the company is pursuing an 

environmental plan to reduce greenhouse gas emissions. This plan is based 

on three commitments: to be one of the world’s top three carmakers for low 

level emissions of CO to offer a range of models powered by biofuels such as 

2, 

bioethanol and biodiesel, and to develop a wide range of technologies, including 

electric power, that are affordable for customers. 

In December 2006, Nissan introduced Nissan Green Program 2010, a new 

mid-term environmental action plan. Nissan is focused on three core areas 

related to the environment: 1. Reducing CO 2 emissions, both from products as 

well as from day-to-day corporate activities, 2. Reducing exhaust emissions, 

and 3. Accelerating recycling efforts. 

In order to realize these different yet comple mentary programs, the Alliance 

is prepared to invest across a wide range of technologies, including Electric 

Vehicles (EV), Fuel Cell, Hybrid technologies and improvement of current diesel/ 

gasoline engines or transmissions. 

Taking an example for EV, Renault is leading the development of electric 

powertrain and Nissan is taking the lead in battery development, aiming for 

introduction in the next decade. 

QUALITY 

Alliance Quality Charter ✦ 

The Charter precisely defi nes the joint quality directives and procedures; it is 

applied to all Alliance projects. 

The Charter covers all the key quality processes: customer quality surveys, 

Group quality targets, quality control in the development of new models, 

production quality assurance, quality assurance of outsourced components, 

service quality assurance (sales and after-sales), quality of technical progress, 

and warranty policy and procedures. 

The Charter brings Renault and Nissan closer together through the use of 

common quality tools, such as Alliance Vehicle Evaluation System (AVES), 

Alliance New Product Quality Procedure (ANPQP), Alliance Supplier Evaluation 

System (ASES) and the defi nition of the parts per million (PPM) targets for parts 

manufactured outside the Group. In particular: 

ANPQP, a quality measurement system developed for suppliers, has been 

extended to all new projects; 

ASES is used to assess the controls and performance of suppliers and their 

technical skills in the fi eld of quality. 

Exchange of best practices 

The Quality FTT has studied best practices in an effort to boost progress in 

the realm of quality in both companies and to help achieve targets. The best 

practices are sourced from Renault or Nissan (Japan, United States, Europe) 

and are upgraded by both companies if necessary. 

Both companies have been contributing to the Renault Quality Plan and the 

Nissan Quality 3-3-3 since 2003. 

Synergies 

Renault and Nissan are improving together by developing common quality 

synergies: 

AEEP (Alliance Engineer Exchange Program). To contribute to the development 

of the Renault-Nissan alliance Strategic Vision, the Quality FTT has set up 

an Engineer Exchange Program on key topics; 

breakthrough items for a better understanding of customer expectations 

around the world: 

. white books: gathering and sharing all information on market needs coming 

from each company, 

. AVES: development of AVES region by region to fi t market needs better, 

. “JD Power” survey: improvement of the result prediction method. 

PURCHASING 

The Alliance has been able to make substantial cost savings by pursuing a joint 

purchasing strategy and building a network of common suppliers. 

Renault-Nissan Purchasing Organization (RNPO) 

The Renault-Nissan Purchasing Organization (RNPO) was established in 

April 2001 as the fi rst Alliance joint-venture company. RNPO initially managed 

about 30% of Nissan’s and Renault’s global annual purchasing turnover. 

By November 1, 2006, this percentage had increased to 75% and is now above 

83%. The geographical scope of RNPO has been extended to all the regions 

where Renault and Nissan have production activities in an effort to respond to 

worldwide needs. As a joint Renault and Nissan procurement structure, RNPO 

helps to improve purchasing effi ciency by using a global management system 

for purchases coming within the scope of the Alliance, while local purchasing 

departments work increasingly for both companies as a single purchasing 

organization. A survey shows that suppliers strongly support RNPO as it brings 

value to the business. 



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MANUFACTURING 

Renault and Nissan have actively exchanged know-how and implemented 

best practices in the area of manufacturing. Both are now jointly working on 

new steps for further improvement of the Renault Production Way/Système de 

Production Renault (SPR) and the Nissan Production Way (NPW). 

Exchange of know-how and implementation of associated best practices in 

manufacturing processes: Renault has upgraded its SPR by introducing shop 

fl oor management with the support of Nissan experts, such as standardization 

at the workstation, implementation of TPM (Total Productive Maintenance), QC 

(Quality Control), JIT (Just In Time) and sequenced production, etc. 

In parallel, Renault’s ideas introduced at Nissan include standards and analysis 

tools for workstation ergonomics and cost-control methods. 

Through the above-mentioned activities, Renault and Nissan found opportunities 

and jointly worked on activities that more directly contribute to the improvement 

of manufacturing performance based on KPI monitoring. Common KPIs have 

been selected and reported to ABM in order to stimulate progress and accelerate 

best practices through internal benchmarking activities. 

Improving the two production systems by learning from each other will further 

enhance the manufacturing performance of both companies. In particular , the 

new Chennai plant in India or the Morocco project are considered as perfect 

opportunities to go further in mutual exchange and mutual support. 

Cross-Production 

Thanks to the Alliance, Renault is boosting capacity utilization at its existing 

production facilities. An Industrial Strategy FTT is organized to maximize 

production effi ciency, minimize investment and production preparation lead 

time by utilizing both companies ’ production sites for both companies ’ models 

so as to maximize the effect of the Alliance by cutting production, purchasing 

and other costs. 

The fi rst joint manufacturing operation in the Alliance was the Renault Scenic a t 

Nissan’s Cuernavaca plant in Mexico from December 2000, and then followed 

by the Clio built at the Aguascalientes plant from 2001. 

The Renault Master, Nissan Frontier and Nissan Xterra (Frontier/Xterra also 

built at Nissan Smyrna, Tennessee) are built at Renault Curitiba LCV plant in 

Brazil. 

In Spain, Renault Trafi c/Nissan Frontier/Opel (Vauxhall) Vivaro are manufactured 

in Nissan’s Barcelona plant. 

The Renault Sa msung plant in Busan, Korea, is producing vehicles for export 

to Russia and other countries under the Nissan name. 

A Renault subsidiary in Chile and Renault do Brasil respectively produce 

gearboxes and engines for Nissan Mexico, while stampings from the facility 

in Flins (France) are used in the production of the Micra by Nissan UK. 




LOGISTICS 

The Logistics CCT was created to capitalise on the geographical fi t between the 

Alliance production facilities worldwide. The Logistics CTT is also tasked with 

forecasting the Alliance’s fast-growing international business. 

For parts transport, synergies include joint call for tenders since 2001 on 

container sea freight, and the establishment of common logistics platforms 

in Europe (France, Spain). A global study is on going to make cross-use of 

Renault-Nissan import/export logistics platforms, especially to support the 

development of new projects and the sourcing of parts in LCC (Leading 

Competitive Countries). 

The implementation of a common approach to the design of new packaging 

has reduced both costs and development times and has generated new 

opportunities for synergy through the consolidation of purchased volumes of 

future common packaging. 

Since 2002, for vehicle transport, a sea shuttle between Santander (Spain) and 

Newcastle (United Kingdom), via Le Havre (France) and Zeebrugge (Belgium), 

has been transporting Renault vehicles from the plants in Spain and France 

northwards, and carrying Nissan vehicles manufactured in the Sunderland plant 

(UK) southwards. Since 2005, Renault-Nissan call for joint tenders on sea freight 

for overseas vehicle and further studies are on going to consolidate vehicles 

fl ows in the future, along with the Alliance expansion on new markets. 

1.3.3.2 TRENDS IN REGIONAL 

COOPERATION 

Renault and Nissan are highly complementary in terms of markets, products and 

know-how, leveraging their presence in nearly all the major global automotive 

markets. Each can thus move into new markets at a lower cost, relying either 

on the other partner’s distribution network or manufacturing facilities or both. 

This close fi t also enables the Groups to round out their respective product and 

service offers. Moreover, Renault and Nissan each benefi t from exchanging 

know-how in research and development, processes and marketing. Generally, 

the partners will pursue separate sales and marketing strategies but share 

back-offi ce functions, including fi nance and consumer credit solutions. 

1.3.3.3 HUMAN RESOURCES 

IN THE ALLIANCE 

Human resources management in the Alliance covers staff exchanges between 

the two Groups and the Alliance Business Way Program, a training scheme 

specially developed to promote mutual understanding and enable staff to work 

together effectively and effi ciently. 


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STAFF EXCHANGES 

Since the beginning of the Alliance, Renault and Nissan have been developing 

personnel exchanges in order to enhance Alliance performance. These 

exchanges are now shifting to the next stage, with more geographical expansion. 

T he personnel exchange focuses more on corporate/functional/regional high 

potential persons or experts in order to promote the following objectives: 

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develop Alliance global leaders with cross cultural experience; 

share expertise and excellence; 

support regional expansion especially in new developing countries; 

develop knowledge- sharing in critical expertise. 

As of July 1, 2007, 122 employees have been participating in Renault – 

Nissan personne exchanges, 37 Renault employees are currently at Nissan 

in Japan, seven Renault employees are at Nissan North America, and two 

others in other Nissan countries. In addition, 29 Renault employees have 

been seconded to Nissan Europe. On the other hand, 28 NML employees 

have been sent to Renault and 19 others from elsewhere in Nissan to other 

Renault companies. 

More transfers are expected in the future as geographical expansion increases 

in ASEAN and South America regions as the Alliance business expands, with 

HR continuing to support these personnel exchanges to enhance the Alliance 

performance. 

1.3.4 NISSAN’S STRATEGY AND RESULTS IN 2007 

Nissan’s financial statements are prepared under Japanese accounting 

standards, which differ from the standards used by Renault. The statements 

include intermediate operating totals and some Nissan-specifi c indicators. 

To measure the contribution to Renault’s results, Nissan’s fi nancial statements 

are restated, as described in c hapter 7, note 13 of the notes to the Consolidated 

Financial Statements. 

Nissan has more than 185,000 employees and operates production facilities in 

over 40 countries. In 2006, Nissan was the number-two Japanese automaker by 

volume, selling 3,478,000 units worldwide in 2006. The company is managed 

in four major regions: Japan, the Americas, Europe and General Overseas 

Markets (GOM). 

ALLIANCE BUSINESS WAY PROGRAM 

The Alliance Business Way Program aims to boost the global success of the 

Alliance by improving team performance and individual skills. The program 

strives to build positive win-win relationships inside the Alliance. 

The following training programs are on offer: 

“Working with Japanese and French partners”: this training course is available 

at both Renault and Nissan and is designed for the Alliance’s key contributors. 

The purpose of the course is to gain a better understanding of cultural heritage 

and styles of working by focusing on three topics: communication , project 

management and problem solving while retaining a positive partnership; 

Team-Working Seminars (TWS) are designed for staff working in the 

Alliance entities, such as the CCTs and FTTs and common organizations. 

They aim to: 

improve team work , 

strengthen personal bonds and mutual trust, 

create a team identity, 

share common team goals; 

Alliance Engineer Exchange Program (AEEP). The AEEP program was 

launched in 2005. Used to manage joint Renault-Nissan technical projects, 

it offers promising young engineers the opportunity to become involved in 

the Alliance. 



n 

n 

n 

. 

. 

. 

. 

Key fi gures for the fi scal year ending March 31, 2007: 

n 

n 

n 

n 

n 


worldwide vehicle sales: 3.483 million units, down 2,4%; 

consolidated net revenue: ¥10,469 billion, an increase of 11.0%; 

consolidated operating profi t: ¥776.9 billion, or 7.4% of revenues; 

consolidated net income: ¥460.8 billion, down 11%; 

return on invested capital (ROIC): 15.3%. 

01 

02 

03 

04 

05 

06 

07 

08

1.3.4.1 NISSAN’S STRATEGY AND GROWTH 

CONTINUED DRIVE FOR SUSTAINABLE, PROFITABLE 

GROWTH IN 2006 

In April 2007, Nissan announced results for FY 2006 in which all the anticipated 

headwinds materialized. With almost no growth in mature markets and rising 

materials costs, Nissan faced the lowest point in its product cycle. 

Volume decreased 2.4% while revenue grew 11.0%, totaling ¥10.5 billion . As 

a result of the headwinds, operating profi t decreased to ¥776.9 billion , or 7.4% 

of revenues. Net income totaled ¥460.8 billion . 

FISCAL YEAR 2007 AFTER 9 MONTHS 

On February 1, 2008, Nissan announced fi nancial results for the third quarter 

of fi scal year 2007, as well as for the fi rst nine months. In the third quarter, 



consolidated net income after tax came to ¥132.2 billion (US $1.13 billion, 

€0.81 billion), up 26.6% compared with the same period a year ago. 

For the first nine months of the year, net income was ¥344.6 billion 

(US $2.94 billion, €2.12 billion), down 9.0%. Net revenue rose 13.9% to 

¥7.8346 trillion (US $66.73 billion, €48.10 billion). Operating profi t totaled 

¥579.1 billion (US $4.93 billion, €3.56 billion), up 8.9%. Operating profi t margin 

came to 7.4%. 

The improvement refl ects the success of recent product introductions, strong 

sales in the General Overseas Markets (GOM) and a favorable tax position. 

Overall , Nissan’s vehicle sales rose 8.4% for a total of 2,714,000 in the fi rst 

nine months. 

In the first nine months of 2007, Nissan launched nine all-new models: 

Livina, X- Trail, Altima coupe, Atlas F24, Aprio, Infi niti G37 coupe, Rogue, GT-R 

and Infi niti EX. During the fourth quarter of 2007, two more products were 

introduced: the Murano and Frontier Navara Single Cab pickup. 

9 MOS 2006 9 MOS 2007 % CHANGE 

(In billions) 

¥ € (1) ¥ € (1) 

Revenue 6,877.2 47.66 7,834.6 48.1 13.9% 

Operating margin 531.7 3.68 579.1 3.56 8.9% 

% of revenue 7.7% 7.4% -0.3 pts 

NET PROFIT 378.6 2.62 344.6 2.12 -9.0% 

Sales volumes (in units) 2,504,000 2,714,000 8.4% 

(1) For reference only, All of Nissan’s results are published in yen and converted to euros at the rate of 162.9 yen per euro for 2007 and 144.3 for 2006. 

NISSAN GLOBAL SALES FOR FIRST-HALF FY 2007 

(APRIL 1, 2007 – SEPTEMBER 30, 2007) 

For the fi rst six months of fi scal 2007, Nissan’s sales – across all regions – 

totalled 1,816,000 units, up 6.3% from 2006. This growth came as total 

industry volume declined in Japan, the U.S. and Europe. 

Japan 

In Japan, Nissan sold 332,000 units in the fi rst half, down 5.0%, below the 

market . Sales of vehicles excluding minicars decreased 8.7% and sales of 

minicars rose 13.2%. As a result, the company’s market share rose a half a 

point to 13.4%. 

The new Dualis with sales of 15,000 units and the all-new X-Trail, with 

13,000 units sold contributed to Nissan’s performance. Nissan is continuing 

specifi c actions to improve the performance of its sales, marketing and 

distribution, including consolidating unprofitable outlets, streamlining 

back- offi ce operations and integrating subsidiary dealers. 


United States 

In the United States, fi rst-half sales rose 4.1% to 534,000 units – as total 

industry volume fell 2.4%. Here again, Nissan increased its market share by 

a half a point to 6.3%. Nissan launched the all new Rogue in September and 

new Murano in January, and expects these key products to perform well in a 

turbulent US market where consumers are moving towards more fuel-effi cient 

vehicles. 

Infi niti sales grew 5.1% with help from the new G37 sedan and coupe. 

In the face of the credit crises in the US fi nancial markets, Nissan continued to 

carry out sound lending practices. NMAC maintains a sound portfolio with no 

signifi cant change in risk ratios and the company is committed to delivering 

strong return on its assets. 

Europe 

In Europe, Nissan sales surged 10.5%, totaling 304,000 units in a market 

that dipped 0.9%. Growth in Russia continued to offset declining sales in 

Western Europe. Nissan’s fi rst-half sales in Russia reached 67,000 units – 

double the volume a year earlier. The new UK-built Qashqai continued to build 

momentum, totaling 20% of European sales. 


01 

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01 THE 



GOM 

In the General Overseas Markets (including Mexico and Canada), sales grew 

13.1%, to 646,000 units. Strong sales in China, the Gulf Coast Countries and 

Indonesia, offset declines in Mexico and Taiwan: 

n 

n 

China: with Tiida leading the way, Nissan rose 25.2% to 225,000 on strong 

LCV sales, continued momentum from the Tiida and the introduction of 

the Livina; 

Middle East: sales reached 89,000 units, up 21.3% with strong demand for 

the light truck line-up. 

COMMITMENTS OF THE NISSAN VALUE-UP 

BUSINESS PLAN 

In October 2007, Nissan presented an update of its three-year business plan, 

Nissan Value-Up. The plan includes three commitments: 

n 

n 

n 

to reach annual global sales of 4.2 million; 

to maintain the top-level operating profi t margin of all volume manufacturers 

worldwide for all three years; 

to maintain a return on invested capital (ROIC) of 20% or higher throughout 

the plan. 

During the three years of the plan, Nissan is launching 28 new products, ten 

of them being all-new expansion products. Nissan is also expanding into new 

markets as well as expanding the Infi niti luxury brand into Korea, Russia and 

China. 

Year 2007 brought more new products – 11 to be exact, including the brandnew 

compact cross-over called Rogue in the U.S. and at the high-performance 

end of the scale, Nissan unveiled the long-awaited GT-R – an icon of the 

Nissan brand. In the past, it was sold mainly in Japan; from now on it will be 

sold globally. 

NISSAN WORLDWIDE DEVELOPMENTS 

While the company is focus ed on delivering the commitments under Nissan 

Value-up, it continues to invest and plan for the future beyond. 

Development in China 

Tokyo (Jan. 9, 2008): Nissan Motor Co., Ltd., (NML) and Dongfeng Motor Group 

Co., Ltd., (DFG) have jointly announced the opening of Dongfeng Nissan Auto 

Finance Co., Ltd., (DNAF), based in Shanghai. The development comes as sales 

for Nissan grew 25.2% in China. DNAF will provide new car retail fi nancing 

for Nissan and Infi niti customers across China, as well as inventory fi nancing 

for dealers of both brands. DNAF will provide dealership fi nance services in 

Shanghai, Beijing and Shenzhen. 


Russia takes top spot for Nissan Europe 

T rappes , France (Jan. 8, 2008): Nissan announced that Russia has become the 

top European market for the company with sales of more than 120,000 units in 

2007, an increase of 60% year on year. A total of 250,000 Nissan units have 

been sold in Russia since the sales company was launched in January 2004, 

and the construction of a new manufacturing plant in St Petersburg is well 

underway to open in 2009. 

Nissan makes big moves into India 

Ch ennai/Tokyo (Oct. 29, 2007): Hinduja Group fl agship Ashok Leyland and 

Nissan Motor Co., Ltd., signed a binding Master Co-Operation Agreement 

(MCA) for the formation of three joint venture companies supporting the Light 

Commercial Vehicle (LCV) business. The agreement was signed in Chennai by 

Mr. R. Seshasayee, Managing Director of Ashok Leyland and Mr. Carlos Ghosn, 

President and CEO of Nissan Motor Co., Ltd. 

See the Alliance paragraph 1.3.5. for more information . 

Nissan engines give top performance 

Detroit (Dec. 12, 2007): Nissan’s VQ37VHR engine has been placed on the 

10 Best Engines list by Ward’s Automotive Group, marking the 14 th straight 

year that a VQ series engine has earned that distinction. It is the only engine 

that has been included every year since the award began in 1995. 

All-new Nissan GT-R 

Tokyo (Oct. 25, 2007): Nissan announced the all new Nissan GT-R: the 

21 st century supercar, one of the world’s fastest, easiest and most secure 

high-speed car for fast driving . 

NISSAN and NEC advance lithium-ion technology 

Tokyo (Apr. 13, 2007): Nissan and NEC Corporation signed an agreement to 

establish a joint-venture company – Automotive Energy Supply Corporation 

(AESC) – to focus on lithium-ion battery business for wide-scale automotive 

application by 2009. Nissan and NEC Group will invest ¥490 million 

(approx. €3 million) in the partnership. The new joint venture will become 

the leading company in mass production of lithium-ion batteries for the global 

automotive community using pioneering technologies developed by Nissan 

and NEC Group. 

Nissan and Chrysler Sign OEM product agreement 

Tokyo /Auburn Hills, Michigan (Jan. 11, 2008): Chrysler LLC and Nissan 

Motor Co., Ltd., announced an agreement for Nissan to supply Chrysler with a 

new car for limited distribution in South America. Based on the Nissan Versa 

sedan, the new car will be supplied to Chrysler on an Original Equipment 

Manufacture (OEM) basis in 2009. The OEM supply agreement is the second 

product exchange between the two corporations, with Nissan affi liate JATCO 

already supplying Chrysler with transmissions since 2004. 



01 

02 

03 

04 

05 

06 

07 

08

1.3.4.2 NISSAN’S 2007 CONTRIBUTION 

TO RENAULT’S RESULTS 

CONTRIBUTION TO RENAULT’S CONSOLIDATED 

NET INCOME 

Nissan contributed €1.288 million to Renault in 2007, compared with 

€1.888 million in 2006, recorded in the fi nancial statements as a share in net 

income of companies accounted for by the equity method. 

DIVIDEND PAYOUT 

Dividends received by Renault 

Renault received €456 million in dividends in 2007 from Nissan, compared 

with €431 million in 2006. The 2007 fi gure comprises: 

n 

n 

the second dividend payment for FY2006 of ¥17 per share, received in 

June 2007 (€207 million); 

the fi rst payment for FY2007 of ¥ 20 per share, received in November 2007 

(€249 million). 



Nissan’s continued delivery on dividends under 

Nissan Value-Up 

Nissan has announced its planned dividend growth through the end of fi scal 

year 2007, ending March 31, 2008. Nissan will announce its next dividend 

policy in April of 2008. 

NISSAN DIVIDEND INCREASE FROM 2000 TO 2007 

40 

35 

30 

25 

20 

15 

10 

5 

Fiscal 

year 

2005 2006 2007 

1.3.5 ALLIANCE C OMBINED SALES PERFORMANCE AND FINANCIAL INDICATORS 

Renault and Nissan sold a total of 6,160,046 vehicles in 2007 (+4.2%) 

for a global market share of 9.1% 3 and a new annual sales record for the 

Alliance. 

Renault and Nissan sold respectively 2,484,472 and 3,675,574 units. 

Renault’s worldwide sales increased by 2.1%, while Nissan’s rose by 5.7%. 

The main growth zones for the Alliance were Russia (+49.9%), Latin and 

South America (+12.2%), China (+25.6%) and the Middle East and Africa 

(+16.2%). 

RENAULT RETURNS TO GROWTH 

Renault sold 2,134,484 vehicles under the Renault brand (+0.9%), 119,824 

under Renault Sa msung Motors brand (-1.5%), and 230,164 Dacia-branded 

vehicles (+17.2%). The success of Logan, sold under the Renault and Dacia 

brands, was confi rmed with sales rising more than 48% to 366,779 units. 

The Logan family grew in 2007 with the arrival of Logan MCV and Logan Van. 

The latest Logan-platform model, Sandero, was launched in Mercosur at the 

end of 2007. 

Renault continued to grow abroad , increasing its non-Europe sales by 16.3% 

to 861,330, for nearly 35% of total sales. 

Renault started its product offensive in 2007, launching Logan Van, New Twingo, 

New Laguna sedan and station wagon, QM5 and Sandero. Four new models 

(3) Total PC+LCV market sales based on Renault estimates: 67,738,307. 



7 ¥ 

2000 

8 ¥ 

2001 

14 ¥ 

2002 

19 ¥ 

2003 

24 ¥ 

2004 

29 ¥ 

Dividende per share (¥) 

will be launched in the fi rst two months of 2008: the passenger car and LCV 

versions of New Kangoo, Clio Estate and Grand Modus. Phase 2 of the Modus 

will be released as well, together with fi ve other models in 2008. The three 

brands (Renault, Dacia, RSM) will all contribute to the growth of the Renault 

group. Sales are forecast to rise over 10% in 2008, driven by increases in 

all regions. 

NEW MODELS DRIVE NISSAN’S GLOBAL GROWTH 

Nissan sold a record 3,675,574 vehicles under the Nissan and Infi niti brands, 

up 5.7% over the prior year. Signifi cant new models introduced in 2007 included 

the Altima coupe, Livina series and the Rogue crossover. Global sales of Infi niti 

vehicles increased at 151,683 units, boosted by the G35 sedan and the launch 

of the G37 coupe. 

Nissan recorded sales of over one million units for the third consecutive year 

with a 4.8% increase in its largest market, the United States. Sales in 2007 

were led by the Nissan Versa subcompact, Altima mid-size passenger cars and 

Infi niti G35 luxury sedan. 

In Japan, Nissan’s overall sales fell 6% to 720,973. Despite the decline in the 

registered vehicle segment, Nissan saw improved volume and market share in 

the minicar segment bolstered by new products like Pino. 

34 ¥ 

40 ¥ 

01 

02 

03 

04 

05 

06 

07 

08

01 THE 



In Europe, annual sales increased slightly. Strong demand in Russia – 59.6% 

increase vs. 2006 – and the continued success of Qashqai offset challenging 

conditions in the mature markets. 

In other global markets, Nissan sales increased by 8% to 1,024,683 units. 

In China, sales in calendar year 2007 increased 25% supported by the continued 

popularity of the Tiida model and new models such as the Livina. In addition, 

Infi niti and LCV business units continue to grow in markets such as Korea, 

GCC and China. 

DELIVERING VALUE FOR BOTH PARTNERS 

The Renault-Nissan Alliance advanced on all fronts during 2007, creating new 

opportunities for future growth. In product development and engineering, Nissan 

was able to enrich its line-up thanks to Renault’s Logan platform. Renault is 

capitalizing on Nissan’s acknowledged expertise in 4x4 vehicles. Nissan actively 

participated in the development of an all-new cross-over vehicle for the Renault 

and Renault Sa msung brands. Styled and defi ned by Renault, the new vehicle 

is built by Renault Sa msung Motors in Korea. 

In a signifi cant move towards reducing CO 2 car emissions as well as particulate 

pollution, the Alliance and Project Better Place have undertaken to offer electric 

vehicles to Israeli customers in 2011. 

1.3.5.1 GLOBAL SALES AND PRODUCTION SITES ✦ 

WORLDWIDE SALES 


The Alliance is enabling both partners to grow in emerging markets. The Alliance 

already has signifi cant investments in China through Nissan and Dongfeng, 

in India with Renault and Mahindra & Mahindra and in Russia with Renault 

and Avtoframos. On December 8, 2007, Renault signed a Memorundum 

o f Understanding with AvtoVAZ whose manufacturing capacities will allow 

for production of over 750,000 cars annually. Nissan is building a plant in 

St Petersburg to start operation in 2009. 

In Tangier, Morocco, the Alliance and the Kingdom of Morocco will develop 

one of the largest vehicle manufacturing facilities in the Mediterranean with a 

capacity of 400,000 vehicles a year. 

In Chennai, India, Renault and Nissan announced plans to build one of the 

largest automotive production sites in India in the state of Tamil Nadu, with a 

capacity of 400,000 units per year. 

Both companies in the Alliance will continue to grow through innovative 

collaboration, leveraging the expertise of this uniquely successful partnership 

aiming for mutual value creation. 

(in units) 2007 2006 % CHANGE 2007/2006 

Renault Group 2,484,472 2,433,610 2.1% 

Renault 2,134,484 2,115,572 0.9% 

Samsung 119,824 121,660 -1.5% 

Dacia 230,164 196,378 17.2% 

Nissan Group 3,675,574 3,477,837 5.7% 

Nissan 3,523,891 3,341,571 5.5% 

Infiniti 151,683 136,266 11.3% 

RENAULT-NISSAN ALLIANCE 6,160,046 5,911,447 4.2% 



01 

02 

03 

04 

05 

06 

07 

08

SALES IN WESTERN EUROPE 




Renault Group 1,528,973 1,597,478 -4.3% 

France 656,523 668,679 -1.8% 

Germany 157,968 173,276 -8.8% 

Italy 143,800 142,349 1.0% 

Spain 198,948 206,326 -3.6% 

U.K. 148,970 160,286 -7.1% 

Nissan 391,159 417,412 -6.3% 

France 43,712 44,809 -2.4% 

Germany 44,672 59,335 -24.7% 

Italy 51,374 50,015 2.7% 

Spain 58,500 62,741 -6.8% 

U.K. 82,497 87,013 -5.2% 

RENAULT-NISSAN ALLIANCE 1,920,132 2,014,890 -4.9% 

France 700,235 713,488 -1.9% 

Germany 202,640 232,611 -12.9% 

Italy 195,174 192,364 1.5% 

Spain 257,448 269,067 -4.3% 

U.K. 231,467 247,299 -6.4% 

SALES IN CENTRAL & EASTERN EUROPE 


Renault Group 444,341 408,540 8.8% 

Russia 101,166 72,484 39.6% 

Romania 134,176 131,474 2.1% 

Turkey 91,645 92,366 -0.8% 

Nissan 172,086 118, 284 45.5% 

Russia 122,038 76,452 59.6% 

Romania 3,166 3,109 1.8% 

Turkey 7,438 9,140 -18.6% 

RENAULT-NISSAN ALLIANCE 616,427 526,824 17.0% 

Russia 223,204 148,936 49.9% 

Romania 137,342 134,583 2.1% 

Turkey 99,083 101,506 -2.4% 

SALES IN NORTH AMERICA 



Nissan 1,145,021 1,086,004 5.4% 

USA 1,068,238 1,019,249 4.8% 

Canada 76,783 66,755 15.0% 


01 

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06 

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01 THE 



SALES IN JAPAN 


Renault 2,470 3,042 -18.8% 

Nissan 720,973 766,702 -6.0% 

RENAULT-NISSAN ALLIANCE 723,443 769,744 -6.0% 

SALES IN LATIN AND SOUTH AMERICA 



Brazil 73,614 51,682 42.4% 

Argentina 66,969 48,196 39.0% 

Mexico 18,615 20,274 -8.2% 

Nissan 320,665 318,848 0.6% 

Brazil 11,883 5,719 107.8% 

Argentina 3,681 3,328 10.6% 

Mexico 214,121 228,315 -6.2% 


Brazil 85,497 57,401 48.9% 

Argentina 70,650 51,524 37.1% 

Mexico 232,736 248,589 -6.4% 

SALES IN MIDDLE EAST AND AFRICA 



Nissan 258,935 216,695 19.5% 


SALES IN ASIA AND PACIFIC 




China 2,337 2,950 -20.8% 

Korea 117,203 119,088 -1.6% 

Nissan 666,735 553,892 20.4% 

China 457,630 363,252 26.0% 

Korea 3,006 1,714 75.4% 


China 459,967 366,202 25.6% 

Korea 120,209 120,802 -0.5% 



01 

02 

03 

04 

05 

06 

07 

08

GLOBAL SALES AND PRODUCTION SITES ✦ 

1,145 

Mexico 

North 

America 

United States 

Colombia 

566 

245 

Latin 

321 America (1) 

Chile 

United Kingdom 

P 

Portugal 

Spain 

Brazil (2) 

Argentina 

France 

Renault group plants 

(Renault, Dacia and Renault Samsung Motors) 

Sales in thousands 

of vehicles - 2007 


group 

sales 

Nissan 

group 

sales 

Nissan plants Body assembly Powertrain 

Slovenia 

1.3.5.2 VALUE OF JOINT OPERATIONS 

P 

Morocco 

Plants of Renault partners 

- in Iran, Iran Khodro and SAIPA 

- in India, Mahindra & Mahindra 

Number of units sold 

worldwide 2007 

Renault group 2,484,472 

Nissan group 3,675,574 

Renault-Nissan Alliance 6,160,046 




1,529 

391 

1,920 

Western 

Europe 

Romania (Dacia) 

Turkey Iran 

P 

P 

112 371 

Egypt 

India 

259 Middle East 

and Africa 

Kenya 

South Africa 

Russia 

616 

444 

Central and 

172 Eastern Europe 

723 

(3) 

2 

China (4) 

Thailand 

P 

721 Japan 

South Korea (RSM) 

Malaysia 

Indonesia 

Taiwan 

Philippines 

Japan 

818 

151 

667 

Asia-Pacific 

(1) o/w Mexico. 

(2) Including the joint LCV plant. 

(3) o/w Russia and Turkey. 

(4) Nissan and Dongfeng Motor have set up a joint venture 

to produce and sell a range of vehicles. 

Renault sales to Nissan and Renault purchases from Nissan in 2007 are estimated at €1.5 billion and €1.4 billion, respectively, as mentioned in c hapter 7, note 13 – I 

of the notes to the Consolidated Financial Statements. 

1.3.5.3 FINANCIAL INFORMATION ON THE ALLIANCE 

See c hapter 2.1.3. 


01 

02 

03 

04 

05 

06 

07 

08


01 

02 

03 

04 

05 

06 

07 

08

02 

Management report 


2.1 EARNINGS REPORT 44 

2.1.1 Sales performance 44 

2.1.2 Comments on the financial results 55 

2.1.3 Financial information on the Alliance 59 

2.1.4 Progress report on Renault Commitment 2009 61 

2.1.5 Outlook 62 

2.2 RESEARCH AND DEVELOPMENT 62 

2.2.1 Introduction 62 

2.2.2 R&D and Renault Commitment 2009 62 

2.2.3 2007 R&D highlights 65 

2.2.4 R&D for more competitive engineering 65 

2.3 RISK MANAGEMENT 66 

2.3.1 Operational risk 66 

2.3.2 Financial risk 71 

2.3.3 RCI Banque customer and network risk 76 

2.3.4 Legal risks 76 

2.3.5 Other risks 77 

2.3.6 Disputes 77 

01 

02 

03 

04 

05 

06 

07 

08 


02 EARNINGS 

MANAGEMENT REPORT 

REPORT 

2.1 EARNINGS REPORT 

2.1.1 SALES PERFORMANCE 

The presentation of the Renault G roup’s sales results refl ects the geographical 

organization based on 5 Regions – France, Europe (excl. France), Euromed, 

Americas, and Asia-Africa – that was introduced on January 1, 2006. 

In 2007, worldwide sales for the Renault group rose 2.1% to 2,484,000 units. 

This result refl ects contrasting performances: 

n 

n 

in the France and Europe Regions, which make up a highly competitive market, 

Group sales declined by 4.1% from 2006. The situation turned around in 

the second half, however, with a lift from the New Twingo and New Laguna 

launches, and sales rose 4.6% in the last quarter. The Renault brand has a 

combined market share of 8.4% for passenger cars and light commercial 

vehicles (cars + LCVs) and retains its leadership in the LCV market, with a 

14.2% market share. The Dacia brand is expanding its customer base and 

continuing to grow with Logan and Logan MCV, both of which are innovative 

concepts in Europe. Dacia brand sales rose by almost 68%; 

outside Europe, sales growth quickened. In the Euromed, Americas and 

Asia-Africa Regions, sales rose 16.3% and now account for 35% of the 

Group’s total sales, versus 30% in 2006. Dacia sales rose 1.0%, while 

the Renault brand’s sales jumped 25.7%. Renault Samsung Motors sales 

slipped 1.5%. 


2.1.1.1 AUTOMOBILE 

RENAULT GROUP WORLDWIDE SALES 

CARS + LCVs (in units) 2007* 2006* % CHANGE 

GROUP 

BY REGION 2,484,472 2,433,610 2.1 

France 656,523 668,679 - 1.8 

Europe 966,619 1,024,224 - 5.6 

France + Europe 1,623,142 1,692,903 - 4.1 

Euromed 424,431 380,657 11.5 

Americas 245,197 185,438 32.2 

Asia-Africa 191,702 174,612 9.8 

Euromed + Americas + Asia- 

Africa 861,330 740,707 16.3 

BY BRAND 

Renault 2,134,484 2,115,572 0.9 

Dacia 230,164 196,378 17.2 

Renault Samsung 119,824 121,660 - 1.5 

BY VEHICLE TYPE 

Passenger cars 2,080,110 2,042,796 1.8 

Light commercial vehicles 404,362 390,814 3.5 

* Preliminary figures. 

In 2007 the Renault group grew worldwide sales by 2.1% to 2,484,000 vehicles. 

Sales in the France and Europe Regions declined 4.1% to 1,623,000 units, but 

there was an upturn of 1.8% in the second half owing to new product launches. 

Sales in the rest of the world increased by 120,600 units, a gain of 16.3%. 

Dacia brand sales increased by 17.2%, with an additional 33,800 units sold. 

Renault brand sales were up by 18,900 units, or 0.9%. Renault Samsung 

Motors brand sales were virtually stable at 119,800 units. 



01 

02 

03 

04 

05 

06 

07 

08

FRANCE & EUROPE REGIONS – GROUP SALES BY BRAND 


France 

Renault 623,839 649,888 -4.0 

Dacia 32,684 18,791 73.9 

GROUP 656,523 668,679 -1.8 

Europe 

Renault 919,563 995,518 -7.6 

Dacia 47,056 28,706 63.9 

GROUP 966,619 1,024,224 -5.6 

France + Europe 

Renault 1,543,402 1,645,406 -6.2 

Dacia 79,740 47,497 67.9 

GROUP 1,623,142 1,692,903 -4.1 


Sales in the passenger car and light commercial vehicle market increased 1.5% 

to 18 million vehicles in 2007. In this fi ercely competitive market, Renault group 

sales decreased by 4.1% to 1,623,000 units, representing a market share 

of 8.8%, versus 9.4% in 2006. However, the product offensive reversed this 

trend and enabled a return to growth in the second half, with a 4.6% increase 

in fourth-quarter sales. 

National market trends varied. The French market ended the year 3.5% higher. 

The trade-in bonus in Italy fueled 6.8% growth, while sales edged up by 2.7% 

in the U.K. and by a substantial 24.1% in Poland. 

Conversely, sales slipped 1.0% in Spain and fell 8.0% in Germany as a result 

of a 3-points VAT hike on January 1, 2007. 


With 1,543,000 vehicles sold in 2007, a 6.2% decrease, the Renault brand 

ranked third in the passenger car and light commercial vehicle market, with 

an 8.4% market share, down 0.7 point on 2006. 

After a fi rst-half decline of 10.2%, the launch of New Twingo in June and New 

Laguna in October marked the start of the product offensive to regain market 

share for the Renault brand in Europe. 

By country 

In France, Renault brand sales were down 4.0% and its market share shrank 

by 2.0 points to 23.5%. Twingo (Twingo I plus New Twingo, which was launched 

mid-June) is already the leader in its segment, with sales of 52,900 units, up 

35.6% on 2006. Mégane II, which got a boost from the phase 2 version released 

in March 2006, and Clio (including Clio Campus and Clio III) were respectively 

the second- and third-best-selling models in France, with 7.5% and 7.0% of 

the passenger car market. Laguna (Laguna II plus New Laguna) was in second 

place in its segment in France, with a 13.9% market share, up 0.8%. 

Global Reporting Initiative (GRI) Directives 


EARNINGS REPORT 

In the Europe Region, Renault was the No. 1 brand in Portugal (13.1%) and 

Slovenia (19.4%), and No. 2 in Spain (10.1%) and Croatia (10.8%). 

In Spain, where Renault pursued its selective commercial policy amid fi erce 

competition in the market place, sales contracted 4.3%. Twingo entered this 

market in January 2008 only. 

In Germany, where the market declined throughout the year, the Renault brand 

posted a 15.8% decrease and 4.2% market share. 

In the U.K., Renault registrations were down 7.1% in a market that started 

growing again (up 2.7%). In this country, where fl eet sales represent 60% of 

the market, Renault is counting on New Laguna to take back market share. 

In Poland, Renault sales grew by 12.4% to 23,700 units. Renault benefi ted 

from a strong recovery in the market, which was up 24.1% after a period of 

several years when imports of used cars from Western Europe largely replaced 

sales of new vehicles. 

By model – passenger cars 

The passenger car market in the France and Europe Regions totaled 15.8 million 

vehicles, up 0.8% on 2006. The Renault brand’s market share was 7.5%, with 

sales falling by 8.3%. 

By model, Renault’s performances were varied: 

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In the city car segment (A segment), New Twingo is the fi rst restyled 

vehicle under Renault Commitment 2009. New Twingo is manufactured 

in Novo Mesto, Renault’s Slovenian plant, which already makes Clio II. 

New Twingo targets a broader, more international customer base than the 

earlier model. It has been on sale in France since mid-June and in eight 

other European countries since September. Sales of New Twingo totaled 

56,300 units. The product mix is at the top end, with Dynamique, GT and 

Initiale versions accounting for more than half of sales. New Twingo, combined 

with Twingo I, is its segment leader in France, with a 32.2% market share 

(up 8.6 percentage points). Twingo registrations in the France and Europe 

Regions totaled 88,100 in 2007, an increase of 60.3% ; 

With its twin product offering – Modus and Clio/Thalia – Renault had a 10.8% 

share of the small car segment (B segment), down 1.5 points on 2006. 

Modus registrations dropped by 23.4% on 2006 and accounted for 9.7% 

of the mini-MPV segment. Renault’s B segment offering has been bolstered 

since early 2008 with Grand Modus and the phase 2 Modus. A full 93 

mm longer than Modus, with one of the roomiest trunks in its category, 

Grand Modus has everything it takes to be the main car for the household. 

The phase 2 Modus (New Modus) has been redesigned with elegant lines. 

Grand Modus and New Modus are manufactured in the Renault plant at 

Valladolid, Spain. 

With registrations down 11.3%, Clio is No. 3 in the B segment, with an 

8.7% market share. Clio III, which has been manufactured at Flins (France) 

and Bursa (Turkey) since January 2006 and at Valladolid (Spain) since 

October 2006, entered its third year on the market in September 2007. It 

is the best-selling hatch sedan in France. Clio II, renamed Clio Campus, is 

now marketed as the entry-level vehicle in the Renault offer. It accounts for 

24.9% of Clio sales. 

In 2007, sales of Thalia, the sedan version of Clio, totaled 6,600 units. 

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02 EARNINGS 


REPORT 

The combined A and B small-car segments grew 1.0%, generating 36.0% of 

sales in the France and Europe Regions. 

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With a 10.8% market share, down from 13.5% in 2006, Kangoo Car ranks 

third in the passenger-carrying van segment. After ten years on the market, 

Kangoo was still holding its own before its renewal at the beginning of 

2008; 

Mégane II, which has been on the market for fi ve years, got a boost from the 

launch of a phase 2 model in 2006, although sales fell by 10.7% in 2007. 

Mégane II is third in the C segment, with a 9.6% market share, down from 

10.8% in 2006. Mégane is the leader in this segment in France, with a 22.6% 

market share, as well as in Slovenia (18.8%) and Portugal (17.1%); 

In a C segment that shrank three-tenths of a point, Mégane (I and II) sold 

472,600 units in the France and Europe Regions in 2007. Renault is using 

the Mégane range to debut its fi rst E85 bioethanol engine offer in Europe. 

This new engine has been offered in France on Mégane Hatch Sedan and 

Mégane Estate since late June 2007. Also in this segment, sales of Scénic II 

were down 3.6%, at 253,000 units, but Scénic is still the MPV leader; 

In the upper mid-range D segment, 71,000 Lagunas (Laguna II/New Laguna) 

were registered, a decline of 7.5% in a segment that contracted 5.4%. 

New Laguna, a vehicle that embodies the quality commitment of Renault 

Commitment 2009 – that is, to be in the top three in the D segment in terms 

of product and service quality as of the vehicle’s launch – was rolled out a 

few days apart in 15 European countries starting in October. Manufactured 

at the Sandouville plant (France), New Laguna replaced Laguna II, which was 

discontinued in June 2007. New Laguna is highly appreciated by the sales 

network. In two and a half months, 22,600 units of the new model have 

been sold. With the dCi 110 hp engine, New Laguna has a CO 2 emission 

level of 130 g/km. This is at the top level of its segment and an illustration 

of Renault’s eco 2 environmental initiative. New Laguna Estate arrived in 

showrooms in the fi nal days of 2007. This new model responds to demand 

in European countries such as Italy and Germany where station wagons 

are particularly popular. The commercial launch of the Laguna Coupe, a 

model very similar to the showcar presented in Frankfurt, is slated for the 

last quarter of 2008; 

With 3,000 Vel Satis registrations in 2007, Renault’s share of the upper E1 

segment slipped two-tenths of a point to 0.5%; 

In the MPV S segment (or Large MPV segment), Espace IV, boosted by the 

launch of a phase 2 model in March 2006, had a market share of 14.7%, 

down two-tenths of a point from 2006 and ranking it number two. Espace is 

the segment leader in France, with a 34.6% market share, and in Switzerland, 

with 24.0%, and No. 2 in Benelux, Poland, Slovenia, the Czech Republic and 

Croatia. Espace IV sales volumes and market share are now holding steady 

in a generally stable segment owing to an innovative commercial policy that 

has included a simplifi cation of the offering and the successful launch of 

several limited series, including Tech Run and Argos. 

By model – L ight commercial vehicles 

The light commercial vehicle market in the France and Europe Regions totaled 

2.27 million vehicles, up 6.7% on 2006. With LCV registrations up 1.0% 

on 2006, the Renault brand had a 14.2% market share and retained its 

leadership for the tenth year running owing to the combined success of Kangoo 


Express, Trafi c and Master. This performance is especially important because 

the LCV range is the most profi table component of Renault’s offering. 

Renault sales were up substantially in most European countries: Portugal 

(up 20.9%), Switzerland (up 7.1%), Belgium-Luxembourg (up 8.3%), Poland 

(up 32.8%), Central Europe (up 22.1%), and Italy (up 2.1%). 

O n the small van segment, Kangoo Express is No. 2, with an 18.3% market 

share. 

O n the car-derived van segment, Clio Van remained in the lead, with a market 

share of 14.8%, up half a point on 2006. 

In the van segment, Renault had a market share of 12.4%, down 1.3 points. 

Registrations of Trafic were up 14.6%. The launch of a phase 2 Trafi c and a 

phase 3 Master in October 2006 added to the range’s appeal and gave a fresh 

boost to sales. To comply with Euro 4 standards, the diesel engine range was 

completely renewed with the introduction of the 2.0 dCi, developed through 

the Alliance. 

Dacia brand 

With 159,300 Logans sold since its European launch in 2004, Dacia has 

established itself successfully in the France and Europe Regions. In 2007, 

Logan sales were lifted by the introduction of the station wagon version, the 

Logan MCV, which accounted for 33.1% of the Logan sales mix at the end 

of 2007. With this dual offering, Logan sales increased by 67.8% on 2006, 

totaling 79,500 units, including 32,700 in France. The Logan range in France 

and Europe was enhanced in March 2006 with a 1.5 dCi diesel engine, already 

available on Clio, Modus and Kangoo. In many countries, this engine is the 

cheapest diesel on the market. It accounts for 44.5% of the registration mix in 

the France and Europe Regions. 

EUROMED REGION – GROUP SALES BY BRAND 


Renault 277,638 235,093 18.1 

Dacia 146,793 145,481 0.9 

Renault Samsung - 83 - 

GROUP 424,431 380,657 11.5 


The automobile market in the Euromed Region expanded by 26.0% in 2007 

compared with 2006. Group sales increased by 11.5% to 424,400 units, 

representing 9.2% of the market and 17.1% of the Group’s worldwide sales. 


The Renault brand grew by a further 18.1%, with 277,600 units sold, or 65.4% 

of the Group’s sales in the Region. The Renault brand’s market share in the 

Euromed Region came to 6.0%, down 0.3 of a point on 2006. 

In Russia, where the fast-growing market expanded by 36.2%, the brand’s sales 

surged by 39.6% in 2007 on the continuing success of the Logan, which is sold 

under the Renault brand. Logan has sold 67,800 units in Russia, accounting 



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for 67.1% of the Group’s sales in that country, which makes Russia the biggest 

market for the model after Romania. These strong results enabled Renault to 

capture 4.0% of the market, one-tenth of a point higher than in 2006. Logan 

has been assembled in the Avtoframos plant in Moscow since April 2005 and 

marketed locally since September of the same year. To keep pace with demand, 

output at the Moscow plant was raised in June 2007 and will be increased 

further in mid-2009. The success of the brand can also be attributed to sales of 

Mégane and Clio Symbol, which grew 36.8% and 63.3% respectively on 2006. 

Renault showed its determination to go even further on the Russian market by 

signing a Memorandum of Understanding with AvtoVAZ in December 2007. 

This investment will help to signifi cantly strengthen the competitive positions 

of Renault and the Renault-Nissan Alliance on the Russian market. 

In Romania, where the market is becoming increasingly competitive, the 

Renault brand made substantial progress alongside Dacia, with sales up 36.6% 

to 32,400 units and a market share of 9.2%, after 8.2% in 2006. Sales of 

Clio, which accounted for half the brand’s sales mix, rose 22.2% on the Clio III 

launch and strong results from Thalia (up 17.7%). Mégane II also put in a solid 

performance, with sales growth of 72.4%. 

In Turkey, the market contracted by a further 2.7% after the devaluation of the 

Turkish lira in May 2006. In this setting, the brand recorded a market share 

of 13.9%, up one-tenth of a point. Renault remained number-one on the car 

market for the 11 th year running. Clio sales rose by 9.3% to 9,400 units following 

the successful launch of Clio III. 

In Morocco, Renault achieved market share of 17.1% (up 0.5 of a point) 

in a market that expanded by 21.3%. Sales of the brand climbed 25.0% to 

17,500 units, boosted by the performance of Mégane (up 15.3%), by Clio, 

whose sales jumped with the launch of Clio III (up 68.2%), by the ongoing 

popularity of Thalia (up 49.1%) and by the remarkable results posted by the 

LCV lineup, which recorded a 93.9% increase. Sales of Kangoo Car, which 

generated 32.2% of the brand’s sales in Morocco, rose still further, (up 16.8%). 

In September 2007, the Alliance signed an agreement with the Kingdom of 

Morocco to set up an industrial complex in the Tangiers region. The plant will 

have an installed capacity of 400,000 units annually, with initial operational 

capacity of 200,000 units p.a. from 2010. 

In Algeria, where the market grew by 37.7%, Renault sold 23,600 units, a rise 

of 38.9%, which placed it third on the car and LCV market. 

Dacia brand 

Dacia’s sales in the Euromed Region increased 0.9% on 2006. With 146,800 

registrations, Dacia holds 3.2% of the market in the Region. 

In Romania, Dacia sales dropped 5.5% to 101,800 units in a market that grew 

21.6%. The decline can be attributed partly to an infl ux of imported brands, 

as well as to the discontinuation of the pickup in 2006 so that all the installed 

capacity for that model could be switched to the Logan program. However, 

Dacia remains the market leader with a share of 29.0%. 

The Logan range was extended with the launch of Logan MCV at end-2006 

and the LCV version derived from the Logan MCV in February 2007. The new 

models generated 17.8% and 6.7% respectively of the Logan sales mix in 




Romania. With sales up 6.0% to 101,800 units, Logan accounted for 28.9% 

of the Romanian car and LCV market. 

Dacia continued to grow in Ukraine, selling 9,400 units in 2007, a rise of 

57.8% on 2006, and earning a 1.7% share of this fast-expanding market. 

After receiving a warm welcome at the Kiev Car Show in May, Logan MCV 

performed strongly following the launch in July. Thanks to the success of Logan, 

the Dacia brand is establishing itself on a long-term basis in the Ukrainian 

automobile market. 

In Morocco, Logan, which is assembled at the Somaca plant in Casablanca, 

sold 12,600 units in 2007, down 0.7% on 2006. Dacia maintained a signifi cant 

12.4% of the market in 2007 versus 15.1% in 2006. Dacia is now the numbertwo 

brand in the Moroccan market, just behind Renault, and Logan is the 

top-selling vehicle across all categories. 

AMERICAS REGION – GROUP SALES BY BRAND 


Renault 242,072 182,551 32.6 

Dacia 504 448 12.5 

Renault Samsung 2,621 2,439 7.5 

GROUP 245,197 185,438 32.2 


The automobile market in the Americas Region expanded 17.9% on 2006. 

With 245,000 vehicles sold, a 32.2% rise, the Group took 4.6% of the market, 

up half a point. Group sales in the region accounted for 9.9% of Renault’s 

worldwide sales. 

A full 98.7% of the Group’s sales in the Americas Region came from the 

Renault brand, which posted a 32.6% rise, taking market share to 4.5% (up 

half a point on 2006). 

In Brazil, where the market grew 27.5%, Renault sales rose 42.4% on 2006 

to reach a record 73,600 units. Four new models went into production at the 

Curitiba plant over an 18-month period: 

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Mégane II, released in March 2006, and Mégane Grand Tour (the station 

wagon version of Mégane II), launched in November 2006, lifted overall 

Mégane sales, which amounted to 21,500 units (up 83.2%) in 2007; 

Logan, which is locally manufactured, made a successful debut on the 

market in July 2007 and posted sales of 14,600 units. Logan is offered 

with bioethanol engines, which are a must on the Brazilian market; 

Sandero, a fi ve-door hatchback developed on the Logan platform, which 

made a promising debut at end-2007. 

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02 EARNINGS 


REPORT 

In Argentina, Group sales rose by 39.0% to 67,000 units, outpacing the 

market’s growth of 27.1%. Renault’s share of the market increased by 

1.1 points, bolstered by efforts to rejuvenate the range with the release of Logan 

and four additions to the Mégane family. Since the start of 2008, Argentina’s 

performance has also benefi ted from the launch of Sandero. 

In Colombia, where Logan has been marketed since 2005, Renault Sales 

rose 17.6% to 39,000 units, strengthening Renault’s number-two position 

on the market. All the models in the range, and especially Logan (up 30.9%), 

contributed to the record performance in 2007. 

In Mexico, the market shrank by 3.4% as it opened up to imports of used 

vehicles that compete fi ercely with vehicles costing less than USD 15,000. 

Renault sales fell by 8.2% to 18,600 units. Kangoo Car and Clio III were 

launched in July 2007 and sold 4,400 and 900 units respectively. The LCV 

lineup was successfully expanded with the release of the Trafi c van and minibus 

alongside Kangoo Express. 

In Venezuela, Group sales more than doubled in 2007, soaring by 126.8% in a 

market that expanded 42.0%. Logan sales (up 153.4%) accounted for 44.9% 

of Renault sales and made a strong contribution to that growth. Renault gained 

2.3 points of market share to become the number-fi ve brand. 

ASIA-AFRICA REGION – GROUP SALES BY BRAND 


Renault 71,372 52,522 +35.9 

Dacia 3,127 2,952 +5.9 

Renault Samsung 117,203 119,138 -1.6 

GROUP 191,702 174,612 +9.8 


In the Asia-Africa Region, the market grew 3.5% on 2006, and Group sales 

rose 9.8% to 191,700 vehicles. Sales in the Asia-Africa Region accounted for 

7.7% of the Group’s worldwide sales. 

Renault Samsung brand 

In South Korea, where the brand generates 97.8% of its sales, Renault Samsung 

Motors managed to maintain the record volumes of 2006, selling 117,200 units 

pending new product launches. QM5, the Group’s fi rst cross-over vehicle, 

which was designed by Renault, developed by Nissan and manufactured by 

RSM, was not launched until December. It will therefore fully contribute to 

the brand’s results from 2008 onwards. QM5 will also be marketed outside 

South Korea as Koléos beginning in Spring 2008. Ultimately, around 50% of 

production will be exported. 

Renault Samsung’s share of the South Korean passenger car market came 

to 11.3%: 

SM7 sales fell 18.6% to 14,200 units in 2007; 

SM5 sales came to 73,000 units, a 1.6% rise on 2006. The model 

benefi ted from the successful launch of the restyled version in early July. 

Renault Samsung has a 7.0% share of the mid-segment; 

SM3 sales were down 7.7% to 27,500 units in 2007. The SM3 occupies 

13.1% of the sub-mid segment, giving Renault Samsung a third- place 

ranking in the segment. 

At end-December, Renault Samsung Motors had exported 52,400 vehicles, 

mostly for sale by Nissan under its own brand as part of the Alliance 

agreement. 


Sales of the Renault brand grew 35.9% to 71,400 units in the Asia-Africa 

Region. 

In India, where the market grew 13.5% in 2007, the fi rst Logan manufactured 

at the Nashik plant came off the production line in early April. By the end of 

2007, 17,700 Logans had been registered in India. Logan earned two major 

accolades in its fi rst year on the market. The JD Power IQS India 2007 study 

ranked Logan number-one on the Entry Segment, and the TNS TCS India 2007 

study ranked the Logan diesel highest in the Diesel Mid-size segment. Under 

the agreement signed in March 2005, the Mahindra-Renault joint venture has 

a production capacity of 50,000 cars in two shifts. 

Renault is already stepping up its development in India with plans for a Renault 

powertrain plant and a new industrial facility shared by Renault and Nissan at 

Oragadam near Chennai with a long-term production capacity of 400,000 units. 

India is thus becoming one of the hubs for Renault’s expansion in emerging 

markets. 

In South Africa (including Namibia), sales dropped 46.0% on 2006. This can 

chiefl y be attributed to the depreciation of the rand against the euro, which 

prompted the Group to tighten its commercial policy in order to maintain 

profi tability, as the Group does not have a local manufacturing facility. 

In Iran, Renault’s leading market in the Region, Tondar (the local name for 

Logan) proved to be a huge success, with 85,000 fi rm orders recorded in the 

fi rst week of the vehicle’s market launch in March 2007. Diffi cult economic 

and fi nancial conditions meant that it took longer than expected to ramp up 

plant production. By the end of 2007, 10,700 Tondars had been delivered. 

Corrective measures have been taken and commercial targets for the coming 

years remain the same. 



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INTERNATIONAL ROLLOUT OF THE LOGAN PROGRAM 

LOGAN UNIT SALES 2007* 2006* 2005 2004 




TOTAL SINCE 

SEPT. 2004 

DACIA BRAND 

France 32,684 18,791 9,798 61,273 

Europe 46,850 28,605 20,511 2,080 98,046 

Euromed 146,793 133,707 103,301 20,751 404,552 

o/w Romania 101,799 96,037 88,275 20,274 306,385 

o/w Morocco 12,638 12,723 2,499 27,860 

o/w Algeria 9,090 8,560 2,819 20,469 

Americas 504 417 162 1,083 

Asia-Africa 3,127 2,952 1,412 2 7,493 

TOTAL LOGAN UNDER THE DACIA BRAND 229,958 184,472 135,184 22,833 572,447 

RENAULT BRAND 

Euromed 67,844 49,323 7,057 124,224 

o/w Russia 67,844 49,323 7,057 124,224 

Americas 40,609 13,811 2,858 57,278 

o/w Venezuela 12,762 5,037 689 18,488 

o/w Colombia 9,450 7,219 1,894 18,563 

Asia-Africa 28,368 28,368 

o/w India 17,706 17,706 

o/w Iran 10,657 10,657 

TOTAL LOGAN UNDER THE RENAULT BRAND 136,821 63,134 9,915 209,870 

TOTAL LOGAN 366,779 247,606 145,099 22,833 782,317 


Production 

The plant in Romania is the main Logan production site, supplying 

all countries in the France and Europe Regions, as well as Turkey, 

Algeria, Ukraine, the Middle East and Central Africa. The site 

has been manufacturing Logan Sedan since June 2004, Logan 

MCV since September 2006, and the Logan LCV version since 

December 2006. 

In 2005 three other sites started manufacturing Logan Sedan: 

Moscow in Russia (April 2005), Casablanca in Morocco (June 2005) 

and Envigado in Colombia (July 2005). 

The Group is boosting production capacity t o support Logan’s sales 

growth . Capacity at the Envigado site in Colombia was raised from 

an annual 45,000 to 70,000 units in August 2006. In Russia, the 

Group increased output from 60,000 to 80,000 units a year in 

June 2007. In the light of domestic demand and the potential of 

the Russian market, in February 2007 the Group decided to further 

extend the capacity of the Avtoframos plant to 160,000 units by 

mid-2009 in order to manufacture new models of the Logan range. 

In Romania, approximately €100 million is being invested to increase 

the production capacity of the Pitesti plant from 235,000 units in 

2006 to 350,000 by February 2008. 


The year 2007 marked a new stage with the start-up of production 

in Brazil, India and Iran, taking the number of Logan manufacturing 

sites to seven. 

In February 2007 production started up in Brazil for the domestic and 

Argentine markets. Cars manufactured at the Curitiba plant will also 

be sold in Mexico, where Nissan sells a Logan derivative under its 

own brand. To boost production, Renault started a second shift at the 

car assembly plant in early April 2007 and hired 600 workers. 

In India, the agreement signed in March 2005 with Renault’s 

Indian partner Mahindra includes production of a right-hand-drive 

Logan. The fi rst Logan came off the production line at Nashik on 

April 4, 2007. 

In Iran, installed production capacity will be 300,000 units a year by 

2009, divided between the facilities of Renault’s two local partners, 

Iran Khodro and Saipa. 

In November 2007 Renault announced that it was commencing 

production of Sandero (the fi fth vehicle designed on the B0 platform) 

at the Curitiba plant in Brazil. Nissan’s Rosslyn plant in South Africa 

will begin manufacturing Sandero in 2009. The Pitesti plant will also 

start manufacturing Sandero in 2008. 

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02 EARNINGS 


REPORT 

Sales and marketing 

In 2007 a total of 366,800 Logans were sold worldwide under the 

Renault and Dacia brands, 48.1% more than in 2006. Logan is a key 

factor in the Group’s international expansion, with more than 78% of 

sales volumes generated outside Europe. 782,300 units have been 

sold s ince the model was fi rst released in Romania in September 2004 . 

The success of the MCV version has helped to sustain this growth, 

which was further bolstered by the launch of the 85 hp diesel version 

in the middle of the year. Logan is now sold on 57 markets: 46 under 

the Dacia brand and 11 under the Renault brand. 

In 2007, sales growth was especially strong in the Americas Region, 

where 41,100 Logans were sold, a 189.0% increase compared 

with 2006. This was attributable to the popularity of the model in 

Colombia (up 30.9%) and in Venezuela (up 153.4%) and to Logan’s 

June launch in Argentina (1,800 units). With Logan arriving in July 

and the brand-new Sandero in December, Brazil sold 14,900 units 

under this program. Sales also increased in the France and Europe 

Regions, by 67.8%, to 79,500 units. 

In Asia-Africa, Logan sales totaled 31,500 units after the model’s 

launch in India and Iran. 

The top-ten countries for Logan sales are Romania, Russia, France, 

India, Germany, Brazil, Venezuela, Morocco, Iran and Colombia. 

2.1.1.2 SALES FINANCING 

PROPORTION OF NEW VEHICLE REGISTRATIONS FINANCED 

In 2007, RCI Banque fi nanced 33.1% of new Renault, Nissan and Dacia 

registrations in the France and Europe Regions (down from 33.9% in 2006). 

RCI Banque fi nanced a stable proportion of Renault registrations (35.4% versus 

35.3% in 2006) but a smaller proportion of Nissan registrations (24.1%, down 

from 28.9% in 2006). 

RCI Banque’s share of registrations decreased in the Americas Region (26.2% 

versus 30.4% in 2006). Good results in Argentina were not enough to offset 

a downturn in Brazil. 

RCI Banque’s share rose sharply to 26.6% in South Korea, RCI’s only outlet in 

the Asia-Africa Region, after 12.7% in 2006. 

RCI Banque’s performance in the Euromed Region (where Romania is the only 

consolidated country) improved to 31.4% (versus 30.7% in 2006). 


Expanding the range 

The Logan range was extended with the release of Logan MCV 

(Multi Convivial Vehicle) in October 2006 in Romania and Bulgaria. 

Logan MCV is a station wagon that seats up to seven adults. This model 

is now available in 33 different countries and 81,200 units have been 

sold. Logan MCV accounted for 22.2% of Logan sales. The model 

has been such a success that some countries are reporting delivery 

times of over one year. The situation is returning to normal, however, 

thanks to the increase in production capacity. Logan Van, an LCV 

version derived from Logan MCV, was launched on the Romanian 

and Bulgarian markets in February 2007. A total 7,300 units of this 

model – 2.0% of the Logan family sales mix – were sold in 2007. 

Sandero, which was launched in December 2007 in Brazil and in 

January 2008 in Argentina, represents the latest stage in the Group’s 

international expansion. In 2008, a Dacia version will be produced in 

Pitesti (Romania) for European and North African markets. In 2009, 

Renault Sandero will be built and sold in South Africa, and other 

markets are currently being considered. 

In all, the Logan program will offer six vehicles under the Renault 

Commitment 2009 plan. 

NEW FINANCING CONTRACTS AND AVERAGE LOANS 

OUTSTANDING 

RCI Banque generated €9.4 billion in new fi nancing contracts excluding “card” 

business and personal loans in 2007 (versus €9.7 billion in 2006, a decline 

of 3.1%), with 898,334 new contracts in 2007 (compared with 946,036 in 

2006, a decline of 5.0%). 

In 2007, RCI Banque’s average loans outstanding dipped 1.2% to €22.9 billion 

(on a consistent basis). 

INTERNATIONAL GROWTH 

RCI Banque changed its structure in the U.K. by setting up RCI Financial Services, 

a wholly-owned subsidiary of RCI in the U.K., which now manages Renault and 

Nissan business (until June 30, 2007 the Renault fi nancing business was 

managed jointly with HBOS). 

RCI established a presence in the Nordic countries, where a branch opened for 

business on January 1, 2008; in Morocco, where a fi nance company was set 

up after receiving approval from the Moroccan central bank, with consumer 

fi nancing starting up in November and network fi nancing in December, both 

of which are fully fi nanced by RCI Maroc; and in Ukraine, where a commercial 

company was set up and is scheduled to open for business in fi rst-quarter 

2008. 

RCI also stepped up its presence in Poland, by starting up the network fi nancing 

and Nissan customer business on January 1, 2007. 



01 

02 

03 

04 

05 

06 

07 

08

In 2007, RCI Banque also launched fi nance businesses in: 

n Slovenia: operational startup of the branch and the network fi nancing 

business; transfer of Renault’s customer sales agreements on 

January 1, 2007; 

2.1.1.3 SALES AND PRODUCTION STATISTICS ✦ 

TOTAL INDUSTRY VOLUME – REGISTRATIONS 

Main Renault group markets 


n 

n 




the Baltic States: operational startup of the sales agreement with 

Hansa Leasing; 

Slovakia: startup of the network fi nancing business on May 1, 2007. 


FRANCE REGION 2,526,005 2,440,580 3.5 

EUROPE REGION 15,513,732 15,333,358 1.2 

o/w: Germany 3,376,044 3,670,406 -8.0 

Italy 2,725,861 2,553,329 6.8 

U.K. 2,752,175 2,678,943 2.7 

Spain+Canary Islands 1,890,694 1,909,241 -1.0 

Belgium+Luxembourg 648,104 641,083 1.1 

Poland 347,378 280,020 24.1 

FRANCE + EUROPE REGIONS 18,039,737 17,773,938 1.5 

EUROMED REGION 4,610,779 3,658,517 26.0 

o/w: Romania 351,445 289,066 21.6 

Russia 2,569,522 1,886,824 36.2 

Turkey 594,762 617,838 -3.7 

Algeria 196,853 142,955 37.7 

Morocco 102,202 84,277 21.3 

AMERICAS REGION 5,373,872 4,558,090 17.9 

o/w: Mexico 1,093,988 1,132,417 -3.4 

Colombia 225,504 176,273 27.9 

Brazil 2,339,920 1,834,581 27.5 

Argentina 534,199 420,304 27.1 

ASIA-AFRICA REGION 21,889,036 21,139,614 3.5 

o/w: South Africa 587,131 619,968 -5.3 

South Korea 1,256,598 1,182,680 6.3 

EUROMED + AMERICAS**+ ASIA-AFRICA REGIONS 31,873,687 29,356,221 8.6 


** Excl. North America. 

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07 

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02 EARNINGS 


REPORT 

RENAULT GROUP – REGISTRATIONS (REG’S) AND MARKET SHARE (MKT SH.) 

Sales performance in main markets 

2007* 2006* 

CARS + LCVs REG’S (in units) MKT SH. (%) REG’S (in units) MKT SH. (%) 

FRANCE REGION 626,705 24.8 641,905 26.3 

EUROPE REGION 966,538 6.2 1,024,127 6.7 

o/w: Germany 157,968 4.7 173,276 4.7 

Italy 143,800 5.3 142,349 5.6 

U.K. 148,970 5.4 160,286 6.0 

Spain+Canary Islands 198,948 10.5 206,326 10.8 

Belgium+Luxembourg 63,792 9.8 66,986 10.4 

Poland 25,763 7.4 22,475 8.0 

FRANCE + EUROPE REGIONS 1,593,243 8.8 1,666,032 9.4 

EUROMED REGION 424,431 9.1 380,657 10.2 

o/w: Romania 134,176 38.2 131,474 45.5 

Russia 101,166 3.9 72,484 3.8 

Turkey 91,645 15.4 92,366 14.9 

Algeria 32,667 16.6 25,629 17.9 

Morocco 30,151 29.5 26,750 31.7 

AMERICAS REGION 245,197 4.6 185,438 4.1 

o/w: Mexico 18,615 1.7 20,274 1.8 

Colombia 39,053 17.3 33,196 18.8 

Brazil 73,614 3.1 51,682 2.8 

Argentina 66,969 12.5 48,196 11.5 

ASIA-AFRICA REGION 191,702 0.9 174,612 0.8 

o/w: South Africa 8,407 1.4 15,580 2.5 

South Korea 117,203 9.3 119,088 10.1 

EUROMED + AMERICAS**+ ASIA-AFRICA REGIONS 861,330 2.7 740,707 2.5 


** Excl. North America. 

RENAULT GROUP – REGISTRATIONS IN FRANCE + EUROPE REGIONS BY MODEL 



Twingo/Twingo II 88,714 55,668 59.4 

Clio II/Clio III 434,561 482,307 -9.9 

Thalia 6,581 8,267 -20.4 

Modus 62,825 82,208 -23.6 

Logan/Logan MCV 79,487 47,347 67.9 

Mégane/Mégane II 488,653 546,134 -10.5 

Laguna II/Laguna III 71,397 77,249 -7.6 

Vel Satis 3,043 4,877 -37.6 

Espace/Espace IV 40,624 41,366 -1.8 

Kangoo 142,061 159,815 -11.1 

Trafic/Trafic II 88,950 76,424 16.4 

Master/Master II 75,963 73,886 2.8 

Mascott**/Master Propulsion 6,897 9,851 -30.0 

Maxity 2,804 - - 

Other 683 633 7.9 

REGISTRATIONS IN FRANCE + EUROPE 1,593,243 1,666,032 -4.4 


** Mascott is distributed by Renault Trucks, a subsidiary of AB Volvo. 



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05 

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07 

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RENAULT GROUP – REGISTRATIONS IN EUROMED, AMERICAS AND ASIA-AFRICA REGIONS BY MODEL 




CARS + LCVS (in units) 2007* 2006* % CHANGE 


Clio II/Clio III 97,734 92,179 6.0 

Thalia/Symbol 94,393 85,340 10.6 

Modus 1,435 4,157 -65.5 

Sandero 279 - - 

Logan/Logan MCV 287,245 200,210 43.5 

Mégane/Mégane II 149,750 125,495 19.3 

Laguna/Laguna III 4,152 4,199 -1.1 

Vel Satis 66 82 -19.5 

Espace/Espace IV 139 289 -51.9 

SM3 29,726 31,853 -6.7 

SM5 73,330 72,270 1.5 

SM7 14,238 17,537 -18.8 

QM5 2,518 - - 

Kangoo 72,271 64,556 12.0 

Trafic/Trafic II 4,064 3,933 3.3 

Master/Master II 15,412 13,027 18.3 

Mascott**/ Master Propulsion 280 452 -38.1 

Maxity 52 - - 

Other 70 11,864 -99.4 

REGISTRATIONS IN EUROMED + AMERICAS + ASIA-AFRICA 861,330 740,707 16.3 


** Mascott is distributed by Renault Trucks, a subsidiary of AB Volvo. 

RENAULT GROUP – SALES PERFORMANCE OF MODELS BY SEGMENT IN FRANCE + EUROPE REGIONS * 

SEGMENT 

% CHANGE SEGMENT 

2007/2006 % 2007 % 2006 


RENAULT’S SHARE RANK 

CHANGE (PT) 

2007/2006 2007 

PASSENGER CARS 

Twingo/Twingo II A +5.3 7.4 4.9 2.5 6 

Clio/Clio III B -0.1 8.7 9.7 -1.1 3 

Thalia B -0.1 0.1 0.2 0.0 33 

Modus B -0.1 1.3 1.7 -0.4 22 

Logan B -0.1 1.8 1.1 0.7 16 

Mégane/Mégane II C -0.2 9.6 10.8 -1.1 3 

Laguna D -5.4 3.1 3.1 -0.1 11 

Vel Satis E1 -5.6 0.5 0.8 -0.3 21 

Espace/Espace IV MPV -0.5 14.7 14.9 -0.2 2 

Kangoo Passenger-carrying van -1.1 10.9 13.5 -2.6 3 

Trafic/Trafic II Passenger-carrying van -1.1 4.2 3.3 0.9 9 

Master/Master II 

LIGHT COMMERCIAL VEHICLES 

Car-derived vans: 

Passenger-carrying van -1.1 1.2 1.1 0.1 16 

Twingo -0.8 0.2 0.2 0.0 45 

Clio -0.8 14.8 14.3 0.5 1 

Modus -0.8 0.9 1.3 -0.3 22 

Mégane/Mégane II 

Small vans: 

-0.8 5.1 5.4 -0.3 5 

Kangoo 

Vans: 

-0.2 18.3 19.7 -1.4 2 

Trafic/Trafic II -11.0 6.4 6.2 0.1 6 

Master/Master II -11.0 5.9 6.5 -0.6 7 

Mascott/Master Propulsion -11.0 0.6 1.0 -0.4 23 


01 

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06 

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02 EARNINGS 


REPORT 

RENAULT GROUP WORLDWIDE PRODUCTION BY MODEL AND BY SEGMENT (1) 



Logan 420,255 256,351 63.9 

ENTRY SEGMENT 420,255 256,351 63.9 


Clio**/Clio III/Thalia 631,567 720,194 -12.3 

Modus 67,514 70,979 -4.9 

A AND B SEGMENTS 817,163 855,274 -4.4 

Mégane/Mégane II 629,612 662,281 -4.9 

SM3 82,650 71,817 15.1 

QM5/Koléos 5,241 - - 

C SEGMENT 717,503 734,098 -2.3 

Laguna/Laguna III 99,512 73,065 36.2 

SM5 76,363 71,675 6.5 

SM7 15,081 17,807 -15.3 

Espace IV 40,674 41,432 -1.8 

VelSatis 2,812 4,683 -39.9 

D, E AND MPV SEGMENTS 234,442 208,662 12.3 

Kangoo 220,038 232,647 -5.4 

Nouveau Kangoo 7,226 - - 

Trafic II (2) 115,904 107,279 8.0 

Master II 119,120 105,789 12.6 

Mascott 7,585 17,413 -56.4 

Pickup 1310 - 11,208 - 

SMALL VANS, VANS AND PICKUPS 469,873 474,336 -0.9 

GROUP WORLDWIDE PRODUCTION 2,659,236 2,528,721 5.2 


** Including 8,946 Renault-branded Clio manufactured at the Nissan plant in Aguascalientes (Mexico) in 2007. 

(1) Production data concern the number of vehicles leaving the production line. 

(2) Excluding GM production in Luton but including GM production in Barcelona. 



01 

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Renault g roup’s new geographical organization – Countries in each region 

FRANCE 

EUROPE (EXCL. FRANCE) 

Metropolitan France 




Austria, Baltic States, Belgium-Luxembourg, Bosnia, Croatia, Cyprus, Czech Republic, Denmark, Finland, Germany, Greece, Hungary, Iceland, Ireland, Italy, 

Kosovo, Macedonia, Malta, Montenegro, Netherlands, Norway, Poland, Portugal, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK 

EUROMED 

Eastern Europe Bulgaria, Moldova, Romania 

Russia/CIS Armenia, Belarus, Georgia, Kazakhstan, Russia, Ukraine 

Turkey Turkey, Turkish Cyprus 

North Africa Algeria, Morocco, Tunisia 

AMERICAS 

Northern Latin America Colombia, Costa Rica, Cuba, Ecuador, Honduras, Mexico, Nicaragua, Panama, El Salvador, Venezuela, Dominican Republic, Guadeloupe, French Guiana, 

Martinique 

Southern Latin America Argentina, Brazil, Bolivia, Chile, Paraguay, Peru, Uruguay 

ASIA & AFRICA 

Asia Pacific Australia, Indonesia, Japan, Malaysia, New Caledonia, New Zealand, Singapore, Tahiti, Thailand 

India 

Middle East 

Saudi Arabia, Egypt, Gulf States, Jordan, Lebanon, Lybia, Pakistan, Syria + French speaking African countries 

& French-speaking Africa 

Africa & Indian Ocean South Africa + Sub-Saharan African countries, Indian Ocean islands 

Korea 

Iran 

China Hong Kong, Taiwan 

Israel 

2.1.2 COMMENTS ON THE FINANCIAL RESULTS 

Group revenues totaled €40,682 million at 1.8% increase in 2006, on a 

consistent basis 4 . 

Operating margin was €1,354 million, or 3.3% of revenues, in 2007 compared 

with €1,063 million and 2.6% in 2006. ✦ 

Automobile contributed €882 million in 2007, or 2.3% of revenues, compared 

with 1.5% in 2006. That improvement, in the face of increasingly unfavorable 

exchange rates, can be attributed chiefl y to growth outside Europe and costcutting 

efforts, mainly in purchasing (despite the increase in raw materials 

prices), but also on manufacturing costs and administrative expenses. 

Sales Financing (RCI Banque) contributed €472 million to operating margin, 

or 23.6% of revenues (€492 million, or 25.6% in 2006). 


Renault earned €1,675 million from its share in associated companies – 

chiefl y Nissan and AB Volvo – taking net income to €2,734 million. 

The net financial debt of Automobile decreased €326 million to €2,088 million 

at December 31, 2007, compared with €2,414 million at December 31, 2006. 

The ratio of net fi nancial debt to Group shareholders’ equity stood at 9.5% at 

end-December 2007, down from 11.5% at end-December 2006. 

Automobile generated €961 million of free cash fl ow 5 in 2007. 

(4) The changes in accounting methods chiefly concern operations related to contracts with subcontractors and sales of parts under warranty to customers, previously recorded as revenue. 

(5) Free cash flow: self-financing capacity less property, plant, equipment and intangibles net of sales, including the variation in working capital requirements. 

01 

02 

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06 

07 

08 


02 EARNINGS 


REPORT 

2.1.2.1. CONSOLIDATED INCOME STATEMENT 

Group revenues came to €40,682 million, up 1.8% on 2006, on a consistent basis. 

Divisional contribution to Group revenues ✦ 

2007 REPORTED 

2006 RESTATED FOR 2007 SCOPE 

AND METHODS (1) % CHANGE 2007/2006 

2006 

REPORTED 

(€ million) H1 H2 YEAR H1 H2 YEAR H1 H2 YEAR YEAR 

Automobile 19,567 19,112 38,679 19,871 18,187 38,058 -1.5% 5.1% 1.6% 39,605 

Sales Financing 995 1,008 2,003 985 926 1,911 1.0% 8.9% 4.8% 1,923 

TOTAL 20,562 20,120 40,682 20,856 19,113 39,969 -1.4% 5.3% 1.8% 41,528 

(1) The changes in accounting methods chiefly concern operations related to contracts with subcontractors and sales of parts under warranty to customers, previously recorded as revenue. 

The contribution from Sales Financing (RCI Banque) to revenues was 

€2,003 million, up 4.8% on 2006, on the higher average interest rate on the 

customer loan portfolio. 

The contribution from Automobile was €38,679 million, up 1.6% on a 

consistent basis. 

Several trends were at work: 

n the revenue contribution from the France and Europe Regions fell 2.6% in 

a fi ercely competitive market. Sales growth was positive in the second half, 

quickening in the fi nal quarter with the launch of new products; 

Divisional contribution to Group operating margin 

all the other Regions made a positive contribution to revenues in 2007 on 

strong sales growth, especially in the Americas and Euromed Regions, where 

the product mix improved. The total contribution of Euromed, Americas and 

Asia-Africa improved 3.1% on 2006. 

The increase in revenues can also be attributed to higher sales of powertrains 

and vehicles to partners, which made a positive contribution of 1.2 point. 

(€ million) H1 2007 H2 2007 YEAR 2007 YEAR 2006 CHANGE 

Automobile 455 427 882 571 311 

% of revenues 2.3% 2.2% 2.3% 1.5% 

Sales financing 267 205 472 492 -20 

% of revenues 26.8% 20.3% 23.6% 25.7% 

TOTAL 722 632 1,354 1,063 291 

% of revenues 3.5% 3.1% 3.3% 2.6% 

Group operating margin in 2007 totaled €1,354 million in 2007, or 3.3% of 

revenues, compared with €1,063 million and 2.6% in 2006. 

Sales Financing contributed €472 million to Group operating margin, or 23.6% 

of its revenues, versus €492 million and 25.7% in 2006. This slight contraction 

can be explained by a decline in sales fi nancing business, due to the decrease 

in commercial activity in Automobile in 2006 and fi rst-half 2007. 

Amid adverse economic conditions in 2007, with a negative currency impact 

of €154 million and raw materials costs up by €270 million, Automobile’s 

contribution to operating margin increased 54.5% to €882 million, or 2.3% of 

revenues, owing chiefl y to: 

n growth in international sales, with the three non-European regions generating 

positive operating margin; 



n 

n 

n 


the steady performance of the commercial vehicle line-up in Europe; 

continued cost-cutting efforts: 

. purchasing costs fell by €660 million, excluding the impact of raw 

materials, 

. manufacturing and logistics costs improved by €137 million, 

. G&A declined 2%, by €44 million, 

. special product-recall and warranty extension operations were carried out 

with a view to preserving the Group’s brand image; these resulted in a 

€152 million increase in warranty-related costs. 

The product development cycle was the reason for a €196 million increase in 

capitalized R&D expenses in 2007. 

01 

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06 

07 

08

Renault g roup – R&D expenses* 




(€ million) H1 2007 H2 2007 YEAR 2007 YEAR 2006 

R&D expenses 1,222 1,240 2,462 2,400 

% of revenues 5.9% 6.2% 6.1% 6.0% 

Capitalized development expenses (666) (621) (1,287) (1,091) 

% R&D expenses 54.5% 50.1% 52.3% 45.5% 

Amortization 351 324 675 654 

R&D EXPENSES RECORDED IN THE INCOME STATEMENT 907 943 1,850 1,963 

* R&D expenses are fully incurred by Automobile. 

Research and Development expenses amounted to €2,462 million in 2007, 

of which €1,287 million, or 52.3% of the total, were capitalized, compared with 

45.5% in 2006. This amount refl ects the ongoing development and renewal of 

the vehicle and powertrain range under Renault Commitment 2009. 

Overall, R&D expenses recorded in the income statement amounted 

to €1,850 million, or 4.5% of Renault Group revenues, compared with 

€1,963 million in 2006, or 4.9% restated. 

Other operating income and expenses showed a net charge of €116 million 

in 2007, compared with a net charge of €186 million in 2006. 

In 2007 this item essentially comprised: 

n 

n 

€143 million in restructuring and workforce adjustment costs and provisions, 

compared with €241 million in 2006; 

capital gains amounting to €86 million, compared with €109 million in 2006, 

on the sale of land, mainly in France and Spain. 

After recognizing this item, Group operating income came out at €1,238 million, 

versus €877 million in 2006. 

Net financial income/expense showed income of €76 million in 2007, 

€15 million higher than in 2006. Excluding the exceptional €135 million profi t on 

the sale of Scania securities in 2006, fi nancial income improved by €150 million. 

That increase can be attributed chiefl y to: 

n 

n 

the lower cost of borrowing in Automobile. Through sound management of its 

fi nancial assets and liabilities, Automobile continues to optimize the cost of its 

debt, despite a slight increase in average borrowings over the period; 

income of €53 million related to the positive impact of the fair value change 

in Renault SA redeemable shares at closing market price compared with a 

charge of €31 million in 2006. 

In 2007 Renault booked a profi t of €1,675 million from its share in the net 

income of associated companies: 

n 

n 

€1,288 million from Nissan; 

€352 million from AB Volvo. 


Current and deferred taxes amounted to a net charge of €255 million 

(equivalent to 2006). The effective tax rate (before the impact of income from 

associated companies) was 19% in 2007, compared with 27% in 2006. 

The lower rate was due to the refund of a tax credit in Italy and the continued 

improvement in the profi t outlook for Renault do Brasil and Renault Argentina, 

which made it possible to recognize some of the deferred tax assets arising 

on loss carryforwards in those countries. 

Net income was €2,734 million, compared with €2,960 million in 2006. 

After neutralizing Renault shares held by Nissan and treasury stock, earnings 

per share came to €10.32, compared with €11.23 in 2006. 

2.1.2.2 INVESTMENTS AND FUTURE- 

RELATED COSTS 

Net capital expenditure by Automobile came to €3,565 million in 

2007 (including €1,287 million in capitalized R&D expenses) compared 

with €3,585 million in 2006 (including €1,091 million in capitalized R&D 

expenses). 

Tangible and intangible investments net of disposals, 

by division 

(€ million) 2007 2006 

Tangible investments 3,160 3,340 

Intangible investments 1,347 1,129 

o/w capitalized R&D 1,287 1,091 

o/w other intangible investments 60 38 

Total acquisitions 4,507 4,469 

Disposal gains (942) (884) 

Total Automobile 3,565 3,585 

Total Sales Financing (7) (93) 

TOTAL GROUP 3,558 3,492 

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07 

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02 EARNINGS 


REPORT 

In 2007 capital expenditure of Automobile was directed primarily at renewing 

products and components and upgrading facilities: 

n 

n 

in Europe, range-related investments accounted for 69% of total gross 

outlays. Funds were allocated chiefl y to the New Laguna, New Kangoo and 

the next Mégane; 

outside Europe, investments accounted for 33% of total gross spend, and 

were allocated primarily to Romania, Korea, Turkey and Mercosur to extend 

the range and increase production capacity. 

The main non product-related investments were in quality, working conditions 

and the environment, as in 2006. 

Renault Group – Future-related costs 

(€ million) 2007 2006* 

Capital expenditure, net of disposals 3,558 3,492 

Capitalized development expenses (1,287) (1,091) 

Leased vehicles (net of disposals) 

Net industrial and commercial 

(95) (181) 

investments (1) 2,176 2,220 

% of revenues 5.3% 5.5% 

R&D expenses (2) 2,462 2,400 

% of revenues 6.1% 6.0% 

Future-related costs (1) + (2) 4,638 4,620 

% of revenues 11.4% 11.5% 

* Restated revenues taken into account. 

2.1.2.3. AUTOMOBILE NET DEBT 

Net financial debt of Automobile was €2,088 million at December 31, 2007, 

or 9.5% of shareholders’ equity (compared with 11.5% of shareholders’ equity 

at December 31, 2006). 

The €326 million reduction in net debt was due to the following factors: 

n 

n 

n 

cash fl ow of €4,552 million, an increase of €1,289 million on a consistent 

basis compared with 2006. That improvement was attributable to an increase 

in operating margin and dividends from associated companies, of which: 

. 

. 

€456 million from Nissan, 

€477 million from AB Volvo; 

sound management of net capital expenditure, which remained stable in 

2007, at €3,565 million (after €3,585 million in 2006); 

virtual stability of the working capital requirement at end-December 2007. 

Automobile generated €961 million in free cash fl ow. The dividend payout was 

€913 million, compared with €681 million in 2006, including €863 million 

paid by Renault SA. 

Automobile’s net fi nancial debt also improved as a result of translation gains, 

including €233 million in connection with yen-denominated debt. 

Automobile – Net financial debt 

(€ million) DECEMBER 31, 2007 DECEMBER 31, 2006 

Non-current financial liabilities 5,141 5,159 

Current financial liabilities 

Non-current financial assets 

– other securities, loans and 

2,413 4,423 

derivatives on financial operations (585) (527) 

Current financial assets (1,184) (1,678) 

Cash and cash equivalents (3,697) (4,963) 

NET FINANCIAL DEBT 2,088 2,414 

2.1.2.4. SHAREHOLDERS’ EQUITY 

At December 31, 2007, shareholders’ equity had increased by €998 million 

to €22,069 million, compared with a restated amount of €21,071 million at 

December 31, 2006. 

The main reasons for the increase are recognition of €2,734 million in net 

income for 2007, minus: 

an €803 million dividend payout by Renault, or €3.10 per share for 2006, 

adjusted for Renault’s equity interest in Nissan and treasury stock; 

a €738 million decline in translation adjustments, mainly including the indirect 

impact of the change in Nissan shareholders’ equity, net of yen hedging; 

a €126 million increase in treasury stock compared with December 31, 2006 

as a result of share buybacks in second-half 2007 to cover dilution related 

to the exercise of options granted to employees; 

a €37 million decrease in the fi nancial instrument revaluation reserve 

(cash fl ow hedges and available-for-sale fi nancial instruments). 



n 

n 

n 

n 


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08

2.1.3 FINANCIAL INFORMATION ON THE ALLIANCE 

The purpose of the fi nancial data in this section is twofold: to broadly quantify the 

economic signifi cance of the Renault-Nissan Alliance through key performance 

indicators, and to make it easier to compare the assets and liabilities of the 

two Groups. The data of both Groups comply with the accounting standards 

applied by Renault in 2007. 

The characteristics of the Alliance mean, among other things, that Renault and 

Nissan’s assets and liabilities cannot be combined. Consequently, these data do 

not correspond to a consolidation as defi ned by generally accepted accounting 

principles and are not certifi ed by the statutory auditors. 

The information concerning Renault is based on the consolidated fi gures 

released at December 31, 2007, while the information concerning Nissan is 

based on the restated consolidated fi gures prepared for the purposes of the 

Renault consolidation, covering the period from January 1 to December 31, 

2007 whereas Nissan’s fi nancial year-end is March 31. 

Revenues 2007 at Dec. 31, 2007 




2.1.3.1 KEY PERFORMANCE INDICATORS 

The preparation of the key performance indicators under Renault accounting 

policies takes into account the following differences from the fi gures published 

by Nissan under Japanese accounting standards: 

n 

n 

n 

n 

revenues are presented net of discounts and rebates; 

sales with buy-back commitments have been restated as leases; 

reclassifications have been made when necessary to harmonise the 

presentation of the main income statement items; 

restatements for harmonisation of accounting standards and adjustments 

to fair value applied by Renault for acquisitions of 1999 and 2002 are 

included. 

(€ million) RENAULT NISSAN (1) 

INTERCOMPANY 

ELIMINATIONS ALLIANCE 

Sales of goods and services 39,190 63,591 (2,953) 99,828 

Sales financing revenues 1,492 4,816 - 6,308 

REVENUES 40,682 68,407 (2,953) 106,136 

(1) Converted at the average exchange rate for 2007: EUR 1 = JPY 161.2. 

The Alliance’s intercompany business mainly consists of commercial dealings 

between Renault and Nissan. These items have been eliminated to produce 

the revenue indicator. Their value is estimated on the basis of Renault’s 2007 

results. 

The operating margin, the operating income and the net income of 

the Alliance in 2007 are as follows: 

OPERATING OPERATING 

(€ million) 

MARGIN INCOME NET INCOME (2) 

Renault 1,354 1,238 1,446 

Nissan (1) 4,680 4,380 2,948 

ALLIANCE 6,034 5,618 4,394 

(1) Converted at the average exchange rate for 2007: EUR 1 = JPY 161.2. 

(2) Renault’s net income is adjusted to exclude Nissan’s contribution and Nissan’s net income is 

similarly adjusted to exclude Renault’s contribution. 


Intercompany transactions impacting the indicators are minor and have therefore 

not been eliminated. 

For the Alliance, the operating margin is equivalent to 5.7% of revenues. 

In 2007, the Alliance’s research and development expenses, after 

capitalisation and amortisation, are as follows: 

(€ million) 

Renault 1,850 

Nissan 2,251 

ALLIANCE 4,101 

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02 EARNINGS 


REPORT 

2.1.3.2 BALANCE SHEET INDICATORS 

CONDENSED RENAULT AND NISSAN BALANCE SHEETS 

Renault at December 31, 2007 

ASSETS (€ million) SHAREHOLDERS’ EQUITY AND LIABILITIES (€ million) 

Intangible assets 4,056 Shareholders’ equity 22,069 

Property, plant and equipment 13,055 Deferred tax liabilities 118 

Investments in associates (excluding Alliance) 2,011 Provisions for pension and other long-term employee benefit obligations 1,203 

Deferred tax assets 220 Financial liabilities of the Automobile division 6,658 

Inventories 5,932 

Financial liabilities of the Sales F inancing D ivision 

and S ales F inancing D ebts 21,468 

Sales financing receivables 20,430 Other liabilities 16,682 

Automobile receivables 2,083 

Other assets 4,724 

Cash and cash equivalents 4,721 

Total assets excluding investment in Nissan 57,232 

Investment in Nissan 10,966 

TOTAL ASSETS 68,198 TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 68,198 

Nissan at December 31, 2007 (1) 

ASSETS (€ million) SHAREHOLDERS’ EQUITY AND LIABILITIES (€ million) 

Intangible assets 4,546 Shareholders’ equity 27,583 

Property, plant and equipment 31,580 Deferred tax liabilities 2,079 

Investments in associates (excluding Alliance) 133 Provisions for pension and other long-term employee benefit obligations 1,744 

Deferred tax assets - Financial liabilities of the Automobile division 4,574 

Inventories 7,922 

Financial liabilities of the Sales F inancing D ivision 

and S ales F inancing D ebts 29,049 

Sales financing receivables 21,897 Other liabilities 15,773 

Automobile receivables 4,380 

Other assets 5,561 

Cash and cash equivalents 2,733 

Total assets excluding investment in Renault 78,752 

Investment in Renault 2,050 

TOTAL ASSETS 80,802 TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 80,802 

(1) Converted at the closing rate for 2007: EUR 1 = JPY 164.9. 

The values shown for Nissan assets and liabilities refl ect restatements for 

harmonisation of accounting standards and adjustments to fair value applied by 

Renault for acquisitions made in 1999 and 2002, mainly concerning revaluation 

of land and other tangible fi xed assets, capitalisation of development expenses, 

and pension-related provisions. 

Balance sheet items have been reclassifi ed where necessary to make the data 

consistent across both Groups. 

Nissan’s restated balance sheet includes the securitised items presented 

off- balance sheet in Nissan’s fi nancial statements under Japanese GAAP. 

Purchases of property, plant and equipment by both Alliance groups 

for 2007, excluding leased vehicles, amount to: 

(€ million) 

Renault 2,290 

Nissan 3,129 

ALLIANCE 5,419 

Based on the best available information, Renault estimates that the impact of 

full consolidation of Nissan on its shareholders’ equity calculated under current 

accounting policies would result in: 

a maximum 5-10% decrease in shareholders’ equity – Group share; 

a €16 billion increase in shareholders’ equity – minority interests’ share. 



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2.1.4 PROGRESS REPORT ON RENAULT COMMITMENT 2009 

Launched two years ago, the Renault Commitment 2009 plan is three-fold: 

ONE: QUALITY 

The improvements are as follows : 

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the number of defects at the end of the assembly line has been divided by 

six in the past two years; 

the number of incidents reported during the fi rst three months on the road 

was reduced by half from 2005 to 2007; 

some vehicles already rank among the top 3 of their segment (for example 

Scénic, Modus and Clio 3 ranked among the best three cars of their category 

by the German Automobile Club and Logan recognized in India as the best 

in its category by two independent organizations); 

all indicators show that New Laguna is on track to be acknowledged as one 

of the top three in its segment in terms of quality; 

the quality of service has improved considerably as well. The share of “fully 

satisfi ed” customers worldwide with sales and after-sales services rose 

from 72.1% in January 2006 to 78.4% at the end of 2007. This increase 

represents 700,000 more customers who are fully satisfi ed. 

All processes are now in place to ensure that this progress spreads to the entire 

line-up, all over the world, to make quality one of Renault’s durable assets. 

TWO: PROFITABILITY 

The operating margin milestones set for 2006 and 2007 were achieved. 

The operating margin of 3.3% in 2007 exceeds the 3% forecast. In 2006 

and 2007, the improvement in profi tability is due chiefl y to the efforts made 

by all business functions in the past two years to improve productivity and 

cut costs: 

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purchasing costs were reduced by 9.1%, excluding the impact of raw material 

prices; 

productivity gains in the plants helped cut manufacturing costs by 5.4%; 

logistics costs fell by 7.3%; 

general and administrative expenses have declined 5% despite the 

development of international operations; 

distribution costs rose by 3.1%. They are expected to decline in the next two 

years of the plan as the product range is renewed; 

investment costs have been reduced by 35%, enabling Renault to execute 

this period of intensive development without a signifi cant increase in its 

investments. 


This policy will be pursued with the same focus in 2008 and 2009. 



The Regional Management Committees set up to reinforce Renault international 

management have increased the number of profi t centers and reduced the 

Group’s dependence on the European market. 

Cost reduction 

2007 VS 2005 2009 OBJECTIVES 

Purchasing performance -9.1% -14%* 

Manufacturing -5.4% -12% 

Logistics -7.3% -9% 

G&A -5% (ie 4.8% rev.) < 4% revenues 

Distribution costs +3.1% -8% per unit in Europe 

Investment costs -35% -50% 

* 2008 o bjective. 

THREE: GROWTH 

The groundwork for strong and sustainable growth was centered on the product 

range, the development of new technologies and geographical expansion: 

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n ever before has Renault developed so many new products, at such high 

quality levels and during such a short period as in the past two years. 

The number of new vehicles being developed doubled between 2005 

and 2007. The resulting rapid pace of product launches will fuel growth 

thanks to a rejuvenated product range, extending into new segments and 

much better tailored to the requirements of customers, be they French, 

German, Brazilian, Indian, Russian or Korean; 

a longside these products, new technologies designed to reconcile 

performance, safety and preservation of the environment were developed. 

New engines were added to the powertrain range, which have become 

benchmarks in their segments in terms of fuel effi ciency, like the 2.0liter 

dCi, the 1.2-liter 100 hp turbo or the dCi 110 hp, which enables New 

Laguna to emit just 130 grams of carbon dioxide per kilometer. Thanks to 

the optimization of existing engines, 48% of Renault vehicles sold in Europe 

in 2007 emit less than 140 grams of carbon dioxide per kilometer. 

Lastly, Renault leadership in the fi eld of safety was confi rmed with nine 

cars that have been awarded the maximum 5-star rating in the Euro NCAP 

tests; 

t he fi rst half of the plan also saw Renault’s expansion in high-growth markets 

(production capacities increased in Colombia, Russia, Turkey and Romania 

and launch into new markets – India and Iran). Between the end of 2005 and 

the end of 2007, the production capacity, including that installed at partners, 

increased by 600,000 vehicles a year. 

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02 RESEARCH 


AND DEVELOPMENT 

2.1.5 OUTLOOK 

In a less favorable macroeconomic environment in 2008, Renault can count on 

the impact from the launch of nine new products globally and on its expansion 

into the most dynamic and growing markets for auto sales in the world. 

Renault therefore confi rms its target of 4.5% operating margin for the year and 

an increase of more than 10% in Group sales compared to 2007. 

2.2 RESEARCH AND DEVELOPMENT 

2.2.1 INTRODUCTION 

The Automobile activity invests heavily in research and development to renew 

and broaden the range and provide the high standards of service expected 

by customers. 

Research and Development expenditure * 

At the Annual General Meeting of shareholders, Renault will propose a dividend 

payment of €3.80 per share in 2008 on 2007 earnings, compared with a 

payment of €3.10 in 2007 on 2006 earnings. That proposal is in line with the 

announcement of steadily increasing dividends under Renault Commitment 

2009. 

R&D spending also addresses the challenges facing the automotive industry, 

notably with regard to the road safety and environmental issues to which Renault 

is deeply committed. 

UNDER IFRS 2007 2006** 2005 2004 

R&D expenditure (€ million) 2,462 2,400 2,264 1,961 

Group revenues (€ million) 40,682 39,969 41,338 40,292 

R&D spend ratio 6.1% 6.0% 5.50% 4.90% 

R&D headcount, Renault group 16,219 15,658 12,939 12,352 

Renault group patents 998 933 895 765 

* All R&D expenditure is incurred by Automobile. 

** 2007 scope 

2.2.2 R&D AND RENAULT COMMITMENT 2009 

R&D activities can be broken down into two main categories: 

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research, which involves preparing and introducing innovative features for 

new vehicles; 

design, development and manufacture, which involves producing vehicles 

and powertrain subsystems in accordance with quality, cost and delivery 

time criteria. 

Renault pursues its innovation policy in two ways: 

developing innovations that deliver clear added value for customers; 

developing innovations that can be used extensively across the vehicle 

range. 



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The Renault [T] (“square T”) technology plan, launched in 2005, consists of 

prioritizing and scaling research and advanced technology activities so that 

they are consistent with the strategic priorities of Renault Commitment 2009 

in four main areas: 

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safety; 

CO 2 and the environment; 

traveling comfort; 

dynamic performance. 

2.2.2.1 SAFETY 

Renault’s objective is to improve real levels of safety wherever the company 

sells its vehicles. Renault’s integrated approach to safety has made it a 

recognized leader in this area (eight models with fi ve Euro NCAP stars in 2007). 

This approach is based on three building blocks . 

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Prevent accidents: with systems such as the tire pressure monitoring 

system, speed limiter and intelligent navigation; 

Correct the course of the vehicle: emergency brake assist (EBA) or Electronic 

Stability Control (ESC/ESP); 

Protect passengers if an accident occurs: crumple zones, Renault Protection 

System (pretensioners, seatbelts with force limiters, controled-defl ation 

airbags), anti-submarining. 

For European markets, Renault is continuing research into the most detrimental 

impact confi gurations: the emphasis has shifted from frontal impact to side 

impact, which is the main priority today. 

Renault is also facing the challenge of road safety in its new markets. Accident 

mechanisms in these countries are not the same as in Europe. This fact has to 

be taken into consideration when adapting models to these markets. Renault 

is therefore extending the accident research studies conducted in Europe to 

local engineering centers, by setting up special teams, transferring its skills 

and know-how, and working with local academics. Logan is one of the safest 

vehicles on the market. It has an attractive price tag and is achieving high sales. 

It is therefore helping to improve safety at local level. 

✦ Global Reporting Initiative (GRI) Directives 

2.2.2.2 THE ENVIRONMENT ✦ 


RESEARCH AND DEVELOPMENT 

Renault is already one of Europe’s top three manufacturers in terms of fuel 

consumption and CO 2 emissions. Reducing emissions of greenhouse gases, in 

particular CO 2 , remains a priority. It is therefore a major concern for R&D, which 

is continuing to develop ecological solutions that will refl ect changing needs 

and new customer behaviors over the coming years. Several key trends can be 

identifi ed in the R&D studies currently underway, whose aims are to: 

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in the immediate term, develop conventional vehicles, i.e. with classic 

combustion engines, whose emissions will be far lower than the best vehicles 

currently on the market today. 

Research studies in this area have already brought tangible results: Renault 

is one of the only vehicle manufacturers whose range includes eleven models 

producing less than 140 g of CO 2 /km. And at the Challenge Bibendum, the 

Logan “Renault eco²” Concept (see box) showed the Group’s ability to come 

up with environmental and economic solutions that take emissions below the 

100g/km threshold. Concerning biofuels, which are included in the goals of 

Renault Commitment 2009 (gasoline: 50% of vehicles compatible with 80% 

ethanol, diesel: 100% of vehicles compatible with 30% biodiesel), Renault’s 

aim is to develop engines that can run on fuels of many sources and types. 

As the dosage quantities and make-up of biofuels are variable, the engines 

themselves must be highly fl exible; 

in the medium term, market all-electric vehicles targeting the general public. 

Renault has already sold electric vehicles in the past, and taken part in 

implementing innovative electric mobility solutions (Praxitèle). Building on 

this experience, Renault is able to satisfy new market requirements. Lithium 

battery technology, for example, reduces battery weight and makes it possible 

to carry more energy on board. At the same time, the Group is continuing R&D 

studies to prepare future generations of electric vehicles. In 2007 a major 

new project was set up on the batteries of the future, with the emphasis on 

performance and reliability. 

The Renault-Nissan Alliance and its partner, Project Better Place, have paved 

the way for a breakthrough with electric vehicles on the Israeli market. Under 

the terms of the agreement, Renault will supply electric vehicles fi tted with 

lithium-ion batteries designed by Nissan through a joint subsidiary with NEC. 

Project Better Place is in charge of developing the electric recharge grid 

infrastructure. The electric vehicles will be brought to market in 2011; 

in the longer term, place greater emphasis on fuel cell technology. Renault 

plans to present a number of demonstration vehicles for life-sized tests 

from this year. 

See c hapter 3.2 on Environmental performance. 

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02 RESEARCH 


AND DEVELOPMENT 

2.2.2.3 TRAVELING COMFORT 

Renault is a volume manufacturer with recognized expertise and a competitive 

edge to maintain in the fi eld of traveling comfort. The range of topics covered 

by research studies refl ects the diversity of “parameters” by focusing on: 

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Logan “Renault eco2 ” Concept 

A technical demonstration vehicle that took part in the Michelin 

Challenge Bibendum in Shanghai. 

Logan “Renault eco²” Concept is a highly economical vehicle that 

is also ecologically minded, since it satisfi es the three criteria of 

Renault eco² concerning production, use and recycling. In terms 

of CO emissions, the Logan “Renault eco²” Concept has been 

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homologated at just 97 g/km (NEDC standard combined cycle), 

consuming just 3.8 l/100 km. 

Fitted with a B30 c ompatible 1.5 dCi (63 kW/85 hp) engine, Logan 

“Renault eco² Concept” features a host of enhancements and 

technical solutions that are development paths for future Renault 

vehicles. These solutions concern: 

n powertrain: modified pistons and injection system to improve 

combustion; detailed studies on play and lubricants to minimize 

friction, new gearbox staging; 

acoustic performance: reducing all exterior and interior sources of noise 

(engine noise and vibrations, tire noise, bodywork resonance, etc.); 

climate control: air conditioning; 

visibility and feeling of space; 

comfort and ergonomics: by developing a simple, intuitive user interface; 

materials, etc. 

Renault is also looking at changes in user behavior, a subject that covers both the 

interior and exterior of its vehicles, and is working on connectivity. Concerning 

on-board telephone use, the future lies not in simple hands-free systems, of the 

type used by pedestrians, but in systems tailored to in-car use that detect the 

user’s telephone whenever he/she gets into the car. For example, a Bluetooth 

system with a voice recognition function will let users make and receive calls 

without touching the phone and without opening the directory. 

In the fi eld of passenger comfort, Renault is focusing on solutions that respect 

the environment. The aim is to sidestep a trend that could lead to vehicles 

consuming more energy to ensure the comfort of passengers than to get them 

from A to B. Renault vehicles of the future will consume less energy while 

providing an identical or higher level of traveling comfort. Air conditioning, for 

example, is at the heart of this approach. 


n aerodynamics: reduced Cd through the use of Vortex generators 

(small aerodynamic roof-mounted components that reduce drag); 

a fl exible splitter under the front bumper, wheel fairings and a rear 

spoiler; 

n running gear: Logan “Renault eco²” Concept is shod with Michelin 

“Pure” 185/65 R15 tires with low rolling resistance. Toe-in and 

camber were optimized as was the braking system, as part of 

systematic efforts to reduce friction. 

The dashboard of Logan “Renault eco²” Concept has a “gearshift 

indicator” feature to help the driver optimize fuel consumption and 

cut CO emissions. With this function, the Renault team taking part 

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in Challenge Bibendum turned in a strong performance, producing 

71g/km of CO . 2 

2.2.2.4 DYNAMIC PERFORMANCE 

The studies conducted by Renault focus primarily on the chassis, and thus 

driving performance, vehicle stability and steering management. 

The “ active drive” system (four drive wheels) of the future Laguna GT Coupé is 

an example of how R&D studies are turned into real applications. 

Active drive 4WD: on conventional vehicles, only the front wheels turn. Turning 

the rear wheels at the same time reduces the turning circle, thus making parking 

and avoidance maneuvers easier for enhanced active safety and driving comfort. 

More specifi cally, an electrical actuator on the rear axle turns the rear wheels. 

They turn either at the same time as the front wheels (for increased stability) or 

in the opposite direction (for easier handling). This chassis comes into its own 

in diffi cult braking conditions or when swerving to avoid obstacles. 

Renault won an innovation award from “l’Automobile Magazine” for this system 

on January 9, 2008. 



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2.2.3 2007 R&D HIGHLIGHTS 

2.2.3.1 A MATURE TECHNOLOGY PLAN 

In 2007 Renault brought its [T] (Square T) technology plan to maturity: 

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it consolidated the cross-functionality of R&D across engineering 

departments; 

it is recognized as a shared priority by engineering departments; 

the link with the product plan has been reinforced; 

synergies have been developed with suppliers (through co-innovation 

contracts) and with Nissan; 

12 projects – vehicles and powertrain components – from the 2006 

technology plan have been transferred to development; 

a “demonstrator” plan was drafted to test innovations in life-sized conditions. 

One of the fi rst results is Logan “Renault eco²” Concept, which made a strong 

showing at the Michelin Challenge Bibendum. 

2.2.3.2 A YEAR OF REVELATIONS 

Renault’s R&D projects culminate in the launch of new products, ranging from 

complete vehicles to powertrain subsystems. 

The year 2007 marked a key stage in the product offensive of Renault 

Commitment 2009, with a number of revelations: Logan MCV, Logan Van, 

New Twingo, New Laguna and Laguna Estate, New Kangoo, Sandero, Logan 

Pick-up, Clio Estate and Grand Modus. 

2.2.4 R&D FOR MORE COMPETITIVE ENGINEERING 

2.2.4.1 KEY EQUIPMENT 

Renault continued its key equipment policy (catapult and CEM unit opened in 

2006) with, in particular, the opening in 2007 of a new anti-corrosion approval 

unit at the Aubevoye Technical Center. Renault set this unit up to keep pace 

with the expansion of its range plan and to provide all customers with superior 

anticorrosion protection. With 2,800 m² of buildings, 18 enclosures and 

600 meters of dedicated tracks, the anticorrosion unit is sized to organize 

the approval of powertrain parts, passenger vehicles and LCVs for the Renault 

group. It is also compatible with Nissan test procedures. 

As part of the Alliance with Nissan, the Group decided to give Renault a 

new stamping unit to satisfy the growing tooling needs created by Renault 

Commitment 2009. The new entity, Renault Tooling, is located in Romania. 

It brings the Group the capacity to produce stamping tools in-house. 




RESEARCH AND DEVELOPMENT 

New Laguna applies the results of R&D studies in a number of areas, including 

weight control, since it is the fi rst vehicle to be lighter than its predecessor 

(by 15 kg), while bringing users a wider range of features. The excellent acoustics 

are another noteworthy point, since New Laguna has been homologated at 

71 db. The sound interfaces of Laguna were also designed to combine safety 

and onboard comfort. 

The new 4WD Active Drive system was fi rst unveiled on Laguna coupé Concept. 

This technology, developed jointly by Renault and Renault Sport Technologies, 

makes for easier handling while improving performance and steering. 

The V9X concept engine, presented at the Frankfurt Motor Show, is a new V6 

diesel developed as part of the Renault-Nissan Alliance. Among other aims, 

it is designed to become the new benchmark in acoustic performance. 

At the Michelin Challenge Bibendum, Renault presented Logan “Renault eco²” 

Concept, which shows that it is possible to combine ecology and economy while 

maintaining performance and function. 

At the conferences organized by the Automotive Circle International in Germany, 

Laguna took second prize in Eurocarbody 2007 for painted body quality, behind 

the Fiat 500 and ahead of the Mercedes C-Class. After a fi rst place for Modus 

and a third place for Scénic II, this is the third time that Renault has won a 

Eurocarbody award. ✦ 

2.2.4.2 RESEARCH PARTNERSHIPS 

In 2007 Renault took part in 104 cooperative research programs subsidized 

by France or the European Union. All the programs make it possible to share 

research costs and take inventiveness to new heights. 

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02 RISK 


MANAGEMENT 

2.2.4.3 DEVELOPING GLOBAL ENGINEERING 

EXPERTISE 

Like all the other main corporate functions at Renault, engineering is becoming 

global, and organizing its activities on a global basis. The design and development 

of new products rely on the main corporate engineering functions and on the 

new development centers located close to the main markets: 

2.3 RISK MANAGEMENT ✦ 

The Renault group makes every effort to control the risks relating to its activities, 

namely operational risk, fi nancial risk and legal risk. These have been described 

in c hapter 1.2 Risk Factors. The present c hapter 2.3 details the main risks and 

the company’s strategies to reduce their likelihood and severity. However, as 

the Group expands internationally, enters new partnerships, and becomes more 

IT-dependent – and as new malicious behaviors emerge – existing risks are 

aggravated and new ones created. These factors can increase the severity of 

potential crises and the damage they may cause. 

Risk management, an inevitability for any global industrial corporation, needs to 

be reinforced and made proactive. It is therefore an integral part of the Renault 

group’s operational management procedures. 

2.3.1 OPERATIONAL RISK 

2.3.1.1 GEOGRAPHICAL RISK 

RISK FACTORS 

The Group has industrial and/or commercial operations in countries outside 

Europe 6 , notably South Korea, Romania, Brazil, Argentina, Turkey, Colombia, 

Chile, Russia, Morocco, Iran and India. Group sales outside Europe account for 

35% of global sales. One of the three targets of Renault Commitment 2009 

is to increase group sales by 800,000 units between 2005 and 2009, with 

550,000 units being sold outside Europe. The share of sales generated outside 

Europe is therefore expected to rise to nearly 40% by 2009. The risk monitoring 

system has been reconfi gured to support this sharp increase in vehicle sales. 

RTA Renault Technology Americas; 

RTK Renault Technology Korea; 

RTR Renault Technology Romania; 

RTS Renault Technology Spain; 

RTI Renault Technology India. 

Renault Technology Romania was opened in June 2007. 



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The organization is two-pronged: 

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at corporate level: the Risk Management Department provides methods and 

an overall vision to identify and prevent major risks, in particular by monitoring 

them with risk-mapping techniques and implementing preventive measures 

in high-risk areas; 

in all entities involved in business-critical processes, the competencies 

and experts capable of identifying, prioritizing and supplying risk mitigation 

solutions are identifi ed. 

The Group’s activities in these countries carry various risks, most commonly GDP 

volatility, economic and political instability, new regulations, payment collection 

problems, labor unrest, sharp fl uctuations in interest and exchange rates, and 

foreign exchange controls. 

MANAGEMENT PROCEDURES 

Renault’s industrial and commercial investments outside Europe are 

geographically diversifi ed, making it possible to pool the portfolio of risks at 

company level, particularly through a worldwide short-term policy with Coface, 

the French export credit insurance agency. Patterns of GDP growth and solvency 

vary from one region of activity to another and are often counter-cyclical. 

(6) “Outside Europe” means in the three Regions: Euromed, Asia-Africa and the Americas, defined by Renault on January 1, 2006 as part of its new geographical organization steered by the Regional 

Management Committees. 

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Industrial risk 

The decision to set up industrial bases in countries outside Europe was taken 

as part of a growth strategy that factors the risks of instability into an overall 

industrial approach. 

The Group also seeks to continually increase local content in its emergingcountry 

production units. The aim is to make these units more competitive in 

their local markets and to use their capacity more effi ciently, exporting to other 

areas when domestic markets falter and where exchange-rate changes improve 

the price competitiveness of products outside the country. 

In Iran, Renault’s investments are guaranteed by a credit insurer. 

Commercial risk 

The Group hedges all financial flows arising from commercial activities 

in emerging countries. The two main hedging instruments used are bank 

guarantees (Standby Letters of Credit from leading banks) and short-term export 

credit guarantees (global/commercial/political cover from Coface). 

ACTIONS AND IMPROVEMENTS 

Country risk premium 

Geographical risks are taken into account by demanding a higher rate of return 

from any new investment project in an emerging country. The risk premium 

added to the standard rate of return is determined from fi nancial market and 

macroeconomic indicators. 

Short-term liquidity risk 

A trend indicator is used to monitor risk, including liquidity risk, in the countries 

where the Group operates. By tracking this indicator, the Group can adjust the 

fi nancing policy applied to its subsidiaries in the light of changes to the situation 

in each country and available macroeconomic data. 

Intra-group financial flows 

To support its global growth, the Group has designed a radial fi nancial scheme 

and “hub and spoke” invoicing system. It thus centralizes its fi nancial-risk 

management activities and can use a single hedging procedure on competitive 

terms. The industrial subsidiaries sell their export production to Renault s.a.s., 

which on-sells it to the importing subsidiaries and independent importers by 

granting them supplier credit. The parent company manages the risk associated 

with this credit. 

Risk management and the Regional Management 

Committees 

Overall country risk is monitored by each Regional Management Committee. The 

Committees may ask for the general rule to be waived, in which case approval 

will be required from the Group Executive Committee. 


2.3.1.2 PRODUCT QUALITY RISK 


RISK MANAGEMENT 

RISK FACTORS 

Developments in the automotive industry are characterized by the emergence 

of systems with increasingly sophisticated technologies. This applies not just 

to active safety (power steering and braking, etc.) and passive safety (restraint 

systems, etc.) but to most of the systems used in modern automobiles. 

This trend is refl ected in the rapid increase in automated systems commanded 

by onboard electronics. Signifi cantly, drivers now have less and less direct 

responsibility for operating these systems. 


When a new vehicle is designed, Renault sets up a system to identify, assess 

and control risks created by the equipment it installs: 

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this system includes a specifi c organization for controlling risks, defi ning and 

ensuring compliance with standards, and methods and tools for operational 

safety; 

it extends to the phases of manufacturing, vehicle delivery, maintenance – 

repair and end-of-life. 

The incident handling system has also been improved through: 

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faster detection of incidents so that they can be brought to the attention of 

the appropriate functional experts as quickly as possible; 

closer proximity between the incident-detection and impact-analysis 

functions, thereby improving conditions for making assessments and taking 

corrective measures; 

formal rules for dealing with incidents and recall campaigns. 

The “Vigilance Committee”, chaired by the Quality Department, sees that 

measures for detecting, preventing and handling incidents are properly 

carried out. 

Renault has set up an organization to limit the number of incident-exposed 

vehicles. The severity and safety impact of any incidents are assessed and 

the risk is dealt with as quickly as possible, notably in the event of a recall 

campaign. 

The organization with regard to regulations has also been improved in order 

to be more effi cient in: 

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identifying new regulations that must be taken into account right from the 

design phase; 

ensuring that products comply with regulations. 


Renault has developed new quality and operational safety initiatives for its 

products. 

It has joined with other carmakers, government authorities and standardization 

organizations in an effort to fi nd common standards for defi ning and assessing 

risks. 

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02 RISK 


MANAGEMENT 

In addition to existing measures, Renault has taken the following actions to 

reduce users’ exposure to product risk: 

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updating undesirable customer incidents likely to endanger user safety and 

identifying reasonably foreseeable use that could expose users to danger; 

ensuring that engineering departments apply this list of undesirable customer 

incidents to the physical objects and logical systems that could cause such 

danger-exposure incidents; 

defi ning a set of best practices (shared with the PSA Group) to be used in all 

areas of the company, starting with engineering departments; 

continuing to deploy awareness-raising and training programs in general 

product safety and operational safety throughout the company; 

improving risk control practices and standards on a continuous basis 

throughout the product life cycle. 

Renault has set up a system for responding to customer incidents: 

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Renault uses various indicators, including a media watch, customer platform 

and customer satisfaction surveys, to detect the fi rst customer incidents 

rapidly; 

after documentation, a technical analysis of incidents is performed to decide 

on a preventive or a corrective response; 

customer satisfaction is also taken into account in the continuous process 

of product improvement. 

2.3.1.3 SUPPLIER RISK 

RISK FACTORS 

The main risk factors are related to the quality and long-term dependability of 

deliveries, the suppliers’ fi nancial situation and their compliance with regulations 

and sustainable development obligations. 


A – Suppliers’ financial soundness is reviewed on the basis of two key 

criteria: 

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a rating system based on an analysis of the suppliers’ annual report; 

dependence on Renault. 

If a supplier is rated negatively on any fi nancial criteria, this supplier is monitored 

at monthly meetings by the Supplier Risks Committee, which is made up of 

members of the Purchasing Department Management Committee, alongside the 

Finance, Legal, Human Resources, Logistics and Public Affairs Departments. 

The following points are regularly examined via operating performance reviews: 

engineering excellence, ability to respond to demand in terms of volume, quality, 

costs and delivery times, and suitability of logistics. 

Suppliers’ capacity to deliver the projected volumes of parts to plants is 

continually audited using the Group’s “capacity benchmarking” process. 

B – The risk relating to suppliers’ failure to respect sustainable development 

principles is controlled mainly by: 

including a “fi lter” in the supplier selection and sourcing processes; 

identifying deviations from standards (self-assessments and assessments 

conducted by the Quality Department of the Purchasing Department); 

setting up corrective action if a supplier falls below an acceptable level 

(performance reviews). 


In compliance with Renault Commitment 2009, actions relating to supplier 

sustainable development risk focused on the following: 

in the area of labor relations, a formal commitment by suppliers to the 

principles of the Renault Declaration of Employees’ Fundamental Rights 

(including elimination of child labor, elimination of forced labor, and 

compliance with the work, health and safety conditions described in the 

Group Working Conditions Policy); 

in the area of the environment, actions mainly concerned application of the 

European directive banning heavy metals (Chrome 6 and lead contained 

in aluminum alloys, rings and bearings). At the same time, the European 

REACH legislation sets highly ambitious targets on dangerous substances. 

The Purchasing Department, which is an active member of the REACH Steering 

Committee, has put in place a structure to manage the actions of buyers and 

suppliers (information on legal requirements and key deadlines); 

in the area of risk detection (social and environmental): 

70 assessments carried out by the Purchasing Quality Department 

in 2007, 

IT systems developed for the bulk processing of self-assessment data 

through the supplier portal, from 2008. 

An external audit control grid has been drawn up and approvals issued for 

auditing fi rms. 

2.3.1.4 PRODUCTION RISKS 

RISK FACTORS 

The Group’s exposure to industrial risk is potentially signifi cant because its 

industrial operations are highly concentrated and its plants are interdependent. 

An active formal prevention policy is applied at all production plants, covering 

personal safety and the security of property. 



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Between 1990 and 2000 the Group endeavored to reduce the risks of fi re, 

explosion and machine breakdown. Priority in this effort was given to powertrain 

and body assembly plants. By 2000 most of the existing plants had obtained the 

Highly Protected Risk rating, an international standard for risk prevention. 

Since 2000, risks related to natural disasters such as storms, fl ooding, typhoons 

and earthquakes have been incorporated into the prevention policy. 

The prevention policy is supported by a small team of experts at headquarters 

who set the standards for worldwide application and take part in all projects 

to modernize or extend existing plants or to open new ones. The experts at 

headquarters are supported at each plant by local teams organized in a network. 

Every year, four insurance companies chosen for their expertise in specifi c areas 

verify the application of prevention and protection rules at each site. 


At end-2005, the Manufacturing Committee was tasked with examining specifi c 

risks of all kinds twice a year. 

The Group has a high level of industrial risk prevention, and is pursuing 

continuous improvement in a number of ways. These include upgrading the 

risk prevention management system and holding network meetings on the 

subject of prevention. 

2.3.1.5 ENVIRONMENTAL RISK 

RISK FACTORS 

Alongside the systems and policies to reduce the environmental impact of 

Renault vehicles in the design, manufacture, operation and recycling phases 

(see c hapter 3.2 Environmental Performance), environmental risk at Renault 

comprises three aspects: 

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impacts on the external environment owing to malfunctions in its plants; 

harm to individuals (personnel and people living near the plants); 

pollution of soil and groundwater caused by past activities. 


Environmental risks 

Renault has no high-risk facilities. Nevertheless, it has put in place a dedicated 

management system for preventing environmental risks. 

A central team of experts coordinates the tasks performed under the system. 

Techniques and structures for identifying risks, quantifying their impact, 

organizing prevention and protection and defi ning control and management 

methods are implemented at all sites. 




Methods and tools have been defi ned for every stage of environmental risk 

management: risk identifi cation, choice of prevention and/or protection solutions, 

management and training procedures, and control and verifi cation audit grid. 

Remediation of soil pollution due to past activity 

Since France adopted a nation-wide policy on industrial soil and site pollution 

in 1994, Renault has participated actively in efforts coordinated by the Ministry 

of the Environment. The methodology applied in France, which was reviewed in 

2007, uses a case-by-case approach to decide whether to remediate the risk 

areas concerned or to place them under surveillance. This method has been 

applied to all Renault’s industrial sites worldwide. 

Through this proactive approach, Renault is aware of the exposure of all 

its sites, has identifi ed pollution sources by type of pollutant and by type of 

activity, and has the associated risks under control. Based on this in-depth 

analysis, appropriate clean-up techniques and technical solutions are optimized, 

depending on the type of impacts to be controlled or the uses envisaged for 

the sites concerned. The knowledge acquired during this analysis phase has 

enabled Renault to identify the facilities exposed to risk and to draw up a 

specifi c risk prevention plan. 

Environmental audits of purchase and sale agreements 

An environmental assessment is carried out before industrial and commercial 

businesses or property are acquired or sold. These audits are performed in 

accordance with an international procedure comprising: 

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a pre-audit; 


a phase 1 audit on the legal conformity of present and former activities given 

the hydro-geological conditions and the potential environmental impact of 

those activities; 

a phase 2 audit involving analysis of soils and groundwater. 


Renault is stepping up measures to prevent environmental risk. At the start of 

2005 the issue of environmental risk was integrated in the Renault Production 

Way through the management of chemical products and wastes at workstations 

and more generally in each site’s environment and risk management plan. 

To meet performance and regulatory-compliance objectives, a self-assessment 

tool has been developed and introduced at all powertrain and body assembly 

plants since 2005. 

At December 31, 2007 the Group had €50 million in provisions for the 

enforcement of environmental regulations. The main aim of these provisions 

is to pay for the rehabilitation of land at Boulogne and to meet the cost of 

processing end-of-life vehicles. 

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02 RISK 


MANAGEMENT 

2.3.1.6 INSURING OPERATIONAL RISKS 

At the Renault group, insurance for operational risks has three facets: 

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high-impact low-probability risks are transferred to the insurance and 

reinsurance markets; 

common risks that are statistically known and fi nancially coverable are 

provisioned by the Group, unless there is a legal requirement to insure 

them; 

the Group negotiates global insurance policies that provide Group-wide 

cover. 

The majority of the Group’s entities are covered by these global insurance 

policies. Their ceilings are high – up to €1.5 billion. Deductibles – which must 

be paid by the Group before the insurance companies pay for any loss – are 

also high. The highest deductible amount is €24 million per claim. Some risks, 

such as defects covered by the manufacturer’s warranty and recall campaigns, 

are not covered by insurance. 

The reason for keeping deductibles high include the Group’s consistent policy 

of prevention, the fact that there have been no major claims in recent years, 

and a desire to make each risk-bearing sector more accountable. No major 

change to Renault’s insurance strategy is planned for 2008. 

2.3.1.7 IT RISK 

RISK FACTORS 

Renault depends on the orderly operation of its IT systems. Most of the Group’s 

functions and processes rely on the software tools and technical infrastructure 

connecting its sites. 

The main risks dealt with by the Group are: 

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interruption of IT services, regardless of the cause; 

confi dentiality and integrity of data. 

Within Renault’s Information Systems Department (DSIR), the Networks and 

Telecoms Security Department is leading the program to reduce IT risks and 

implement the IT security policy. 


Risks are controlled through: 

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committees and management charts that serve to check application of IT 

security procedures in line with international best practices (policies and 

standards such as ISO 27001); 

security approval for the Group’s main projects, interconnections and 

technical upgrades to ensure that appropriate security mechanisms are 

adopted (classifi cation of security needs, standardization of solutions); 

a monitoring plan whose results are presented and submitted for approval 

to representatives of senior management, the departments using IT, the 

Audit Department and the Group Risk Management Department. Depending 

on the subject, audit assignments and IT surveys are conducted in-house 

by the IT Department with the Group Protection and Safety Department, or 

independently by the Audit and Risk Management Department; 

an IT Risk Committee, organized by the IT Department under the management 

of the Audit Department and the Risk Management Department and with 

representatives of other corporate departments. 


The main security programs implemented in 2007 sought to: 

extend deployment of the security policy defined in association with 

Nissan; 

deploy security measures that refl ect the new issues raised by the Group’s 

international expansion and partnerships (access management and 

confi dentiality) ; 

increase user awareness of security issues at international level; 

reinforce the security and emergency resources and procedures in place at 

the Group’s main IT centers. 

Projects planned for 2008 will continue in the same line and further develop 

the existing coordination and protection systems, based on the aims of Renault 

Commitment 2009. 

2.3.1.8 DISTRIBUTION RISK 

RISK FACTORS 

The type of risks to which Renault is exposed depends on the type of product 

distribution channel involved: 

at commercial import subsidiaries, the main risks are related to the use of 

sales and marketing resources; 

at its own distribution subsidiaries, grouped under the umbrella of Renault 

Retail Group (formerly REAGROUP), Renault’s risks are primarily related to 

decentralization and the diversity of these entities; 

the fi nancial situation of dealership networks is also a source of risk. 

Another risk related to the Group’s commercial activities is customer default. 



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Import subsidiaries 

Central and local systems and procedures have been set up to enable the 

Group’s import subsidiaries to control costs and the fi nancial assistance paid 

to the network. 

Independent auditors perform inspections in some countries to ensure that 

dealerships can substantiate the assistance they receive. 

In 2006, an annual self-assessment on internal control was set up with a 

standard format designed jointly with the Group Audit Department. 

In 2007, the Sales and Marketing Department decided to put in place a tool for 

the payment and subsequent control of the commercial support provided to the 

network. This tool will be gradually rolled out across all sales subsidiaries. 

European distribution subsidiaries (Renault Retail Group) 

Internal control at the Group’s distribution subsidiaries (Renault Retail Group) is 

based on a set of standards and procedures. Annual self-assessments carried 

out using the Internal Control Quality tools have been extended to all countries 

since end-2006. 

These tools were developed in collaboration with the Audit and Risk Management 

Department. Use of the self-assessments is checked regularly by auditors from 

the Audit Department or by specialized audit fi rms from outside the Group. 

2.3.2 FINANCIAL RISK 

2.3.2.1 GENERAL FRAMEWORK FOR 

CONTROLLING FINANCIAL RISK 

Market risk management at Automobile mainly concerns the Central Cash 

Management and Financing Department of Renault SA, Renault Finance, and 

Société Financière et Foncière (SFF), the main activities of which are described 

in paragraph 1.1.3.1 of the Registration Document. 

Sales Financing (RCI Banque) manages the market risk on its activities. Securities 

trades executed by companies in the RCI Banque group are intended solely to 

hedge away the risks related to the fi nancing of the sales and inventories of 

the distribution networks for Renault group brands. Most of these transactions 

are made by the trading room of RCI Banque, which plays a pivotal role in 

refi nancing the RCI Banque group. 

Monitoring and control tools exist for each entity and, where necessary, at the 

consolidated Renault group level. The results of these controls are reported 

on a monthly basis. 




Dealership network 

Renault and RCI Banque (RCI) jointly monitor the fi nancial situation of dealerships 

in countries where RCI is present. A rating system is used to prevent and limit 

the risk of default or outstanding accounts. In other countries, Renault sets up 

a credit monitoring system. 

Risk committees meet each month in countries where RCI Banque operates. 

In other countries, particularly in Central Europe, a Risk Supervision committee 

meets at head offi ce every four months to examine monthly operating reports 

on the network’s fi nancial situation and on payment receivables. 

Default risk is transferred to RCI Banque in geographical regions where it relies 

on ad hoc bodies to bear risk from the network and individual customers. If RCI 

cannot cover this risk, Renault bears it directly. 

In 2007 the Credit Management structure put in place a reporting system with 

indicators to monitor the debt of Automobile’s customers. These tools improve 

the monitoring and management of payment periods and help to manage 

customer risk more effectively. 

Parts and Accessories Department 

The Group Parts and Accessories Department, which is responsible for the 

commercial management of the distribution of spare parts and accessories to 

all Renault entities, set up an action program based on the risk maps drawn 

up in 2004 and updated in 2007. The action plans are focused on the risk of 

a disruption in supply caused by supplier, logistics or IT failure. A special risk 

committee monitors these actions regularly. 

For each entity, fi nancial risks are monitored at three levels: 

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fi rst-level control: self-monitoring by line personnel and formalized monitoring 

by each business line manager; 

second-level control: carried out by internal auditors under the authority of 

the chief executive of the entity; 

third-level control: carried out by the control bodies (Renault Internal Audit 

or external fi rms commissioned by it). The third-level control organizations 

make a critical, independent analysis of the quality of the control system. 

The Statutory Auditors also contribute an analysis under the terms of their 

assignment. 

Furthermore, because SFF and RCI Banque are chartered as credit institutions, 

they are required to implement special internal control systems that meet the 

requirements of the French banking regulator. 

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02 RISK 


MANAGEMENT 

FOREIGN EXCHANGE RISK 

Automobile 

Automobile is naturally exposed to foreign exchange risk in the course of its 

industrial and commercial activities. Foreign exchange risk on these activities 

is monitored through Renault’s Central Cash Management and Financing 

Department. 

Almost all foreign-exchange transactions are executed by Renault Finance. 

Exchange rate fl uctuations may have an impact in fi ve areas: 

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operating margin; 

fi nancial results; 

share in the net income of associated companies; 

shareholders’ equity; 

net fi nancial debt. 

Impact on operating margin: Operating margin is subject to changes caused 

by exchange rate fl uctuations. Currency hedges must be formally authorized by 

the Finance Department or senior management. Once the hedges have been 

put in place, reports must be submitted to senior management on the results. 

No signifi cant hedges were put in place in 2007. 

Based on the structure of its results and operating cash fl ows in 2007, the 

Group estimates that a 1% appreciation of the euro against all other currencies 

would have had a negative impact of €46 million (excluding hedges, if any). 

In 2007 the Group was mainly exposed to the pound sterling and the Korean 

won. Under the same assumptions, a 1% rise in the euro against sterling would 

have a negative impact of €16 million on operating margin. 

Impact on financial results: Investments by Automobile subsidiaries are mainly 

fi nanced through equity contributions. In principle, other fi nancing requirements 

are met in local currency by Renault SA. Financing fl ows in foreign currencies 

handled by Renault SA are hedged in the same currencies, thereby ensuring 

that exchange rate fl uctuations do not distort the fi nancial results. 

If local circumstances preclude refi nancing by Renault SA, the subsidiary may 

tap external funding sources. If external fi nancing in non-local currencies 

is necessary, the parent company exercises strict supervision over the 

transactions. Where cash surpluses are reported in weak-currency countries, 

and not centralized at the parent company, deposits are usually made in the 

local currency under the strict control of the Group’s Finance Department. 

Renault Finance may engage in foreign-exchange transactions for its own 

account within strictly defi ned risk limits. Foreign-exchange positions are 

monitored and marked to market in real time. Such proprietary transactions 

are intended chiefl y to maintain the Group’s expertise on the fi nancial markets 

and are managed so as to avoid material impacts on Renault’s consolidated 

fi nancial statements. 

All of the Group’s foreign-exchange risk exposures are aggregated and are 

included in a monthly report. 

Impact on share in the net income of associated companies: On the 

basis of their contribution to 2007 results, a 1% rise in the euro against the 

Japanese yen or the Swedish krona would have lessened Nissan’s contribution 

to Renault’s income by €13 million and Volvo’s contribution to Renault’s income 

by €4 million, all other things being equal. 


Impact on shareholders’ equity: Equity investments in currencies other than 

the euro are not usually hedged. This may lead to translation adjustments, 

which are accounted for by the Group as shareholders’ equity. However, the 

size of the Nissan investment was such that Renault’s share in yen of Nissan’s 

net worth has been covered by a specifi c foreign exchange hedge, amounting 

to ¥ 824 billion at December 31, 2007 with maturities out to 2014. The nature 

and amount of each transaction are indicated in note 13-G of the notes to 

the consolidated fi nancial statements. 

Impact on net financial debt: As mentioned above, a portion of Renault 

fi nancial debt is denominated in yen so as to cover part of the investment 

in Nissan. A 1% increase in the euro against the yen would reduce Automobile’s 

net debt by €49 million. 

Sales Financing 

The consolidated foreign exchange position of RCI Banque has always been 

very small. No foreign-exchange positions are permitted in connection with 

refi nancing activity: RCI Banque’s trading room systematically hedges all the 

cash fl ows concerned. 

Sales Financing subsidiaries are required to refinance in their domestic 

currencies and therefore have no foreign exchange exposure. 

However, there may be residual or temporary forex positions related to timing 

differences in funds fl ows, which are inevitable when managing a multicurrency 

cash position. Any such positions are monitored daily and hedged 

systematically. 

The foreign exchange position on December 31, 2007, was €2.3 million. 

INTEREST-RATE RISK 

Automobile 

Interest rate risk can be assessed on the basis of debt and fi nancial investments 

and the payment terms set out in the indenture (fi xed or variable rate). Detailed 

information on these debts is indicated in note 24 of the notes to the c onsolidated 

fi nancial s tatements. 

For Automobile, the interest rate risk management policy is based on two 

principles: long-term investments are fi nanced at fi xed interest rates while 

liquidity reserves are built up at fl oating rates. Further, yen-denominated 

fi nancing to hedge Nissan’s shareholders’ equity is taken out at fi xed rates for 

periods ranging from 1 month to 7 years. 

Automobile’s financial liabilities totaled €7,554 million on December 31, 

2007. After stripping out derivatives, €4,996 million of that debt is yen-based 

(¥824 billion), consisting either of yen-denominated paper (samurai bonds, 

EMTNs) or synthetic debt (euro loans swapped for yen). 

As far as possible, Renault SA centralizes the free cash fl ow of Automobile, 

investing it exclusively in euro. Under its cash investment policy, Automobile 

held €3,697 million in cash and cash equivalents (mutual funds and other 

securities) at December 31, 2007. These assets meet strict investment safety 

standards (no equity risk during the investment period, zero foreign exchange 

risk and liquidity risk). 



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Renault Finance also trades for its own account in interest-rate instruments 

within strictly defi ned risk limits. These positions are monitored and marked 

to market in real time. This activity carries very little risk and has no material 

impact on the Group’s results. 


The Renault group’s exposure to interest rate risk is concentrated mainly in the 

Sales Financing business of RCI Banque and its subsidiaries. 

Interest rate risk is monitored on a daily basis by measuring sensitivity for each 

currency, management entity and asset portfolio. The entire RCI Banque group 

uses a single set of methods to ensure that interest rate risk is measured in a 

standard manner across the entire scope of consolidation. 

The portfolio of commercial assets is monitored daily on the basis of sensitivity 

and is hedged systematically. Each subsidiary aims to hedge its entire interest 

rate risk in order to protect its trading margin. However, a slight degree of latitude 

is permitted in risk hedging, refl ecting the diffi culty of adjusting the borrowing 

structure to exactly match the structure of customer loans. 

RCI Banque’s consolidated exposure to interest rate risk over 2007 shows 

that sensitivity, i.e., the risk of a rise or fall in the Group’s results caused by a 

100-basis point rise or fall in interest rates, was limited. 

RCI BANQUE: DAILY SENSIVITY TO INTEREST RATE MOVEMENTS (2007) 

20 

18 

16 

14 

12 

10 

8 

6 

4 

2 

0 





See note 25 of the notes to the C onsolidated F inancial S tatements for details 

of consolidated off-balance-sheet commitments in fi nancial instruments and 

by type of activity. 

COUNTERPARTY RISK 

The Group is exposed to counterparty risk in its fi nancial-market and banking 

transactions, in its management of foreign exchange and interest rate risk, and 

in the management of payment fl ows. It works with banking counterparties of 

the highest caliber and is not subject to any material concentration of risk. 

Management of counterparty risk at the Group’s entities is closely coordinated 

and uses a rating system based mainly on counterparties’ long-term credit rating 

and the level of their shareholders’ equity. This system is used by all companies 

of the Renault group that are exposed to counterparty risk. 

Some Group companies have signifi cant exposure to counterparty risk owing 

to the nature of their business. These companies are subject to daily checks to 

ensure they comply with authorized limits, in accordance with precise internal 

control procedures. 

The Group has introduced a consolidated monthly reporting system that 

encompasses all its counterparties, organized by credit rating. These reports 

give a detailed analysis of compliance with limits in terms of amount, term and 

type, as well as a list of the main exposures. 

LIQUIDITY RISK 

The Group must always have suffi cient fi nancial resources not just to fi nance 

the day-to-day running of the business and the investments needed for future 

expansion but also to cope with any extraordinary events that may arise. 

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02 RISK 


MANAGEMENT 

Group issuance programs and ratings at December 31, 2007 

ISSUER PROGRAM (1) MARKET CEILING (million) S&P MOODY’S FITCH R&I JCR 

Renault SA CP Euro EUR 1,500 A2 P2 

Renault SA EMTN Euro EUR 7,000 BBB+ Baa1 BBB+ 

Renault SA Shelf documentation Yen JPY 150,000 A A 

RCI Banque Euro CP Euro EUR 2,000 A2 P2 F2 a1 

RCI Banque EMTN Euro EUR 12,000 A- A3 A- A 

RCI Banque CD French EUR 4,000 A2 P2 F2 

RCI Banque BMTN French EUR 2,000 A- A3 A- 

Diac CD French EUR 1,500 A2 P2 F2 

Diac 

RCI Banque + Overlease + Renault 

BMTN French EUR 1,500 A- A3 A- 

AutoFin (RCI guarantor ) CP Belgian EUR 500 A2 P2 F2 

(1) EMTN: Euro Medium Term Note – CP: Commercial Paper – CD: Certificate of Deposit – BMTN: Negotiable Medium Term Note. 

The RCI Banque group’s programs concern two issuers (RCI Banque and Diac) 

for a combined total of more than €23.5 billion. 

Automobile 

Renault SA raises most of the refi nancing for Automobile in the capital markets 

mainly through long-term financial instruments (bond issuance, private 

placement), thereby providing Automobile with a minimum level of cash reserves 

at all times. 

To diversify its sources of long-term fi nancing, Renault SA increased its presence 

in the domestic Japanese bond market by issuing fi ve Samurai bonds since 

2001. On December 31, 2007 the maturity schedule of these issues ranged 

from one to fi ve years. Renault SA has specifi c simplifi ed documentation for 

domestic Japanese issues (Shelf Registration Statement) with a maximum 

amount available of ¥150 billion until September 2009. Renault SA’s EMTN 

program was updated in June 2007, retaining a maximum amount available 

of €7 billion. 

MATURITY SCHEDULE FOR RENAULT SA BONDS AND EQUIVALENT DEBT 

AT DECEMBER 31, 2007 (1) 

1,400 

1,200 

1,000 

800 

600 

400 

200 

0 

(1) Nominal amounts marked to market at December 31, 2007. 


Furthermore, Renault SA benefi ts from confi rmed renewable credit lines with 

banking institutions for a total amount of €4.5 billion with maturities extending to 

2012. These credits are not intended to be a permanent and signifi cant source 

of cash. They provide a liquidity reserve for Automobile and are also partly 

intended as back-up lines for the issuance of short-term commercial paper. 

The contractual documentation on these confi rmed lines of credit contains no 

clauses that could affect the raising or continued supply of credit following a 

change in the rating of Renault. 


RCI Banque maintains secure sources of funding at all times in order to 

maintain its business. To that end, the company has adopted stringent internal 

guidelines. 

Available sureties of €7,778 million (€5,361 million of confi rmed credit lines, 

stable compared to December 31, 2006; €2,417 million of cash and cashable 

receiveables at the Central Bank) cover 1.7 times the total outstanding in 

commercial paper and certifi cates of deposit. The RCI Banque group thus has 

liquidity reserves of €3,077 million. 

RCI Banque has also operated a securitization program since 2002 that enables 

the entire RCI Banque group to diversify its fi nancial resources and broaden its 

investor base. In this program, the assets of French or foreign subsidiaries are 

transferred to local special-purpose vehicles (SPV) operating as Master Trusts. 

The entire pool of loans in a business segment meeting eligibility criteria is 

transferred on a continuous basis to the SPV. The portfolio is then partly fi nanced 

by medium-term securities subscribed by investors in the European market. The 

difference between the transferred portfolio and the amount of the mediumterm 

debt securities is fi nanced by short-term private placement. In view of 

the characteristics of these transactions, and in accordance with the Group’s 

accounting rules, these securitized receivables are still recorded as assets in 

the consolidated balance sheet. 



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In early 2005 RCI Banque also securitized the dealership loans on the balance 

sheet of Cogera, the French subsidiary that handles fi nancing for the Renault 

and Nissan dealership network. Although such transactions are used in the U.S. 

market, this one, worth €850 million, was a fi rst in Europe, where no dealership 

loans had ever before been securitized with public issues of securities. 

The fi rst securitization program, carried out in 2002, involved €1.6 billion of 

consumer loans made by Diac, a French subsidiary of the RCI Banque group. 

That transaction was redeemed in 2006 and followed up with a re-issue in 

October in a portfolio of €2.4 billion that also included balloon contracts. 

The customer-loan securitization program launched in Italy in 2003 has been 

fully redeemed, and the issue was re-opened in July 2007 for €850 million. 

An issue planned in October 2007 by the German branch for outstanding 

customer loans has been restructured owing to deteriorating conditions on 

the credit market. A portfolio of €1.6 billion has been transferred and fi nanced 

through private placements. 

MATURITY SCHEDULE FOR RCI BANQUE BONDS AT DECEMBER 31, 2007 

3,500 

3,000 

2,500 

2,000 

1,500 

1,000 

500 

0 


RATING 




Renault SA’s ratings were confi rmed in 2007 (Moody’s Baa1, S&P Fitch BBB+ 

outlook stable). 

RCI Banque SA, the Renault group’s fi nancial arm, is rated one notch above 

Renault SA by the three ratings agencies. This rating was maintained 

in 2007: S&P (A2; A-since 2005), Moody’s (P2; A3 since 2004) and Fitch 

(F2; A-since 2006). 

COMMODITY RISK 

Renault’s Purchasing Department may hedge commodity risk by means of 

fi nancial instruments. Hedging is limited to purchases by the Purchasing 

Department of Renault and the Renault-Nissan Purchasing Organization for 

Renault projects in Europe. These hedges are linked to the physical purchasing 

operations carried out to meet plant needs. 

In 2007 the neutralized commodity hedging positions for certain purchases 

of copper and aluminum were maintained through to expiry. In December a 

hedge was put in place as part of the 2008 budget for projected consumption 

of aluminum in 2008. 

The Group relies on Renault Finance to execute these hedging transactions in 

the markets. Renault Finance tracks the metals markets, and it marks all its 

hedging instruments to market on a daily basis. As the Alliance’s dealing room, 

Renault Finance has extended this trading and monitoring activity to meet the 

needs of the Nissan group. 

These transactions are authorized by senior management, with limits in terms of 

volume, maturity, and price thresholds. They are covered in monthly reports that 

detail hedge performance and the performance of hedged items. Commodity 

hedge decisions are made by an ad hoc steering committee, co-chaired by 

the Chief Financial Offi cer and the Executive Vice President, Purchasing, which 

meets quarterly. 

01 

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03 

04 

05 

06 

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02 RISK 


MANAGEMENT 

2.3.3 RCI BANQUE CUSTOMER AND NETWORK RISK 

Risks linked to customer loan quality are assessed using a scoring system 

and monitored according to customer segment, i.e. consumer, enterprise or 

dealer. 

The procedures for granting loans to individual and corporate customers are 

based on credit-scoring systems and searches of external databases. Disputes 

are managed on a case-by-case basis, in accordance with a strict set of 

procedures that comply with the regulatory requirements set down by banking 

supervisors. The aim of these procedures is to recover quickly the outstanding 

sums or the vehicles, either amicably or through the courts The cost of retail 

risk in 2007 is 0.01 point below target (0.69%). The Group’s target for the cost 

of retail risk in 2008 is 0.61% of outstandings. 

Financing is granted to the network on the basis of an internal rating system 

that takes into account the fi nancial position of dealers. A policy of standardizing 

the rules for network risk (notably as regards provisioning) has been in place 

for several years. This has made it possible to strengthen the monitoring and 

provisioning of risk. The cost of retail risk has taken account since 2002 of 

2.3.4 LEGAL RISKS 

2.3.4.1 DESCRIPTION OF THE INTERNAL 

CONTROL PROCESS 

From the legal standpoint, internal control is based on two main guidelines: 

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responsive reporting, which relies on the networking and meshing of the legal 

function within the Renault group via a dual system of line and staff reporting. 

Attorneys are selected on the basis of qualitative criteria and cost/delivery 

ratios. The enforcement of these selection criteria is reviewed annually; 

. 

. 

the precautionary principle, which stems from two factors: 

each member of the legal function has a highly developed sense of 

responsibility and is used to working on a collaborative, cross-functional 

and ethical basis at all times, 

legal teams are brought in at a very early stage for major cases and play 

a proactive role in solving subsequent disputes. 

2.3.4.2 GRANTING OF LICENSES FOR 

INDUSTRIAL PROPERTY RIGHTS 

The Group may use patents held by third parties under licensing agreements 

negotiated with such parties. 


the new European regulation on car distribution as well as the downturn in the 

economic situation. 

RCI BANQUE: TOTAL LOSSES ON CUSTOMER FINANCING 

(% of total average loans oustanding) 

0.90 

0.80 

0.70 

0.60 

0.78 

0.50 

0.40 

0.30 

0.20 

0.10 

0.00 

0.54 0.52 

2000 2001 2002 

2006 2007 



0.68 

2003 

0.54 

2004 

IFRS 

0.72 

2005 

IFRS 

Each year, Renault s.a.s. files several hundred patents (see c hapter 2.2, 

Research and Development), some of which are included in fee-paying licenses 

granted to third parties. 

As part of the sale of Renault V.I. to Volvo, Renault granted a license to use 

the Renault brand name to the Volvo group in a contract signed on January 2, 

2001 regarding commercial vehicles (3.5 tons and over). This is a perpetual 

worldwide license used by the Volvo group at its own risk. 

Furthermore, under an agreement signed on August 5, 2000 Samsung granted 

Renault Samsung Motors a worldwide non-exclusive license to use the Samsung 

brand name on the vehicles that it assembles and manufactures in South Korea. 

This license initially runs until 2010, but may be renewed by an amendment. 

On September 14, 2004 the European Commission issued recommendations 

for amending Directive 98/71 concerning the protection of designs and models. 

These recommendations call for the abrogation of protection of spare parts 

under design law. This proposal has been approved by the European Parliament 

with an amendment providing for a fi ve-year transition period, and it must now 

be discussed by the European Council of Ministers. The sale of copies of spare 

parts after this date could have a negative impact on the earnings of the Group, 

which currently generates around 1.5% of its revenues from the sale of so-called 

captive parts, which are protected under design law. 

0.61 

0.68 

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2.3.5 OTHER RISKS 

2.3.5.1 OFF-BALANCE-SHEET 

COMMITMENTS 

The main commitments concern guarantees and endorsements granted by the 

Group in the normal course of business, as well as savings plans in Argentina. 

Off-balance-sheet commitments are discussed in note 29 of the notes to the 

c onsolidated fi nancial s tatement. To the knowledge of senior management, no 

material off-balance-sheet commitments have been omitted. 

2.3.5.2 RISKS LINKED TO PENSION 

COMMITMENTS 

Renault operates in countries where, in general, pension systems are publicly 

run. Renault’s commitments in this respect consist primarily of retirement 

compensation, as specifi ed in note 20 of the notes to the c onsolidated fi nancial 

s tatements. These commitments may be sensitive to changes in the parameters 

used to calculate them (funding, labor factors, interest rates). 

2.3.6 DISPUTES 

In general, all known legal disputes in which Renault or Group companies are 

involved are examined at year-end. After seeking the opinion of the appropriate 

advisors, the Group sets up the provisions deemed necessary to cover the 

estimated risk. 



2.3.5.3 TAX AND CUSTOMS RISKS 



The Group is regularly subject to tax inspections in France and in the countries 

in which it carries on its business. Valid demands for tax arrears are booked 

via provisions. Disputed demands are taken into account on a case-by-case 

basis according to estimates that build in the risk that the disputed demands 

may not be overturned even though the Group’s actions and appeals are wellfounded. 

In the normal course of its business, the Group is involved in various legal 

proceedings connected with the use of its products. At present, Renault 

estimates that none of these actions is likely to materially affect its assets, 

fi nancial position, activities or earnings. 

01 

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03 

04 

05 

06 

07 

08 



01 

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03 

04 

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07 

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03 

Sustainable 

development 


3.1 EMPLOYEE-RELATIONS PERFORMANCE 80 

3.1.1 Motivating the men and women who work for the Group 80 

3.1.2 Contributing to Group performance 84 

3.1.3 Sharing Group values 89 

3.2 ENVIRONMENTAL PERFORMANCE 94 

3.2.1 Environmental challenges 94 

3.2.2 Environmental indicators 95 

3.2.3 Cross-functional management of environmental issues 103 

3.3 SOCIAL PERFORMANCE 109 

3.3.1 Ethics and compliance 109 

3.3.2 Renault and its stakeholders 111 

3.3.3 Renault, architect of sustainable mobility 112 

3.3.4 Renault and road safety 114 

3.3.5 Contribution to civil society 118 

3.4 TABLE OF OBJECTIVES (EMPLOYEE RELATIONS, 

ENVIRONMENTAL AND SOCIAL) 120 

3.4.1 Table of employee relations objectives 120 

3.4.2 Environmental objectives 121 

3.4.3 Social objectives 123 

3.5 RENAULT, A RESPONSIBLE COMPANY 124 

3.5.1 Renault’s ratings in 2007 124 

3.5.2 Renault is included in socially responsible indexes 126 

01 

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04 

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03 EMPLOYEE-RELATIONS 

SUSTAINABLE DEVELOPMENT 

PERFORMANCE 

3.1 EMPLOYEE-RELATIONS PERFORMANCE 

As part of its Declaration of Employees’ Fundamental Rights, Renault is 

committed “to respecting company employees worldwide and helping them 

prosper, fostering freedom, ensuring the full transparency of information, 

applying the principle of fairness and complying with the Renault Code of 

Good Conduct”. 

The Human Resources policy therefore rests on the commitment and expertise 

of Renault employees, key assets that guarantee the success of Renault 

Commitment 2009 and all subsequent projects. This development-centered 

Human Resources policy plays an essential role in the sustainable performance 

of the company. It is focused on three key objectives: 

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motivate the men and women who work for the Group through high-quality 

management and a clear and effi cient system that rewards individual 

performance; 

contribute to the Group’s performance by providing it with the necessary 

expertise, particularly at international level, and by pursuing productivity 

gains; 

share Renault’s values with all employees. These values are factors of cohesion 

and solidarity in a company that has become global and multicultural. 

In 2007, the Group reorganized its HR function, on the basis of two simple 

principles: 

give the HR function strong presence alongside all employees, by appointing 

Local Human Resources Offi cers to support managers and to listen to 

staff; 

increase the role of HR in skills management through a global and international 

approach, and through the appointment of Advisors in Careers and Skills 

Development in each of the global functions. 

These local and global aspects are both directly linked to the central 

corporate HR department grouping expertise in HR activities and which relies 

on HR departments in each Region to deploy the Human Resources policy 

worldwide. 

This new organization is designed to support the three priorities set for the 

Group’s Human Resources function as part of Renault Commitment 2009: 

promote high standards of management; 

make sure that the HR function meets world class standards in terms of 

costs and added value; 

put in place a homogenous, coherent and cross-functional system of 

HR management at global level through Group-wide policies and standards. 

Renault is ranked among the leaders by extra-fi nancial ratings agencies. 

The Human Resources activity makes a strong contribution to these results. 

3.1.1 MOTIVATING THE MEN AND WOMEN WHO WORK FOR THE GROUP 

Employee motivation depends on management’s ability to bring staff together 

and to set clear achievable individual targets that can be monitored and that 

contribute to the success of the Group. Recognizing employee performance is 

another key factor. In 2007, Human Resources sought to improve the quality 

of management and to reinforce the system of rewarding performance in order 

to promote employee commitment. 

3.1.1.1 MANAGEMENT QUALITY 

A COMMITMENT SURVEY 

Management is key to the success of Renault Commitment 2009. To measure 

perceived levels of management quality and personnel commitment, Renault 

called in an international specialist in 2006 to carry out its fi rst employee 

survey on the subject of “Commitment”. The objective was to identify areas for 



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improvement and to defi ne progress actions for each site, department, subsidiary 

and country, as part of a collective approach applied by all employees in order 

to improve the quality of management and boost commitment by staff. 

More than 100,000 employees took part in the survey, which had a response rate 

of 87%. The results, which were presented to all employees in December 2006, 

brought to light a high level of commitment and attachment to the company, and 

paved the way for the implementation in 2007 of more than 1,000 progress 

actions at company and local level. 

A second survey was carried out in 2007, between 3 and 14 December. 

The aim was to assess changes compared with 2006, identify the areas for 

progress, and adjust the actions currently in progress – defi ning new ones 

where necessary – in order to improve the quality of management and boost 

personnel commitment in 2008. The results will be announced to personnel 

in fi rst-half 2008. 

The participation rate remains high at 88.3%, an increase on 2006. This fi gure 

refl ects the involvement of Renault personnel in the company’s future. The level 

01 

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05 

06 

07 

08

of employee commitment remains one of Renault’s strengths. Employees also 

confi rm that the company is very much focused on customer satisfaction and 

that the quality of its products and services is visible and appreciated by all. They 

also take a favorable view of Renault’s situation compared to the competition 

with respect to international expansion. 

The survey is included in Group processes as an aid to continuous 

improvement. 

MANAGERIAL TRAINING COURSES 

Training is key to improving management quality. In 2007, the Group adjusted 

both the structure and content of its managerial training practices to refl ect 

the fi ndings of the “Commitment” survey. 

Master plan 

The management development program is based on training organized at 

corporate level, as well as by business line, Region and project. In 2007, the 

master plan for managerial training restated the training objectives at each 

level: 

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corporate level: develop cross-functionality and a shared culture; 

main business line: promote performance-boosting management; 

local (Region/country): reinforce shared managerial practices linked to 

management of the entity. 

In 2008, the content of corporate training is set to change. It will focus on 

applying management fundamentals (common base) and on the priorities 

necessary to establish a culture of performance, to develop cross-functionality 

and to promote a customer focus. 

Deployment of managerial training courses ✦ 

In 2007, the Group adjusted its managerial training practices to refl ect the 

fi ndings of the “Commitment and management quality” survey. 

The Group organized training for managers in conducting performance 

and development reviews prior to the 2007-2008 campaign. More than 

1,500 managers were concerned in 2007. 

The deployment of existing corporate and business line management courses 

continued. 

Corporate training refers to courses of a general nature aimed primarily at 

managers. These courses are designed to establish a shared corporate culture 

covering not only the strategic vision and values of the company but also its 

working methods and organization. These programs are organized at different 

stages of their careers, i.e. when they are fi rst hired, when they become young 

managers and when they have gained experience. 

In 2007, these courses concerned: 

n 

new recruits: 351 managers and 143 non-managerial employees. Training 

courses for managers included internships in production and sales along 

with a seminar on Group strategy, an introduction to project management 

and a module devoted to management fundamentals; 


n 

n 


EMPLOYEE-RELATIONS PERFORMANCE 

369 young managers and 300 experienced managers with, in both cases, at 

least one-third of participants from Group sites outside France; 

58 experienced non-managerial employees, who took part in a seminar 

entitled “Convaincre et Agir” (act and convince). 

Alongside this corporate training, other courses were organized for senior and 

executive managers: 

n 

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3C Seminar (senior executives). Based on the theme of management, this 

seminar comprised three periods: 

the fundamentals of management at Renault, 

a midway session, meetings with executive vice presidents, presentations 

of Group entities by working groups, accelerated cross-functionality, 

company strategy and its deployment; 82 people took part in this seminar 

in 2007; 

seminars for management teams and managers with strong potential. These 

seminars, held in prestigious international environments, involved debate 

and discussion of present and future trends. They aim to develop a strategic 

vision and approach to Regions and markets, through an understanding of 

geopolitical, economic, technological and cultural issues. 65 people took part 

in these courses and were able to hone their skills, especially in fi nance and 

management issues related directly to their business; 

seminar for “key contributors”. This program is designed to help key 

contributors become more effective leaders, to help them choose and 

recommend methodologies, implement goals, act transparently, and get 

results. Set up in November 2006, it is based on three challenges: professional 

(gain a better understanding of market dynamics and the extent of global 

competition); personal (identify and develop individual working processes 

that deliver performance); cultural (grasp the opportunities offered by a 

multicultural environment). 

Coaching 

To help managers improve practices, individual and collective “coaching” 

sessions were organized for management committees keen to develop their 

managerial qualities. The development of cooperation skills and the management 

of complex situations were addressed in management workshops. 

Management of engineering departments 

A number of initiatives were organized in 2007, and are set to continue in 

2008 at several levels: 

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. 

. 

. 

. 


refocus business-line management on the fundamentals: 

a sites director has been appointed and a dedicated team of almost 

300 people put in place, 

a survey of 12,000 employees has been conducted by an outside fi rm to 

identify possible areas of improvement; 

01 

02 

03 

04 

05 

06 

07 

08 




PERFORMANCE 

n 

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. 

. 

control the incoming workload and the management of resources: 

350 people (in-house transfers or external recruits) are to be hired between 

now and the end of 2008 as part of a recruitment plan, 

new forms of organization have been put in place to make communication 

easier (systematic weekly meetings and a “Team Day”); 

provide support through training and skills management: 

. training stepped up in personal efficiency, stress prevention and 

management, and the conduct of annual performance and development 

reviews; 

succeed through welfare at work: 

. refi tting of meeting places (meeting rooms, terraces, restaurants, etc.), 

. shorter working hours at engineering sites, 

. life in the workplace improved by reminding staff of the operating rules 

(effi ciency of meetings, professional travel, lunch break, etc.), 

. teleworking developed in compliance with the corporate agreement. 

These points are naturally supported by the reorganization of the HR function, 

particularly the decentralization of the HR function and the appointment of local 

HR offi cers in the fi eld. 

3.1.1.2 ASSESSMENT AND RECOGNITION 

ASSESSMENT: THE ANNUAL PERFORMANCE AND 

DEVELOPMENT REVIEW ✦ 

At Renault the annual performance and development review is a unique 

opportunity for employees and their immediate managers to communicate 

and dialogue together. It is an important managerial task that serves to set 

targets, assess performance and identify how each employee can best pursue 

his/her personal and professional development. 

The annual performance and development review was recently revised to support 

the implementation of Renault Commitment 2009.It now effectively targets the 

contribution of each employee to the Group’s priorities, while focusing on clear, 

ranked and measurable objectives. 

The assessment of each employee’s performance is based on a factual review. 

It looks at whether the employee has achieved his/her targets and in what way 

(i.e. professional skills, behavior in the workplace, and managerial qualities for 

executive-level staff). 

If results fall short of expectations, a program of improvement is implemented 

by the manager and employee, in order to give fresh impetus to individual 

performance. 

The link between this performance assessment and the promotion plan (changes 

in job position or coeffi cient, revision of fi xed remuneration/basic salary, bonuses 

where applicable) is coherent. The promotion plan looks not only at whether 

objectives were achieved but also how. 


A number of new tools were developed in 2007 in order to provide greater 

support for managers and employees in the 2007-2008 campaign of annual 

performance and development reviews. A guide setting out all aspects of the 

annual performance and development review in detail was made available to 

all staff. At the same time, managers received practical training in the conduct 

of annual performance and development reviews. 

REMUNERATION 

Changes to remuneration 

Renault is conducting a dynamic policy on resources. 

At Renault s.a.s., management and trade unions (CFDT, CFE-CGC, CFTC and 

FO) signed a pay agreement on February 19, 2007 that included an overall pay 

increase for production and non-managerial staff of 3.6% for the period from 

April 1, 2007 to March 31, 2008. These measures include an overall pay rise 

of 1.5%, individual awards and promotions of 1.5%, a 0.34% seniority-related 

rise, a 0.24% increase in vacation and end-of-year bonuses and a review of 

the compensation for transport and for duty hours. 

Outside France, the remuneration policy respects local market standards. 

The subject of senior executives’ pay is addressed in c hapter 4.4 on corporate 

governance. 

Performance bonuses 

A new system of performance bonuses for senior managers, directly linked 

to their success in meeting targets, was put in place in 2006, and applied 

to results in 2007. This corporate system, rolled out Group wide, concerns 

around 2,500 managers and is based on their success in meeting collective 

and individual targets. 

3.1.1.3 SHARING THE BENEFITS OF GROUP 

PERFORMANCE ✦ 

Renault operates an incentive scheme that includes a redistribution of profi ts. 

It may also take the form of bonus payments for local performance. 

The incentive agreement signed by Renault s.a.s. for 2005, 2006 and 2007 

comprises two separate components: a share in the profi ts and a bonus related 

to the performance of each site. Payments on profi ts are equivalent to 6% of 

Renault’s consolidated net income, after tax and correction of any extraordinary 

factors relating to Nissan and after deduction of minority interests. For calculating 

individual entitlements, the same base is applied to all categories of personnel 

(gross annual salary, social security basis), with a minimum gross annual level 

of remuneration. This agreement expired at end-2007. 



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Over the past three years, incentive and performance-related bonuses at 

Renault s.a.s. have totaled the following amounts: 

YEAR TOTAL ( in € million) 

2005 217.59 

2006 210.08 

2007 206.99 

The senior management of Renault has decided to implement a profi t-sharing 

policy across the Group. 

This policy will be applied in France to Renault s.a.s. and its French subsidiaries 

from 2008, in compliance with legal provisions and as an extension of previous 

agreements. It will be extended gradually to all regions and to other Group 

subsidiaries from 2009, in order to involve all employees in the Group’s 

economic performance and fi nancial results, based on operating margin. 

The profi t-sharing agreement for France, applicable from January 1, 2008, was 

signed on December 18 by four trade unions (CFE-CGC, CFDT, FO, CFTC). 


BREAKDOWN OF COMPANY 

INVESTMENT FUNDS 



3.1.1.4 EMPLOYEE STOCK OWNERSHIP 

In France, Renault operates a voluntary company savings plan open to all 

subsidiaries that were more than 50% owned in 2006. The plan comprises: 

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four employee savings funds invested in accordance with socially responsible 

standards. Employees can make top-up payments into these funds, which are 

approved by the Associated Employee Savings Committee. The portfolio of 

shares managed to socially responsible investment standards is selected on 

the basis of the criteria that generally apply in this fi eld: employment policy, 

working conditions, respect for pollution standards, corporate governance; 

a profi t-sharing fund invested in the company’s shares (Renault share, ISIN 

code FR0000131906). 

In 2007 total payments into Renault’s company savings scheme totaled 

€51.4 million euros (up 4.9% on 2006), of which 92% in the form of 

discretionary bonus transfers. The total value of the company savings plan at 

December 31, 2007 was €1,143.1 million. 

The following data relate to the Group: 

NO. OF INVESTORS 

AT DECEMBER 31, 2007 

ASSETS 

(in € million) PERFORMANCE IN 2007 (%) 

Actions Renault (1) (4) Almost 100% Renault shares 57,759 706.0 7.35 

Actions Renault (2) Almost 100% Renault shares 14,774 151.9 7.39 

Renault Italia (3) Almost 100% Renault shares 159 1.7 7.30 

Fructi ISR Performance 100% European shares 6,192 34.9 -0.04 

Fructi ISR Équilibre (4) 50% French/foreign equities 15,660 152.0 2.19 

Expansor compartiment 3 (4) 95% diversified bonds 12,675 82.6 2.46 

Fructi ISR Sécurité (4) 100% money market 3,068 14.0 3.78 

(1) “Actions Renault” savings fund for French tax residents. 

(2) “Renault Shares” savings fund for tax residents outside France and Italy. 

(3) “Renault Italia” savings fund for Italian tax residents. 

(4) Fund to which top-up payments can be made throughout the year. 

3.1.1.5 COLLABORATIVE INNOVATION 

Involving all personnel in a process of collaborative innovation has been part 

of the Group’s corporate culture for more than twenty years. 

This approach plays a fundamental role in encouraging the participation 

and involvement of all employees in Renault’s progress, in order to protect 

the company’s future and sharpen its competitive edge. The added value 

generated by the 400,000 practical suggestions for improvement (PSI) 

implemented in 2007 extends beyond the value of these ideas alone: 

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by developing a culture of initiative and creativity, the company as a whole 

is more receptive to change; 

by asking everybody to come up with ideas, in compliance with Renault 

Commitment 2009, it encourages Group-wide commitment; 

when employees become active participants, and feel encouraged, listened 

to and valued by their manager, they play a more active role, and directly 

improve their quality of life in the workplace. 

Renault is gradually developing this system in all countries, across all sites and 

for all personnel. Data for Renault in 2007 are as follows (consolidated data for 

83,000 people compared with 86,000 in 2006): 

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a participation rate of 67% (69% in 2006); 

practical suggestions for improvement processed in 2.7 months on average 

(3.2 months in 2006); 

savings of €135 million, an average of €1,626 per person (€54.5 million or 

€633 on average per person in 2006); 

4.1 practical suggestions for improvement registered per person in 2007 

(5.2 in 2006). 

In 2008, Renault plans to continue rolling out the collaborative innovation plan 

in its new subsidiaries, particularly Russia and Iran. 

At the same time, Renault will step up a process to build on the best PSIs 

and bring them into general practice through Production Business-Line clubs 

implemented in 2007. 

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PERFORMANCE 

3.1.2 CONTRIBUTING TO GROUP PERFORMANCE 

Contributing to Group performance involves discovering and developing 

the talents that are essential to Renault’s performance, and particularly its 

international expansion. In 2007, the Human Resources function pursued 

policies designed to sharpen the Group’s competitive edge. It also sought 

to improve its own performance through increased standardization and a 

comparison with the best. 

3.1.2.1 THE SKILLS PROGRAM 

The automotive industry operates against a backdrop of global competition and 

requires a range of specifi c skills and expertise. Renault has identifi ed skills 

management as one of the factors setting it apart from the competition. 

IDENTIFYING AND DEVELOPING KEY SKILLS 

In view of the importance of these issues, Renault introduced a forward-looking 

cross-functional approach to skills planning in each business line in 2002. 

This approach, dubbed the “Renault Skills Program”, seeks to provide the Group 

with the skills it needs to fulfi ll its strategic goals. From the outset, it has been 

based on two factors: the conviction that upskilling will make a difference, and 

the need to look ahead. 

Directed by business-line managers with the support of the Human Resources 

function, the program will identify and build the skills that the Group needs to 

carry out Renault Commitment 2009 and meet its future commitments. 

Group workforce by activity at December 31 ✦ 

Group workforce by geographical region 

A total of 48 Skills Leaders, appointed by the CEO, coordinate their skill sets 

on a cross-functional basis at global level. They are assisted by a business-line 

advisor and a careers and skills development advisor. 

Together, they identify the strategic and business-critical skills to be managed, 

as well as any new skills that need to be developed in order to support the 

company’s international growth. 

After measuring the skills gap, the leaders prepare a skills development plan 

using a number of tools, including guidance for recruitment, training and 

organization, and career planning (Careers@Renault). 

The Renault Skills Program is part of a continual drive for progress. Annual 

reviews are used to set the objectives for the following year with a view to 

enhancing the competitiveness of the company, the performance of its business 

lines and the employability of its workforce. 

3.1.2.2 EMPLOYMENT POLICY 

RENAULT GROUP WORKFORCE ✦ 

At December 31, 2007 the breakdown of Renault’s workforce was as follows 

(excluding employees concerned by the CASA early retirement program). 

2007 (1) 2006 2005 % CHANGE 2007/2006 

Automobile 127,069 125,827 123,527 1.0% 

Sales financing 3,110 3,066 3,057 1.4% 

TOTAL 130,179 128,893 126,584 1.0% 

(1) Changes in the scope of consolidation had an impact of -1,392 employees in 2007. These include : 

– companies consolidated in 2007: +2,425 people; 

– removal of the SNR group from the scope of consolidation: -3,817 people. 

O n a like-for-like basis on 2006, Renault’s workforce totaled 131,571 at December 31, 2007, up 2,678 people. 


WORKFORCE % OF GROUP TOTAL % BLUE COLLAR % WOMEN 

France 63,087 48.5% 38.3 15.4 

Europe (excluding France) 23,993 18.5% 50.3 17.0 

Euromed 27,127 20.8% 69.5 22.9 

Asia-Africa 6,299 4.8% 49.0 10.3 

Americas 9,673 7.4% 58.7 9.5 

TOTAL 130,179 100% 49.0 16.6 



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For 2007, Group turnover totaled 7%. 

This fi gure is calculated as follows (based on the workforce under permanent contract): 

(total incoming staff in 2007 + total outgoing staff in 2007) / (2 × average 

workforce). 

The overall workforce is increasing as a result of Renault’s expansion outside 

Europe. In Europe and France, after a number of years of intense recruitment 

(31,000 people recruited since 2004), the workforce decreased (a 3.5% drop, 

excluding the impact of changes in the scope of consolidation such as the 

removal of the SNR group). Workforce numbers in France make up about half 

of the Group’s total workforce. 

SHARPEN COMPETITIVE EDGE AND SUPPORT GROWTH 

Renault is pursuing an active employment policy to renew its skills and support 

its international growth, while pursuing productivity gains in a fi ercely competitive 

environment. 

More than 7,000 new employees joined the Group in 2007, including more 

than 5,500 at international sites. 

Recruitment in France is now focused on the main needs of business lines, 

primarily for Renault Commitment 2009: purchasing, logistics and engineering 

as part of the team support plan, etc. The main objective is to continue to 

integrate, develop and maintain new skills. To this end, alongside its training 

efforts, Renault is relying on proven career management aids: induction courses, 

career committees, mobility and internal promotions. 

A number of measures were taken in 2006 to balance workforce numbers 

between sites and thus limit the impact of under-activity at some industrial 

sites and, in particular, partial unemployment. As part of this process, which 

continued in 2007, some 800 members of personnel were loaned to various 

sites on request. 

At the same time, the Group continued developing its international business 

locations: ✦ 

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continued development of Renault Technology Romania; 

a new development center in India; 

agreement for a new site in Tangiers (Morocco); 

continued industrial ramp-up in Russia (Avtoframos) and Romania (Dacia). 

To support its international expansion, Renault set a target in 2000 of recruiting 

20% of managerial staff with international backgrounds in terms of training 

or nationality. This steady increase in diversity, seen in most departments in 

France, provides rich input in discussions and greater insight into practices 

and habits. It also creates a large pool of employees who can be mobilized as 

part of Renault’s international development. In 2007, 30% of the engineers and 

managerial staff recruited by Renault s.a.s. had international backgrounds. 

To achieve this goal, Renault is working through a dedicated team of recruiters. 

The company establishes partnerships with international schools and universities, 

awards study grants to foreign students, and organizes internships for foreign 

trainees (35% of trainee engineers and managers at Renault s.a.s). It also 

operates VIE (international corporate volunteer) schemes (74 in 25 countries). 





Renault’s corporate web site, http://www.renault.com offers a range of vacancies 

that are regularly updated. Candidates can also submit their applications online 

and learn about the professional skills needed by the Group. More than 940 job 

and internship offers were published in France in 2007, receiving more than 

38,000 applications. Web users can also consult the local job offers published 

on the HR sites of 11 countries: Argentina, Belgium, France, Germany, Iran, 

Italy, Portugal, Romania, Russia, Spain and the UK. 

3.1.2.3 COOPERATION WITH 

THE EDUCATION SYSTEM 

TO BUILD THE PROFESSIONAL 

SKILLS OF YOUNG PEOPLE 

Upstream of the recruitment process, Renault is putting in place a series of 

initiatives that seek to match training programs with the skills needed by the 

Group and the professional expertise of young people. 

To fi nd out more about Renault’s commitment to the training of young people 

with few qualifi cations, refer to c hapter 3.3.5 on “Social Performance”. 

COOPERATION WITH SCHOOLS 

Renault is working actively with national and regional educational bodies to 

encourage training programs that develop the skills needed by the Group. 

In several instances, this educational cooperation has resulted in the introduction 

of special training courses for careers guidance counselors/psychologists, head 

teachers and heads of department. 

Renault is developing its commitments in this area through partnership 

agreements that give an offi cial structure to the initiatives conducted over 

a number of years (e.g. with the Lycée Jules Ferry in Versailles, through a 

vocational diploma in electronics and a degree in information technology for 

industrial systems). 

Renault also maintains close ties with a large number of engineering and 

management schools and universities on a wide range of partnership actions 

(end-of-study internships, apprenticeship contracts for students with fi ve 

years in higher education, sponsoring of course options, the Phénix program, 

participation in administrative and/or teaching committees, research projects, 

involvement in a number of Chairs and Foundations, in-house training, etc.). 

Renault paid €8.5 million in apprenticeship tax in 2007 to around 500 French 

schools. 

INFORMATION ON THE ACTIVITIES OF THE AUTOMOTIVE 

INDUSTRY 

Providing information on the wide variety of careers available in the automotive 

industry is another way to attract young people and to encourage them to 

undertake scientifi c and technical studies. 

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PERFORMANCE 

In France, Renault has signed a business commitment charter to promote 

equal opportunity in education. It is also supporting initiatives to promote its 

activities, particularly through: 

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the “Course en Cours” high school prize. This teaching project, which brings 

together high schools and universities, is aimed for children from the least 

privileged social and cultural backgrounds. The idea behind the project is to 

design, validate, manufacture and promote a mini Formula 1 vehicle that will 

compete in national and international events. Students from higher education 

act as tutors for their project. They encourage the young participants to 

plan their future careers and build a personal project. At the same time, 

participants discover the realities of the workplace; 

the opening of a special preparatory class at the prestigious Lycée Henri IV 

in Paris, giving grant students the best chance of passing the entry exams 

for the most selective business and engineering schools. The Lycée Henri IV 

has given Renault the opportunity to sponsor a class over a period of three 

years. Managers from the company will act as tutors and bring the young 

people the benefi ts of their enthusiasm and assistance (visits to sites, 

information required, support, etc.). 

In 2007 the Group took part in 26 forums for leading business and education 

schools in France and elsewhere. 

WELCOMING YOUNG PEOPLE 

Renault is also pursuing its commitment to the vocational training of young 

people. In 2007 Renault s.a.s. opened its doors to nearly 4,000 young people, 

including 934 on work/study courses and more than 2,800 interns at all levels 

and in all areas. Renault has also welcomed several dozen doctoral students. 

3.1.2.4 CAREER DEVELOPMENT 

SUPPORTING CAREER PATHS AND DEVELOPMENT ✦ 

Against a constantly changing backdrop, career paths provide the basis to build 

and develop personnel skills over time, through the gradual accumulation of 

experience. 

Through its policy of professional advancement, the Renault group aims to 

always have the skills it needs and to motivate employees by providing attractive 

career prospects. Renault therefore places strong emphasis on internal mobility, 

which takes priority over external recruitment. The company also encourages 

international and “inter-business line” mobility. 

The approach is based on a “mobility Charter”, with seven key rules setting 

out the rights and duties associated with job transfers within the Group, for 

both employees and managers, as well as the conditions governing the way 

mobility works. 

Employees can use a range of tools available on the Group’s intranet to build 

their career path: 

careers@Renault is a tool launched in early 2006. It describes the main 

job positions available in France in the company’s key business lines, from 

design to support functions, through production, sales and sales fi nancing. 

It also illustrates the wide diversity of career paths available, both within 

and between business lines. More than 1,000 benchmark positions (jobs 

representing key career development stages within a business line) and 

bridging positions (jobs that make it possible to move from one business 

line to another) have been described and published; 

a job opportunities site (JobAccess) is available in fi ve languages. 

Forward career planning is organized by the Human Resources function, which 

draws on information from the careers committees, the individual management 

committees, as well as on the employee’s annual performance and development 

review. 

A working group was set up in 2007 to optimize mobility across the company. 

The aim is to cut the time taken to fi ll a job, to match profi les with available 

job positions and to shorten the time spent making this match. 

At the same time, Renault s.a.s. has reviewed a signifi cant part of the rules 

applying to the management of staff categories through a range of company 

agreements. These agreements concern: 

production operators. 

A new skills acquisition program promotes the professional advancement 

of all production operators. International deployment is continuing across 

all Group manufacturing sites. The objective is to provide common skills 

standards and training programs in order to guarantee the best production 

conditions for product quality, regardless of geographical location, and to 

maximize the sharing of resources and expertise; 

non-managerial staff. 

Three agreements specify the terms of integration for new non-managerial 

staff (recruited with a higher technical diploma), career paths for team 

supervisors and shop foremen, and the career management rules for nonmanagerial 

staff with promotion potential; 

access of non-managerial staff to managerial status through internal 

promotion. 

Promotions to managerial status within Renault s.a.s and Renault’s French 

subsidiaries (excluding Renault Retail Group and RCI Banque) are governed 

by a company agreement, which plays a key role in internal promotions. 

It concerns between 100 and 120 employees a year in all business lines. 

Managers promoted through this plan now make up more than 20% of the 

total. In 2008 Renault will pursue its proactive policy of internal promotions, 

making full use of the new tools designed to identify staff with potential. 



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3.1.2.5 TRAINING 

Vocational training is key to the skills development process. For the company, 

training underpins technological change and the implementation of strategy. 

For employees, training is a way to maintain the highest level of professional 

expertise and to acquire new skills that will be useful to their careers. 

TRAINING FOR EVERYBODY 

France 

In 1999, as part of the agreement on the reorganization of working hours in 

France, Renault introduced employee training quotas under an annual “banked 

hours” scheme. At Renault s.a.s., the quota is 25 hours for operators working 

in shifts, 35 hours for other operators and non-managerial staff and six days 

for engineers and managers. 

International 

In 2007 the Group continued to develop training across the company. 

“Core skills” training courses have been designed and implemented for all 

Group employees on the basis of four formats: 

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Renault experts from a particular entity train Renault employees in another 

country; 

relay facilitators are trained by Renault experts and then train the employees 

at their entity; 

Renault employees follow training in another Renault entity in another 

country; 

Renault employees train themselves using e-learning techniques. 

The development of skills schools outside France is continuing. Engineering 

schools are now up and running in Korea, Romania, Mercosur and Turkey. 

The objective is to organize a training system meeting requirements in 

terms of costs, skills and quality, which serves the needs of management 

and thus contributes to skills development at the sites in relation with central 

engineering. 

With the adoption and roll-out of its unique e-learning platform, Renault is 

now able to implement distance training around the world and to support 

the Group’s international development strategy. For example, engineers from 

Renault Samsung Motors (Korea), Dacia and Renault Technology Ro mania 

(Romania) and Oyak (Turkey) have been trained to use a computer-assisted 

engineering program, in the same way as their colleagues at the Guyancourt 

site (France). 

At the same time, the Group has restated its language policy. The working 

language for the Renault group is French, while the Renault-Nissan Alliance 

works in English. Group managers, as well as employees and technicians 

using one of the two languages, should aim for a minimum score of 750 points 

in the TOEIC (Test of English for International Communication) for managers 

recruited by the Group and 750 points in the TFI (international French test) 

for managers recruited in France and whose mother tongue is not French. 




The target level for senior managers and managerial staff with high potential 

is 850 points. The fl uency of managerial staff in English and French is being 

assessed on a progressive basis: across the Group, 21,500 people have 

taken the TOEIC test and more than 4,300 the TFI test. At-end 2007 some 

3,060 Renault s.a.s. employees had followed English language courses, with 

139,756 hours of training. These programs are gradually being rolled out on 

an international scale. 

EFFICIENT TRAINING 

The 2007 training plan refl ects efforts to contribute to Renault Commitment 

2009, in terms of training effi ciency and cost management. To this end, Renault 

is pursuing several objectives: 

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match training plans with the needs expressed by the skills development 

leaders. Training courses are developed only on the request of business 

lines; 

standardize the training offering Group-wide and optimize deployment; 

publish the available courses on the corporate intranet and provide regular 

updates. the Training Guide lists the courses on offer, while the skills schools 

provide employees of each business line with the training they need to do 

their job and to meet their objectives; 

assess the quality of training: the quality of training, as perceived by the 

trainees, is systematically assessed by on-the-spot questionnaires, issued 

at the end of each session. The role of these questionnaires is to ensure that 

training courses meet objectives. In the case of major programs, surveys of 

employees and their managers are organized a few months after the event 

to assess the effi ciency of training. More than 40,000 on-the-spot surveys 

have been conducted on Renault s.a.s. for an average satisfaction rating 

of 16.8/20; 

optimize costs: with the help of the Purchasing function, cut the cost of 

training purchases, particularly by working on the supplier base. A number 

of other initiatives have been set up at the same time to cut the costs of 

training and the associated logistics. They concern: 

. developing the policy of in-house facilitators, 

. cutting the operating costs of training (accommodation, rental of premises, 

organization, etc.), 

. regular monitoring of attendance. 

Introduced by Renault in 2000, e-learning is now a common practice. More 

than 78,000 hours of online training were organized in 2007. Integrated with 

the mixed training program, e-learning allows employees to progress at their 

own pace and according to their needs, in the fi elds of fundamentals and 

theory. Classroom training provides richer interaction and is dedicated more 

to case studies and role playing. Today, Renault’s e-learning offering includes 

corporate content (management, personal effi ciency, English, offi ce automation, 

etc.) and regularly gains new business line content (fi nance, management, 

engineering, purchasing , quality, parts and accessories, information systems, 

etc.). The training offer plays an essential role in meeting the growing needs 

for skills development expressed by the Group’s various entities. 

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PERFORMANCE 

In 2007 Renault s.a.s. and a subsidiary of a leading IT group set up a joint 

venture (GIE) to manage training logistics at the Renault head offi ce, Guyancourt 

and Rueil-Lardy sites in France. The objectives of the joint-venture are to: 

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develop professional skills in training logistics with the assistance of an 

industry-leading partner; 

introduce industrial, automated processes (registration, notifi cation to attend, 

etc.); 

improve the simplicity and speed of processes for employees and 

managers. 

Managed training 

Common indicators are used to keep track of the implementation of the training 

policy in all countries, and to measure: 

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access to training: across the Group as a whole, an average of four out of 

every fi ve employees attend one training course each year, representing a 

training access rate of 78.7%; 

total training expenditure as a percentage of payroll: at Group level, the 

investment was €174.2 million, or 4.85% of the payroll; 

average number of training hours per person: the Group provided 4.9 million 

hours of training, or 37.8 hours per employee; ✦ 

the breakdown of training hours by skills area. The Renault group training 

program can be broken down as follows: ✦ 

BREAKDOWN OF TRAINING HOURS 

BY SKILLS AREA 2007 SHARE (%) 

Purchasing 26,794 0.5 

Sales/Marketing 414,608 8.4 

Design 3,956 0.1 

Environment 68,733 1.4 

Production 2,287,996 46.4 

Engineering 427,318 8.7 

Languages 559,221 11.3 

Logistics 100,156 2.0 

Management 357,360 7.3 

Quality 163,969 3.3 

Support: HR, Management, Finance, IS, etc. 518,755 10.5 

3.1.2.6 MAKE ORGANIZATION 

MORE FLEXIBLE 

In accordance with national legislation and local industrial relations, Renault is 

developing a policy to reorganize working hours in order to meet the needs of 

the company’s customers and sharpen the Group’s competitive edge. 

This reorganization has two main aims: 

improve use of resources by developing 2x8 hour and 3x8 hour shift rosters 

and weekend shifts, and by introducing alternating 6-day and 4-day working 

weeks; 

develop worktime fl exibility: by lengthening daily shifts and introducing 

Saturday shifts for week-day teams, with recovery of overtime hours during 

less busy periods via systems such as “time capital” accounts. 

Renault is adapting its expertise in the organization of working hours in industry 

to a number of international projects, in order to help production sites in other 

countries cope with fl uctuating levels of activity. 

A total 40.5% of Renault s.a.s. employees work in shifts (41.7% in 2006). 

The breakdown is as follows: 

2007 BREAKDOWN 

Women 7.3% 

Men 92.7% 

Several sites have modified their local agreements to manage specific 

organizational problems (downturn in activity, partial unemployment, rise in 

activity, introduction of night shifts, etc.). 

3.1.2.7 INFORMATION SYSTEM 

Standardization and the pooling of experience rank among the key factors 

contributing to performance. 

Renault’s Human Resources are managed by a Group-wide personnel database 

called the BPU (Base personnel unique), set up to manage Human Resources on 

an international scale. In time, the system will be able to manage the Group’s 

entire workforce. 

The BPU consists of a common core of HR information, including data on Group 

organization and individual employee data. The organizational data can be 

read by all the Group’s companies in different countries. Access to individual 

employee data is governed by confi dentiality regulations. 

The BPU also covers HR management functionalities such as work time, pay, 

recruitment and individual management. The BPU is designed for human 

resources experts, but also for managers wishing to enhance the human 

resources management of their work teams (career and training management, 

skills development, work time management). 



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Efforts continued in 2007 to extend the BPU to other countries (Romania 

in particular), and to expand the services available to employees and 

managers through Self Service/Manager Self Service. These services 

included implementation of the organization chart, as well as personal data 

sheets, a workforce management chart and a section on the HR function 

(employees). 

At end-2007, the BPU was in use in 129 Group companies (compared 

with 143 in 2006 following the reorganization of Renault Retail Group, 

formerly REAGROUP) in 22 countries (France, Spain, Belgium, Switzerland, 

Italy, Brazil, UK, Slovakia, Austria, Netherlands, Poland, Czech Republic, 

Germany, Portugal, Croatia, Slovenia, Argentina, Chile, Hungary, Korea, 

Romania, Serbia). It thus totals several thousand users and almost 

100,000 employees managed. 

3.1.2.8 THE ALLIANCE WITH NISSAN 

The Alliance HR FTT (Functional Task Team) is made up of HR representatives 

from Renault and Nissan. Its role is to support the Alliance’s drive for improved 

effi ciency by conducting a series of benchmarks to identify the best practices 

in both groups and pursue the actions launched in the areas of targeted 

recruitment, staff exchanges, intercultural training and satisfaction surveys. 

3.1.3 SHARING GROUP VALUES ✦ 

Renault has become a global and multicultural company. It is therefore essential 

to promote and share the Group’s values, which are factors of cohesion and 

solidarity. These values, such as the Declaration of Employees’ Fundamental 

Rights, are based on global rules and principles such as diversity, nondiscrimination, 

the implementation of social dialogue at all levels of the company 

and a continuous focus on conditions in the workplace. 

3.1.3.1 DECLARATION OF EMPLOYEES’ 

FUNDAMENTAL RIGHTS ✦ 

For Renault, a sense of social responsibility is key to its long-term success. 

It is therefore natural for the Group to make social responsibility one of the 

values applied at all its sites worldwide. 

To this end, the Renault group Declaration of Employees’ Fundamental Rights 

was signed on October 12, 2004 by Renault, the International Metalworkers’ 

Federation, the Renault group Works Council (CGR), and the trade union 

organizations that signed the agreement of April 4, 2003 relating to the GWC 

(FGTB, CFDT, CFTC, CGT, CCOO, CSC, FO, UGT, CFE-CGC). This declaration is 

based on International Labor Organization standards and on the human rights 

set out in the Global Compact created by the United Nations, and adopted by 

Renault on July 26, 2001. 




Renault and Nissan developed a number of staff exchanges to optimize the 

operation of the Alliance. These exchanges still exist but they now focus more on 

staff with particularly strong potential or on business line experts. The objectives 

are fourfold: 

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take advantage of the Alliance to train future managers with a strong 

international culture; 

develop expertise; 

provide a fast response to the demands of local markets; 

build on shared knowledge and expertise in key areas (logistics, etc.). 

At end-2007, 44 Nissan employees had joined the various entities of Renault 

and 72 Renault employees had joined Nissan’s business units in regions 

including Japan, North America, Europe, Mexico and Thailand, making a total 

of 116 people. 

Staff transfers are set to become more frequent in the future to keep pace with 

the expanding international coverage of the two groups and also to pursue 

increased synergies. 

At the same time, Renault and Nissan regularly assess employee perceptions 

of the Alliance. Several surveys have already been conducted in this area in 

a number of countries. The surveys canvass the opinions of several thousand 

employees, selected at random. 

The Declaration concerns all Renault group employees worldwide. Suppliers 

to the Group are also involved. 

As part of this Declaration Renault has committed “to respecting company 

employees worldwide and helping them prosper, fostering freedom, ensuring the 

full transparency of information, applying the principle of fairness and complying 

with the Renault Code of Good Conduct”. The Code of Good Conduct was 

modifi ed in 2007 to include a new function, “Compliance”, and a warning 

system aimed at preventing ethical risk. 

The Declaration implements global rules and principles, including Renault’s 

commitment in the fi elds of health, safety and working conditions, and the 

refusal to use child labor and forced labor. The commitment made by suppliers 

in this area will be a criterion of selection. The Declaration also restates the 

Group’s commitment to equal opportunities at work, the right to training for 

employees, and fair remuneration. ✦ 

Signatories conducted a second review of application on June 25, 2007. 

This was an opportunity to evaluate the action taken, the standards applicable 

in all countries and the synergies developed within the Group and extended 

to suppliers. 

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PERFORMANCE 

3.1.3.2 DIVERSITY ✦ 

Refl ecting the same approach, Renault signed the Diversity Charter on November 

30, 2004 in France. The aim is to encourage pluralism and diversity through 

recruitment and career management. Around forty other companies have also 

signed this Charter. 

Renault is keen for the company to take advantage of the cultural wealth and 

diverse experience of all components of society. 

WOMEN AT RENAULT 

Renault’s commitment to promoting diversity concerns the place of women in the 

company, in particular. Despite the automotive industry being a predominantly 

male world by tradition, and despite the fact that women are under-represented 

in the schools attended by students wishing to work in this sector, Renault 

includes one-third of women in the white collar workers recruited annually. 

Three women sit on Renault’s Management Committee. 

Renault s.a.s. has signed an agreement to establish professional equality 

between male and female employees and to encourage a balance between 

employees’ working lives and private lives. The agreement includes measures 

to establish gender equality, such as the analysis of the recruitment of women, 

cooperation with the educational authorities in an effort to make automotive 

industry professions more attractive to women, the creation of commissions for 

gender equality in the Works Councils, and measures relating to maternity or 

parental leave (interview with the management, training, access to information, 

equal treatment guaranteed during maternity leave). Plans are also under way to 

provide practical and fi nancial improvements and to organize childcare facilities 

in an effort to better reconcile employees’ professional and private lives. 

In October 2007, Renault partnered the Women’s Forum in Deauville (France) for 

the second year running. As a partner in the program “Women for Education”, 

Renault also supports the emancipation of women worldwide, through easier 

access to education, vocational training and business creation. 

DISABLED PEOPLE 

Renault s.a.s. has renewed its agreement concerning disabled staff for the 

fourth consecutive time and for a period of three years (2006-2008). For more 

information, refer to c hapter 3.3.5 on Renault’s “Contribution to civil society”. 

In 2007 Renault pursued initiatives to: 

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educate managers and employees on disabled staff and the company 

agreement; 

recruit more than 2% of disabled people in the engineering and support sectors 

for Renault s.a.s.; 

consolidate its partnership through a special plan to promote the professional 

insertion of disabled people; 

promote the integration of disabled young recruits and meet their requests 

concerning professional mobility; 

support job retention through the redevelopment of work stations. 

Renault plans to continue deploying this agreement in 2008. 


3.1.3.3 NON-DISCRIMINATION 

Renault aims to ensure equal opportunity. All employees must be able to express 

themselves in line with their commitment, their skills and their talent. To this end, 

Renault prevents all forms of discrimination. The principle of non-discrimination 

implies equal treatment based on the application of identical rules and criteria 

for all employees, at all stages of Human Resources management (recruitment, 

training, promotion). Renault set up an initiative in 2006 to educate employees 

on discrimination issues. The focus that year was on HR staff and management 

committees. Renault continued to implement this policy in 2007, and plans to 

extend it internationally. 

3.1.3.4 MANAGEMENT-LABOR DIALOGUE ✦ 

Renault aims to maintain continuous, responsible and high-quality dialogue 

between management and labor at all levels of the company. This dialogue 

underpins the technical, economic and social changes stemming from the 

implementation of corporate strategy. The company encourages negotiation 

to promote decision-making at grass-roots level, and to prepare and manage 

change by seeking a balance and a convergence of interests between the 

company and its employees. 

In October 2005 a Group-wide policy for relations with staff representatives 

was defi ned to make sure that Renault assumes this social responsibility in 

every country where it does business. The policy refl ects the Declaration of 

Employees’ Fundamental Rights signed on October 12, 2004 and confi rms the 

Group’s strong commitment to staff representation. 

Dialogue between management and labor continued apace in 2007. 

In 2000, the Renault group Works Council became the only employee 

representative body spanning the entire Group. Its role is to establish a 

transnational dialogue between management and labor on the situation and 

strategy of the Group, and on major developments. Following the renewal of 

the agreement on the Renault Works Council on April 26, 2007, two new full 

members (Romania and Poland) have joined, along with a Russian observer. 

The council now comprises 34 representatives from 19 countries, working for 

Renault’s majority-owned subsidiaries in the European Union and worldwide 

(Brazil, Argentina, Korea, Turkey, Russia). Two additional European deputy 

secretaries (Slovenia and Romania) have joined the select committee. In 2007 

the Works Council met once in plenary session. The European Group Committee 

met once, and the select Committee, composed of ten members (including fi ve 

European secretaries excluding France) met 11 times. 

The Works Council of Renault s.a.s is regularly informed and/or consulted on the 

general operation of the company and its subsidiaries (founding of subsidiaries 

outside France, new Group organization by Region, etc.). The Works Council 

met nine times in 2007, and the bureau 13 times. The economic commission 

met six times and the central training commission twice. 

In 2007, fi ve collective agreements were signed at Renault s.a.s., concerning 

teleworking (agreement of January 22, 2007), wages (agreement of 

February 19, 2007), the Group Works Council (agreement of April 26, 2007), the 

Works Council composition (agreement of July 24, 2007) and the redistribution 

of profi ts (agreement of December 18, 2007). 



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The agreement on teleworking was signed in early 2007 with all trade unions. 

It enables employees who so wish to work from home, in agreement with their 

manager. Teleworking functions on the basis of two to four days at home with at 

least one day on the offi ce site. The company provides the employee with all the 

equipment necessary. Before teleworking can be put in place, the employee’s 

domestic electrical system and IT access must be approved. A trial period 

of three months is applied and can be terminated at any time. At end-2007, 

99 employees had adopted teleworking and 52 applications were under study. 

An equal number of men and women are concerned. The distance from home 

is a key factor of choice for 60% of teleworkers. 

3.1.3.5 INTERNAL INFORMATION 

Renault communicates with its employees on a continuous basis about the 

company’s situation, strategy and objectives in all areas: Renault-Nissan 

A lliance, new products, industrial and commercial activity, motor racing, fi nancial 

results, human resources policy, etc. 

The main internal print medium is an international magazine called “Global” 

(between eight and ten issues per year). It has a circulation of more than 

100,000 in French and English, alongside four local editions (Spain, Mexico, 

Russia and Turkey). 

An internal medium, videostreaming, is used to broadcast videos over the 

intranet. The announcement of Renault Commitment 2009 by Carlos Ghosn was 

widely broadcast internally, both live and recorded. Alongside videostreaming, 

increased use is being made of the range of possibilities offered by emerging 

information technology, such as animations and illustrations. 

Many countries have set up intranet sites in their own language, accessible 

through the company’s international portal. The dual-language (French and 

English) intranet portal, which has some 60,000 terminals connected worldwide, 

is used continuously to transmit in-house news bulletins, fact sheets and videos. 

In addition, communications kits are produced for management so they can 

keep employees informed of events within the company and issues relating 

to Group strategy. 

3.1.3.6 OCCUPATIONAL WELFARE 

The health and safety of the workforce are essential values for the Group. They 

play a key role in the Group’s efforts to enhance the quality of life of employees 

while boosting its own overall performance. 

This policy refl ects the Renault Declaration of Employees’ Fundamental Rights. 

It is based on values that apply throughout the Group as it pursues its international 

expansion and continues to develop both socially and industrially. 

The method used by Renault to assess occupational welfare is based on: 

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a management system; 

an international network of specialists in healthcare, safety and working 

conditions (engineers, technicians, physicians, nurses, social workers); 


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an assessment of risks from the standpoint of both safety and ergonomics; 

the commitment of management and personnel in this area; 

a proactive approach to human factors, particularly in new projects and in 

countries that are new to the Group. 

To measure implementation of the occupational welfare policy, assessments 

based on a management standard are carried out in the various Group entities, 

both by internal experts and by an outside body. If conditions are met, the 

“Renault Management System for Safety and Working Conditions” label is 

awarded for a renewable three-year period. It can be withdrawn in the event 

of a serious anomaly. 

Since the initiative was launched in 2000, Renault has organized audits at its 

industrial, support, engineering and commercial sites. 

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95% of industrial, support and engineering sites have obtained the label, 

which has already been renewed in some cases. The sites that have not yet 

obtained the label are those whose consolidation is recent (new business 

locations, sites recently purchased by Renault, etc.); 

80% of sales sites have obtained the label since the launch of this initiative 

in 2005. 

In 2008 Renault plans to: 

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conduct another 14 audits for industrial, support and engineering sites 

(primarily audits of renewal), and around 40 for sales sites (including 

18 audits of renewal); 

structure the occupational welfare activity at new sites in India and 

Morocco; 

continuously reduce the number of accidents; 

continue encouraging managers to be proactive on occupational welfare 

issues. 

NUMBER OF LOST-TIME OCCUPATIONAL ACCIDENTS: FREQUENCY – RENAULT GROUP ✦ 

8.00 

7.00 

6.00 

5.00 

4.00 

3.00 

2.00 

1.00 

0.00 


Since 2002, the frequency of lost-time accidents within the Group has fallen 

by more than 40%. 

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PERFORMANCE 

NUMBER OF DAYS LOST THROUGH OCCUPATIONAL ACCIDENTS: SEVERITY – RENAULT GROUP ✦ 

0.25 

0.20 

0.15 

0.10 

0.05 

0.00 

Since 2002, the severity of occupational accidents within the Group has 

decreased by more than 40%. 

Group figures on occupational accidents concern 98.7% of the total 

workforce. 

The Group’s policy on health and occupational welfare comprises a number 

of other facets. 

ERGONOMICS 

Renault applies a method of ergonomic analysis to its workstations. The third 

version of this internally developed system aims to protect the health of 

production operators, particularly by reducing musculo-skeletal complaints, and 

thus to improve performance. Used in all Renault production plants worldwide, 

the method has also been extended to other companies. At the same time, 

Renault has developed a simplifi ed safety and ergonomics data sheet to 

help unit managers analyze the risks inherent in the workstations for which 

they are responsible and to improve working conditions on an ongoing basis. 

Good ergonomics involves making sure that the workstations are suited to the 

people who work at them (taking particular account of the age of employees). 

This involves conducting an ergonomic analysis of workstations, emphasizing 

ergonomics in projects (see below), doing away with job positions classed as 

“diffi cult” on the ergonomic scale, and improving skills in this area. A plan to 

recruit qualifi ed ergonomic specialists has been under way for several years. 

For each major industrial project (vehicle replacement, etc.) the project team 

now systematically appoints a socio-technical project manager whose role 

is to: 

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ensure that projects place greater emphasis on ergonomics; 

handle questions relating to occupational health and safety as well as to 

design ergonomics (new production facilities, product upgrades, etc.); 

monitor the quality of the training plan. Each project provides an opportunity 

to aim for progress targets set jointly by the engineering departments and 

production plants. 

Renault plans to extend these initiatives in 2008, to: 

continuously improve workstations, to provide training in ergonomics for 

managers and to cut the number of job positions ranked as diffi cult through 

new projects, particularly at international level; 

educate employees, particularly in supporting activities. 

HEALTH ✦ 

Renault is developing a health policy for employees. 

Employees undergo regular screening tests, e.g. for cardiovascular diseases. 

Renault also organizes information and training campaigns on themes including 

ergonomics, smoking, alcohol, drugs, healthy eating, obesity, the dangers of 

sunburn and practical information for foreign missions. 

Renault is adopting a multi-faceted approach. 

The health departments and occupational welfare departments work handin-hand 

to maintain a healthy workplace (workstation ratings, environmental 

samples, etc.). 

Renault set up a stress, anxiety and depression clinic in 1998. At end-2007, 

more than 64,000 tests – organized on a voluntary basis – had already 

been carried out, leading to action on an individual or collective basis. These 

included: 

stress-education forums, aimed primarily at managers; 

sessions to help the HR function identify people in diffi culty. 

In 2007, Renault: 

continued to provide post-traumatic stress prevention services to offer 

immediate support to employees suffering from psychological shock; 

organized training in relaxation; 

extended the stress, anxiety and depression clinic to three new sites; 

extended the content of the “Medical Intranet” to include new topics, such 

as sleep, stress, cardio-vascular diseases, alcohol abuse, nutrition, hygiene, 

viral protection measures, etc.; 

harmonized its internal public health campaigns. 


educate employees on the subject of alcohol; 

modify the stress, anxiety and depression clinic to better target the actions 

to be developed for identifi ed at-risk populations; 

harmonize key indicators at international level in order to better target global 

prevention actions; 

repeat its prevention campaigns (sleep, vigilance, addictions: tobacco, 

alcohol, etc.). 



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05 

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07 

08

TEST LABORATORY 

Renault’s test laboratory, set up a number of years ago, is now attached to the 

department of “Environmental protection and risk prevention”. This has made 

it possible to develop skills synergies and implement a coordinated approach 

in the areas of employee health and environmental protection. The laboratory 

also manages “Chimrisk”, the Group’s chemicals database, which provides 

all internal staff concerned with valuable information for preventing health 

and environmental risks arising from Renault’s use of chemicals. A total of 

6,534 products are listed at present. At the same time, the laboratory analyzes 

the physical and chemical environments. In 2007 it conducted 1,684 tests on 

air quality at workstations, and 1,800 analyses of physical environments (noise, 

etc.) compared with 1,176 tests on air quality and 1,803 analyses of physical 

environments in 2006. 


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ensure enforcement of the REACH regulation (Registration, Evaluation, 

Authorization and Restriction of CHemicals); 

step up efforts to provide computerized safety and environmental instructions 

on all chemicals, for use by the primary and secondary sales networks and 

new international sites; 

increase its capacity to measure noise. 

ROAD RISK PREVENTION 

In 2007 further to the commitments made to the authorities and the publication 

of the Renault Driver’s Charter, the Group: 

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organized awareness forums via its sites and subsidiaries (braking tests, 

personal vehicle safety checks, testing of refl exes, etc.); 

promoted practical training sessions to increase awareness of accident risks 

(some 500 employees trained in 2007); 


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. 

. 


deployed the following Group-wide: 



a new international e-learning aid on preventing road risk for cars 

and motorbikes (nearly 4,300 hours of training reaching nearly 

18,400 employees), 

a game published in the house magazine “Global”, to educate employees 

and their families concerning their behavior on the road; 

tested an employee training system based on a driving simulator at three 

sites. 

(For more details, see c hapter 3.3.4 on “Social performance”). 

The action taken between 2000 and 2001 achieved a 10% cut in the number 

of lost-time accidents taking place on the journey between home and work. 

The action taken since 2002 has reduced the number of accidents of this type 

by a further 15% across the Renault group. 

For 2007, the Renault group reported 2.2 lost-time accidents between home and 

work for 1,000 employees. The breakdown of these accidents is as follows: 


Number of lost-time 

accidents between home 

CARS 

2-WHEELED 

VEHICLES PEDESTRIANS OTHER 

and work 37% 32% 28% 3% 

Number of lost-time days 26% 49% 22% 3% 

An international convention is held each year for occupational health and safety 

specialists, doctors, nurses, socio-technical project managers, prevention 

technicians and also for managers. 

01 

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03 ENVIRONMENTAL 


PERFORMANCE 

3.2 ENVIRONMENTAL PERFORMANCE 

3.2.1 ENVIRONMENTAL CHALLENGES 

The survival of natural environments depends on maintaining a delicate balance 

between fauna, fl ora and humans. This balance is threatened today by human 

activities and their impact on the environment: population growth, economic 

expansion and consumer trends. Increasing global consumption of water, fossil 

resources (oil, gas) and other non-renewable raw materials is dangerously 

reducing the natural resources that will be available to future generations, since 

these resources cannot be renewed in the same proportions. 

Greenhouse gases, including CO 2 , are contributing to climate change. Chemical 

substances released into the atmosphere contribute to phenomena like acid rain 

and the formation of tropospheric ozone. When these substances are discharged 

in bodies of water, eutrophication can occur. This encourages the proliferation 

of algae, which asphyxiate other aquatic organisms. 

Renault’s environmental policy addresses the major environmental challenges 

that are specifi cally related to the automotive industry: 

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the manufacture and use of vehicles consume natural resources and produce 

waste; 

vehicle operation produces carbon dioxide, a greenhouse gas; 

the sulfur dioxide and nitrogen oxides emitted by vehicles contribute to acid 

rain and acid soil; 

vehicle use increases environmental noise levels. 

Renault has defi ned fi ve priorities for its environmental policy: 

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preserve natural resources; 

eliminate or reduce environmental impacts; 

develop product and service offerings that are compatible with environmental 

protection; 

implement environmental management across the company and throughout 

the product life cycle; 

organize communication on environmental issues. 

At Renault, actively protecting the environment means creating a range of 

vehicles and services that will maintain the ecological balance in the local 

ecosystem and at planetary level, taking into account the environmental and 

economic situations in each market. It also means tracking and taking part in 

scientifi c, regulatory and fi scal debate with French and European authorities 

to reduce the impact of the car on the environment. 

Renault welcomed an initiative put forward at the end of 2007 by the French 

government which: 

rewards vehicles emitting less than 130 g of CO 2 per kilometer; 

penalizes those emitting more than 161 g of CO 2 per kilometer; 

is neutral for vehicles with CO 2 emissions of between 131 g and 160 g of 

CO 2 per km. 

I n France’s national debate on the environment, Renault again stated that it was 

very much in favor of this type of taxation, based on a bonus/surcharge system. 

This type of taxation promotes the increased availability of vehicles with low CO 2 

emissions. These vehicles play an essential role in efforts to prevent climate 

change. Renault’s commitment in this area dates back to February 2006 and 

Renault Commitment 2009, and was further reinforced by the roll-out of the 

Renault eco 2 label in May 2007. 

This label promotes dialogue with the customer on the life-cycle approach 

chosen by Renault some years ago. This approach takes into account all the 

ways in which a vehicle impacts the environment during its lifetime, from the 

design and development phase onwards. 

Renault has accordingly been making precise measurements of environmental 

fl ows during the phases of vehicle production and use. It is also gaining a 

clearer picture of fl ows in other life-cycle phases such as the supplier chain 

and the treatment of end-of-life vehicles (ELVs). More and more comparisons 

are being made between vehicles of different generations in the same segment. 

The Laguna II/New Laguna comparison shows the progress made in just a 

few years. 



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COMPARATIVE INVENTORY AND PROGRESS BETWEEN LAGUNA II AND NEW LAGUNA ✦ 

The life-cycle analysis makes it easier to decide on the best trade-off between 

environmental impacts that are often contradictory and where a compromise 

has to be found: for example, between CO 2 and pollutant emissions or safety and 

weight, or – in the process chain – between the ELV phase and manufacturing 

by suppliers . 

Renault has gone further by including an indicator that combines the lifecycle 

analysis for each technology and alternative energy with their economic 

characteristics (technology cost, fuel prices, tax aspects, etc.). Renault’s 

objective is to develop ecological solutions that can be widely implemented for 

an immediate and signifi cant impact on the environment. A criteria of ecological 

and economical effi ciency must therefore be taken into account. This “cost per 

3.2.2 ENVIRONMENTAL INDICATORS 

For several years Renault has used environmental indicators based on 

quantifi able and reliable data for the products and operations at Renault sites. 

An analysis of supplier chain impacts is now starting through external databases. 

It will take several years to inventory the life cycle of suppliers’ processes. 

The environmental impact of ELV recycling is starting to be evaluated with the 

introduction of processing networks. 




ENVIRONMENTAL PERFORMANCE 

ton of CO 2 avoided” is the criterion used to measure this effi ciency and rank 

the alternative solutions. 

Through this comprehensive vision of the full life cycle, Renault and the Renault- 

Nissan Alliance are able to work on a broad range of technologies (hybrids, fuel 

cells, electric vehicles) as well as on the potential of alternative fuels, including 

compressed natural gas (CNG), liquefi ed petroleum gas (LPG) and biofuels 

(existing and future). These solutions will be applied to Renault’s vehicles when 

there is market demand for them, taking into account local resources. 

For more information, visit www.renault.com. 

After Scénic II, fi nalized in 2004, Renault conducted life-cycle inventories on 

Modus, Clio II and Clio III in 2005, Clio II Flexfuel, Twingo and New Twingo 

in 2006, Laguna II and New Laguna in 2007. Absolute fi gures are not given 

because they have not received the independent verifi cation necessary to 

guarantee their reliability and respect for methodological standards. An external 

expert has written a critical review on the life-cycle inventory of New Laguna. 

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PERFORMANCE 

3.2.2.1 ENERGY RESOURCES AND CO 2 

EMISSIONS 

MANUFACTURING 

Logistics ✦ 

Environmental indicators are being progressively integrated in the purchasing 

process to see how improvements can be made in the supply and distribution 

chain. This includes taking into account the regulatory pollutant emission levels 

for vehicles on the road. Greenhouse gas emissions have been lowered by 

reducing the amount of fuel used for transportation by optimizing routes, training 

personnel in eco-driving, and so on. However, Renault wants to collect better 

quantitative data by assembling an array of indicators for the various physical 

fl ows. 

Following the initial measurements of CO 2 emissions declared for 2006, 

the logistics department set up a dedicated team to analyze the logistics 

performance of Renault and its tier-one suppliers. Based on a questionnaire 

designed to gather pertinent information, the analysis aims to identify potential 

sources of progress that could be turned into action plans for tier-one and tiertwo 

suppliers, such as grouping road transport. 

The “EPE protocol”, a tool designed to measure the carbon balance, was used to 

study and approve changes to transport resources. “Truck+ship” was replaced 

by “train+ship” for transporting engines from Valladolid (Spain) to Bursa (Turkey), 

or “barge+ship” for parts shipped from the Grand-Couronne site (France) to 

assembly plants outside Europe. 

Following initiatives to increase the density of transport resources between tierone 

suppliers and Renault in 2007, the truck fi ll rate rose from 69% to 74% in 

Europe, and the fi ll rate of sea containers from 59 m 3 to 62 m 3 worldwide. 

At end-2007, Renault decided to appoint an environmental manager to 

implement global management of the logistics function. 

Energy consumption ✦ 

The action plan originally set in train in 2002 after the inclusion of several new 

industrial plants, such as Pitesti (Romania), in the reporting scope has now been 

extended. This has resulted in a 12.4% reduction in energy consumption per 

vehicle between 2002 and 2007. This plan comprises two main strands: 

Energy saving initiatives 

These initiatives rely on rigorous, standardized management of non-production 

time and on the convergence of best practices in facility design and control. 

This involves: 

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developing new energy-saving regulation systems; 

lighting and heating smaller areas selectively, depending on periods of activity, 

or using speed regulation systems for processes with sharply fl uctuating 

energy demand; 

reducing demand for compressed air, especially during machining 

operations; 

searching continually for less energy-hungry products, such as lowtemperature 

treatment baths and paints that are less sensitive to temperature 

and humidity conditions; 

developing energy recovery techniques such as recycling calories from 

discharged air in paint shops; 

boosting boiler output during renewal campaigns; 

capturing atmospheric pollutants as close as possible to source in order to 

reduce air renewal rates in buildings. 

Using renewable energies 

The fi rst phase is a detailed study on the timeliness of using renewable energies 

(wind, solar thermal and solar photovoltaics, biomass, geothermal and fuel cells) 

and their integration in the production process based on study results. The 

second phase involves implementation at the most favorable sites: 

the fi rst pilot applications of solar thermal energy were set up in 2007 at 

the sites of Palencia and Valladolid Motores (Spain) and Cacia (Portugal). 

These installations, designed to produce hot water, will make it possible to 

shut down thermal power plants in summer, saving around 3,000 MWh and 

avoiding some 600 tons of CO 2 every year; 

the decision-making process is under way for projects using biomass and 

wind power. 

ENERGY CONSUMPTION BETWEEN 1998 AND 2007* 

* The 2007 reporting scope includes production, logistics and engineering sites (see c hapter 

8.4.2). The vehicles included in the production data are those manufactured by the industrial 

sites in which Renault has a majority interest. 

Greenhouse gases ✦ 

In 2003, aware of the impact of its activities on greenhouse gas emissions, 

Renault conducted an inventory of greenhouse gas sources at all the production, 

logistics and offi ce sites included in the scope of environmental reporting, and 

reviewed its reporting system with the assistance of an independent organization. 

Renault’s reporting system is compliant with the French EPE (Entreprises Pour 

l’Environnement) standard for greenhouse gas inventories, which guarantees 

the reliability of the results. 



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07 

08

Renault is implementing a three-pronged strategy for cutting greenhouse 

emissions from its industrial sites: 

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increase energy effi ciency; 

reduce energy consumption; 

change fuels. 

These actions are included in site management plans so that targets can be 

set for future vehicle projects. 

Since 2003, total direct emissions of greenhouse gases have fallen from 

755 kteq CO 2 (kilotons of equivalent CO 2 ) to 688 kteqCO 2 in 2007. 

On January 1, 2007, Romania became a member of the European Union, and 

the Dacia plant in Pitesti joined the European CO 2 emissions trading scheme. 

A total of thirteen Renault group industrial sites (seven in France, four in Spain, 

one in Slovenia and one in Romania) are now part of this scheme, which was 

set up on January 1, 2005 to help member states respect their commitments 

under the Kyoto protocol. In this scheme, companies whose emissions are below 

quota may trade their allowance with companies that exceed theirs. 

Renault thus has a quota of 537 kilotons of CO 2 for all the plants concerned by 

the European emissions trading scheme. Viewed against the European market 

total 7 of 414,400 kilotons of CO 2 , this fi gure shows that the Group accounts for 

just a modest share of emissions on the trading market. Renault has opted to 

manage all its emissions allowances with a single broker in order to increase 

effi ciency and prepare joint action for progress at all its industrial sites around 

the world. 

EUROPEAN SALES BETWEEN 1995 AND 2006 BASED ON FRANCE’S CO 2 LABELLING STANDARD 

100 

90 

80 

70 

60 

50 

40 

30 

20 

10 

0 




BREAKDOWN OF GREENHOUSE GAS EMISSIONS IN 2007 BY SOURCE TYPE* ✦ 

* The 2007 reporting scope includes production, logistics and engineering sites (see c hapter 8.4.2). 

CAR USE ✦ 

(7) Quotas allocated to the European countries where Renault is present and which are subject to quotas (France + Spain + Slovenia + Romania). 


Renault is among the top three carmakers in Europe in terms of reduced CO 2 

emissions and fuel consumption. The range of available energies is gradually 

expanding. 

Gasoline and diesel 

In conjunction with Renault Commitment 2009, a key performance indicator 

was set up to monitor progress in relation to the following commitment: “As of 

2008, sell one million vehicles emitting less than 140 grams of CO2 per km, 

with one-third of them emitting less than 120 grams.” 

In 2006, in the 15-member EU, according to monitoring by the Association 

Auxiliaire Automobile (AAA), 587,516 vehicles sold by Renault emitted 

140 grams or less of CO 2 per km, and 214,175 of them emitted 120 grams 

or less of CO 2 per km. The graph below shows the progress made by Renault in 

this segment compared with the overall market, according to the CO 2 labeling 

system applied in France. 

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08 




PERFORMANCE 

Internal analyses conducted by Renault in 2007 based on the 27-member EU 

indicate that 866,752 vehicles sold emit 140 grams or less of CO 2 per km, 

with 37% of them emitting 120 grams or less of CO 2 per km. 

In 1998, carmakers made a commitment to the European Commission to bring 

average emissions down to 140 g of CO 2 /km for all cars on the road, i.e. 25% 

lower than in 1995. The rating varies with the breakdown of sales. Negotiations 

are in progress to reach a new target of 130 g of CO 2 /km by 2012. 

This CO 2 emissions indicator is called CAFE (Corporate Average Fuel Economy) 

for Europe. Renault’s CAFE indicator decreased slightly in 2006, placing Renault 

once again among the top three European carmakers. 

Renault used three methods to achieve these results. 

Method 1, which concerns all projects, involves optimizing all the vehicle 

parameters that have an effect on fuel consumption and CO 2 emissions: 

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for the vehicle: careful management of vehicle weight, lower aerodynamic 

drag and road noise, and lower consumption by accessories such as power 

steering and climate control in order to manage electrical energy more 

effi ciently. For New Laguna, vehicle weight was cut by up to 65 kg for the 

1.5 dCi version and aerodynamics were improved with a Cd of 0.293, 

compared with 0.310 previously, for CO 2 emissions of 130 g per km; 

for the engine: greater effi ciency and less friction, increased use of multivalve 

technology, smaller turbochargers on diesel and gasoline engines, a sixth 

gear added to many manual gearboxes, introduction of fi ve- and six-speed 

automatic transmissions and Continuously Variable Transmission (CVT). 

The 100 hp TCE (Turbo Control Effi ciency) engine combines drivability and 

low fuel consumption. This new gasoline powerplant combines the power 

of a 1.4 l engine (100 hp) with the torque of a 1.6 l engine (145 Nm) and 

the low consumption of a 1.2 l engine (5.9 l/100 km over a combined 

cycle). Vehicles in the I range equipped with this engine emit just 140g of 

CO 2 over a combined cycle as the result of downsizing. 

Despite the greater vehicle weight related to safety features and the increased 

power for enhanced comfort, engine capacity and CO 2 emissions decreased 

sharply between 1995 and 2006: 

ILLUSTRATION OF THE IMPROVEMENT IN CORPORATE AVERAGE FUEL ECONOMY (CAFE) FOR 

DIFFERENT GENERATIONS OF RENAULT VEHICLES (1995 = 100) 

140 

135 

130 

125 

120 

115 

110 

105 

100 

95 

90 

85 

80 

1995 = 100 

Weight kg 

Power rating kW 

Capacity cm3 CO2 g/km 

+ 35.2% 

+ 22.2% 

- 3.7% 

- 18.4% 

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 

The six-speed gearbox on some Renault models significantly reduces 

consumption for highway driving e.g. a decrease of 0.2 to 0.3 liters/100 km 

in the I segment. The new Trafi c and Master were launched with a new, sixspeed 

automatic transmission that improves fuel consumption by 0.5 to 

1.0 liters/100 km for city driving. 

Method 2 is the cross-functional deployment, led by the Vice-President of 

Strategic Environmental Planning, of the “120 – 140 g objective” under Renault 

Commitment 2009. At-end 2007, more than 150 versions of production 

vehicles had dropped below the 140 gram threshold, of which one-third 

below the 120 gram threshold. 

To reach the sales target of one million vehicles in 2008, the European sales 

network has introduced Renault eco 2 , an eco-label based on a number of criteria 

that enable customers to easily identify Renault vehicles emitting less than 

140 grams of CO 2 . The label thus reinforces the offi cial CO 2 labeling stating 

the approved values for the vehicle on sale. 

New Twingo expands the range of Renault vehicles emitting less than 

120 grams, particularly the Twingo 1.5 dCi Renault eco 2 , which emits just 

113 g of CO 2 / km. New Laguna demonstrates Renault’s expertise in downsizing. 

The 110 hp 1.5 dCi version emitting 130 grams of CO 2 per km is the fi rst 

vehicle in its segment to join the Renault eco 2 club. 

Method 3 is to continue to bring vehicles running on alternative fuels to market. 

After LPG, new fuels are being launched in the range in accordance with the 

specifi c features of each region, the available infrastructure for the distribution 

of each type of fuel, and customers’ habits. 

Alternative energies ✦ 

Biofuels 

On February 9, 2006 Renault announced that it would progressively bring two 

types of biofuel vehicles to the European market over the period to 2009: 

50% of gasoline-powered vehicles will be able to run on a mixture of gasoline 

and ethanol, up to a maximum content of 85% ethanol; 

100% of diesel-powered vehicles will be able to run on a mixture of diesel 

fuel and biodiesel (up to a maximum of 30%). 

These vehicles will join those already on sale in Brazil and pave the way for 

the emergence of these two new energies elsewhere in the world, pending the 

arrival of second-generation biofuels by 2015. Ranking among the synthetic 

fuels most favorable for the environment, these fuels are promoted by the 

Association for Synthetic Fuels in Europe (ASFE), a group whose founding 

members are Daimler, Renault, Royal Dutch Shell, Sasol Chevron and the 

Volkswagen group. 

In June 2007 Renault launched France’s fi rst fl ex-fuel vehicle (able to run on 

gasoline or a gasoline blend of up to 85% ethanol): the 110 hp Mégane 1.6 

16v 100 hp E85. The fi rst customers are France and Sweden for the Mégane 

hatch and sport tourer. The Group plans to continue development studies in 

the passenger and commercial vehicle range. 

At year-end 2006 Trafi c went on sale with the 84 hp and 90 hp 2.0 dCi B30 Euro 

4 engines and Master with the 100 hp and 120 hp 2.5 dCi B30 Euro 4 engines. 

For company fl eets equipped with B30 pumps and tanks, these vehicles can 

run on B30 biodiesel. Deployment continued in 2007 with other diesel engines 

in the Renault range. In 2008 a number of passenger cars could be equipped 

with these engines, depending on the real demand from captive fl eets. 



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Liquefied Petroleum Gas (LPG) and Compressed Natural Gas 

for Vehicles (CNG) 

In 2007, Renault sold 8,161 dual-fuel vehicles (gas and gasoline) in Europe. Two 

gas fuels are currently available on the market: LPG and CNG. These two fuels 

simultaneously meet two challenges: increase independence from conventional 

fuels, 98% of which are oil-based, and reduce the environmental impact of 

fuels by cutting CO 2 tailpipe emissions and exhaust gases. 

LPG and NGV versions of Kangoo, Clio and Scénic have been brought out in 

Europe along with other products specifi cally designed for markets seeking to 

make use of local resources. In 2007 Renault launched a Logan LPG (mainly 

for Romania). In fi rst-half 2008 the Logan CNG will go on sale in Iran. 

Electric vehicles ✦ 

Renault is at the leading edge of electric vehicles. Alliance vehicles equipped with 

this technology are set make their appearance in 2011, with electric production 

vehicles scheduled to arrive on the market in 2012. Renault-Nissan and Project 

Better Place signed a memorandum of understanding in January 2008 for the 

fi rst application on the Israeli market of 100% electric vehicles equipped with 

lithium-ion batteries for greater range and longevity. 

In the city, the debate over cutting CO 2 emissions by 20% or 30% will be 

obsolete. It will be “zero emissions” immediately. Investments are heavily 

focused on batteries, with major efforts in lithium-ion technology. Today, studies 

show that 20% of vehicles are used primarily in the city. In Europe alone, 

that’s a market of between three and four million vehicles! Many public entities 

(post offi ce, electric utilities) and municipalities are interested and have already 

contacted Renault. The market is ready for an electric vehicle that establishes 

an attractive balance between performance, maintenance, recharging time 

and cost. But a good battery is not the only requirement. The vehicle will also 

require a good concept and good design. 

3.2.2.2 AIR QUALITY 

MANUFACTURING 

Volatile Organic Compounds 

The VOCs released by solvents used in paint shops are the main source of 

atmospheric emissions generated by Renault’s activities. They have been reduced 

over a number of years by introducing the best available technologies and best 

managerial practices at all Group sites when installations are modernized: 

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development of air treatment facilities as in Maubeuge (France) for the new 

Kangoo project; 

implementation of new water-based paint production lines in Bursa and 

Pitesti, allowing the sites to increase their production capacity while cutting 

their VOC emissions; 

improved effi ciency of paint application by implementing a new-generation 

electrostatic process at the Pitesti, Bursa and Valladolid plants, which cuts 

the consumption of paint basecoats. 





Today, more than 75% of sites are equipped with the latest clean technologies, 

and all Group sites worldwide control their VOC emissions, applying an identical 

and exhaustive accounting system to both point and diffuse emissions. 

Group emissions, calculated per vehicle, have fallen by almost two-thirds over 

the past ten years: from 13 kg per vehicle produced in 1998 to 4.8 kg per 

vehicle in 2007. 

Combustion emissions of SO 2 and NOx ✦ 

Renault is continuing its program to change the fuel used in its plants, by 

replacing fuel-oil by natural gas. The aim is to cut sulfur dioxide (SO 2 ) and 

nitrogen oxide (NOx) emissions. The percentage of fuel-oil and coal in the 

thermal energy consumed by Renault fell from 26% in 1999 to 2.5% in 2007. 

As the next stage in the progress plan, Renault is installing boilers with low- 

NOx burners. 

Since 2003 SO 2 and NOx emissions have been evaluated by taking into account 

all types of combustion. Between 2003 and 2007 SO 2 emissions were reduced 

by 81% and NOx emissions by 22%. 

USE ✦ 

At year-end 2007, all Renault vehicles marketed in Europe complied with Euro 4, 

the new standard that requires a reduction of almost 50% in car emissions in 

relation to Euro 3. For the international market, Renault is adapting the technical 

specifi cations of its powertrains to suit local conditions (fuel quality, climate, 

dust, etc.). In general, Renault is well within local regulatory requirements, since 

most versions sold are Euro 3. 

Efforts are continuing, particularly with a gradual introduction into Renault’s 

ranges of vehicles equipped with new technologies (catalytic particulate fi lter, 

new-generation common rail, etc.). From launch, New Laguna 2.0 dCi respects 

the pollutant emission thresholds set by the Euro 5 standard, which becomes 

applicable in September 2009. 

3.2.2.3 NOISE ✦ 

Several years ago Renault set a highly ambitious target of 71dB (A) of external 

noise for its new vehicles and undertook a number of major initiatives to 

reach it. 

New Twingo (depending on the engine fi t) has joined the club of vehicles with 

noise levels that are 3dB (A) lower than the regulatory requirement of 74dB (A), 

alongside Vel Satis, Espace, Laguna, Mégane and Modus. This corresponds to 

a 50% reduction in noise intensity compared with Twingo I. Special care was 

taken with the vehicle structure to fi lter out the noise generated by the engine 

and transmission. 

The acoustics of New Laguna were designed to minimize noise: 

n engine boom was signifi cantly reduced at low speeds using a twin-mass 

damping fl ywheel, and at high speeds using two balancer shifts; 

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PERFORMANCE 

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the automatic gearbox housings are stiffer in order to limit resonance, while 

the converter spring has been upgraded to avoid boom at high levels of 

engine torque; 

the structural response to vibration was improved by adding a rod – similar 

to that found on an aircraft wing – to the frame cross-member. 

3.2.2.4 WASTE 

MANUFACTURING 

Since 1995 regular progress has been made in reducing waste volume, 

characterizing the types of waste produced and enhancing the reliability of 

treatment and recycling processes. 

One of the main events in 2007 was the renewal of the contract with waste 

management specialist Veolia Propreté Industries Service, at 16 sites in 

France. The aim of this contract is to maintain the safety and continuity 

of the waste management chain over the long term, from production to 

treatment. 

In Spain, waste management services have been grouped together, for 

improved synergies between the sites of Vallodolid and Palencia, and better 

productivity across all Spanish sites. 

In Morocco, a global waste management contract was signed in 

October 2007. 

Reducing waste volumes ✦ 

A progress plan has been set up to cut the amount of residual waste sent for 

incineration without energy recovery, or sent to landfi ll. To achieve this aim, 

the Group is taking action at source (reduction, design, sorting). 

The increase in ordinary industrial waste per vehicle produced is mainly due 

to the inclusion of new international sites, including Dacia in Romania, RSM in 

South Korea, and SOFASA in Colombia. Ordinary waste per vehicle has been 

declining since 2002 due to training in sorting at-source and the re-use of 

materials. 

Partnerships with paint suppliers have made it possible to reduce ordinary waste 

such as putty and paint resides. But these reductions have not entirely offset the 

increase in hazardous waste caused by the move to water-based paints. 

INDUSTRIAL WASTE PER VEHICLE BETWEEN 2001 AND 2007* 



60 

50 

40 

30 

20 

10 


(kg per vehicule) 

Ordinary waste Hazardous waste 

45.3 

38.2 

2001 

54.7 

27.4 

2002 

52.7 

30.7 

2003 

51.0 

28.9 

2004 

53.0 

28.3 

2005 

49.1 

29.2 

2006 

* The 2007 reporting scope includes production, logistics and engineering sites (see 

c hapter 8.4.2). The vehicles included in the production data are those manufactured by the 

industrial sites in which Renault has a majority interest. 

51.3 

28.2 


Optimizing waste treatment ✦ 

Renault is working with its service providers to fi nd ways to cut, re-use and 

recycle waste. 

DESTINATION OF WASTE IN 2007 

The reduction in level 3 waste, from 5.1% in 2006 to 4.7% in 2007, refl ects the 

introduction of sorting at source. This decreases the quantities of mixed ordinary 

waste sent to landfi ll and thus increases the proportion of waste recovered. 

In the emerging countries where Renault is present, infrastructure is often lacking 

to collect, transport and treat the waste produced by the automotive industry. 

With the support of a number of partners with international reach (cement 

manufacturers, waste managers), Renault has put in place innovative waste 

treatment solutions that also respect the environment. One of the treatment 

options adopted on these markets is to use Renault’s industrial waste as an 

alternative fuel or raw material in the furnaces of cement plants. 

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USE 

Use-phase waste is generated by the commercial activities of vehicle 

maintenance and repair. Renault cannot quantify this waste single-handedly, but 

is involved in local and regional actions to establish quantitative indicators. 

In France, the Sales & Marketing department assists the network by providing 

a panel of national service providers for waste collection and treatment. 

Renault has selected Autoeco.com to help the network to monitor the volume 

and traceability of its waste. Renault is also partnering the CNPA (National Council 

of Motor Industry Professionals) in the “Environment Challenge” and ADEME 

(Environment and Energy Management Agency) in the “Clean Oil Operation”. 

These national actions are part of the policy of global waste management and 

continuous improvement. 

There are initiatives such as these in several European countries, conducted 

through a network of recycling correspondents in each country. 

END-OF-LIFE ✦ 

Building on the Group’s commitment to the operational implementation of new 

recycling processes for end-of-life vehicles (ELVs), and on the development of inhouse 

eco-design processes, Renault aims to include 50 kg of recycled plastic 

in its cars by 2015, i.e. 20% of the average quantity used. Results will improve 

from generation to generation, as the sources of recycled plastic increase 

with the development of the plastics recycling industry. New Laguna pointed 

the way forward in 2007. From design, it used 35 kg of recycled plastic, i.e. 

17% of the plastics total. The following fi gures are true for all vehicles: 95% 

recyclable by weight, with vehicles in the Renault eco2 range using more than 

5% of recycled plastics. 

3.2.2.5 PROTECTING THE ENVIRONMENT: 

WATER TABLES AND SOIL 

Pollution from the past can potentially come into contact with humans and 

the natural environment through the soil and water tables. Renault therefore 

implements a policy to prevent pollution of the soil and water tables, and decides 

on specifi c management strategies when there is suspicion of past pollution. 

In some cases, if environmental or health hazards are identifi ed, remediation 

is undertaken. Management of past pollution of the subsoil is based on an 

assessment of the state of the environment and aims to reach the best tradeoff 

between impacts and use. The sustainable development section of the 

website (see www.renault.com) contains a description of the approach used 

and explains the rehabilitation of two major worksites: Boulogne Billancourt 

(France) and Dacia (Romania). All the sites in which Renault has a majority 

interest are managed. 

Renault’s know-how in the fi eld is recognized nationally: a specialist from Renault 

was appointed by the French Ministry for the Environment and Sustainable 

Development to the group of French experts on site and soil pollution. 

Renault’s prevention strategy is based on a detailed environmental assessment 

of potentially hazardous facilities and sites. It aims to identify and organize by 

order of priority the upgrades to be included in management plans. To date, 

this approach has been deployed in 70% of plants. 



3.2.2.6 WATER RESOURCES 

MANUFACTURING 

Water consumption 



WATER CONSUMPTION AND VEHICLE PRODUCTION BETWEEN 1998 AND 2007* ✦ 


c hapter 8.4.2). The vehicles included in the production data are those manufactured by the 

industrial sites in which Renault has a majority interest. 

6,000 

The Group’s total water consumption fell by 43% between 1998 and 2007, of 

which 25% between 2005 and 2007 owing to the installation of closed-circuit 

cooling systems at the Flins power plant (France). 

Discharges to water 

LIQUID EFFLUENTS FROM PLANTS BETWEEN 1998 AND 2007* ✦ 


c hapter 8.4.2). 

Quantities of SS (suspended solids) and OM (organic matter) are stable, or even 

slightly lower than in 2006. The most signifi cant reduction concerns heavy 

metals. However, this improvement is partially linked to a fall in production at 

the Flins site in 2007. 

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PERFORMANCE 

Each site’s industrial management plan includes a policy aimed at cutting water 

consumption and reducing the pollutant load of discharges. The plan works by 

increasing the effi ciency of processes and improving the resources in place to 

treat wastewater. A full 80% of Renault facilities are equipped with their own 

treatment plants. Operated on a quality assurance basis, many of these employ 

the latest technologies, including membrane bioreactors. 

Looking beyond efforts to improve the performance of existing treatment 

installations, Renault’s main aim is to reduce the impact of discharges to water 

at source. It will do this by promoting clean solutions that reduce the impact 

of discharges in all areas rather than simply transferring pollution from the 

aqueous phase to the waste phase: 

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minimize consumption and residual waste through optimized processes and 

operating conditions: for example, reducing or recycling active products at 

powertrain sites by centralizing equipment for machining and washing parts, 

by improving water quality, and by rationally managing baths; 

promote pollution treatment and recycling at source, as close to the process 

as possible; The “zero liquid waste” policy implemented on an experimental 

basis in 1997 at the STA site in Ruitz (France), followed by the engine plant 

in Curitiba (Brazil), is being rolled out to all the powertrain sites; this process 

was started in 2007 at the Dacia site (Romania) as part of the program to 

start-up and manufacture the MT1 gearbox. 

Accidental pollution is prevented by containment tanks, for example at Saint- 

André de l’Eure (France), in the buildings where chemicals are stored. 


3.2.2.7 RENAULT ECO 2 , AN 

ENVIRONMENTAL INDICATOR 

AIMED AT THE GENERAL PUBLIC ✦ 

In May 2007, Renault launched the eco-label Renault eco 2 . Its role is to provide 

the basis for a dialogue between Renault and the general public on the three 

main stages in the life cycle of a car: production, use and recycling. A number 

of quantifi able and auditable criteria have been defi ned and will gradually be 

tightened up. 

Production Use End of life 

ISO 14001 plant 

3.2.3 CROSS-FUNCTIONAL MANAGEMENT OF ENVIRONMENTAL ISSUES ✦ 

The following key events illustrate how these issues are managed across the vehicle life-cycle: 

SUPPLY CHAIN MANUFACTURING TRANSPORT USE END-OF-LIFE 

1996: Packaging 

2000: Reporting on substances and 

recycling, training 

2004: Life-Cycle Inventory (LCI) 

external database 


Before 1995: management 

of waste, water and energy; 

1995: Industrial environmental policy 

2004: Global management with 

certified data 

2004: Database on impacts caused 

by supply transport 

2005: Working groups launched 2005: Dacia ISO 14001 certified 2005: Working groups launched to 

reduce environmental impacts of 

transport 

2006: Sustainable Development 

supplier self assessment 

2007: Sustainable Development 

supplier assessment by Renault 

2006: Eco-design introduced in 

manufacturing programs 

2006: First consolidation method for 

CO 2 tonnage related to logistics 

Reduction of environmental impacts: 

atmospheric emissions, noise, 

recyclability, etc. 

2004: Plan to deploy environmental 

management in the commercial 

function 

2005: Key account sales personnel 

trained 



1995: Framework agreement. 

Since then, players concerned by 

recycling (carmakers, government 

bodies, breakers, etc.) have been 

working to achieve 85% recyclability 

in 2006 and 95% in 2015 in each 

country 

2006: Renault Commitment 2009 2006: European networks set up to 

collect end-of-life vehicles (ELVs) 

2007: Renault launches its eco 2 label: the starting point of a dialogue with the general public on environmental progress in the vehicle life-cycle. 

All Renault functions are gradually being brought into environmental 

management, which is already well structured in the manufacturing, design 

and purchasing functions. The sales, marketing and communications functions 

are being structured to meet new challenges along with the commitments 

in Renault Commitment 2009. A marketing launch group to coordinate the 

roll-out of environment-related products and services has been set up, 

as has an Environment Intercom unit to coordinate corporate and product 

communication. 

3.2.3.1 ENVIRONMENTAL ORGANIZATION 

The focal areas of Renault’s environment policy, included since 2002 in the 

broader commitment to sustainable development, are debated and decided by the 

Group Executive Committee. The Strategic Environmental Planning Department 

is implementing this policy in the different sectors of the company. 

The Vice President, Strategic Environmental Planning, reports directly to the 

Executive Vice President, Plan, Product Planning and Programs. This organization 

involves direct reporting to the Group Executive Committee and highlights the 

cross-cutting importance of the environment. 

The Strategic Environmental Planning Department has nine members responsible 

for setting strategic targets, implementing environmental policy in different 

sectors, consolidating problems and managing communications. 


It is supported by a network organized to incorporate environmental protection in 

all the environment-related functions. In 2007, more than 420 “network heads” 

and around 2,000 managers coordinated environmental knowledge. Expertise 

in several areas (energy, water, fuel, recycling, air quality) was identifi ed and 

expanded with the aim of supporting the environment network. Renault’s policy 

places the emphasis on shared collective guidelines for all sectors of activity. 

Authority for implementing and managing environmental policy for the Group 

as a whole and responsibility for operational management, which is shared 

between all the environment directors and every function, lies with the Executive 

Vice President, Plan, Product Planning and Programs. 

The Vice President, Strategic Environmental Planning presents the company’s 

strategy and action plan to the Group Executive Committee so that decisions 

are taken at the highest level. 

This organization has been rounded out with a new steering committee for CO 2 

and biofuel initiatives in Renault Commitment 2009. Made up of managers 

from the departments involved, this committee will see that the plan is carried 

out and that efforts are properly directed to achieve the quantifi able objectives. 

It will do this through a cross-functional network of multidisciplinary groups that 

will hunt for ways to make even small reductions in CO 2 emissions, that will 

adapt vehicles to run on biodiesel B30 and ethanol E85, and that will guarantee 

the sales commitments. 

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PERFORMANCE 

This organization will be adapted over time according to technological 

developments. 

The “Skills 2010” project for the environment points the way to the future. 

Under the approach introduced in 2003, three levels of key competencies for 

the future have been identifi ed: environmental expertise, transformation of 

some of the core automotive businesses, and the additional competencies of 

all the other functions. 

3.2.3.2 ENVIRONMENTAL MANAGEMENT 

DURING THE LIFE CYCLE 

ENVIRONMENTAL MANAGEMENT IN THE DESIGN AND 

DEVELOPMENT PHASE 

To effectively reduce pollutant fl ows generated in the different stages of the life 

cycle, it is important to take action from the product design and development 

stage. This takes place three to fi ve years – depending on the innovations – 

before the car is released on the market. 

As part of the development process, each new project better integrates 

choices of materials, fl uid extractability, dismantling operations for recycling, 

pollutant emissions, fuel consumption, CO 2 emissions, outside noise and the 

environmental impact of product choices on industrial processes, while making 

plant workstations more ergonomic, enhancing occupant and pedestrian safety, 

and improving the quality/price ratio. 

Eco-design of industrial processes 

Projects are managed through function-based industrialization contracts and, 

depending on the project, a quality assurance contract, with input from the 

support functions (energy, logistics, environment, socio-technical, etc.). Existing 

contractualization and approval documents ensure the visibility and traceability 

of projects (policy circular, industrial pre-contract per function, industrial contract 

per function, functional contract (including industrialization and “profi tability 

indicators”) and lastly technical agreements until the required performance 

is attained. 

Eco-design of products 

Eco-design is a major development that involves not only Renault’s own 

designers, but also the designers working for component and materials 

suppliers. To implement this new and complex approach, the network of external 

experts has been broadened to include specialists who take part in drafting of 

future standards and who take part in exchange platforms for methodologies, 

as well as building databases and prioritizing environmental impacts. 

Renault’s logic is to integrate the environment into the usual development process 

followed by designers. With each project launch, environmental advances tested 

on one vehicle can be applied to others. Some of these technological solutions 

can become technical policies. 

New Laguna illustrates Renault’s commitment to improving its performance 

on lower fuel consumption by integrating this concern right from the design 

and development phase. 

Here are a few examples of actions that have brought consumption down: 

the electric pump unit and fi xed power steering optimize fuel consumption 

by supplying just the right amount of power to the electric motor driving the 

pump. This cuts CO 2 and consumption by up to 0.3 l/100 km; 

reductions in weight: on the exhaust system by using thinner tubes for 

add-ons and hub-carriers through the use of aluminium, and on the general 

body structure through innovative techniques and lighter, high-performance 

materials such as high yield-strength steel; 

aerodynamics has been signifi cantly improved through the use of spoilers 

and other body accessories at the rear, defl ectors on the front wheels, fairing, 

improved air intake plugs and reworked exterior door mirrors, for total fuel 

savings of 0.5 l/100 km. 

New Laguna also illustrates Renault’s efforts to manage end-of life processing 

right from the design stage. The two main successes are the potential recovery, 

at a low cost, of 95% of the vehicle by weight and the inclusion of 35 kg of 

recycled plastics in more than 90 parts. Here are a few examples of these 

two successes: 

Easier recovery of 95% of the vehicle at end-of-life: 

n the tanks and locations are marked for extracting a maximum amount of 

fl uid; 

the reservoirs (windscreen washer, brake fl uid) are designed so that a fl exible 

rod can reach the bottom; 

the cooling radiator has been fi tted with a quarter-turn valve so that it can 

be completely emptied; 

all the parts containing batteries, such as the key, are marked to ensure that 

the batteries are placed in special recycling bins and not in ordinary bins; 

parts made from primary aluminum such as the bonnet, aluminium crossmembers 

and heat shields are marked so that they can be processed using 

closed-loop recycling, which corresponds more closely to the initial value of 

the aluminum; the seat foam is in a single piece and contains no inserts. 

Inclusion of 35 kg of recycled plastics: 

n skid plate, wheel arch shields, rear bumper absorbers; 

aerodynamic fairings, canister fairing, rear suspension fairing; 

mounts for the rear bumper, headlight washer and rear lights, fascia 

mounting, mudguard fi xture; 

lower diffusers, baffl e on cowl vent grille, battery case cover; 

boot and cabin mats, plate insulator, soundproofi ng for the boot lid lining 

and under the dashboard; 

tooling boxes, stowage compartment, seat shells and sun visor housing. 



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02 

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VEHICLE DESIGN AND DEVELOPMENT PROCESS 

Some results, particularly pollutant and CO 2 emissions, are used for vehicle 

type approval. 

Supplier reports on the materials and substances used in parts delivered are 

tested in several ways: 

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the Quality Assurance process implemented by Renault and Nissan; 

indicators on the quantitative monitoring of responses using a computer 

program that locates reports in the parts documentation system; 

two checks of a more qualitative nature when designers receive the parts 

and when the parts plans are signed. 

CO 2 emissions have become a key concern for the company. In 2007, this issue 

became part of the remit for all engineering departments. To meet the new 

target of 120g of CO 2 per km, the Group’s powertrains must be signifi cantly 

upgraded (downsizing, automatic transmission, stop and start, etc.). It will 

also be necessary to upgrade the vehicle as a whole through cross-functional 

management (weight, aerodynamics, rolling resistance, frictional drag, electrical 

management, thermomanagement) or through complementary measures (more 

effi cient air-conditioning systems, tire pressure control system, indicator for 

effi cient gear changing, cruise control, speed limiter, etc.). 

ENVIRONMENTAL MANAGEMENT IN THE SUPPLIER CHAIN 

Renault’s strategy vis-à-vis its suppliers is founded on long-term relationships, 

the involvement of suppliers in projects at a very early stage of development, 

and the institution of a common language and common working methods. 

The environment is an essential issue, requiring the involvement of the entire 

supplier chain. Since the end of the 1990s, Renault has sought to convey the 

importance of eco-design and life cycle management to tier-one and lower-tier 

suppliers. Recycling, substance management and the preparation of REACH 

(Registration, Evaluation, Authorisation and Restriction of CHemicals) are now 

an integral part of the Sustainable Development Plan of the Purchasing function 

(see c hapter 3.3.2.2). 




Looking beyond standards and processes, Renault is gradually rolling out a 

process for mapping supplier environmental risks: self-assessments, inspections 

of supplier sites by quality experts, external audits by specialist fi rms. 

The objective is to ensure continuous progress in the supplier chain through 

action plans. 

ENVIRONMENTAL MANAGEMENT IN THE PRODUCTION 

PHASE 

Rather than teaching environmental experts all about production processes, 

Renault has decided to teach its departments and employees about ecology 

through a network structure. The industrial network covers all Renault’s 

industrial sites and the production departments comprise around 300 people 

in 14 countries and 42 sites and subsidiaries. 

This management approach is original in that it is based on a cross-functional 

drive to improve the exchange of information and skills between members 

of the network. In consequence, Renault is able to implement actions or 

technologies that allow all those involved in environmental issues to move 

forward together. 

In 2007, the Environment and Risk Prevention network integrated the test 

laboratory. The aim is to take maximum advantage of the synergies existing 

between these fi elds and thus to improve the sustainable development approach 

implemented on sites. 

Cross-functional environmental tools 

The environmental progress and risk prevention policy is supported by crossfunctional 

tools: 

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management of French and international environmental regulations; 

Ecorisques – an expert system that identifies the most significant 

environmental impacts and the danger potential of installations to be 

addressed as a priority in each plant’s environmental action plan; 

01 

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03 

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PERFORMANCE 

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Chimrisk – the Renault group’s sole chemical risk management database, 

for both health and the environment. It is associated with the www.quickfds.fr 

server to provide safety data fi les updated in different languages; 

a documentation base containing standards of best environmental practice 

and risk prevention accessible to all members of this environmental 

network. 

Integrating the environment in projects 

In powertrain activities, the roll-out of environmental management in industrial 

projects is currently being validated and will soon be receiving external 

recognition. Integration has covered 20 powertrain activities, spanning all 

aspects of industrial projects, from beginning to end, across the Powertrain 

Engineering Department. This structure makes sure that environmental issues 

are taken on board, in terms of both environmental compliance and efforts to 

reduce the environmental impacts of the Group’s industrial activity. This approach 

is applied to all the projects undertaken at industrial sites. Each site makes a 

commitment to reaching a level of environmental performance comparable to 

that of a target plant within 10 years. In 2008 studies will be extended to risk 

prevention and industrial hygiene. 

A similar process is being rolled out for “Chassis” engineering projects and for 

body-assembly capacity-related projects. 

For vehicle projects, the requirements relating to risk prevention and 

environmental protection are now included in the Group’s start-up standards. 

Environmental management at the plants 

Setting up continuous improvement processes based on the 

ISO 14001 standard ✦ 

Renault is pursuing a process of continuous improvement to achieve compliance, 

backed up by the skills and involvement of all its employees. The Group is 

implementing an environmental management system, for which it obtained its 

fi rst ISO 14001 certifi cations in 1999. 

In 2007, the Somaca site in Casablanca received ISO 14001 certifi cation. 

The Avtoframos site (Moscow) has deployed an environmental management 

system with a view to acquiring certifi cation in early 2008. This certifi cation 

will then cover all the industrial activity of the Renault group, i.e. 42 production 

and design sites, and subsidiaries. 

Renault eco 2 , an eco-label spanning the entire vehicle life cycle, is based on 

ISO 14001 certifi cation. This shows that the vehicles concerned have been 

produced in clean plants. 

Bringing the environment closer to grass roots with the Renault 

Production Way 

Renault decided in 2004 to include its environmental standards in the Renault 

Production Way (SPR). Refl ecting this objective, each worker implements 

environmental requirements day-by-day at his/or her workstation through the 

SPR process. 

Defi ning the environmental requirements of each workstation is a three-stage 

process: 

engineering teams identify requirements relating to chemicals management 

and waste treatment; 

the site includes these requirements in the documentation for each 

workstation; 

operators are trained to perform the actions set out in these documents. 

Staying one step ahead with the site environmental 

management plan 

The environmental management plan launched in 2002 describes how the 

environment of each site is liable to evolve over the next ten years, in line with its 

ecological sensitivity. The documents associated with each industrial site cover 

continuous progress and the start-up of new vehicle or sub-system projects, 

as well as major changes to facilities. The plan contributes to the dialogue 

between engineers, building planners and plants by defi ning targets for reducing 

environmental impact at the earliest stage of project development. Plans are 

updated regularly. This plan was fi rst introduced at production sites in Western 

Europe. Since then, it has gradually been extended to other sites, including 

Busan (South Korea) and Curitiba (Brazil) in 2006, and Pitesti (Romania) and 

Envigado (Colombia) in 2007. Today, 27 industrial sites use this tool (15 body 

assembly sites and 12 powertrain sites). 

Data produced by management plans are used to set medium- and longterm 

targets for the function teams responsible for selecting manufacturing 

processes. The method developed provides decision-support for sites, to help 

them identify their technical and managerial priorities, specify the expected 

results in collaboration with function teams, and establish performance levels 

in relation to the competition. 

The environmental results of industrial sites, along with any changes in the 

course taken to meet the objectives and targets set out in the management 

plans, are monitored in monthly or quarterly coordination meetings. 

Inspection 

Renault has developed its own audit standards. The ISO 14001 standard 

stipulates that sites should conduct internal audits to assess progress. 

The environmental network did not want to limit this process to the ISO 14001 

standard alone, but to use it to pursue the progress made at sites over the 

long term, to exchange information, and to organize the Group’s management. 

The audit serves in particular to inform plant managers about their performance, 

the state of their program and its implementation. It also guides the input 

provided by other functions to put appropriate measures into place. The audit 

also harmonizes communication with corporate or financial partners on 

environmental performance. 

The management system is evaluated by internal audits, referred to as “network 

audits”. Performed at all sites by members of the network, these audits make 

it possible to conduct cross-audits between several sites. These audits seek 

to promote dialogue between environmental managers and to encourage 

consultation between different functions in order to identify solutions and 

improve performance. Today, the network has 24 audit managers and 29 internal 

auditors trained by Renault. 



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ENVIRONMENTAL MANAGEMENT IN THE VEHICLE 

USE PHASE ✦ 

Numerous life-cycle analysis studies show that greenhouse gases account for 

around 80% of environmental impact during the vehicle use phase. Renault can 

take action in a number of areas to reduce this fi gure: eco-design, driver 

behavior and sound ecological practices implemented by the sales network 

for sales and services activities. 

Educating consumers in eco-driving ✦ 

Renault is studying two possible lines of progress to promote eco-driving. 

The fi rst is to design vehicles that help drivers cut fuel consumption, through 

onboard computers that provide real-time information on average consumption. 

Renault vehicles also feature a stress-free environment (comfort, acoustics, etc.) 

and safety equipment such as the tire pressure monitoring system, which detects 

low tire pressure. The second is to provide access to training in eco-driving. 

In 2007, New Laguna brought customers a new way to boost fuel economy: 

two arrows, pointing up or down, show the right time to change gears in order 

to consume less fuel. Savings can total up to 8% depending on the driver’s style 

and the type of journey, and avoid between two and three tons of CO during the 

2 

vehicle’s lifetime. Tips on eco-driving and vehicle maintenance can be found 

in all users’ manuals. At the 2006 Paris Motor Show, 500,000 “question-andanswer” 

brochures on the car’s role in global warming were passed out by 

Renault and the ADEME. 

A greater role for environmental management in the sales 

and marketing function 

The Renault eco2 label is the commercial facet of Renault’s commitment to 

environmental protection. All the company’s business lines are concerned by 

this approach. 

The sales network provides the fi rst contact between the manufacturer and 

customers in terms of products, values and brand identity. 

The primary sales network (746 French sites) has made a strong commitment 

to environmental management. Through its active efforts to maintain the value 

of its assets and protect Renault’s brand image, it illustrates the commitments 

made in terms of sustainable development. 

To meet the environmental management targets set for 2007, Renault supported 

the efforts of its sales network, by: 

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encouraging each dealership in the network to appoint an environmental 

contact who would follow a special two-day training course in the management 

of environmental risks; 

putting in place an environmental network of 60 “site environmental 

managers” appointed and trained to pilot the deployment of actions and good 

environmental practices at Renault Retail Group, Renault’s sales subsidiary 

with 160 sites in France; 

developing a range of environmental management tools to deploy and 

build on good environmental practices, to be used by the sales network 

(in progress). 

Reflecting the involvement of Renault Retail Group in the environmental 

approach, the Renault Retail Group Pessac site received a prize in 2007 as 

part of the “environmental challenge” awards organized by the CNPA (N ational 

C ouncil of Automotive P rofessionals). 





ENVIRONMENTAL MANAGEMENT IN THE VEHICLE 

END-OF-LIFE PHASE 

In line with its long-standing commitment to recycling, Renault is setting up a 

new industrial system involving a wide range of European players who are able 

to meet the objectives set by regulations. 

Renault has developed technical specifi cations and economic instruments to 

boost the recyclability of the parts and materials used in its new vehicles. 

The Group’s suppliers are also committed to this continuous process. Their role 

is to develop reliable fl uid extraction methods, enable fast and simple parts 

removal, and promote the use of recyclable materials. Renault sets targets for 

each new project. At the same time, it has developed quantifi cation instruments 

such as the Index of Recyclability by Function (IRF), which is currently being 

rolled out with key suppliers. 

Renault is pursuing a proactive policy aimed at using recycled polymers in 

new vehicles and thus contributing to the emergence and development of 

new operators and new treatment capacities in Europe. Renault’s objective is 

to integrate 20% of recycled polymers in the plastics used for its new vehicles 

by 2015. 

In application of European directives on banned substances, Renault has 

introduced systematic reporting concerning the components, materials and 

substances present in the parts and products of its vehicles. 

Recycling operators and energy recovery fi rms can obtain information on methods 

of decontamination, disassembly and recycling on the www.idis2.com site. 

A network of approved collection and treatment centers has been set up for 

Renault vehicles wherever necessary across Europe. Information on this network 

will be sent to the last owners of end-of-life vehicles. Vehicles are taken back 

from the last owner free of charge. 

Renault is taking part in a Europe-wide research and development project 

concerning the sorting and recycling of ground waste, and technologies for 

recovering energy from waste. Renault’s partners in this project are the École 

Nationale des Arts et Métiers in Chambéry, the RECORD association, CREER and 

a small number of suppliers including Galloo Plastics and Rieter Automotive. 

At the same time, Renault is actively contributing to the economic and regulatory 

performance of dismantling processes, through its leadership in the market of 

renewed and reconditioned parts. In February 2008, Renault and SITA (Suez 

group) announced plans for a joint-venture to speed up the development of 

end-of-life vehicle treatment in France. This joint-venture would be developed 

through Indra Investissement s.a.s., a company that has been active in vehicle 

dismantling for more than 20 years and that has introduced a number of 

innovative solutions. The initiative was welcomed by the minister of ecology, 

development and sustainable planning. Renault is seeking to put in place 

a genuine industrial partnership with SITA. This initiative will not only bring 

environmental benefi ts. It will also enable Renault to take advantage of the 

secondary raw materials produced by the dismantling process, particularly in 

its supplier chain. 

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PERFORMANCE 

3.2.3.3 ENVIRONMENT-RELATED 

COMMUNICATION 

COMMUNICATING ON ENVIRONMENTAL IMPACTS 

One of the fundamental principles of Renault’s sustainable development policy is 

regular progress in improving the quality of information and making it available to 

all audiences. Non-fi nancial sustainable development data have been included 

in Renault’s registration document since FY 2002. 

Since 1999 the environmental data from the Automobile industrial and support 

activities (design, development and logistics), brought together in c hapter 8.4.2, 

have been verified by the Renault group’s statutory auditors. For 2007, 

the auditors issued a statement of “reasonable assurance” concerning data 

for group sites, the highest level of confi dence. This level was also achieved 

by two other companies in the CAC40. 

Environmental information relating to automotive products is governed by 

standards or regulations, stipulated in the approvals required for releasing a 

product. These cover fuel consumption, CO 2 emissions, pollutant emissions, 

noise and safety requirements. This information is set out in c hapter 8.4.3. 

As part of the same process, vehicle manufacturers worked with the European 

authorities to agree on a regulatory percentage of vehicle weight that must be 

recyclable after December 15, 2008. 

There is no process for consolidating waste from all of Renault’s sales 

subsidiaries yet. However, as of 2007, each subsidiary performs a quantifi ed 

environmental impact survey as a basis for its environmental management, 

backed up the Hygiene, Environment and Risk Prevention network. 

In 2007, Renault developed a cross-functional communication and marketing 

plan. The aim is twofold: to improve Renault’s image as an environmentallyaware 

company, and to boost sales of vehicles, particularly those emitting less 

than 140 grams. Also in 2007, the Group decided to launch the Renault eco² 

label in Europe (15 countries). This label was created to initiate a dialogue with 

the public on the environmental progress made by Renault throughout the 

vehicle life cycle over the past ten years . It also helps customers to identify the 

most ecological models in the Renault range and thus to contribute to ecological 

progress themselves through Renault’s affordable solutions. 

Renault eco² was offi cially launched in May 2007 at an environmental workshop 

that brought together, over a period of ten days, 200 European journalists, 

financial analysts, investors, government representatives, partners from 

the world of education and key account customers. The workshop involved 

productive discussions on subjects including biofuels, with expert input from 

Total, and downsizing. Participants were also able to test drive downsized E85 

and B30 vehicles. In this way, different audiences were better able to understand 

Renault’s environmental strategy. 


COMMUNICATING WITH EMPLOYEES AND THEIR 

REPRESENTATIVES 

To mark the launch of the Renault eco2 label in May 2007, an environmental 

blog encouraged a direct dialogue between personnel and the departments in 

charge of environmental issues. 

It was a full year for the environmental network, which celebrated ten years 

of an effi cient policy to cut environmental impacts across all the stages in the 

vehicle life cycle. To mark this anniversary and to turn the spotlight on internal 

and external achievements, all the Renault sites and a large number of sales 

subsidiaries took part in the open days, press conferences and other events 

organized for World Environment Day on June 5, 2007. 

At the same time, an Industrial Hygiene, Environment and Risk Prevention 

convention organized for site managers in October 2007, served to identify 

synergies and possible areas for progress. A HERP chart was drafted and 

approved by all participants. The aim was to set out the values of the HERP 

network in line with Renault’s new brand identity, “Human, Reliable and 

Enthusiastic”. 

COMMUNICATING ON LOCAL AND REGIONAL ACTIONS 

AT THE PLANTS 

The information on sustainable development attests to Renault’s commitment, 

but cannot answer all environmental questions concerning individual 

sites. The sites have undertaken to publish environmental reports either on the 

Internet or in hard copy. Setting out the actions and detailed results of each 

site, the environmental report provides clear information and acts as a useful 

basis for dialogue between sites, personnel and local stakeholders, including 

residents, local councils, associations and government bodies. 

The sites have also organized communication initiatives on environmental issues. 

To illustrate the ISO 14001 criterion of the Renault eco² label and educate 

people on the long-term performance targets for environmental issues, the 

Douai plant (France) organized a visit for the press and stakeholders. The Curitiba 

site (Brazil) produces an educational leafl et on the environment aimed at children 

of between 5 and 10, which is distributed to employees and to the schools run 

by São José dos Pinhais city hall. First published in 2005, the leafl et has been 

received by around 5,000 children to date. 

A total of 30 sites published an environmental report in 2007. These can be 

viewed on the Renault group’s sustainable development website. 

COMMUNICATING WITH CUSTOMERS 

In 2005 the marketing function helped set up an organization to meet the needs 

of key account customers for their vehicle fl eets. This included a sales brochure 

explaining Renault’s environmental policy and special analyses in the areas of 

fuel consumption, pollutant emissions and road safety. 

In 2007 Renault/Key Account meetings focused on gaining a better 

understanding of environmental issues and framing an environmental policy 

for large corporate customers with vehicle fl eets, continuing the initiatives 

already carried out in 2006. Discussions took place with short and long-term 

leasers, particularly on communication aspects of the Renault eco 2 label in 

relation to end customers. 



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SHARING RENAULT’S KNOW-HOW WITH OUTSIDE 

PARTNERS 

To promote the UN’s Global Compact among small and medium-sized 

businesses in the Paris metropolitan area (Île- de- France), Renault has joined 

forces with public administrations and businesses to form the Île-de-France 

Club for Sustainable Development. Taking part alongside Renault are the Paris 

region DRIRE (Regional Directorate for Industry, Research and the Environment), 

the École Nationale Supérieure des Arts et Métiers engineering school, industry 

leaders including LVMH and Veolia Environnement, as well as 18 small and 

medium-sized businesses and four inter-trade federations. 

The objectives are to promote multilateral exchanges of experience and best 

practices through the use of collaborative tools and visits to industrial sites 

and conferences, with a view to helping companies make real progress. 

The goal is to encourage as many companies as possible to sign up to the 

Global Compact 8 . 

A tour of the Flins site was organized as part of the “Île-de-France Club 

for Sustainable Development”. The interministerial delegate for sustainable 

development awarded the prize for “small and medium-sized industries and 

sustainable development” to the company Fouqueau. 

The organization CREER (Cluster Research Excellence in Ecodesign & Recycling) 

groups seven companies from a wide range of sectors: the Cetim, SEB, 

Veolia Environnement, Plastic Omnium, Areva T&D, Steelcase and Renault. 

3.3 SOCIAL PERFORMANCE 

Through Renault’s growing international reach and the role that its products play 

in society, Renault’s infl uence extends beyond the boundaries of the company. 

Renault has close relationships with a wide range of stakeholders, including 

customers, suppliers, dealers, scientific experts, local communities and 

residents, associations, international organizations and government bodies. 

3.3.1 ETHICS AND COMPLIANCE 

3.3.1.1 INTERNAL STANDARDS ✦ 

CODE OF GOOD CONDUCT AND RULES OF COMPLIANCE ✦ 

In 1998 Renault introduced a Code of Good Conduct that provides a framework 

for relationships with all stakeholders, both inside and outside the Group. 

The Code is given to managerial staff and to suppliers in order to set out clearly 

defi ned principles for dealing with complex or unexpected situations. 



SOCIAL PERFORMANCE 

The objective is to pool knowledge and expertise in eco-design and recycling 

in partnership with the Ecole Nationale Supérieure des Arts et Métiers in 

Chambéry. CREER’s ambition is to expand the working group to include at 

least 200 new companies. 

RECOGNIZING THE PERFORMANCE OF ENVIRONMENTAL 

MANAGEMENT SYSTEMS AND COMMUNICATION ✦ 

Several industrial and commercial sites have earned recognition for their 

environmental actions: 

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the Busan plant in Korea, won a prize from the Ministry of Trade, Industry and 

Energy in 2007 for excellent results in cutting energy consumption; 

the REAGROUP site in Pessac site received a prize in 2007 as part of the 

“environmental challenge” awards organized by the CNPA (National Co uncil 

of Automotive P rofessionals). 

Through the exceptional success of the Logan “Renault eco 2 ” C oncept in Michelin 

Challenge Bibendum held in Shanghai in November 2007, Renault showed that 

it is possible to combine ecology and economy while maintaining performance 

and service. Through a number of technical optimizations and the eco-driving 

style of the driver, this diesel vehicle consumed a mere 2.72 l/100 km to cover 

the 172 km route with CO 2 emissions of just 71 g/km. The Logan “Renault eco 2 ” 

C oncept came second out of 74 participating vehicles. 

These relationships are guided by two principles: building dialogue and 

promoting transparency and loyalty. 

Renault is also involved in major social issues related to the automotive industry, 

such as sustainable mobility and road safety. It also takes part in initiatives to 

support civil society. 

Given the Group’s steady international expansion and the wide variety of risks 

in the countries where it is present, Renault decided to reinforce its ethical 

approach by adding a “Compliance” function to the existing Code of Good 

Conduct. The Compliance function is an integral part of the Renault group’s 

internal control procedures and is independent of the internal audit function. 

Placed under the authority of the CEO, the Compliance function is organized 

around the Global Compliance Committee, which is supported in each region 

by a committee chaired by the regional leader. 

(8 ) The objective of the Global Compact, which functions within the framework of the UN, is to promote a set of fundamental values based on ten principles concerning the environment, human rights and 

the fight against corruption. 

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PERFORMANCE 

To enable employees to play an active role in risk prevention, Renault has set up 

a warning system. The aim is to encourage all members of staff to report any 

irregularities in the areas of accounting, fi nance and the fi ght against corruption. 

This procedure is governed by the terms of the CNIL (France’s Data Processing 

Commission) and guarantees the full confi dentiality of the warning process. 

The Compliance function ensures that the Code is correctly applied, promotes 

the Group’s ethics framework, advises senior management, collects and 

processes warnings received. 

The Code of Good Conduct and Rules of Compliance were adopted by the Board 

of Directors on September 26, 2007. They became applicable on January 1, 

2008 and have been sent out to all employees. 

DECLARATION OF EMPLOYEES’ FUNDAMENTAL RIGHTS 

The Declaration of Employees’ Fundamental rights was signed in 2004 by 

Renault, the secretary general of the International Metalworkers’ Federation 

(IMF) and the trade unions. Covering all Renault personnel worldwide, the 

agreement is part of the Group’s approach to sustainable development and 

refl ects its international undertakings (see c hapter 3.1, Employee-relations 

performance). 

The UN Global Compact 

Proposed by the then UN Secretary General Kofi Annan in July 2000, 

the Global Compact brings together major multinational companies, 

SMEs, UN agencies and non-governmental organizations (NGOs) 

around 10 principles of sustainable and responsible development 

laid down by the United Nations. The partners are asked to uphold 

and promote these principles both internally and externally. Renault 

offi cially joined the Global Compact in July 2001, meaning that each 

year it undertakes to submit a “Communication on Progress” and 


3.3.1.2 INTERNATIONAL REGULATIONS ✦ 

With transparency and progress as goals, Renault adheres to international 

norms and standards established to regulate companies’ social, employee 

relations and environmental practices. Renault joined the UN-sponsored Global 

Compact in 2001. It is also committed to the guidelines of the Organization for 

Economic Cooperation and Development (OECD) as well as to the Declaration 

of the International Labor Organization (ILO) on Fundamental Principles and 

Rights at Work. Renault complies with the Global Reporting Initiative (GRI), which 

seeks to develop indicators applicable worldwide to get a clearer picture of the 

economic, social and environmental performance of publicly listed companies 

(see table at the end of the document). 

In France, Renault signed the charter drafted by the Union des Annonceurs 

(national association of advertisers), making a commitment to responsible 

communication across the Group, at both corporate and commercial 

level. In 2008, a code of responsible communication will set out Renault’s 

commitments for implementing the charter. In this way, the Group is seeking 

to demonstrate the emphasis placed on responsible communication. 

examples of best practices in support of the Global Compact. Renault 

is also a member of the Forum des Amis du Pacte Mondial (Forum 

of Friends of the Global Compact), which acts as the representative 

in France of the UN Global Compact Offi ce in New York. The Forum 

aims to support the application of the Global Compact’s 10 principles, 

extend the network of member companies and encourage members 

to learn from each another and to pool information. 



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3.3.2 RENAULT AND ITS STAKEHOLDERS ✦ 

3.3.2.1 CUSTOMERS ✦ 

The customer is at the heart of Renault Commitment 2009. By aiming to position 

the New Laguna among the top three cars in terms of product and service 

quality, Renault is making a commitment to its customers. 

The key to success is designing vehicles and services that fulfi ll customer 

expectations and guarantee complete satisfaction throughout the vehicle’s 

life cycle. 

At the vehicle design phase, customers’ needs and requirements are analyzed 

through surveys and tests. Marketing projects are incorporated upstream to 

give customers a greater say. 

To guarantee the best quality for its customers, Renault launched the Renault 

Excellence Plan (PER). It has six points, encompassing all of the company’s 

functions: 

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PER 1: design robust vehicles; 

PER 2: produce compliant vehicles; 

PER 3: increase reliability and sustainability for all types of use; 

PER 4: ensure sales and after-sales quality for customer satisfaction; 

PER 5: instill a culture of quality in the company; 

PER 6: ensure the quality of externally made parts obtained through 

worldwide sourcing. 

The plan is guided by results, feedback from customers and satisfaction 

measures. ISO 9000 certifi cation for Market Area France and the French 

distribution network shows that this system for managing customer satisfaction 

is effective. ✦ 

To meet customers’ expectations and provide them with worry-free driving, 

Renault offers a wide range of services such as Renault Minute and Renault 

Minute Bodyshops, Renault Assistance and Renault Rent, while guaranteeing 

that strict quality standards are applied across the entire network. 

Renault’s quality policy hinges on personnel who are attentive to customers’ 

wishes and who strive to satisfy them. Training programs are organized to ensure 

that all Renault and network staff concerned are aware of quality concepts 

and targets. ✦ 

3.3.2.2 SUPPLIERS ✦ 

Suppliers are among Renault’s key partners. 

Renault’s supplier strategy is based on the continual search for better 

performance. By forming long-term relationships in a climate of mutual respect, 




transparency and trust, Renault develops ongoing dialogue with suppliers. 

This improves their response to Renault’s requirements, brings access to 

their best technologies and allows corrective actions to be taken jointly when 

problems arise. 

Renault has developed structured tools to improve suppliers’ processes. This has 

made it possible to improve product quality, to secure sourcing, and to optimize 

tier-one suppliers’ management of their lower-tier counterparts. For example, 

suppliers are immediately brought into the process of analyzing the causes of 

breakdowns when parts under warranty come back from the network. ✦ 

To achieve its performance objectives, the Purchasing Department selects a 

restricted supplier panel on the basis of predetermined criteria: 

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mutual compliance with economic, technical, quality and logistics 

commitments, which are subject to regular performance reviews; 

occupational welfare criteria (protective gear, safety, use of chemicals, etc.). 

The Group Working Conditions Policy includes concern for staff safety and 

working conditions at suppliers and subcontractors; 

in 2003 Renault asked its main suppliers to make a formal commitment to 

the values enshrined in the UN Global Compact, and in 2005 and 2006, to 

the Renault Declaration of Employees’ Fundamental Rights; ✦ 

environmental criteria (waste, risk prevention, storage, etc.). Suppliers 

of components and materials are involved in eco-design and life-cycle 

management. They are beginning to take the initiative in proposing 

technological improvements to enhance the environmental performance of 

products, notably in terms of the substances used and recyclability. 

Social and environmental criteria were incorporated into the supplier selection 

and performance review procedures. 

In 2007, quality specialists from the Purchasing Department began to assess 

the environmental performance and working conditions of suppliers at their 

production facilities. The reports from these on-site visits and the selfassessments 

carried out by the suppliers themselves are providing a better 

understanding of risks and a basis for drafting improvement plans. 

Renault is contributing actively to the Inter-Manufacturer Working Group (Groupe 

de Travail Interconstructeurs). Set up in June 2007, this group aims to enhance 

the effi ciency of the social and environmental policies applied across supply 

chains in the automotive sector. One of its objectives is to develop collective 

tools such as guidelines, training programs, self-assessment procedures, and 

audits. This initiative should also help suppliers by establishing a shared set of 

rules and requirements. 

These are the results of the sustainable development action plan that was 

approved in November 2004 by the Purchasing Management Committee. A key 

aim of the action plan for the years 2008-2009 is to improve the assessment 

of deviations from labor and environmental standards. 

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PERFORMANCE 

3.3.2.3 NON-PROFIT ORGANIZATIONS ✦ 

For example, Renault is a member of: 

IN FRANCE 

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Entreprises Pour l’Environnement (EPE): A discussion forum on environmental 

and sustainable development issues; 

Observatoire sur la Responsabilité Sociétale des Entreprises (ORSE): An 

association of companies, trade unions, investors, audit fi rms, and NGOs. 

A forum for discussion and proposals, ORSE seeks to promote sustainable 

development and the rating of companies’ social performance; 

Renault is also represented by the French Automobile Manufacturers’ 

Committee (CCFA), at Airparif, a parastatal organization that monitors air 

pollution and measures emission levels in Paris, and Bruitparif, which 

monitors noise pollution in the greater Paris region. 

AT THE EUROPEAN LEVEL 

n European Round Table of Industrialists (ERT): A forum of 45 leading European 

industrial firms that promotes economic competitiveness and growth 

in Europe. Since inception in 1983, ERT has contributed signifi cantly to 

improving dialogue between industry and governments at both national and 

European levels. Renault is involved in most of the ERT’s working groups. 

AT THE INTERNATIONAL LEVEL 

3.3.3 RENAULT, ARCHITECT OF SUSTAINABLE MOBILITY ✦ 

3.3.3.1 THE CHALLENGES OF 

SUSTAINABLE MOBILITY 

Sustainable mobility is the capacity 1) to satisfy society’s need for freedom of 

movement, accessibility, communication and trade; and 2) to meet these needs 

safely and at an acceptable cost, now and in the future, without sacrifi cing 

essential human and environmental values. 

3.3.3.2 RENAULT’S POLICY ON 

SUSTAINABLE MOBILITY 

The transport policy guiding Renault’s efforts to achieve sustainable mobility 

aims to: 

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reduce road risk and signifi cantly decrease the number of accident victims 

(see c hapter 3.3.4, “Renault and road safety”); 

reduce the risks relating to urban traffi c congestion and longer journey times; 

limit jams caused by road traffi c; 

mitigate environmental impact and sustainably reduce greenhouse gas 

emissions; 

World Economic Forum (WEF): Founded in 1971, the Geneva-based WEF is 

an independent international organization that works to improve economic 

and social conditions around the world. Its members, drawn from all business 

sectors, work with universities, governments, religious organizations, NGOs, 

and artists; 

World Business Council for Sustainable Development (WBCSD): A forum 

composed of some 180 international companies in a shared commitment to 

sustainable development. In 2006 Renault was involved in the Sustainable 

Mobility Sector Project and took part in the Energy & Climate focus area 

(see c hapter 3.3.3.4 Renault’s global initiatives to promote sustainable 

mobility); 

The Global Road Safety Partnership (GRSP) is one of the four Business 

Partnership for Development programs created by the World Bank. 

Its members include international institutions, government agencies, 

development organizations, and large multinational corporations. Its objective 

is to promote policies to improve road safety in the developing world through 

pilot programs in selected countries. 



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take action to promote public health and reduce the harmful effects of road 

transport (noise and pollution); 

narrow the disparities in mobility between countries in the north and south 

and improve prospects for greater mobility for all these populations. 

To support this policy, Renault is setting up or taking part in initiatives to promote 

sustainable mobility in France, Europe, and elsewhere in the world. 

3.3.3.3 RENAULT’S NATIONAL INITIATIVES 

TO PROMOTE SUSTAINABLE 

MOBILITY 

THE PROACTIVE INVOLVEMENT OF RENAULT’S EXPERTS IN 

THE ISSUE OF SUSTAINABLE MOBILITY 

The expertise of the Transport & Mobility Group has earned Renault a reputation 

as a leader in the search for innovative solutions for car services management. 

These solutions are based on rationalizing and optimizing car use in densely 

populated urban areas and positioning collective car use as one alternative in 

a wide range of public transport and low-impact travel options. 

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In 2007, Renault participated as an expert in numerous roundtables on the 

automobile’s role in mobility. These included a conference organized by the 

association Avenir Transport (Transport’s Future) on the theme, “Transport and 

Environment: Does the concept of sustainable mobility make sense?” Renault 

also participated in a one-day event held by the CERTU, an urban transport 

research center, to discuss the car’s future as a transport mode. This gave 

Renault the opportunity to point out the automobile’s fl exibility and its wide 

variety of product-service applications. It cited examples of its effective use in 

other countries in multimodal transport systems and emphasized its intermodal 

capacities. 

Renault also presented its know-how in organizing transport for its employees 

at an ADEME-sponsored conference on corporate transport planning. 

DEVELOPMENT OF INNOVATIVE TRANSPORT SERVICES AT 

RENAULT 

Transport plans at the new Equinove offi ces in Plessis Robinson, near Paris, and 

the Technocentre, in Guyancourt, are making it easier for Renault employees 

to move around. 

In July 2007 a new intranet server for car-pooling was installed for Rueil, which 

will eventually be used by all Renault sites in France. 

Other solutions were provided with the Paris mass transit authority, RATP, 

in 2005. These included grouping bus shelters together and adding two shuttle 

services from the Versailles Chantiers railway station and the Pont-de-Sèvres 

metro station, with three coaches running morning and evening on each route, 

transporting a total of 370 Group employees. 

As a result of these initiatives, public transportation carries about 25% of the 

traffi c, close to the Technocentre’s fi gure (public transport: 26%; car-pooling: 

10% to 14.5%). 

Exploratory research and international benchmarking on company’s 

transportation plans were conducted, to identify best practices and glean 

prospects for deploying these initiatives. 

DEVELOPMENT OF INNOVATIVE TRANSPORT SERVICES FOR 

THE SOCIETY 

In 2005, Renault teamed up with the Swiss operator Mobility Car Sharing 9 , the 

European car-sharing leader, to respond to the request for proposals issued by 

the municipal authorities in Nantes in 2005. The aim of this project is to create 

a joint venture to launch and manage a car-sharing service in that city. Renault 

has proposed setting up an organization with private and public partners that 

would grow and expand nationally so as to become profi t-making. Renault 

helped design the service, as well as the procedure for adjusting supply to 

demand and the balance between car-sharing and car rental. It also made 

a commitment to share the risk during the service’s start-up phase. In order 

to provide a highly professional and industrialized service, Renault proposed 

an innovative implementation that would overhaul governance and decisiontaking 

procedures. It has submitted proposals to other French cities that have 

expressed interest in car-sharing services. 





Renault has offered special terms to the operators of car-sharing services in 

Paris (Caisse Commune) and Strasbourg (Auto’trement). 

3.3.3.4 RENAULT’S GLOBAL INITIATIVES 

TO PROMOTE SUSTAINABLE 

MOBILITY 

Renault has taken part in an international project on sustainable mobility for 

2030. As part of the World Business Council for Sustainable Development 10 , 

12 American, Japanese and European companies from the automobile and 

oil industries launched a major study on what mobility should be in 2030 and 

how to achieve this. 

The aim of Mobility 2030 is to develop a vision of sustainable mobility that takes 

account of needs and proposes solutions that are acceptable to consumers 

and society in terms of employment and the environment. It promotes concrete 

actions with the assistance of a support network in both developed and 

developing countries. 

The fi nal Mobility 2030 report was published in July 2004, following the 

earlier Mobility 2001 study, which analyzed the general situation. The partner 

companies then began discussing a road safety action plan for developing 

countries. This led to the creation of the GRSI by the Global Road Safety 

Partnership (see below). 

In 2006, as a follow-up to Mobility 2030, Renault became involved in a new 

project, called “Mobility for Development”. The project looks at case studies 

of cities in India, Brazil, China, and Africa, and the links between mobility and 

development. The aim is to publish a global report to enable governments 

and institutions to measure the extent to which infrastructure mobility impacts 

on development. One focus will be on the challenges of providing mobility 

to everyone, with consideration given to the most-affected populations and 

geographic areas (for example, connections between the rural and urbansuburban 

milieus). 

As part of this project, Renault helped organize a conference in which the 

main possible solutions for providing sustainable mobility in Bangalore were 

debated on the basis of a shared diagnostic. A similar event held in Shanghaï 

discussed the risks that urban mobility planning would fail to keep pace with 

economic growth. 

In 2007, Renault was once again a participant in the SIMBA project, supported 

by Ertico and the European Commission, which aims to identify research 

cooperation priorities between India, Brazil, South Africa, China and the European 

Union. The project focuses on intelligent transportation systems, infrastructure, 

mobility, safety, and the automotive industry. Renault presented possibilities for 

cooperation with Indian institutions on the subject of pedestrian safety in the 

design of road infrastructures. 

Renault also sponsored a national conference at Anna University in Chennai, 

India, where the focus was on the problems arising by the outward sprawl of 

Indian cities and the subsequent new mobility needs. 

(9 ) Mobility Car Sharing has 60,000 members and manages 1,800 vehicles based at 1,000 locations in 400 Swiss communities. Renault vehicles make up nearly 60% of its fleet. 

(10 ) The World Business Council for Substainable Development (WBCSD) consists of 180 international companies from 30 countries and 20 major industrial sectors that are engaged in implementing 

sustainable sustainable development development in three key areas: environmental environmental protection, protection, social equity and economic prosperity. prosperity. The The Council’s Council’s work work focuses on eco-efficiency, eco-efficiency, innovation and social responsibility responsibility in in 

the business community (www.wbcsd.org). 

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PERFORMANCE 

A consequence of rapid urban growth is the soaring number of cars. The objective 

of SIMBA’s research is to identify conditions favorable to motorized transport 

and measures to support its development. Students from emerging countries 

who have studied in the Transportation and Sustainable Development Master’s 

program set up by the Renault Foundation (see below) also have the opportunity 

to participate in this project. 

3.3.4 RENAULT AND ROAD SAFETY 

3.3.4.1 THE CHALLENGES OF ROAD 

SAFETY 

Road safety is a global public health issue, which concerns every continent. 

According to the WHO, some 1.2 million people are killed and 50 million injured 

on the world’s roads each year. If current trends continue, those numbers could 

rise by over 60% by 2020, taking road accidents to third place on the WHO’s 

list of the ten leading causes of death and injury in the world, up from ninth 

place in 1990. This problem is not affecting all countries to the same extent. 

ROAD DEATHS IN EUROPE AND FRANCE – 1991-2007 

80,000 

60,000 

40,000 

20,000 

0 

For example, an Iranian student at the Foundation looked at the problem of 

congestion in Tehran and how it affects people’s movements and the way the 

city is managed. This research contributes to a current project being conducted 

with the INRETS on urban development prospects in rapidly growing countries 

(China, India, Iran, Brazil, etc.). 

Number of fatalities in the Europe of 25 Number of fatalities in France (1) 

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 

(1) Note that the definition of a road fatality in France changed in 2005. A traffic accident victim dying within 30 days of the accident is now considered as a road fatality. Previously, the victim’s death had to occur 

within six days of the accident. 

The causes of accidents fall into two general categories. (Here only accidents 

causing personal injury are considered, since less information is available on 

fatal accidents.) 

The cause is related either to the driver (the driver’s condition, driving experience, 

driving style) or to an external factor (road infrastructure, traffi c conditions, or 

the vehicle’s condition). 


Most of these accidents occur in developing countries, where more and more 

people are using motorized transport. 

As an international company, Renault considers itself a partner of governments 

throughout the world, and it aims to be an active partner in helping to improve 

road safety. In France and many other European countries, trends are 

encouraging, and the numbers of people killed or injured are going down. 



2002 

2003 

2004 

2005 

2006 


12,000 

9,000 

6,000 

3,000 

The graph below shows that driver error is involved in a large majority of 

accidents resulting in personal injury, but that an external factor will contribute 

to the accident in nearly two-thirds of cases. The graphs below show the main 

driver errors and external factors that cause accidents. 

0 

01 

02 

03 

04 

05 

06 

07 

08

BREAKDOWN OF ACCIDENTS RESULTING IN PERSONAL INJURY WITH AT LEAST ONE CAUSE 

RELATED OU UNRELATED TO THE DRIVER 

86% 


63% 

Driver-related Driver-unrelated 

BREAKDOWN OF ACCIDENTS RESULTING IN PERSONAL INJURY AND INVOLVING AT LEAST 

ONE DRIVER-RELATED CAUSE 

40 

35 

30 

25 

20 

15 

10 

5 

0 

% 

Factors linked 

to the driver's 

condition 


to the driver's 

experience 


to driving style 

a b c a b c a b c 

a. Alcohol consumption 

b. Falling asleep 

c. Inattention 

a. Driving in automatic mode 

b. Driving in unfamiliar surroundings 

c. Inexperience 

a. Inappropriate speed 

b. Priority status 

c. Risk-taking 

Other 

The impact of alcohol consumption seems low because only non-fatal accidents 

resulting in injury are considered here. But alcohol is an aggravating factor in 

the consequences of accidents (involved in 30% of fatal accidents). 

BREAKDOWN OF ACCIDENTS RESULTING IN PERSONAL INJURY AND INVOLVING AT LEAST 

ONE DRIVER-UNRELATED CAUSE 




3.3.4.2 RENAULT’S ROAD SAFETY POLICY ✦ 

Recognizing the importance of road safety, the Renault group created a Road 

Safety Policy Department in March 2004. Headed by Dr. Jean-Yves Le Coz, 

its mission is to establish Renault’s road safety policy and to coordinate 

its implementation. 

Renault takes a comprehensive approach to road safety. People are central to 

the vehicle design process, which is based on a scientifi c understanding of 

accidents and on real safety. The aim is to come up with products adapted to 

the realities of driving everywhere in the world. 

Through its Laboratory for Accident Research, Biomechanics and Study of 

Human Behavior Renault –PSA Peugeot Citroën (LAB), Renault possesses 

the world’s largest accident research database. By providing a vast amount 

of information on how accidents happen and by evaluating the effectiveness 

(lives saved and injuries avoided) of each safety system, this database helps 

designers to decide which systems are the most important to install on vehicles 

to maximize their safety. With more than 50 years’ commitment to research 

and development of technologies to improve the safety of its vehicles, Renault 

is recognized as an industry leader in automotive safety in Europe. 

To adapt its vehicles to emerging markets, Renault is extending the accident 

research conducted in Europe to regional engineering centers by setting up 

special teams, transferring knowledge and skills, and working with specialists 

at local universities. 

Renault also supports all initiatives and equipment to promote careful and 

safe driving such as the wearing of seatbelts, standardization of speed limits 

in Europe, and driver education programs. 

The company is an active participant in working groups studying safety factors, 

contributing its expertise and analyses, and is also involved in an ambitious 

international educational program. 

Renault is a member of the board of the Road Safety Foundation, whose 

purpose is to identify, promote and fund research projects aimed at contributing 

effectively to road safety. This public-private partnership initiative should enable 

the working group to share knowledge and results. 

In March 2006, Renault and Vinci signed a sustainable development partnership 

agreement committing the two companies to safer roads and environmental 

protection. The agreement aims to foster experience-sharing and joint action 

with a view to reducing the social and economic impact of road risks. In 2007, 

four working groups were formed to allow more cooperation between the 

two companies. 

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03 SOCIAL 


PERFORMANCE 

3.3.4.3 RENAULT’S INITIATIVES 

TO PROMOTE ROAD SAFETY 

PREVENTION 

Prevention involves helping drivers to anticipate risks. Part of the solution 

lies in encouraging more responsible driving. Drivers need to understand the 

limits beyond which they will be incapable of controlling their vehicle, and the 

situations in which they are putting themselves at risk. This is why Renault 

equips its vehicles with systems that enable drivers to behave more responsibly. 

The cruise control/speed limiter, for example, provides added comfort and safety 

by preventing the car from exceeding the speed set by the driver. Renault’s 

range is better equipped with cruise-control/speed limiters than any other in 

Europe and perhaps even the world. These systems are optional or standard 

on models from Modus to Vel Satis, depending on the version. The visual and 

audible seatbelt reminder is an essential safety device, since 20% of lives lost 

in accidents each year in Europe could be saved if everyone wore a seatbelt. 

The seatbelt reminder system is fi tted on all Renault vehicles. 

Prevention also involves providing the driver with helpful information. The tire 

pressure monitoring system helps do just that. Burst tires are a contributing 

factor in some 6% of fatal highway accidents. This is why Renault is equipping 

much of its range with the monitoring system. Prevention also calls for the ability 

to properly assess conditions, which is the reason why Renault has adopted 

xenon headlamps. Last, anticipating risks means allowing drivers to concentrate 

on driving by facilitating auxiliary tasks. Automatic activation of headlights and 

windshield wipers provide such assistance. 

CORRECTION 

Road holding and braking are fundamental vehicle dynamics. They are the basic 

factors in accident avoidance. Even so, there are situations where technology 

has to intervene to compensate as far as possible for driver error. This is the 

aim of driving aids, which are triggered in diffi cult or emergency situations, but 

never completely take over from the driver. 

The Antilock Brake System (ABS) stops the wheels from locking during 

emergency braking to allow the driver to retain steering control. Electronic 

Brakeforce Distribution (EBD) is an additional function coupled with ABS. 

It automatically adjusts the amount of force applied to the front and rear brakes. 

Emergency Brake Assistance lets the driver use the full power of the braking 

system by maintaining maximum pressure on the pedal until the vehicle comes 

to a stop. Meanwhile, the Electronic Stability Program (ESP) helps the driver to 

maintain his or her intended direction should the vehicle veer off course during 

an emergency maneuver. 

PROTECTION 

A cornerstone of Renault’s safety strategy aims to protect all car occupants 

by factoring in the severity of the potential impact, their age, size and position 

in the vehicle, in small and large cars alike. Striving higher than Euro NCAP 

standards, Renault equips the rear seats of its vehicles with systems to provide 

optimal passenger protection. The protection of other road users (pedestrians, 

cyclists, etc.) is also one of its goals. 

The results take the form of innovative, dedicated equipment offered by Renault 

on its models, mostly as standard, regardless of their level in the range. 


Renault is currently the only automaker to market nine models with a 

fi ve-star rating in the Euro NCAP tests. It offers the safest range on the 

European market. 

RAISING AWARENESS 

Renault has been a signatory of a road safety partnership charter with the 

French government since 2003, confi rming the Group’s commitment to raising 

the safety awareness of as many people as possible. Changing behavior over 

the long term and educating young people to the dangers on the road are 

important issues in the battle to improve road safety. 

Renault has launched a series of road safety campaigns for Group employees 

in France and abroad, the sales network, the general public, and children and 

young people. 

Initiatives targeting Group employees 

Renault also signed a Driver’s Charter for Personnel, underlining the company’s 

commitment to raising employees’ awareness of the risks of the road. Within 

this framework, Renault has implemented several initiatives at Group level (see 

chapter 3.1.3.6). 

Initiatives targeting the sales network 

The theme of road safety receives broad coverage in network media, including 

Synchro magazine, Renault TV’s Warm-Up program, in-service training, POS 

material, and strategy meetings. Vehicles’ active and passive safety features 

are a central sales argument for network personnel. 

Initiatives targeting the general public 

Safety is a cross-functional communications theme promoted to the public at 

various events. At the 2006 Paris Auto Show and the 2007 Geneva Motor Show, 

visitors could get a virtual feel of driving a vehicle with futuristic technology 

by using the man-machine interface demonstrator, and at the World Series, 

a safety workshop was run using a Modus simulator. There have also been 

advertising campaigns on Renault’s market lead in terms of safety in many 

European countries. 

Initiatives targeting children and young people: 

the “Safety for All” international road safety program 

The driver is at fault in 80% of accidents that cause personal injury, even 

though road or traffi c conditions are contributing factors in 50% of cases. 

Because it is important to learn the right habits early, Renault is pursuing its 

“Safety for All” international road safety program, based on its knowledge and 

experience in this fi eld. 

This educational program is for children, teenagers and young drivers. Launched 

in 2000, it has already reached nearly 10 million young people, making it the 

biggest road safety awareness campaign ever organized by a carmaker. So far, 

a total of 460,000 teaching kits have been distributed in 22 countries. 



01 

02 

03 

04 

05 

06 

07 

08

The Safety for All program in Morocco and Mexico 

Renault Morocco joins the program. The Kids on the Road program 

has been offered in 60 primary schools in this country’s eight largest 

cities since October 2007. Teachers in participating schools attended 

training sessions to learn how to teach the road safety courses. They 

also received a set of teaching aids, including the “Kids on the Road” 

kit, to use with the 7,200 children who will take part in the national 

drawing contest in March 2008. 

Renault Mexico wins Safety for All award. In September 2007, 

the Safety for All program in Mexico received the “Corporate Social 

Initiatives targeting suppliers 

Since 2006, a new selection criterion for logistics suppliers was added to 

existing considerations: the annual number of hours of training per driver. 

A working group set up to examine the issue found a strong correlation between 

the number of road accidents and the number of hours of driver training. 

3.3.4.4 THE INTERNATIONAL CHALLENGE 

OF ROAD SAFETY ✦ 

E-SAFETY, A EUROPEAN AMBITION 

The European Commission has set the ambitious target of reducing the number 

of road accident fatalities by half between 2000 and 2010. 

It has launched the e-Safety Forum, a public-private consultation body that 

seeks to accelerate the development, deployment and use of new information 

and communication technologies in a bid to improve road safety in Europe. 

At present, the e-Safety Forum has 10 working groups, which are being directed 

by industry and a steering committee, of which Renault is a member. 

The eCall working group is the number-one priority for the industry and for 

the European public sector. Its goal is to defi ne an integrated strategy for 

pan-European emergency call services. Renault’s experts are very active in 

the working groups and are particularly involved in the eCall, man-machine 

interaction and real-time traffi c information groups. 




GRSP – GRSI 

In the action plan drawn up after the World Business Council for Sustainable 

Development (WBCSD) initiated the Mobility 2030 program, Renault made a 

commitment to join the battle for road safety in developing countries. The urgency 

of the problem is shown by the fact that traffi c accidents could well become the 

third-leading cause of death in these countries by 2020. 

The Global Road Safety Initiative (GRSI) is an international road safety program 

that receives US$10 million in funding from seven of the world’s largest 

automotive and oil companies (Renault, Ford, GM, Honda, Toyota, Michelin and 

Shell). Its aim is to develop road safety initiatives in certain developing countries, 

with the agreement of their governments. These initiatives include: 

n 

n 

n 

the publication of safe driving manuals; 

the opening of regional training centers to allow the transfer of road safety 

information to these countries; 

fi nancial assistance for locally initiated safety actions. 

This initiative is being carried out under the Global Road Safety Partnership 

(GRSP), a larger-scale road safety program set up by the World Bank and 

several large corporations. 

In 2006 and 2007, Renault do Brazil helped to set up the following 

partnerships: 

n 

n 

n 


Responsibility: Connection with the Community” award from the 

Mexican philanthropic organization CEMEFI. It had previously 

won two other awards: “Best Safety Initiative and Awareness 

Program”, given by the association MDM, and the “Mexican 

Communication Association Prize” for the best community service 

communications initiative. ✦ 

All Renault’s road safety initiatives in the 22 participating countries 

are detailed on the dual-language website: 

www.securite-pour-tous.com/www.safety-for-all.com. 

Florianópolis (Santa Catarina) 2006: An agreement was signed between the 

GRSI/GRSP program and the city’s Road Education department. As a result, 

a system to provide information on road accidents and their consequences 

was created in 2007; 

São José Dos Pinhais (Paraná) 2007: The city is in the process of joining 

the GRSP program; 

Niteroi – Rio de Janeiro 2008: Discussions will get under way in 2008. 

01 

02 

03 

04 

05 

06 

07 

08 


03 SOCIAL 


PERFORMANCE 

3.3.5 CONTRIBUTION TO CIVIL SOCIETY 

3.3.5.1 THE SOCIO-ECONOMIC 

ENVIRONMENT 

RENAULT’S COMMITMENT TO TRAINING LOW-SKILLED 

YOUNG PEOPLE 

For several years, Renault has been active in training low-skilled young people. 

On March 24, 2005, Renault and the French Ministry of Employment, Labor 

and Social Cohesion renewed for the fourth time their 1992 agreement aimed 

at getting more young people into the workforce. The agreement will give 

600 young people the opportunity to take training to earn their fi rst professional 

qualifi cation. The program includes three to four months of training at an 

industrial site, followed by a work-study contract for 12 to 24 months and 

help fi nding a job. At the end of the program, participants receive either an 

occupational certifi cate or a diploma recognized in multiple sectors. 

More than 2,600 young people, one-fourth of them women, have already taken 

part, with 80% receiving a diploma and 70% fi nding a job. Five of the Group’s 

plants in France (Douai, Le Mans, Flins, Cléon, Sandouville) are participating. 

ACTION FOR THE DISABLED 

Renault is involved in numerous local initiatives to assist the disadvantaged. 

Continuing its efforts for disabled people that began 50 years ago, Renault 

publishes “En Route”, the fi rst practical guide for disabled car users (available 

free of charge at Renault dealerships and downloadable in French at www. 

renault.fr/handiservices. Renault’s website, www.renault.fr, also contains 

practical information for disabled people. 

For several years, Renault has been an active partner of the Motability car 

scheme for the disabled in the UK. 

Renault s.a.s. is pursuing a proactive policy for the integration of disabled 

individuals in society and the workforce through a collective agreement, renewed 

for three years on May 24, 2006. Under the agreement, Renault is to hire 

disabled people for at least 2% of the engineering, sales and support positions 

that it fi lls at sites that fall short of the 6% legal quota. 

SUPPORTING EMPLOYEE START-UPS 

In 1984 Renault set up a program called Cap Entreprendre to help its employees 

start up new businesses. 

In 2007 Renault assisted 45 start-ups in France (38 companies in 2006, 

40 in 2005, 40 in 2004). 

3.3.5.2 SPONSORSHIP ✦ 

Renault and its subsidiaries around the globe are involved in numerous 

sponsorship activities. In 2007, they contributed a total of €8 million. Sponsorship 

focuses on education, training and road safety as well as humanitarian, social 

and cultural works adapted to the local situation. Actions are varied and refl ect 

the specifi c environment of each Renault subsidiary or entity. Renault’s main 

sponsorship programs are listed below: ✦ 

THE RENAULT FOUNDATION: BRINGING CULTURES 

TOGETHER 

The Renault Foundation was set up in 2001 as part of the Group’s international 

strategy. It provides support to talented young people and helps them to develop 

in a multicultural environment. It fosters understanding and closer ties between 

different cultures as well as interaction between France and Europe and the 

countries where Renault has operations. 

The Renault Foundation helps to train tomorrow’s managers by organizing and 

fully fi nancing three programs of study in France, all conducted in French, for 

well-qualifi ed foreign students with university-level degrees from institutions 

in their home country: 

the Dauphine-Sorbonne-Renault MBA, created in 2002 in partnership with 

the University of Paris-Dauphine and the University of Paris-Panthéon- 

Sorbonne’s business school; 

the Renault Foundation ParisTech Masters in Transportation and Sustainable 

Development, with the École Nationale des Ponts et Chaussées, the École 

Polytechnique and the École Nationale Supérieure des Mines de Paris; 

the Renault Majors Cycle, with Paris Tech and University of Paris-Panthéon- 

Sorbonne. 

Each year students preselected by the Foundation’s partner universities in 

Japan, South Korea, Brazil, Iran, Romania, Russia, and India attend these 

programs. The Foundation has already contributed to the education of some 

320 students, most of them Japanese. 

In June 2007 the Foundation and partners Ecole Polytechnique and HEC set up 

a new course of study: Multicultural Management and Corporate Performance. 

The purpose of this program, which is fully funded by the Renault Foundation, is 

to develop students’ capacity during their fi nal year at HEC or Polytechnique to 

understand and use managerial practices suited to the diverse economic realities 

relating to national, professional and organizational culture. Activities will include 

a teaching program, a group of independently conducted research projects, 

and the setting up of an international network of high-caliber researchers 

and institutions. The research results will be presented at colloquiums and 

published. 

Most of the Foundation’s work is done through its funding capacity. 



n 

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“VALUED CITIZENS” PROGRAM IN SOUTH AFRICA 

Renault has been a key sponsor of the Valued Citizens initiative in South Africa 

since 2001. The program’s aim is to use the public schools to develop a sense of 

responsible citizenship in young people and by doing so, create a culture based 

on the values and principles established in the South African Constitution. 

The program helps teachers and school principals to strengthen students’ 

confi dence and self-esteem. As a result, they take pride in their school and 

become aware of their potential, which in turn builds a stronger democratic 

culture and greater openness to the surrounding world. The idea is to develop 

an environment conducive to a respect for human rights, with the broader 

objective of fostering a fl ourishing civil society in South Africa. 

Over the previous seven years, the Valued Citizens program was taught in 

2,385 primary and secondary schools in townships, rural and urban areas in 

Gauteng, Free State, and Limpopo Provinces. These multiracial, multiethnic and 

multilingual public schools embody the Rainbow Nation. Renault is proud to 

contribute to expanding the program, which has reached more than 395,000 

students and more than 3,350 teachers and school principals since it was 

started. 

RENAULT RETAIL GROUP’S HUMANITARIAN AND SOCIAL 

ASSISTANCE FUND 

Since it was set up in 2003, the humanitarian and social assistance fund 

of Renault Retail Group (formerly REAGROUP till year- end 2007), Renault’s 

European distribution subsidiary, has fi nanced more than 50 projects run by 

non-profi t organizations. These are humanitarian activities, concentrated in 

France, Africa and Asia. Renault Retail Group’s work in 2007 included: 

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emergency humanitarian assistance (it created a shelter for street children 

in Mopti (Mali) with Planète Urgence and the Fondation Abbé Pierre); 

health assistance (it continued to provide pharmaceutical supplies to the 

dispensary that it created in Senegal); 

alleviating serious illnesses (it helped set up a support structure for people 

with Parkinson’s disease); 

education and training (Aide et Action, Enfants de l’Ovale with Philippe 

Sella); 

fair trade (micro-projects in Africa and India); 

humanitarian missions: Renault Retail Group funds a humanitarian mission 

for a staff member who uses his/her skills to train local people in Africa with 

Planète Urgence. Since 2004, Renault Retail Group has provided funding 

for 14 employees to run training programs in Mali (12 in mechanics and 

two in offi ce skills). 

These activities earned Renault Retail Group a nomination in the HR Initiatives 

2007 competition sponsored by Le Figaro, L’Express and Hudson. 





WOMEN FOR EDUCATION: PROMOTING WOMEN’S 

EDUCATION AND DIVERSITY 

In conjunction with its participation in the Women’s Forum this year, Renault 

sponsored “Women for Education”, a contest created by the ELLE Foundation 

in support of education and training for women around the world. Renault’s 

chairman presented the award along with a donation to the winning project – a 

program of education and training for Afghan girls and women that will be 

carried out by the association Afghanistan Libre at Pagham, in the province 

of Kabul. 

This initiative is part of a broader Renault policy aimed at developing training 

programs and promoting diversity in the company and more generally in the 

surrounding community. 

OTHER EXAMPLES OF SPONSORSHIP BY FOREIGN 

SUBSIDIARIES 

In Belgium, several vehicles were lent to UNICEF. 

CACIA (Portugal) made donations to local theaters. 

Renault UK lent cars for events organized by the charitable association 

Barnardo’s, which cares for disadvantaged children. 

Renault REVOZ (Slovenia) made donations to help purchase equipment for the 

Novo Mesto hospital, to support a clean-up operation on the Krka River, and to 

buy books for setting up French courses. 

In Colombia, the Sofasa made a donation to the Fondation Vision Mundial, 

which helps disadvantaged children, for each Renault Logan sold during a 

three-month period. 

In Brazil, there were numerous sponsorship initiatives: gifts and the loan of 

vehicles to a social and food assistance program; the donation of over 96 tons 

of goods (food, clothing, furniture, medications, etc.) for distribution to the 

inhabitants of communities in northern and northeastern Brazil; fi nancial and 

material support for the development of a primary school and an environmental 

education program, along with the setting up of a selective waste collection 

system, etc. 

Renault Iran made several donations, including one to an association that 

organizes sports events to collect money to help children suffering from cancer 

and to support a French-Iranian music group. 

In South Korea, donations were made to help the elderly, orphans, and disaster 

victims, and tree-planting operations were carried out in the village of Shin-Ho 

with local residents. 

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03 TABLE 


OF OBJECTIVES (EMPLOYEE RELATIONS, ENVIRONMENTAL AND SOCIAL) 

3.4 TABLE OF OBJECTIVES (EMPLOYEE RELATIONS, 

ENVIRONMENTAL AND SOCIAL) ✦ 

3.4.1 TABLE OF EMPLOYEE RELATIONS OBJECTIVES 

MAIN HR OBJECTIVES 

MOTIVATING THE MEN AND WOMEN WHO WORK 

FOR THE GROUP 

DATE 

OBJECTIVE SET DUE DATE SITUATION AT END-2007 

Improve management quality and staff mobilization 2006 2009 2007 Commitment and Management Quality survey carried out with all employees. 

88.3% response rate. 

More than 1,000 improvement actions implemented. 

Implement corporate managerial training - Ongoing More than 1,221 Renault Management trainees 

Through the new annual performance and development 

review, reinforce the link between performance assessments 

and the promotion plan 

2006 2007 A revised format for the annual performance and development review 

Deploy the incentive agreement Group-wide 2007 2009 Agreement signed on December 18, 2007 by four trade unions for France 

Encourage continuous improvement through collaborative 

innovation 

CONTRIBUTING TO GROUP PERFORMANCE 

Provide the Group with the skills it needs to fulfill 

its strategic goals. 

1990 Ongoing Personnel involvement: 67 % 

Savings made: €135 million 

2002 Ongoing 48 skills pilots 

Recruit new employees for international sites 2006 2009 Almost 5,500 new recruits for international sites 

Develop training and the professional skills of young people. - Ongoing Apprenticeship tax paid: €8.5 million. 

2,800 interns, of whom 930 on work/study contracts. 

Support career development 2006 Ongoing The job opportunities site – JobAccess – is available in five languages. 

careers@renault includes more than 1,000 benchmark positions. 

Improve the quality of HR input while cutting the function’s 

operating costs 

Increase the scope of the BPU employee database, 

with an ultimate goal of including all personnel. 

2006 2009 Number of people making up the workforce: 130,179 

Training expenditure: €174.2 million 

Average number of training hours per employee: 37.8 

Number of training hours in e-learning: more than 78,000 

Access to training: 78.7% 

1998 Ongoing Management of all Group personnel in the long term. 

Strengthen the Alliance with Nissan 1999 Ongoing Mutual perception survey 

Staff exchanges: 44 Nissan employees have joined Renault entities and 72 Renault 

employees have joined Nissan entities. 

SHARING GROUP VALUES 

Review application of the Declaration of Employees’ 

Fundamental Rights 

Promote pluralism and diversity by applying 

the Diversity Charter 

2004 Ongoing Review conducted on June 25, 2007 with the international signatories to the 

Declaration. 

2004 Ongoing Renault renewed its agreement concerning disabled staff in 2006 for a period of three 

years 

Widely circulate internal information. - Ongoing The house magazine “Global” has a circulation of more than 100,000 in French and 

English, alongside four local editions. 

Intranet sites: about 60,000 workstations connected. 

Continue labor-management dialogue at international level - Ongoing 1 plenary meeting of the Group Committee 

11 select committee meetings 




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MAIN HR OBJECTIVES 



TABLE OF OBJECTIVES (EMPLOYEE RELATIONS, ENVIRONMENTAL AND SOCIAL) 

DATE 

OBJECTIVE SET DUE DATE SITUATION AT END-2007 

Deploy the Health and Working Conditions policy - Ongoing More than 64,000 tests carried out at the stress, anxiety and depression clinic, leading 

to specific action. 

Continuously r educe the number of occupational accidents - Ongoing Group F2 rate: 3.54 Group G rate: 0.13 

Protect the environment and prevent risk through 

industrial hygiene 

- Ongoing 6,534 products managed in the Group chemicals database 

1,684 analyses conducted on air quality at workstations 

1,800 analyses conducted on physical environments 

Deploy operations to raise awareness on road risk - Ongoing More than seven international quizzes deployed through e-learning. Almost 4,300 hours 

of training and almost 1,800 employees connected 

Distribution of a game on road safety with the house magazine “Global”. 

3.4.2 ENVIRONMENTAL OBJECTIVES 

KEY ENVIRONMENTAL OBJECTIVES DATE OBJECTIVE SET DUE DATE 

CLIMATE CHANGE 

Manufacturing Cut energy consumption per vehicle manufactured by 2.5% annually 2003 2007 Completed 

Manufacturing Cut CO 2 emissions by 45% compared w i th 1998 (1) 2004 2007 Completed 

Product Like all European vehicle manufacturers, Renault is committed to achieving an 

average of 140g of CO 2 /km for all vehicles sold in the European Union. 

Product (Commitment 

2009) 

Product (Commitment 

2009) 

Sell 1,000,000 vehicles emitting less than 140g of CO 2 /km of which one-third 

emitting less than 120g 

Develop a two-pronged biofuel offering: 

• 

• 

100% of diesel engines able to run on B30 biodiesel 

50% of petrol engines able to run on E85 bioethanol 

SITUATION AT END-2007 

(same scope as 

date objective set) 

1998 2008 see “Renault Commitment 

2009” below 

2006 2008 866,752 vehicles 

323,052 vehicles 

2006 2009 

Trafic and Master: ready 

Underway; Megane: ready 

Product Expand the NGV and LPG vehicle range Ongoing 2005 8,161 LPG vehicles sold 

AIR QUALITY 

Manufacturing Cut VOC per vehicle to 4.6 kg per average vehicle manufactured 2001 2007 Completed 

Product Apply the Euro 4 standard across the entire range 2002 2006 Completed 

NOISE REDUCTION 

Product Bring external noise levels on new vehicles down to 71dB (A) for gasoline 

models and 72dB (A) for diesel models. 

ENVIRONMENTAL REMEDIATION 

1998 Ongoing Vel Satis, Laguna, Mégane, 

Scénic, Modus, Clio III, 

Twingo II 

Continue using Simplified Risk Assessment (SRA) at all industrial facilities to prevent risks of soil pollution 2001 Ongoing 100 % 

Oversee remediation work when future risks are detected 2001 Ongoing Boulogne Billancourt Dacia 

WATER CONSERVATION 

Manufacturing Halve water consumption per vehicle 1998 2007 Completed 

Manufacturing Cut flows per vehicle manufactured on all sites, as follows 

• 

• 

50% cut in organic matter 

40% cut in suspended solids 

Maintenance Establish and roll out standards on the best vehicle washing technologies 

(consumption of water and detergents) 


1998 

1995 



-43% 

Completed 

2004 2006 Underway 

(1) Scope: EU, in line with the current European Directive on CO2 quotas (boiler plants with a power rating of more than 20MW), emissions of combustion gas in teqCO2 (equivalent tons of CO2). 

01 

02 

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03 TABLE 


OF OBJECTIVES (EMPLOYEE RELATIONS, ENVIRONMENTAL AND SOCIAL) 

KEY ENVIRONMENTAL OBJECTIVES DATE OBJECTIVE SET DUE DATE 

WASTE REDUCTION AND RECYCLING 

Logistics For European plants: reduce packaging weight to 5 kg for new vehicles 

at the final assembly stage 

Logistics For plants outside Europe: establish quantified objectives for reducing 

packaging waste 

Manufacturing Reduce ordinary industrial waste (excluding metal offcuts) (2) 

to 37 kg per vehicle manufactured 

Manufacturing Reduce hazardous waste requiring treatment and elimination 

to 26 kg per vehicle manufactured 

SITUATION AT END-2007 

(same scope as 

date objective set) 

2000 2009 Modus: 8 kg ; Clio III: 6.4 kg 

Twingo II: 8 kg 

Laguna III: 35 kg 

2004 2005 Underway 

2004 2007 46 kg/veh. 

2004 2007 29 kg/veh. 

Product Increase the proportion of recycled plastics in new vehicles to 50 kg 2004 2015 Scénic: 16 kg 

Modus: 18 kg 

Clio III: 12 kg 

Twingo II: 13 kg 

Laguna III: 35 kg 

End-of-life Achieve an effective recovery rate of 85% for materials from the vehicle 

recycling industry 

CONTINUOUS ENVIRONMENTAL MANAGEMENT 

Depends on country 2006 Follow-up 

by country available 

Audit all sites annually for risk prevention and environmental protection 2003 2007 Completed 

Apply the principles of sustainable development to suppliers, through standards, training and assessments, etc. 2004 2007 Completed 

Extend ISO 14001 certification to new sites 

• Renault Belgium 

2003 2005 Completed 

• Dacia 


• Avtoframos 

2004 2007 Underway 

Rollout of environmental training 

• Manufacturing Cap Éco 1 


• Design Cap Éco 2 


• Sales and marketing Cap Éco 3 

2004 2007 Completed 

Establish the life-cycle inventory of new vehicles 2003 2005 Modus: Modus, Clio III, 

Twingo II, Laguna III 

Include the environment in all the standards making up the Renault Production Way (SPR) 2004 2007 Underway 

Issue an environmental statement for each site 2002 2007 30 main sites 

Continue working with commercial partners to apply environmental management standards to the main 

impacts of vehicle servicing 

(2) All metal offcuts are recovered. 


2003 2007 Completed 



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3.4.3 SOCIAL OBJECTIVES 

KEY OBJECTIVES 

ETHICS AND GOVERNANCE 



TABLE OF OBJECTIVES (EMPLOYEE RELATIONS, ENVIRONMENTAL AND SOCIAL) 

DATE 

OBJECTIVE SET DUE DATE 

Update the Code of Good Conduct by creating a “Compliance” function and adopting the principles of a 

“whistleblowing” system dedicated to risk prevention. 2007 2007 Completed 

Distribute the Code of Good Conduct to employees and implement a “whistleblowing” system dedicated to risk 

prevention. 2007 2008 Underway 

Introduce a self-assessment questionnaire on application of the Code of Good Conduct and Compliance Rules, along 

with the associated action plan. 2007 2008 Underway 

Adopt the key measures recommended in applicable reports for improving corporate governance. 2003 annual Ongoing 

PURCHASING POLICY 

Incorporate sustainable development into the company’s purchasing policy 2004 2005 Completed 

Obtain a formal commitment from suppliers to comply with the principles laid down in the Declaration of Employees’ 

Fundamental Rights 2004 2006 Completed 

Introduce the Group’s social and environmental standards into the purchasing process 2005 2006 Completed 

Prepare for the first external CSR inspections at supplier sites. 2006 2007 Underway 

ROAD SAFETY 

Deploy the “Safety for All” program to enhance children’s awareness of road safety 2000 annual Ongoing 

Work out actions to improve road safety in developing countries. GRSI 2004 2009 Underway 

Assist in transferring road safety know-how to developing countries 2004 - Ongoing 

MOBILITY 

Develop innovative mobility services for company employees and society 1998 2007 (car pooling) Ongoing 

Promote sustainable mobility solutions in developing countries. 2004 - Ongoing 

Set up and develop a national master’s degree program in Transportation and Sustainable Development 

in association with Paris Tech 2003 2004 Completed 

RESPONSIBLE CITIZENSHIP AND RELATIONS WITH STAKEHOLDERS 


Produce one example of a practical application of Global Compact principles each year 2002 annual Ongoing 

Play a leading role in actions to promote Global Compact principles with small and mid-sized companies in the Paris 

region 2004 - Ongoing 

Conduct an annual “sponsorship/social actions” survey in order to better identify and steer Group initiatives. 2006 annual Ongoing 

Develop Renault’s relations with NGOs involved in sustainable development 2004 - Ongoing 

Create and develop a diversity management chair in partnership with the Ecole Polytechnique and HEC. 2006 2007 Completed 

SITUATION 

AT END-2007 

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03 RENAULT, 


A RESPONSIBLE COMPANY 

3.5 RENAULT, A RESPONSIBLE COMPANY 

Extra-financial rating agencies and specialized departments of financial 

institutions assess companies on their commitments, policies and performance 

in terms of labor relations, environmental protection and corporate governance, 

using analytical and scoring techniques. These evaluations are designed to 

meet demand from socially responsible investors, who use them to select the 

companies in their portfolios 11 . 

Methods vary from agency to agency. Some agencies are specialized by 

investment region (Europe, World, OECD, etc.) or asset class (large caps, small 

caps), have a sector focus, or base their analyses on a basket of weighted 

criteria, which can vary signifi cantly depending on their targets. 

3.5.1 RENAULT’S RATINGS IN 2007 

SAM (SUSTAINABLE ASSET MANAGEMENT) 

SAM is an independent Asset Management company founded in 1995 and 

based in Switzerland. It specializes in setting up investment strategies based 

on economic, environmental and social criteria, analyzed in terms of long-term 

value creation. 

In 1999, together with Dow Jones & Company, SAM launched the Dow 

Jones Sustainability World Index (DJSI World), a global index based on extrafi 

nancial criteria. The DJSI is comprised of 300 leading companies in terms 

of social responsibility as assessed by SAM, from among the 2,500 largest 

companies in the Dow Jones World Index. A European index was launched in 

October 2001, the Dow Jones Sustainability STOXX Index, containing 20% of 

the 600 companies in the Dow Jones STOXX SM 600 Index. 

Each year, SAM analyses the companies covered by the two indexes. The results 

are used to determine the component stocks. 

Ratings in 2007: For the second year running, Renault was included in the Dow 

Jones Sustainability World Index and the Dow Jones STOXX Sustainability Index, 

both highly regarded indexes in the fi nancial markets. The Group achieved 

higher ratings than in 2006. 


Some of these rating agencies, usually working in partnership with providers of 

equity indexes, have developed specifi c indexes of the highest-rated companies 

for labor relations, environmental protection and corporate governance. 

In 2007 Renault’s performance received excellent ratings from the key extrafi 

nancial ratings agencies. 

RENAULT’S 

SCORE 

LOWEST 

SCORE DJSI 

STOXX 

INDUSTRY 

AVERAGE (2) 

TOTAL SCORE (1) 80 80 62 

Economic dimension 75 75 56 

Environmental dimension 93 89 73 

Social dimension 73 72 58 

(1) Score out of 100. 

(2) Automobile industry. 

N ext SAM review: September 2008. 

At the start of the year, SAM presented the “Sustainability Yearbook 2008”. 

This document is the world’s most comprehensive publication on sustainability 

and the related challenges and opportunities for companies. 

The Yearbook ranks the best levels of performance by sector, based on the DJSI 

World index, in three categories: Bronze, Silver and Gold. 

In 2008, Renault received Gold Class status. 

More information on: www.sam-group.com/yearbook 

(11 ) Socially responsible investments (SRI) are based on both the financial performance of the stocks tracked and factors such as the company’s attitude towards its economic, environmental, economic 

and social environment. 



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OEKOM 

Oekom, one of Germany’s leading rating agencies, analyses 750 large and midsized 

companies and more than 100 small enterprises within a geographical 

universe that spans the OECD, new EU member states, Russia and leading Asian 

markets. The agency thus covers 80% of MSCI World index, which measures 

stock market performance in developed countries. 

Renault scored a B rating overall in 2006 and the Group was ranked fi rst out 

of the 17 automakers analyzed. 

RATING SCALE A+ TO D- OEKOM RATING 

RANKING OUT OF 

17 AUTOMAKERS 

Social Cultural B 1 

Environmental B 1 

TOTAL SCORE 

The next ratings are due in 2009. 

B 1 

In 2007, Oekom created the Global Challenges Index, a listing of 50 companies 

around the world that make substantial efforts to address major planetary issues 

(climate change, drinking water availability, deforestation, biodiversity, poverty 

and global governance). Renault was included in the fi rst index. 

VIGEO 

Vigeo is an independent rating agency founded in July 2002. The major 

shareholder, Caisse des Dépôts et Consignations, contributed the assets of 

Arese, which pioneered social and environmental rating in France. Vigeo is 

owned by some 50 shareholders, organized into three sub-groups: institutional 

investors, European trade unions and multinational corporations. Vigeo’s unique 

model is aimed both at investors, with investor-solicited ratings of Eurostoxx 

600 companies, and corporations, with corporate-solicited ratings. 

Renault obtained the highest score in three areas in 2006, thus confi rming its 

inclusion in the ASPI index, made up of the 120 listed euro-zone companies 

with the best performances as assessed by Vigeo. 

RATING (MIN --/MAX ++) SCORE (0 TO 100) 

Human rights + 68 

Environment + 62 

Human resources + 69 

Business behavior + 59 

Corporate governance = 46 

Community involvement + 58 

+ : The company is active in terms of sustainability in its sector. 

= : The company is average in terms of sustainability in its sector. 

The results of the next review will be published in 2008. 



RENAULT, A RESPONSIBLE COMPANY 

CARBON DISCLOSURE PROJECT 

The Carbon Disclosure Project (CDP), founded in 2000, is mandated by a group 

of institutional investors to enhance understanding of the potential impacts of 

climate change on the value of the assets managed by its signatories. 

Since 2002 the CDP has sent a regular information request to companies in a 

standard format, asking them about their greenhouse gas emissions and policy 

on climate change. The most recent information request, CDP5, included the FT 

Global 500 – the largest companies in the world by market capitalization. 

After the 2006 report, as for the previous two versions, the CDP developed the 

Climate Leadership Index, composed of the 50 companies in the FT500 assessed 

as having the best practices in terms of information on climate change. 

Renault’s rating in 2007: on the basis of its responses to the CDP5, available 

at www.cdproject.net, Renault achieved a score of 75/100, losing just 5 points, 

while the rating for the auto industry as a whole (60/100) was 10 points 

lower. 

In 2006, Renault appeared for the fi rst time in the Climate Leadership Index, 

along with four other carmakers. In 2007, inclusion in the Climate Leadership 

Index was based on an absolute score (which had to be higher than 85/100) 

rather than on a best-in-class score, as was the case in previous years. As a 

result, only two carmakers qualifi ed for the Climate Leadership Index. 

The next information request, CDP6, will be sent to companies in 

February 2008. 

STOREBRAND 

Storebrand is a Norwegian fi nance group that has played a major role in the 

institutional development of Asset Management in Norway and has become 

the biggest private investor in its domestic market. 

In 1995 the group set up an Environmental Policy and Investment Unit, in 

charge of sustainability projects. It set up a French offi ce in 2001 to target 

both institutional and individual investors. 

Renault’s rating in 2006: Renault achieved Storebrand’s Best in Class status for 

its environmental and social performance, and thus qualifi ed for Storebrand’s 

Socially Responsible Investments. 

Renault was one of only four of the 14 carmakers analyzed to qualify. 

Next review: 2008. 


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03 RENAULT, 


A RESPONSIBLE COMPANY 

3.5.2 RENAULT IS INCLUDED IN SOCIALLY RESPONSIBLE INDEXES 

Renault is included in the following S.R.Indexes: 

Dow Jones Sustainability World Index (DJSI World) and Dow Jones Sustainability 

STOXX Index, based on the ratings of Swiss asset manager SAM. 

ASPI Eurozone (Advanced Sustainable Performance Indices), which tracks the 

performance of 120 European companies selected on the basis of Vigeo’s 

ratings. 

ESI (Ethibel Sustainability Index) developed by Belgian rating agency, Ethibel. 

Ethibel Investment Register, developed 13 years ago on the initiative of an 

alliance of NGOs covering ethical economic policy, environmental policy and 

social policy. The register provides investors with stock selections that also 

take account of negative criteria. Ethibel Sustainability Index, launched in 2002 

with Standard & Poor’s, contains 198 companies with a strong record on 

sustainability in their sectors. The index is designed to approximate the sector 

weights on the S&P Global 1200. 


Ethical Euro, developed by investment advisory firm E. Capital Partners, 

contains 150 of the most socially responsible of Europe’s largest companies. 

The Global Challenges Index, set up in 2007 by the German agency Oekom 

Research, lists 50 companies worldwide recognized for their contribution to 

sustainable development through their products and services, and for initiatives 

related to the development of their businesses. 

Note: Because of Renault’s implicit involvement in military activities through its 

21,8% interest in AB Volvo, the Group is not included in the FTSE 4 Good index, 

developed by Eiris rating agency in partnership with FTSE. 



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04 

Corporate governance 

4.1 THE BOARD OF DIRECTORS 130 

4.1.1 Composition and operating procedures of the Board of Directors 130 

4.1.2 Audit of the Board of Directors 135 

4.1.3 Assessment of director independence 136 

4.1.4 Compliance 136 

4.1.5 Specialized committees of the Board of Directors 136 

4.1.6 Directors’ fees 138 

4.2 MANAGEMENT BODIES AT FEBRUARY 1, 2008 139 

4.2.1 Group Executive Committee 139 

4.2.2 Renault Management Committee 139 

4.2.3 Group Executive Committee and Management Committee at February 1, 2008 140 

4.3 AUDITS 142 

4.3.1 Auditors’ Charter 142 

4.3.2 Auditors 142 

4.3.3 Fees paid to Statutory Auditors and their network 143 

4.4 INTEREST OF SENIOR EXECUTIVES 144 

4.4.1 Remuneration of senior executives and corporate officers 144 

4.4.2 Stock options granted to senior executives and corporate officers 145 

4.5 REPORT OF THE CHAIRMAN OF THE BOARD PURSUANT 

TO ARTICLE L. 225-37 OF THE COMMERCIAL CODE 148 

4.5.1 Chairman’s report on the preparation and organization of the work 

of the Board of Directors 148 

4.5.2 Chairman’s report on internal control procedures 149 

4.5.3 Principles and rules adopted by the Board of Directors for the remuneration 

of corporate officers 154 

4.6 STATUTORY AUDITORS’ REPORT ON THE REPORT OF THE CHAIRMAN 155 

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04 THE 

CORPORATE GOVERNANCE 

BOARD OF DIRECTORS 

This c hapter describes the management and administration methods used 

by Renault SA, a public listed company and parent of the Renault group. 

The methods also apply to Renault s.a.s., the lead holding company for 

Renault’s automotive and fi nancial businesses. Further to the Alliance with 

4.1 THE BOARD OF DIRECTORS 

Renault has carefully and continually analyzed the best corporate governance 

practices described in the AFEP/MEDEF report, making every effort to incorporate 

the report’s recommendations into its internal regulations (see “Supplemental 

information”, c hapter 8.3.1). 

Nissan, the senior management of Renault s.a.s. has transferred some of its 

powers to the Alliance Board, without prejudice to the powers of the Board of 

Directors and the shareholders. This Alliance-specifi c management method is 

described in c hapter 1.3.2.2. 

The internal regulations defi ne the role of the Board of Directors, who together 

represent the company’s shareholders. 

The internal regulations are accompanied by a charter that establishes the 

rights and duties of members of the Board of Directors (see “Supplemental 

information”, c hapter 8.3.2). 

4.1.1 COMPOSITION AND OPERATING PROCEDURES OF THE BOARD OF DIRECTORS ✦ 

At December 31, 2007 the company was administered by a Board of Directors 

composed of 18 members: 

n 

n 

n 

fourteen directors appointed by the Annual General Meeting of 

Shareholders; 

three directors elected by employees; 

one director elected by the Annual General Meeting of Shareholders on the 

recommendation of employee shareholders. 

4.1.1.1 BOARD OF DIRECTORS AT DECEMBER 31, 2007 

DIRECTORS OFFICES/FUNCTIONS 

Louis Schweitzer ✦ 

Chairman of the Appointments and Governance 

Committee 

Number of shares: 283,845 and 5,115 ESOP units 

Age: 65 

Date of first term: May 1992 

Current term expires (AGM): 2009 


The term of offi ce of directors elected by the AGM with effect from 2002 is four 

years. The employee-elected directors and the director appointed by the AGM 

on the recommendation of employee shareholders serve a six-year term. 

The Board of Directors appoints one of its members as Chairman. The Chairman, 

who must be a natural person, can be re-elected. 

Chairman of the Board 

Current offices and functions in other companies: 

France: 

Chairman of the Supervisory Board: “Le Monde” 

Chairman: Haute Autorité de Lutte contre les Discriminations et pour l’Égalité (HALDE) 

Director: BNP Paribas, Électricité de France, L’Oréal, Veolia Environnement 

Chairman of the Board: Festival d’Avignon, Société des Amis du Musée du Quai Branly, Cercle de l’Orchestre de Paris 

Member of the Consultative Committee: Banque de France, Allianz 

Member of the Board of public-interest institutions or associations: Fondation Nationale des Sciences Politiques, Institut Français des 

Relations Internationales, Musée du Louvre, Musée du Quai Branly 

Abroad: 

Chairman of the Board: AstraZeneca 

Director: AB Volvo 

Vice-Chairman of the Supervisory Board: Philips 

Offices or functions in the past five years no longer held: 

Director: Cie Financière Renault, RCI Banque, Chairman of the Supervisory Board, Renault-Nissan b.v. 

Chairman, MEDEF International 



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Carlos Ghosn 

Number of shares: 205,200 

Age: 53 

Date of first term: April 2002 


Yves Audvard 

Director elected by employees 

Member of the International Strategy Committee 

Number of shares: 6 and 123 ESOP units 

Age: 55 

Date of first term: November 2002 

Current term expires: November 2008 

Michel Barbier 



Number of shares: 6 and 249 ESOP units 

Age: 52 



Catherine Bréchignac 


Number of shares: (a) 

Age: 61 

Date of first term: December 23, 2006 12 


Alain Champigneux 


Member of the Accounts and Audit Committee 

Number of shares: 694 ESOP units 

Age: 54 



François de Combret* 

Member of the Remuneration Committee 


Age: 66 

Date of first term: July 1996 


Charles de Croisset* 



Age: 64 



President and Chief Executive Officer 


Abroad: 

Director: Alcoa 

President and Chief Executive Officer, Nissan Motor Co., Ltd. 

Chairman of the Alliance Board: Renault-Nissan b.v. 


Chairman of Nissan, Vice-Chairman of Nissan’s Board 

Director: Sony, IBM 

Renault Advanced Process Design Engineer 

Renault Working Conditions Technician 


THE BOARD OF DIRECTORS 

President of the CNRS (National Center for Scientific Research) 


Member, Institut de France 

Chair of the Board of Directors, Palais de la D écouverte 

President-elect of the ICSU 

Member, Académie des Technologies 


President of the Institut Optique (Optical Institute) 

Member of the Conseil Scientifique de l’Association Franco-Israélienne pour la Recherche Scientifique et Technologique (Scientific Council 

of the Franco-Israeli Association for Scientific Research and Technology, AFIRST) 

Member of the Conseil Scientifique (Scientific Board) of the Cité des Sciences et de l’Industrie 

Member of the “Identification Committee” for the European Research Council 

Distinguished Visiting Scholar Professorship at Georgia-Tech University 

Renault Quality Document Manager 

Senior Advisor to UBS 


France: 

Director: Safran, Bouygues Telecom, Nexans, Musée Rodin 

Vice-Chairman of the Board, Care-France 

Abroad: none 


Director: Fonds Partenaires Gestion, Institut Pasteur, Sagem 

(12) Appointed by administrative order, December 21, 2006; co-opted at the Board meeting, February 7, 2007 


International Advisor, Goldman Sachs International 


France: 

Chairman of the Fondation du Patrimoine 

Director: Bouygues, Thalès 

Member of the Supervisory Board: Euler & Hermès, 

Non-voting director: Galeries Lafayette 


Chairman and CEO, CCF, Chairman of the Supervisory Committee: Nobel, Executive Director: HSBC Holdings plc 

Director: HSBC Bank plc, HSBC CCF Asset Management Group 

Board member: HSBC Guyerzeller Bank SA, HSBC Private Holding SA (Switzerland) 

Permanent representative of SRRE Luxembourg (HSBC group): Somarel 


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04 THE 




Itaru Koeda 

Number of shares: 500 

Age: 66 



Marc Ladreit de Lacharrière* 

Member of the Remuneration Committee 

Member of the Appointments and Governance 

Committee 


Age: 67 

Date of first term: October 2002 


Dominique de La Garanderie* 


Member of the Appointments and Governance 

Committee 


Age: 64 

Date of first term: February 2003 


Philippe Lagayette* 

Chairman of the Accounts and Audit Committee 


Age: 64 

Date of first term: May 2007 


Henri Martre* 

Chairman of the International Strategy Committee 


Age: 80 



Co-Chairman of the Board of Directors and Executive Vice President of Nissan Motor Co., Ltd. 

Chairman and CEO, Fimalac 


France: 

Member, Institut de France 

Director: Casino, L’Oréal 

Manager: Fimalac Participations 

Chairman of the Supervisory Board: Groupe Euris 

Chairman of the Board: Groupe Marc de Lacharrière 

Honorary Chairman: Comité N ational des C onseillers du Commerce E xtérieur de la France (National Committee of Foreign Trade Advisors) 

Member of the Consultative Committee: Banque de France 

Member of the Board of public-interest institutions or associations: Fondation Culture et Diversité, Académie des Beaux Arts, Agence 

France Museums, Association des A mis de l’É cole Nationale S upérieure des Beaux-Arts de Paris, Fondation d’entreprise L’Oréal, Le 

Siècle, Conseil A rtistique des Musées N ationaux, Fondation Bettencourt Schueller, Fondation N ationale des Sciences P olitiques, Société 

des Amis du Louvre, Société des Amis du Musée du quai Branly, Musée des Arts D écoratifs, les Amis de Vaux-le-Vicomte. 

Abroad: 

Director: Algorithmics 

Member of the Board of public-interest institutions or associations: Casa de Velasquez 

Member of the Board: American Friends of the Louvre 

Chairman: Fitch Group, Fitch Group Holdings, Fitch Ratings 


Chairman: IERSE 

Director: Canal Plus, Fimalac Investissement, Cassina, Établissement P ublic du Musée du Louvre 

Non-voting director: Euris 

Member: Conseil Stratégique pour l’Attractivité de la France 

Manager: SCI Onzain Ars, Sibmar, Groupe Marc de Lacharrière 

Attorney (La Garanderie & Associés) 


France: 

President of the Institut F rançais d’E xperts Juridiques I nternationaux (French Institute of International Legal Experts - IFEJI) 

Member of the Supervisory Board and Audit Committee of Holcim Western Europe 

Abroad: 

Vice-Chair: OECD Business Sector Advisory Group on Corporate Governance 


Former chair: Paris Bar Association 

Former member: French Bar Council 

Former member: French Bar Association 

Chairman, JP Morgan France 


France: 

Board member of PPR 

Board member of Fimalac 

Abroad: 

none 


Board member of La Poste 

Board member of Eurotunnel 

Member of the Supervisory Board of Club Méditerranée 

Honorary Chairman, Aérospatiale 


France: 

Chairman: Japan Committee of MEDEF International 

Director: France Telecom, SOGEPA, SOFRADIR, ON-X 


Board member: Commercial Aviation, CEPII, AFII 

Honorary President and Board Member: GIFAS, AFNOR, AX 

Chairman of the Supervisory Board: ESL Holding 

Abroad: 

Vice-Chairman of the Supervisory Board: KLM 


none 




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Jean-Claude Paye* 




Age: 73 



Franck Riboud* 

Chairman of the Remuneration Committee 


Age: 52 

Date of first term: December 2000 


Rémy Rioux 


Number of shares: (a) 

Age: 38 

Date of first term: February 2007 


Hiroto Saikawa 


Age: 54 

Date of first term: May 2006 


Georges Stcherbatcheff 

Director elected by employee shareholders 


Number of shares: 40 and 1,894 ESOP units 

Age: 61 



Attorney (Legal Advisor, Gide Loyrette Nouel) 


none 


none 



Chairman and CEO, Chairman of the Executive Committee of Danone Group 


France: 

Director: Association Nationale des Industries Agroalimentaires, Lacoste France SA, International Advisory Board HEC Business School 

Member of the Supervisory Board: Accor 

Member representing Danone Group: Conseil National du Développement Durable 

Abroad: 

Director: Bagley Latinoamerica sa, Danone SA Wadia BSN India Limited, Ona, Fondation GAIN (Global Alliance For Improved Nutrition) 


Chairman and Director: Danone Asia Pte Limited 

Chairman and CEO: Compagnie Gervais Danone, Générale Biscuit 

Chairman of the Board: Compagnie Gervais Danone, Générale Biscuit 

Vice-Chairman and Director: Danone Sabanci Gida Ve Icecek San. Ve. Tic. A.S. 

Director: Abi Holdings Limited, Quiksilver, Danone France, L’Oréal (sa), Sofina, Associated Biscuits International Ltd, Ansa, Scottish & 

Newcastle Plc 


Member of the Supervisory Board: Eurazeo 

Permanent representative: Cie Gervais Danone: Danone France 

Permanent representative: Generale Biscuit: LU France 

Commissioner: P.T. Tirta Investama. 

Rapporteur at the Cour des comptes (Audit Office) 

Director of Shareholdings, Shareholding Agency, Ministry of the Economy, Finance and Industry 


France: 

Director: Aéroports de Paris, RATP, SNCF, France Télévisions, ARTE 


Head clerk, Directorate General of the Treasury and Economic Policy (DGPTE), 

Director: Franc Zone Central B anks and French Development Agency 

Member of the Cour des Comptes 

Executive Vice-President Purchasing, Nissan Motor Co., Ltd. 

Renault Representative for Industry-Wide Standardization 

* Independent Director. 

(a) Administrative regulations forbid the directors appointed by the French state from owning shares as government representatives 



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04 THE 



The mean age of incumbent directors is 60.5. Each director must own at 

least one registered share 13 . However, administrative regulations forbid the 

directors appointed by the French state from owning shares as government 

representatives. 

The directors are not related by family ties. 

To Renault’s knowledge, none of its directors or senior managers has been 

convicted of fraud in the past fi ve years. None of the directors has been involved 

as an executive in bankruptcy, receivership or liquidation proceedings in the 

past fi ve years, and none has been charged or sanctioned by a statutory or 

regulatory authority. None of the directors has been barred by a court from 

serving as a member of the board of directors or of the supervisory board of 

a securities issuer or from serving as a manager or offi cer of an issuer in the 

past fi ve years. 

To Renault’s knowledge, there are no confl icts of interest between the directors’ 

private interests and their duties towards the C ompany. 

Expiration of terms of office 

CURRENT TERM EXPIRES DIRECTOR 

2008 Mr Audvard (1) 

Mr Barbier (1) 

Mrs Bréchignac 

Mr Champigneux (1) 

Mr de Combret 

Mr de Croisset 

2009 Mr Koeda 

Mrs de La Garanderie 

Mr Schweitzer 

Mr Stcherbatcheff (1) 

2010 Mr Ghosn 

Mr Ladreit de Lacharrière 

Mr Paye 

Mr Riboud 

Mr Saikawa 

2011 Mr Lagayette 

Mr Martre 

Mr Rioux 

(1) Directors elected by employees and the director-elected employee shareholders are appointed 

following election by the relevant college 

(13) Percentage of Renault’s capital held by the directors: 0.17%. 

4.1.1.2 THE BOARD OF DIRECTORS 

IN 2007 

The Board of Directors met seven times in 2007. 

Meetings lasted an average of three hours. The attendance rate was 87%. 

The Board gave its opinion on all business placed on its agenda pursuant to 

the legal and regulatory requirements in force in France. On the main matters, 

the Board took the following action: 

ACCOUNTS AND BUDGET: 

n approved the Group’s consolidated fi nancial statements and the individual 

fi nancial statements of Renault SA and Renault s.a.s. for 2006, approved the 

consolidated fi nancial statements for fi rst-half 2007, and set the dividend to 

be proposed to the Annual General Meeting (AGM); 

adopted the 2008 operating and investment budget. 

CORPORATE GOVERNANCE: 

n conducted a thorough self-assessment of its operating methods and decided 

on the defi nition of independent director; 

adopted the Chairman’s report on internal control procedures; 

adopted the Code of Good Conduct and the Rules of Compliance that provide 

for the position of Compliance Offi cer and endowed the C ompany with a 

professional warning system; 

reviewed the sponsorship activities of Renault and its subsidiaries; 

approved the plan for grants of stock options and bonus shares for 2008 

and for Renault Commitment 2009; 

analyzed and approved the answers to shareholders’ questions ahead of 

the AGM. 

GROUP STRATEGY: 

n discussed Renault’s strategic guidelines, in accordance with the internal 

regulations; 

approved the signing of an MOU on an industrial complex to be built near 

Tangiers; 

approved the signing of an MOU on a partnership with AvtoVAZ, Russia’s 

leading carmaker; 

reviewed progress on Renault’s facility in India. 



n 

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THE ALLIANCE: 

n took cognizance of the summary of the Alliance Board’s decisions and 

proposals. 

4.1.2 AUDIT OF THE BOARD OF DIRECTORS ✦ 

In accordance with market practice and the recommendations of the AFEP/MEDEF 

report, the Board of Directors commissioned outside fi rm Spencer Stuart to conduct 

a thorough audit of its membership, organization and operating procedures. 

The Appointments and Governance Committee examined the results of the 

assessment and the Committee Chairman presented them to the Board at its 

meeting on December 5, 2007. 

The outcome of the survey was highly favorable on the whole and confi rms the 

positive results of the detailed assessment conducted in 2004. 

All the Board members wholeheartedly stress the strong trust between the 

Board and the CEO. 

The Board affi rms unanimously that it is fully informed of the Group’s fi nancial 

position and operations. 

The Board acknowledged the high standard of the Board’s organization and 

operating procedures, in particular: the frequency of the meetings, the relevance 

of the agenda and the documents, and the quality of the deliberations. 

The Board expressed its satisfaction with the provision of accurate, relevant 

information about Renault’s main competitors, which had been requested during 

the simplifi ed self-assessment in 2006. 

There is a consensus to assess the new approach of the Accounts and Audit 

Committee, which, in addition to its essential role of approving the fi nancial 

statements, is the best placed in terms of access to information on the risks 

incurred by the company to issue an annual opinion on risk management and 

prevention. 

REGULATED AGREEMENTS: 

n no regulated agreements were submitted for Board approval. 



The preparations for the Board meetings are described in the Chairman’s report 

on the work of the Board, as per article L. 225-37 of the Commercial Code, 

see c hapter 4.5.1. 

The decision to dedicate a day in September 2008 to the C ompany’s strategy 

after Renault Commitment 2009 was appreciated. 

The Board expressed an open opinion or requested improvements on the 

following: 

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the directors have a slightly less positive feeling about the confi dentiality of 

the discussions relative to 2004; 

the range of competencies represented on the Board no longer seems entirely 

appropriate in the light of the issues facing the company in the future. 

The involvement of working managers with strong industrial and international 

experience is desired. The Appointments and Governance Committee has 

embarked on an open discussion of the membership and renewal of the 

Board; 

the directors’ fees are considered on the whole lower than those of other 

similarly-sized CAC 40 companies; 

although the work of the Committees is considered positive and satisfactory – 

and in particular the work of the Accounts and Audit Committee – the Board 

would like to receive a more detailed report on the work of the Appointments 

and Remuneration Committees and notes that the information provided by 

the CEO and the International Strategy Committee is redundant. 

The Chairman of the Board of Directors and the Committees concerned will 

endeavor to give due consideration to the directors’ requests on these points. 

Furthermore, the informal lunch after the Board meeting, initiated in 2003, was 

repeated and will be pursued in the future. It gives directors an opportunity to 

exchange views with members of the Renault Management Committee. 


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04 THE 



4.1.3 ASSESSMENT OF DIRECTOR INDEPENDENCE ✦ 

At its meeting on February 28, 2007 the Board of Directors restated its intention 

to comply with the most thorough defi nition of corporate governance available in 

France, namely the AFEP/MEDEF report. According to the report, an independent 

director is one who, notably, “has no relations of any kind with the company, the 

Group or its managers likely to compromise his independence of judgement”. 

The Board also repeated the qualities that it expects from a director: experience 

of the company and the automotive industry, a personal commitment to the 

work of the Board and its Committees, a sound grasp of business and fi nance, 

the courage to express minority opinions, international vision, integrity, and 

loyalty. 

At December 31, 2007 Renault had eight independent directors on its Board: 

Dominique de La Garanderie, François de Combret, Charles de Croisset, 

4.1.4 COMPLIANCE ✦ 

Given the Group’s steady international expansion and the wide variety of risks 

in the countries where it is present, Renault decided to reinforce its ethical 

approach by adding a “Compliance” function to the existing Code of Good Conduct. 

The Compliance function is an integral part of the Renault group’s internal 

control procedures and is independent of the internal audit function. Placed 

under the authority of Renault’s CEO, the Compliance function is organized 

around the Global Compliance Committee, which is supported in each Region 

by a committee chaired by the regional leader. The Compliance function ensures 

that the Code is correctly applied, promotes the Group’s ethics framework, 

advises senior management, collects and processes warnings received. 

Within the scope of the C ompliance function, under the procedure governing the 

use and/or disclosure of privileged information, the Compliance Offi cer must be 

Marc Ladreit de Lacharrière, Philippe Lagayette, Henri Martre, Jean-Claude Paye 

and Franck Riboud (see table c hapter 4.1.1.1 above). 

The representative of the French state, the employee-elected directors, the 

director elected by employee shareholders, the Chairman of the Board and 

the President and Chief Executive Offi cer (as corporate offi cers), as well as the 

two directors appointed by Nissan, which is linked to Renault, are all excluded 

from the list in accordance with the principle of director independence stated 

above. 

The Board stressed, however, that the directors elected by employees and 

employee shareholders, in particular, are not dependent on the company’s senior 

executives as far as their presence on the Board is concerned. This is illustrated 

by the special contribution they make to the Board’s proceedings. 

consulted by any permanent holder of privileged information in order to verify 

that individual transactions arising from the exercise of stock options, or any 

other transaction involving securities issued by a Group company, comply with 

the Code of Good Conduct and the rules in force. 

In FY 2007, the Compliance Offi cer: 

ensured that the procedure for the use and/or disclosure of inside information 

was observed when exercising options held under the plans; no breach of 

the authorized procedure was found; 

updated the lists of holders of inside information, in parallel with the 

introduction of a new organizational structure, in order to comply with the 

regulations of France’s securities regulator, the AMF. 

4.1.5 SPECIALIZED COMMITTEES OF THE BOARD OF DIRECTORS ✦ 

Four specialized committees have been set up to permit in-depth examination 

of specifi c topics relating to the Board of Directors’ role. The Chairs of each 

Committee bring the Committee’s opinions to the attention of the Board. 

The roles of these Committees are described in the internal regulations 

in c hapter 8.3. 



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4.1.5.1. ACCOUNTS AND AUDIT COMMITTEE 

This Committee has six members: Philippe Lagayette in the chair, Alain 

Champigneux, Charles de Croisset, Dominique de La Garanderie, Jean-Claude 

Paye et Rémy Rioux. Four of the six are independent directors. 

Philippe Lagayette was appointed Chair of the Accounts and Audit Committee 

at the Board meeting of May 2, 2007, replacing Robert Studer. 

Rémy Rioux was appointed to the Accounts and Audit Committee at the Board 

meeting of February 28, 2007, replacing Jean-Louis Girodolle. 

The Committee met four times in 2007 and the attendance rate was 100%. 

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07 

08

In compliance with French legal and regulatory requirements, the Accounts and 

Audit Committee dealt with the following matters in particular: 

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the Group’s consolidated fi nancial statements and Renault SA’s individual 

fi nancial statements for 2006 and fi rst-half 2007; 

the dividend to be proposed for FY 2007; 

the examination of the fees paid to the Statutory Auditors and their network 

and their compliance with the Auditors’ Charter, which governs their work; 

the 2006 balance sheet and the breakdown of the 2007 Internal Audit 

Plan; 

the risk analysis methods used in the Group; 

the deployment and activity of the Compliance function. 

The Committee’s examination of the fi nancial statements was accompanied by 

a presentation from the Auditors describing the highlights of their engagement 

and their conclusions, as well as the accounting policies used and the main 

regulatory developments in this area. In addition, the Chief Financial Offi cer 

submitted a memo describing the company’s risk exposures and off-balance 

sheet commitments. 

4.1.5.2 REMUNERATION COMMITTEE 

The Committee has three members, all of whom are independent directors: 

Franck Riboud in the chair, François de Combret and Marc Ladreit de 

Lacharrière. 

The Committee met twice in 2007 and the attendance rate was 100%. The main 

items on its agenda were: 

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the provisional plan for grants of stock options and bonus shares for 2008 

and for the Renault Commitment 2009 plan; 

the remuneration of the Chairman, President and CEO, and members of 

the Executive Committee. 



4.1.5.3 APPOINTMENTS AND GOVERNANCE 

COMMITTEE 

This Committee has three members: Louis Schweitzer in the chair, Marc Ladreit 

de Lacharrière and Dominique de La Garanderie. Two of the three members 

are independent directors. 

The Committee met twice in 2007 and the attendance rate was 100%. 

The main items on its agenda were: 

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the composition of the Board and an deep assessment of its functioning; 

a revision of the list of independent directors in accordance with AFEP/MEDEF 

criteria; 

a succession plan for Renault’s directors, in accordance with good governance 

practices; 

a proposal to reduce the term of offi ce of directors elected by employees or 

employee shareholders from six to four years. 

4.1.5.4 INTERNATIONAL STRATEGY 

COMMITTEE 

This Committee has six members: Henri Martre in the chair, Yves Audvard, Michel 

Barbier, Jean-Claude Paye and Georges Stcherbatcheff. Catherine Bréchignac 

was appointed to the International Strategy Committee at the Board meeting 

of February 28, 2007, replacing Mr Larrouturou. Two of the six members are 

independent directors. 

The Committee met twice in 2007 and the attendance rate was 100%. 

The main items on its agenda were: 

n 

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using Renault and Nissan’s information systems to assist international 

growth; 

the Chinese automobile market. 


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04 THE 



4.1.6 DIRECTORS’ FEES 

The Annual General Meeting may allocate directors’ fees, the amount of which 

remains fi xed until otherwise decided. 

4.1.6.1 AMOUNT 

The Annual General Meeting on April 29, 2003 voted an annual amount of 

€600,000 14 to be apportioned among the directors for the current year and 

subsequent years, until further notice. The Board is responsible for allotting 

these fees. 

(14) The amount of €600,000 is the median of directors’ fees paid by other CAC 40 companies. 

4.1.6.2 METHOD OF ALLOTMENT 

The directors’ fees for FY 2007 are apportioned according to the following 

criteria: 

a fi xed portion, linked to the responsibilities arising from Board membership, 

i.e., an amount of up to €14,000 (the sum is calculated on a time-apportioned 

basis); 

a variable portion, linked to directors’ actual attendance, i.e., an amount of 

up to €14,000 (the sum is calculated on a time apportioned basis). 

Two additional payments may also be made: 

one for sitting on a committee, i.e., up to €4,500 (calculated on a timeapportioned 

basis); 

one for chairing a committee, i.e., up to €4,500 (calculated on a timeapportioned 

basis). 

Total fees allocated to directors in 2007 amounted to €557,770 (€542,752 

in 2006). 

Fees allotted to Directors for the year, depending on attendance at board and committee meetings 

DIRECTORS ATTENDANCE IN 2007 



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TOTAL FEES RECEIVED IN € (1) 

2007 2007 

Mr Schweitzer 7/7 28,000 28,000 

Mr Ghosn 7/7 28,000 28,000 

Mr Audvard 7/7 32,500 32,500 

Mr Barbier 7/7 32,500 32,500 

Ms Bréchignac (3) 6/7 27,864 / 

Mr Champigneux 7/7 32,500 32,500 

Mr de Combret 6/7 30,500 32,500 

Mr de Croisset 7/7 32,500 29,700 

Mr Koeda 2/7 18,000 (2) 18,200 (2) 

Mr Ladreit de Lacharrière 6/7 35,000 32,800 

Ms de La Garanderie 7/7 37,000 34,200 

Mr Lagayette (4) 4/7 24,867 / 

Mr Martre 7/7 37,000 37,000 

Mr Paye 7/7 37,000 37,000 

Mr Riboud 4/7 28,600 32,800 

Mr Rioux (3) (4) 6/7 27,814 / 

Mr Saikawa 4/7 22,000 (2) 13,444 (2) 

Mr Stcherbatcheff 7/7 32,500 32,500 

Mr Studer (4) 3/7 13,625 (2) 32,800 (2) 

(1) Fees allocated on the basis of Board membership, attendance of Board meetings, membership and/or chairmanship of one of the Board’s committees. 

(2) Fees allocated to overseas directors correspond to the gross amount paid by Renault. 

(3) These directors represent the state. 

(4) Directors whose appointment began or ended during the year. 

In view of their conditions of office, some directors, particularly those 

representing the French state, waive their fees and pay them over to either 


the tax authorities or the trade union they represent. 

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4.2 MANAGEMENT BODIES 

AT FEBRUARY 1, 2008 ✦ 

Renault’s senior management bodies are composed of two committees: 

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the Group Executive Committee; 

the Renault Management Committee. 

4.2.1 GROUP EXECUTIVE COMMITTEE 

The Group Executive Committee comprises six members: 

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T he President and CEO; 

Executive Vice President, Sales and Marketing, and Light Commercial 

Vehicles; 

Executive Vice President, Plan, Product Planning and Programs; 

Executive Vice President, Manufacturing and Logistics; 

4.2.2 RENAULT MANAGEMENT COMMITTEE 

The Renault Management Committee comprises 25 members, and includes the 

members of the Group Executive Committee. Those members of the Renault 

Management Committee who do not sit on the Group Executive Committee have 

a superior who is on the Group Executive Committee. The Senior Vice President, 

Purchasing, the Senior Vice President, Corporate Controller, the Senior Vice 

n 

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MANAGEMENT BODIES AT FEBRUARY 1, 2008 

Executive Vice President, Chief Financial Offi cer, Compliance Offi cer; 

Executive Vice President, Engineering and Quality. 

The Renault Management Committee meets once a month and at seminars 

held twice a year. 

President, Corporate Communications, the Senior Vice President, CEO Offi ce, 

President, Renault F1 team, the Senior Vice President, Corporate Design, and 

the RMC Leader, Euromed report directly to the President and CEO. 

The Renault Management Committee meets once a month and at seminars 

held twice a year. 


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04 MANAGEMENT 


BODIES AT FEBRUARY 1, 2008 

4.2.3 GROUP EXECUTIVE COMMITTEE AND MANAGEMENT COMMITTEE 

AT FEBRUARY 1, 2008 

ALPHABETIC LIST AT FEBRUARY 1, 2008 

Carlos Ghosn* President and CEO 

Michel Balthazard Senior Vice President, Pre-Engineering, Projects and Requirements 

Patrick Blain* Executive Vice President, Sales and Marketing & LCV Division, RMC Leader, Europe 

Marie-Christine Caubet Senior Vice President, Market Area Europe 

Jacques Chauvet Senior Vice President, Market Area France 

Marie-Françoise Damesin Senior Vice President, Corporate Communications 

Odile Desforges Senior Vice President, Purchasing – Chairman and Managing Director, Renault-Nissan Purchasing Organization (RNPO) 

Jean-Baptiste Duzan Senior Vice President, Corporate Controller 

Christian Estève Chairman of the Dacia Board of Directors, RMC Leader, Euromed 

Michel Faivre Duboz Senior Vice President, Supply Chain and Logistics 

Philippe Gamba Chairman and CEO, RCI Banque 

Michel Gornet* Executive Vice President, Manufacturing and Logistics, RMC Leader, France 

Gérard Leclercq Senior Vice President, Group Human Resources 

Patrick Le Quement Senior Vice President, Corporate Design 

Luc-Alexandre Ménard Senior Vice President, Public Affairs 

Bruno Morange Senior Vice President, Light Commercial Vehicles 

Thierry Moulonguet* Executive Vice President, Chief Financial Offi cer, RMC Leader, Americas, Compliance Offi cer 

Stephen Norman Senior Vice President, Global Marketing 

Patrick Pélata* Executive Vice President, Plan, Product Planning and Programs, RMC Leader, Asia-Africa 

Jacques Prost Senior Vice President, Powertrain Engineering 

Bernard Rey Senior Vice President, CEO Offi ce, Senior Vice President, Renault F1 Team 

Jean-Louis Ricaud* Executive Vice President, Engineering and Quality 

Jérôme Stoll Senior Vice President, Mercosur 

Yann Vincent Senior Vice President, Quality 

Michel de Virville Corporate Secretary 

* Members of the Group Executive Committee. 




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ORGANIZATION CHART AT FEBRUARY 1, 2008 

♦ Carlos Ghosn: President and CEO 

♦ Patrick Blain: Executive Vice President, Sales and Marketing & LCV Division, ● RMC Leader, Europe 

Marie-Christine Caubet: Senior Vice President, Market Area Europe 

Jacques Chauvet: Senior Vice President, Market Area France 

Stephen Norman: Senior Vice President, Global Marketing 

Bruno Morange: Senior Vice President, Light Commercial Vehicles 

♦ Michel Gornet: Executive Vice President, Manufacturing and Logistics, ● RMC Leader, France 

Gérard Leclercq: Senior Vice President, Group Human Resources 

♦ Thierry Moulonguet: Executive Vice President, Chief Financial Offi cer, ● RMC Leader, Americas, Compliance Offi ce 

Philippe Gamba: Chairman and CEO, RCI Banqu 

Jérôme Stoll: Senior Vice President, Mercosur 

♦ Patrick Pélata: Executive Vice President, Plan, Product Planning and Programs, ● RMC Leader, Asia-Africa 

♦ Jean-Louis Ricaud: Executive Vice President, Engineering and Quality 

Michel Balthazard: Senior Vice President, Pre-Engineering, Projects and Requirements 

Michel Faivre-Duboz: Senior Vice President, Supply Chain and Logistics 

Jacques Prost: Senior Vice President, Powertrain Engineering 

Yann Vincent: Senior Vice President, Quality 

Michel de Virville: Corporate Secretary 

Luc-Alexandre Ménard: Senior Vice President, Public Affairs 

Marie-Françoise Damesin: Senior Vice President, Corporate Communications 


MANAGEMENT BODIES AT FEBRUARY 1, 2008 

Odile Desforges: Senior Vice President, Purchasing – Chairman and Managing Director, Renault-Nissan Purchasing Organization (RNPO) 

Jean-Baptiste Duzan: Senior Vice President, Corporate Controller 

Christian Esteve: Chairman of the Dacia Board of Directors, ● RMC Leader, Euromed 

Patrick Le Quement: Senior Vice President, Corporate Design 

Bernard Rey: Senior Vice President, CEO Offi ce, Senior Vice President, Renault F1 Team 

♦ Members fo the Group Executive Committee. 

● RMC: Region management Committee. 



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04 AUDITS 

4.3 AUDITS 

4.3.1 AUDITORS’ CHARTER 

The Financial Security Act, Title III, contains provisions on the legal auditing 

of accounts, particularly, Article 104, on Auditors’ independence. Pursuant to 

those provisions, in 2004 Renault, together with the Statutory Auditors and 

under the Chairman’s authority, took the initiative of drafting a Charter on 

auditor engagements and independence and cosigning it with them. In addition 

to defi ning the scope of application, the charter addresses the separation of 

engagements by specifying those inherent to the Statutory Auditors’ function 

and therefore authorized automatically, and those that cannot be performed 

by Statutory Auditors and their network because they are incompatible with 

the Auditors’ mandate. Further, it specifi es the additional or complementary 

4.3.2 AUDITORS 

4.3.2.1 STATUTORY AUDITORS 

Deloitte & Associates 

represented by Pascale Chastaing-Doblin and Amadou Raimi 

185, avenue Charles-de-Gaulle 

92200 Neuilly-sur-Seine - France 

Ernst & Young Audit 

represented by Daniel Mary-Dauphin and Aymeric de la Morandière 

11, allée de l’Arche 

92400 Courbevoie - France 

Deloitte & Associates was appointed by the French Finance Ministry on April 25, 

1990. It was reappointed by the Joint General Meeting of June 7, 1996 for 

another six-year term and by the Joint General Meeting of April 26, 2002 for a 

further six years. This term will expire at the close of the Annual General Meeting 

convened to approve the accounts for 2007. 

Ernst & Young Audit was appointed by the French Finance Ministry on March 27, 

1979. It was reappointed by the Joint General Meeting of June 7, 1996, then 

the Joint General Meeting of April 26, 2002 for a six-year term. This term will 

expire at the close of the Annual General Meeting convened to approve the 

accounts for 2007. 


assignments that may be performed by the Statutory Auditors and their network, 

and how those assignments are to be authorized and supervised. The charter 

also includes the undertaking of independence and sets the rules for partner 

rotation. 

The Charter governs the relationship between the Renault group (the parent 

company and the fully-consolidated French and international subsidiaries) and 

its Statutory Auditors. The Auditors are responsible for ensuring that the charter 

is applied by members of their network acting as external auditors for fullyconsolidated 

subsidiaries and also for policing compliance with the regulations 

in force in countries where Group companies are established. 

4.3.2.2 ALTERNATE AUDITORS 

BEAS 

Alternate for Deloitte & Associates 

7-9, Villa Houssay 

92200 Neuilly-sur-Seine – France 

Gabriel Galet 

Alternate for Ernst & Young Audit 

11, allée de l’Arche 

92400 Courbevoie – France 

The alternate auditors were appointed by the Joint General Meeting of June 7, 

1996 for a six-year term. They were reappointed by the Joint General Meeting 

of April 26, 2002 for another six-year term. Their terms of offi ce will expire at 

the close of the Annual General Meeting convened to approve the accounts 

for 2007. 



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4.3.3 FEES PAID TO STATUTORY AUDITORS AND THEIR NETWORK 

The audit fees recognized in 2007 by Renault SA and its fully consolidated 

subsidiaries for the engagements and assignments performed by the Statutory 

Auditors and their networks can be broken down as follows: 

(€ thousands) 

AMOUNT 

EXCL. TAX % 


AUDITS 

ERNST & YOUNG NETWORK DELOITTE NETWORK 

2007 2006 2007 2006 

AMOUNT 

EXCL. TAX % 

AMOUNT 

EXCL. TAX % 

AMOUNT 

EXCL. TAX % 

AUDIT 

Statutory audit, certification, review of individual and 

accounts 

- Issuer (1) 2,503 39.86 2,754 42.50 2,120 34.35 2,190 32.13 

- Fully consolidated subsidiaries 

Other inspections and services directly linked to the 

statutory auditor’s mission 

3,067 48.84 3,164 48.83 3,356 54.37 3,404 49.93 

- Issuer (1) 266 4.24 178 2.75 30 0.49 50 0.73 

- Fully consolidated subsidiaries 444 7.07 264 4.07 246 3.99 626 9.18 

SUBTOTAL 

OTHER NETWORK SERVICES FOR THE FULLY 

CONSOLIDATED SUBSIDIARIES 

6,280 100.00 6,360 98.15 5,752 93.20 6,270 91.98 

- Legal, tax, labor-related - 0.00 114 1.76 124 2.01 469 6.88 

- Other - 0.00 6 0.09 296 4.80 78 1.14 

SUBTOTAL - 0.00 120 1.85 420 6.80 547 8.02 

TOTAL FEES 6,280 100 6,480 100.00 6,172 100.00 6,817 100.00 

(1) Renault SA and Renault s.a.s. 

For both networks, tax services mainly cover the Group’s foreign subsidiaries. 



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04 INTEREST 


OF SENIOR EXECUTIVES 

4.4 INTEREST OF SENIOR EXECUTIVES 

4.4.1 REMUNERATION OF SENIOR EXECUTIVES AND CORPORATE OFFICERS 

4.4.1.1 REMUNERATION OF SENIOR 

EXECUTIVES ✦ 

PROCEDURE FOR DETERMINING REMUNERATION 

Members of the Renault Management Committee receive a consideration 

comprising a fi xed and a variable portion. The variable portion is based on the 

company’s economic performance in the previous year. It comprises fi ve factors: 

(i) the difference between budgeted and actual operating margin, (ii) maximizing 

the elements between operating margin and net income excluding equity income 

from Nissan and Volvo, (iii) the results achieved in terms of reducing warranty 

expenses, (iv) the reduction in general, commercial and administrative expenses, 

and (v) an individual criterion related to the performance of the sector for which 

the member in question is responsible. 

REMUNERATION PAID IN 2007 

In 2007, the total consideration paid to the 22 members of the Renault 

Management Committee amounted to €12,696,891 of which €8,084,853 for 

the fi xed portion (compared with €12,984,932 and €8,830,626 respectively, 

in 2006). For the record, there were 26 members in 2006. 

Renault Management Committee members do not receive directors’ fees from 

Group companies in which they hold senior offi ce. 

The total remuneration of the President and CEO was as follows (in €): 

4.4.1.2 REMUNERATION OF CORPORATE 

OFFICERS 

The criteria for calculating the variable remuneration of the President and CEO 

were set by the Board of Directors on February 12, 2008, on the recommendation 

of the Appointments and Remuneration Committee. They are consistent with 

the criteria applied to the members of the Group Executive Committee and the 

Renault Management Committee: 

return on equity; 

difference between budgeted and actual operating margin. 

There is an additional, qualitative criterion linked to strategy and 

management. 

The variable rate is between 0% and 150% of the fi xed portion. For 2007 

it was 116%. 

VARIABLE PORTION FOR 

DIRECTORS’ FEES FOR 

THE YEAR, PAID OUT 

THE YEAR, PAID OUT TOTAL ANNUAL TOTAL REMUNERATION 

YEAR FIXED PORTION THE FOLLOWING YEAR IN-KIND BENEFITS THE FOLLOWING YEAR REMUNERATION PAID DURING THE YEAR 

2007 1,200,000 1,392,000 14,429 28,000 2,634,429 2,634 429 

2006 1,200,000 1,392,000 9,663 28,000 2,629,663 2,034,163 

2005 800,000 (for 8 months) 800,000 4,815 24,500 1,807,172* 982,672* 

* Including a relocation allowance of €177,857. 



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The Chairman of the Board of Directors of Renault does not receive any variable 

portion in respect of his function. 


INTEREST OF SENIOR EXECUTIVES 

Accordingly, the total remuneration of the Chairman of the Board of Directors 

was (in €): 

ALL-INCLUSIVE VARIABLE PORTION 

TOTAL 

PAYMENT FOR DUTIES FOR THE YEAR, 

DIRECTORS’ FEES FOR 

REMUNERATION 

FIXED AS CHAIRMAN OF THE PAID OUT THE IN-KIND THE YEAR, PAID OUT TOTAL ANNUAL PAID DURING 

YEAR 

PORTION BOARD OF DIRECTORS FOLLOWING YEAR BENEFITS THE FOLLOWING YEAR REMUNERATION 

THE YEAR 

2007 200,000 0 5,334 28,000 233,334 233,334 

2006 (1) 900,000 200,000 0 5,692 28,000 1,133,692 1,567,026 

2005 (May-December) (1) 600,000 133,334 (2) 0 4,926 28,000 1,366,260 2,192,926 

2005 (January-April) 300,000 300,000 

2004 900,000 1,260,000 4,899 28,000 2,192,899 1,982,899 

(1) The renewal of the €900,000 fixed portion paid to the Chairman of the Board from May 1 is an amount close to that he would have received if he retired at that date. 

(2) €200,000 for a full year. 

The President and CEO and the Chairman of the Board of Directors also have 

a supplementary pension scheme. 

Further to the meeting of the Board of Directors on October 28, 2004, both 

the President and CEO and the Chairman are entitled to benefi t from the 

supplementary pension scheme set up for members of the Group Executive 

Committee. This comprises: 

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a defi ned contribution scheme equivalent to 8% of annual remuneration, 

paid for by the company and the benefi ciary; 

a defi ned benefi t scheme capped at 30% of remuneration; 

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an additional defi ned benefi t scheme capped at 15% of remuneration (with 

a specifi c requirement on length of tenure). 

The combined total of these schemes – basic, supplementary and additional – 

is capped at 50% of remuneration. 

Currently, total retirement benefi ts, including supplementary benefi ts, to which 

senior executives, including the President and CEO are entitled, are estimated 

at between 30% and 45% of their fi nal remuneration, owing to differences in 

seniority at Renault and on the Group Executive Committee. 

4.4.2 STOCK OPTIONS GRANTED TO SENIOR EXECUTIVES AND CORPORATE OFFICERS 

4.4.2.1 LEGAL FRAMEWORK 

In its 14 th resolution, the Joint General Meeting of May 4, 2006 authorized the 

Board of Directors to make one or more grants of stock options to employees of 

the company and its related companies, in conformity with Article L. 225-180 

of the Commercial Code. These options give holders the right to subscribe for 

new shares of the company, issued in connection with a capital increase, or to 

buy shares of the company lawfully repurchased by it. 

If these options are exercised, the number of shares thus purchased or subscribed 

shall not exceed 3.2% of the share capital at the date of the Meeting. 

The General Meeting rules on the allocation and/or exercise of stock options 

according to criteria of individual and collective performance in terms of 

completion of the company’s medium-term plan. 

In its 15 th resolution, the Joint General Meeting of May 4, 2006 authorized the 

Board of Directors to make grants of existing shares or shares to be issued 

to company employees or certain categories of employees and its related 

companies, in conformity with Article L. 225-197-2 of the Commercial Code. 

The total number of shares granted free of charge may not exceed 0.53% of 

the sum of shares making up the share capital at the date of the Meeting. 


The General Meeting rules on the defi nitive allocation of existing shares or 

shares to be issued according to criteria of individual and collective performance 

in terms of completion of the company’s medium-term plan. 

4.4.2.2 GENERAL GRANT POLICY 

APPOINTMENTS AND REMUNERATION COMMITTEE 

The Board of Directors approves the stock option plan on the basis of the report 

of the Appointments and Remuneration Committee. The Committee examines 

proposals from the President and CEO, to grant options to Group employees, in 

compliance with the general arrangements set by the Annual General Meeting. 

The President and CEO does not take part in the Committee’s proceedings 

when the matter under review concerns him personally. 


01 

02 

03 

04 

05 

06 

07 

08

04 INTEREST 


OF SENIOR EXECUTIVES 

AIMS OF THE STOCK OPTION AND BONUS SHARES PLAN 

The main aim of the stock option plan is to involve Renault executives worldwide, 

particularly the members of management bodies, in building the value of the 

Group – and hence Renault’s share price – by allowing them to have an 

ownership interest in the company. 

The plan also makes it possible to single out those executives who, by their 

actions, make an especially positive contribution to the Group’s results. 

In addition, the plan helps to secure the loyalty of those executives for whom the 

Group has long-term ambitions, in particular “high-fl yers”, i.e. young executives 

with strong potential. Stock options help to increase the commitment of these 

staff members and motivate them to work for the company’s advancement 

and growth. 

The plan buttresses the role of the Group’s responsibility centers in Europe and 

the rest of the world. In Automobile it applies in particular to sales subsidiaries, 

vehicle and powertrain engineering teams, managers of body assembly and 

powertrain plants, industrial subsidiaries and all the heads of vehicle and 

powertrain programs and projects. The plan also applies to Sales Financing, 

and to the heads of the Group’s major support functions. 

GRANT POLICY ✦ 

Option grants vary according to the grantee’s level of responsibility and 

contribution to the company, an appraisal of their performance and results, and, 

for younger staff members, an assessment of their development potential. 

Senior executives and managing executives 

The senior executives are the President and CEO and the members of the 

Renault Management Committee, including the six members of the Group 

Executive Committee. 

In principle, other managing executives are granted options each year, based on 

the same criteria as those applicable to other senior executives, namely levels 

of responsibility, performance and results. The quantity of options granted can 

vary signifi cantly depending on individual appraisals. Some managing executives 

may receive none. The allocation factor ranges from 1 to 4, with a median of 

1,000 options in 2005. 

Other executives benefiting from the plan 

The plan’s other benefi ciaries are generally senior managers and high-fl yers 

with strong professional or managerial potential aged 45 and under. Grants 

are generally made every one to three years or more, but never more than 

two years running. An array of complementary systems is used to assess 

and select grantees (annual performance and development review, Careers 

Committees, personal monitoring for high-fl yers, performance-related bonuses). 

Taken together, these systems form a comprehensive observation platform from 

which the most deserving executives can be singled out. 

Annual performance and development reviews 

Annual performance and development reviews are used to make a precise, 

written review of past performance and to defi ne written goals for the coming 


year. All managerial staff without exception (i.e. including senior executives 

and managing executives) undertake a performance appraisal with their 

immediate superior, and, where appropriate, their line manager and project 

manager. The results of the session are reviewed and graded by the next level 

of management. The annual performance and development review, which is 

signed off and annotated by the +2-level line manager, provides the opportunity 

to precisely measure the interviewee’s past inputs and the importance of his or 

her future missions. It is also used to closely analyze the managerial capacity and 

the progress to be made vis-à-vis benchmarks set by senior management. 

Careers Committees 

The purpose of Careers Committees is to review all positions of responsibility 

within the company and to assess the contributions of the incumbents. They also 

seek to forecast possible changes in the job profi le of individual staff members 

and the persons designated to replace them, either under normal circumstances 

or immediately should the need arise. The Careers Committees meet monthly 

in all the Group’s major divisions and departments throughout the world. 

This system makes it possible to permanently update collective assessments 

of individual staff members and it enables senior managers to submit the 

names of possible option grantees to the President and CEO with full knowledge 

of the facts. A General Careers Committee, chaired by the President and CEO 

and composed of the members of the Group Executive Committee, examines 

nominations for 200 key positions (known as “A Positions”) and is responsible for 

manpower planning for these jobs. With this method, managers at different levels 

can focus more tightly on future senior executives or managing executives. 

High-flyers 

Particular attention is paid to the action and development of young high-fl yers, 

who are monitored closely. Each year, the Careers Committees meticulously 

update the P List, comprising young high-fl yers with strong professional or 

managerial potential likely to become senior managers, and the P1 List, 

composed of executives destined to become managing executives or senior 

executives. Additions to the P1 List are decided by the General Careers 

Committee. 

Since 1999, in an effort to improve transparency, high-fl yers (P or P1) have been 

duly informed of their status by their managers during their annual performance 

and development review. 

Careers and Skills Development Officers (DDCC) 

All major Group divisions and departments have a Careers and Skills 

Development Offi cer (DDCC), who is responsible for assessing and permanently 

monitoring all the executives within his or her scope of activity. The DDCCs are 

coordinated centrally on a regular basis. Managers can thus ensure that the 

human resources policy is properly implemented, that the above mentioned 

processes are followed, and that individual careers are optimally managed, 

particularly in terms of mobility assignments and training. DDCCs are important 

because they marshal and summarize the assessments and judgments made 

by different managers and are therefore in a better position to select potential 

stock option grantees. 



01 

02 

03 

04 

05 

06 

07 

08

Summary of plans 

The options granted under plans 1 to 9 give the right to buy existing shares. 

The options granted under plans numbered from 10 onwards give the right to 

subscribe for new issues. 

In FY 2007: 

n 

. 

DATE OF GRANT/ 

DATE OF BOARD 

MEETING 

OPTION START 

DATE 

EXPIRATION 

DATE 

NO OF 

GRANTEES 

the following stock option grants were made to corporate offi cers: 

TOTAL 

OPTIONS 

GRANTED 

Mr Ghosn: 200,000 subscriptions options at a price of €96.54, with an 

expiry date of December 4, 2015 for the Plan 2008; 

O/W MEMBERS 

OF RENAULT 

MANAGEMENT 

COMMITTEE 

(1) (2) (4) 

n 

. 

. 


STRIKE 

PRICE (€) DISCOUNT 

options exercised by corporate offi cers included the following: 


INTEREST OF SENIOR EXECUTIVES 

OPTIONS 

EXERCISED 

AT 

31/12/2007 

OPTIONS 

LAPSED AT 

31/12/2007 

OPTIONS 

OUTSTAN- 

DING AT 

31/12/2007 (3) 

AGM AUTHORIZATION GRANTED ON JUNE 7, 1996 

Plan n° 1 Oct. 22, 1996 Oct. 23, 1999 Oct. 21, 2006 273 446,250 128,000 17.57 5% 426,950 19,300 0 

Plan n° 2 Oct. 28, 1997 Oct. 29, 2002 Oct. 27, 2007 310 553,750 163,000 24.89 5% 487,028 18,400 0 

AGM AUTHORIZATION GRANTED ON JUNE 11, 1998 

Plan n° 3 Oct. 27, 1998 Oct. 28, 2003 Oct. 26, 2008 410 1,912,500 670,000 32.13 None 1,390,459 76,500 243,769 

Plan n° 4 March 16, 1999 March 17, 2004 March 15, 2009 4 300,000 280,000 40.82 None 50,000 30,000 20,000 

Plan n° 5 Oct. 19, 1999 Oct. 20, 2004 Oct. 18, 2009 384 1,825,900 830,000 50.94 None 1,158,623 118,500 356,714 

Plan n° 6 Sept. 7, 2000 Sept. 8, 2005 Sept. 6, 2010 638 1,889,300 750,000 49.27 None 910,346 123,450 486,774 

and Oct. 24 , and Oct. 25, and Oct. 23, 

2000 2005 2010 and 49.57 

Plan n° 7 Dec. 18, 2001 Dec. 19, 2006 Dec. 17, 2011 858 1,861,600 505,000 48.97 None 160,364 41,500 968,741 

Plan n° 8 Sept. 5, 2002 Sept. 6, 2007 Sept. 4, 2012 809 2,009,000 645,000 49.21 None 3,000 19,300 1,609,007 

AGM AUTHORIZATION GRANTED ON APRIL 29, 2003 

Plan n° 9 Sept. 8, 2003 Sept. 9, 2007 Sept. 7, 2011 813 1,922,000 605,000 53.36 None 207,016 14,500 1,700,484 

Plan n° 10 Sept. 14, 2004 Sept. 15, 2008 Sept. 13, 2012 758 2,145,650 695,000 66.03 None 6,000 11,000 2,128,650 

Plan n° 11 Sept. 13, 2005 Sept. 14, 2009 Sept. 12, 2013 639 1,631,093 650,000 72.98 None 3,000 9,500 1,618,593 

AGM AUTHORIZATION GRANTED ON MAY 4, 2006 

Plan n° 12 

Plan n° 13 

Options 

May 4, 2006 May 5, 2010 May 3, 2014 693 1,674,700 556,000 87.98 None 3,000 8,500 1,663,200 

Contrat 2009 

Plan n° 13 

bis Actions 

May 4, 2006 May 5, 2010 May 3, 2014 650 2,741,700 1,550,000 87.98 None 2,000 11,000 2,728,700 

Contrat 2009 May 4, 2006 May 5, 2010 - 549 1,379,000 290,000 0 None 3,500 1,000 1,374,500 

Plan n° 14 Dec. 5, 2006 Dec. 6, 2010 Dec. 4, 2014 710 1,843,300 680,000 93.86 None 0 0 1,843,300 

Plan n° 15 

Plan n° 16 

Options Compl 

Dec. 5, 2007 Dec. 6, 2011 Dec. 4, 2015 743 2,080,000 735,000 96.54 None 0 0 2,080,000 

Contrat 2009 

Plan n° 16 

bis Actions 

Compl Contrat 

2009 

Dec. 5, 2007 Dec. 6, 2011 Dec. 4, 2015 199 797,787 160,000 96.54 None 0 0 797,787 

Plan n° 15 Dec. 5, 2007 Dec. 6, 2011 199 132,166 60,000 0 None 0 0 132,166 

(1) The Renault Management Committee at the date on which the stock options were granted. 

(2) Including grants to Mr Schweitzer of 20,000 stock options in 1996, 30,000 in 1997, 140,000 in 1998, 200,000 in 1999, 140,000 in 2000, 100,000 in 2001, 130,000 in 2002, 100,000 in 2003 and 200,000 

in 2004. 

(3) Under plans 1 to 9, a total of 5,385,489 were unexercised at December 31, 2007. 

(4) Uncluding grants to Mr Ghosn of 20,000 stock options in 1997, 200,000 in 1999, 200,000 in 2005; in 2006 : 100,000 for plan 2006, 1,000,000 for Commitment 2009, 200,000 for Plan 2007 and 200,000 

for Plan 2008. 

Mr Ghosn: 200,000 purchase options at a price of €40.82, with an expiry 

date of March 15, 2009, 

Mr Schweitzer: 67,000 purchase options at a price of €49.27, with an 

expiry date of September 6, 2010; 70,000 purchases options at a price 

of €48.97, with an expiry date of December 18, 2011; 


01 

02 

03 

04 

05 

06 

07 

08

04 REPORT 


OF THE CHAIRMAN OF THE BOARD PURSUANT TO ARTICLE L. 225-37 OF THE COMMERCIAL CODE 

n 

n 

the ten largest stock option grants made (excluding grants to corporate 

offi cers) were: 

. 

. 

under Plan 2008, dated December 5, 2007: 310,000 purchase 

or subscription options at a price of €96.54, with an expiry date 

of December 4, 2015, 

under the Plan complementing Renault Commitment 2009, dated 

December 5, 2007: 120,000 purchase or subscription options at a price 

of €96.54, with an expiry date of December 4, 2015 and 49,000 bonus 

shares; 

the ten largest lots exercised in 2007 (excluding options exercised by 

corporate offi cers) comprised 355,300 options at an average price of 

€47.90; i.e. 

. 

40,000 options exercised at €32.13 under the October 1998 plan, 

. 50,000 options exercised at €50.94 under the October 1999 plan, 

. 110,300 options exercised at €49.27 under the October 2000 plan, 

. 85,000 options exercised at €48.97 under the December 2001 plan, 

. 35,000 options exercised at €49.21 under the September 2002 plan, 

and 

. 35,000 options exercised at €53.36 under the September 2003 plan. 

4.4.2.3 ADDITIONAL INFORMATION 

Loss of entitlement is governed by regulatory provisions, i.e. total loss in 

the event of resignation, and individual decision in the event of dismissal. 

No Group subsidiary operates a stock option plan for its own shares. 

4.5 REPORT OF THE CHAIRMAN OF THE BOARD 

PURSUANT TO ARTICLE L. 225-37 

OF THE COMMERCIAL CODE 

The Chairman of the Board of Directors is required to submit an additional report, 

appended to the Management Discussion & Analysis, pursuant to Paragraph 7 

of Article L. 225-37 of the French Commercial Code: 

“The Chairman of the Board of Directors shall review the manner in which 

the Board prepares its work, as well as the internal control procedures put 

in place by the company, in a report appended to the report referred to in 

Articles L. 225-100, L. 225-102, L. 225-102-1 and L. 233-26. Notwithstanding 

Article L. 225-56, this report shall also give details of any curbs placed by the 

Board of Directors on the powers of the Chief Executive. In companies with 

shares admitted to trading on a regulated market, this report sets out the 

principles and rules established by the Board of Directors or the Supervisory 

Board, as appropriate, for determining the compensation and the advantages 

of all kinds allocated to directors and offi cer.” 

4.5.1 CHAIRMAN’S REPORT ON THE PREPARATION AND ORGANIZATION OF THE WORK 

OF THE BOARD OF DIRECTORS 

The Board of Directors meets as often as the interests of the company require. 

Meetings are convened at least eight days in advance by the Chairman. 

Furthermore, to enhance communication and make it easier for its members 

to obtain relevant documents, the Board has offi cially approved the creation of 

a hosting facility, in conjunction with its secretariat. Under this arrangement, 

the meeting papers, which may not be disseminated ahead of time, are made 

available to directors before the beginning of each meeting. 

The minutes of the Board meetings are made available within four weeks of 

each meeting. 


The curbs placed by the Board of Directors on the powers of the President and 

CEO are described in the Board’s internal regulations. These provide that, in 

addition to its legal and regulatory powers, “the Board of Directors shall discuss 

the strategic policies of the company, including in connection with the Alliance, 

and examine any changes to those policies once yearly. Further, it shall give 

its opinion before any major decision inconsistent with the company’s strategy 

can be made”. 

The manner in which the Board’s tasks are prepared and organized are 

described in detail in c hapter 4.1.5. 



01 

02 

03 

04 

05 

06 

07 

08


REPORT OF THE CHAIRMAN OF THE BOARD PURSUANT TO ARTICLE L. 225-37 OF THE COMMERCIAL CODE 

4.5.2 CHAIRMAN’S REPORT ON INTERNAL CONTROL PROCEDURES ✦ 

This report was prepared under the responsibility of the Chairman of the Board of 

Directors, pursuant to Article L. 225-37 of the French Commercial Code on the 

basis of information provided by senior management in charge of organization 

and internal controls. 

The report was written on the basis of input from a cross-disciplinary working 

group of representatives from the Group’s fi nancial, corporate control and legal 

functions. 

The report covers all fully-consolidated Group companies. 

The report was presented to the Board of Directors at its meeting on February 12, 

2008. 

4.5.2.1 APPLICATION OF AMF STANDARDS 

A review of Renault’s internal control system, overseen by the Executive Vice 

President, Finance, and the Corporate Controller, was undertaken in 2007 to 

assess compliance with standards laid down by France’s securities regulator, 

the Autorité des m archés fi nanciers (AMF). This review was conducted by a 

working group of representatives from the above-named main functions. 

The aim is to spell out Renault’s internal control procedures in order to: 

n 

n 

assess their compliance with AMF standards; 

make recommendations intended to extend their respect and application. 

The review conducted in 2007: 

n 

n 

identifi ed internal control guidelines and associated processes defi ned by 

Renault SA and Renault s.a.s applicable worldwide; 

emphasized the tailoring of AMF standards to Renault’s specifi c procedures 

and defi ning additional operational internal control objectives deemed 

necessary in the phases prior to transaction accounting. 

At this stage, the working group’s remit covers Automobile. Sales Financing is 

making headway with the Basel II process. The French banking regulator has 

authorized RCI Banque to use an advanced internal ratings-based approach 

for measuring credit risk from January 1, 2008, pursuant to the Basel II capital 

adequacy requirements. This authorization covers all the activities of RCI Banque 

(consumers, corporate clients and networks) in four countries (France, Germany, 

Spain and Italy). It covers slightly more than 70% of credit risks, pending 

expansion to the UK in 2009, which is due to be concluded in 2008. 

In some areas, the international expansion of the business calls for accounting 

and management standards to be applied in a more formal manner through 

a description of standard processes, procedures and detailed operating 

methods. 

A multi-year action plan will be launched in 2008 to pursue actions engaged in 

2007 and bolster the Group’s internal control system. This plan aims to: 

n 

complete work on establishing formal procedures and internal control 

activities covering the areas reviewed in 2007, focusing on the most effi cient 

control systems and methods; this will provide the baseline internal control 

system for Automobile; 

n 

n 

n 

n 

establish or update certain procedures and/or specifi c operating methods; 

formalize further detailed rules and procedures, standard processes, 

recommended operating methods, etc. for decentralized operating entities; 

extend the scope of the review to operations not covered in 2007 and to the 

Group’s main subsidiaries; 

update and circulate the Group’s internal control charter to reaffi rm the 

accountabilities of everyone in the company in terms of control. 

This action plan offers the opportunity to review internal fi nancial control 

processes across the board and to pursue actions aimed at giving line managers 

the tools they need to execute and control operations more effectively. 

4.5.2.2 INTERNAL CONTROL SYSTEM 

OBJECTIVES 

The Renault group encounters risks and contingencies, both internal and 

external, in the regular course of its business activities and strategy. It has 

therefore put in place an organizational structure and procedures to identify, 

quantify, prevent and control these risks as far as possible, in order to mitigate 

their negative impact and thus help the company achieve its operational and 

strategic goals. 

This internal control system has been implemented in all the company’s 

functional departments and for every area of activity. Its priorities are to: 

n 

n 

n 

n 

n 

n 

n 

n 


comply with legal requirements and the company’s by-laws; 

control quality, costs and delivery times in all industrial and commercial 

activities; 

ensure the quality, reliability and relevance of all internal and external 

information, notably fi nancial and accounting disclosures; 

adapt the company’s organizational structure to standards and 

regulations; 

match risks identifi ed to objectives and expected benefi ts; 

control any risks the company might engender for its staff, customers, suppliers 

and shareholders, as well as for its union partners and stakeholders, and any 

risks it faces in running the business and implementing its strategy; 

reduce the company’s exposure to fraud risk; 

prevent and, where necessary, punish unethical behavior. 

However, as with any control system, there is no cast-iron guarantee that 

risks are completely under control. The system’s role is to prioritize risk and to 

implement prevention plans that will reduce the likelihood of risks occurring. 


01 

02 

03 

04 

05 

06 

07 

08

04 REPORT 



4.5.2.3 INTERNAL CONTROL SYSTEM 

ELEMENTS ✦ 

SHARED CORPORATE VALUES AND PRACTICES 

The Renault group has a Code of Good Conduct and compliance rules, which 

were updated in 2007 and approved by the Board of Directors on September 26, 

2007. This Code took effect on January 1, 2008, when the post of senior 

Compliance Offi cer was created. This offi cer is tasked with ensuring that the 

Code is properly applied and verifying compliance with international procedures 

and rules on best practice. He or she also makes recommendations aimed 

at optimizing these procedures and organizational structures, as part of a 

dynamic approach. In the role of advisor to senior management, to whom he 

or she reports, the senior Compliance Offi cer promotes the Renault group’s 

compliance policy. 

In addition, the Group is setting up a whistleblowing system that will allow any 

member of staff to report instances of deviance from these values and ethics, 

solely in the areas of accounting, fi nance, banking and combating corruption. 

Lastly, the Internal Audit department is charged with ensuring compliance 

with procedures, notably with respect to detecting and dealing with suspected 

fraud. 

DEDICATED ORGANIZATION 

Strategic decisions are examined fi rstly by the Group Executive Committee, 

which comprises the President and CEO, the fi ve Executive Vice Presidents and 

the Corporate Secretary General . These decisions are submitted to the Board 

of Directors, after seeking the opinion of the International Strategy Committee 

should the need arise. The President and CEO informs the Board about the 

enforcement of such decisions. 

The Renault Management Committee is composed of the members of the 

Group Executive Committee and heads of Renault’s main departments. 

Its members ensure that decisions are implemented in compliance with legal 

requirements in the countries where the Group operates, in conjunction with 

the management committees of the main operational departments. The Group 

Executive Committee keeps track of operations by monitoring budget outturns 

relative to the original budget. An update on the Group’s commercial and 

fi nancial position is presented at each Board meeting. 

In 2006 the Group reorganized operations around a matrix-based system so as 

to coordinate the activities of the Regions and the Vehicles Program and Global 


Function departments (engineering, purchasing, manufacturing and marketing). 

Five Regions were created, each managed by a Regional Management 

Committee (CMR), four of which are chaired by a senior manager. CMRs are 

composed of representatives of Global Functions and Vehicles Programs and 

of the managers in charge of the major countries in the Region. 

In addition to management reporting lines, the Group also introduced a system 

of staff reporting lines enabling support departments to conduct their activities 

on a cross-functional basis. 

CLEARLY DEFINED RESPONSIBILITIES AND POWERS 

The decision-making process followed by the Renault group is based on a 

system of delegation of responsibilities, starting with the powers of the President 

and CEO and working downwards. The system specifi es precisely the levels at 

which line personnel are entitled to make decisions. 

Delegation rules have been adapted to the new organization to bring the 

decision making system into line with Renault’s three-pronged organization 

structure: Regions/Global Functions/Programs. The new rules refl ect a strong 

determination to delegate to the Regions and increase the accountability of 

operational staff while ensuring that decisions are taken at the right level. 

Some operations are not delegated. These are equity transactions for 

subsidiaries, sales and acquisitions of companies or businesses, partnerships 

and cooperation agreements, and hedging raw material or exchange rate risks. 

Such operations are examined by a committee of members drawn from the 

departments concerned. This committee gives its opinion before submitting 

operations for approval to the President and CEO. 

MATCHING HUMAN RESOURCES TO THE SYSTEM 

To ensure that decision-makers and line personnel have the skills and 

profi ciencies needed for each post, the Group has established an organizational 

system based on functional skills and sectors. This system optimizes resources 

management through human resources committees tasked with matching skills 

to job requirements, planning future human resources requirements on the basis 

of career paths for key positions, and providing training. 

In the sphere of fi nance, the Management-Finance Academy created in 2006 

offers professional development for careers in management and fi nance 

functions. It contributes to training in business economics for all company 

employees and to the deployment of management rules. It extended its franchise 

in 2007, offering training in fi nancial matters for 2,500 managers from the 

Global Function engineering division. 



01 

02 

03 

04 

05 

06 

07 

08

PROCEDURES AND OPERATING METHODS 

The multi-year plan introduced in 2004 to provide line managers with a standard 

set of procedures, including a standard set of management procedures, 

operating rules and directives, was continued in 2007 through the following 

courses of action: 

Consolidating management standards 

In 2007 a range of management standards applicable to all Group entities was 

prepared for specifi c areas: 

n 

n 

n 

project cost control, with the setting-up of a global engineering system; 

marketing, through standardized operating methods; 

fi nancial control in subsidiaries. 

Standards were also applied to cross-functional processes: 

n 

n 

Group-wide management principles and rules (collated in an economic and 

fi nancial handbook); 

decision-making principles and rules. 

Disseminating management-related information 

within the Group 

The action plans set in motion through the company’s Business-to-Employees 

(B-to-E) program were pursued in 2007. The aim was to disseminate the full 

range of management-related information to all Group entities through the 

management function’s intranet portal: 

n 

n 

a single portal now provides access to all management information, whether 

activity-specifi c or cross-functional and cross-Group; 

signifi cant action was taken to make management literature easier to use 

and more relevant for line managers; formats have been simplifi ed and 

harmonized, communication (via newsletters) has been intensifi ed for the 

launch of new standards, and the international reach of the portal has been 

extended. 

In addition, the Group’s Accounting Division, with its Accounting Standards 

and Policies department, is empowered to ensure that applicable accounting 

policies are properly applied. Division personnel directly involved in preparing 

accounting and fi nancial disclosures have access to all the information they 

need to carry out their duties. 

In 2007, the framework and Group procedures for Sales Financing were 

incorporated in a new tool, along with procedures from the French subsidiary 

Diac. In 2008, this new tool will be rolled out across the other subsidiaries 

in the RCI Banque group. Special procedures are in place for the main RCI 

Banque processes, e.g. acceptance, collection/disputes, refi nancing, system 

security, physical asset security, risk monitoring, and accounting. Based on the 

principle of segregated powers, these procedures rely on a system of review 

and approval. They ensure that decisions are taken at the appropriate level and 

are properly implemented. As regards the accounting process, the number and 

duration of Group audit assignments at subsidiaries increased in 2007, and 

most subsidiaries in the RCI Banque group were audited. 




4.5.2.4 RISK MANAGEMENT 

Renault has elected to apply a risk control method based on identifying and 

mapping all types of risk and in preparing action plans to eliminate, prevent, 

protect against or transfer those risks. The Risk Management Department, 

supported by a network of experts, acquires a broad vision of risks, ensures 

coordination and exchange of good practices, and deploys the risk mapping 

method across Group entities. 

The Group Executive Committee and Accounts and Audit Committee periodically 

review action plan progress. Risk committees are being established gradually 

within operating entities to closely monitor execution of these action plans. 

The Group’s major risks are tracked closely and continuously. Major risks are 

those related to the Group’s international expansion, product dependability and 

quality, supplier risk, production and environmental risk, information systems 

risk, and fi nancial risk. Provisions are set out in c hapter 2.3 of the Registration 

Document. 

4.5.2.5 INFORMATION SYSTEMS 

The Renault group has adopted a widely-recognized off-the-peg Enterprise 

Resource Planning (ERP) application to replace its auxiliary accounting systems. 

This highly structured software, gradually being installed in all consolidated 

entities, allows the Group to apply its own internal control approach and to 

ensure that processed information is both reliable and consistent. Precisely 

defi ned and monitored make it possible to comply with task-separation rules. 

For each major business line, this system is supplemented by management 

systems and relational, multidimensional databases populated directly with 

information from the operational and accounting systems. These standard 

systems are being implemented worldwide to harmonize and strengthen 

management of the Group’s global activities. 

Control of individual transactions processed by operational systems, which 

exercise the fi rst level of control, is key to ensuring reliable accounting and 

financial information. The operational systems feed data to the auxiliary 

accounting systems via a large number of complex, non-periodic interfaces. 

These interfaces are constantly monitored to ensure they immediately capture 

all economic events for each process and then centralize and send these 

data regularly to the accounting system. The fi nancial and accounting teams 

carefully control transfers between non-integrated operational systems and 

accounting systems. 

Furthermore, the accounting teams have developed a process in collaboration 

with IT personnel to protect the ERP application in the event of a major 

malfunction. A business continuity plan was introduced at central level and 

applied in subsidiaries that use this application. 


01 

02 

03 

04 

05 

06 

07 

08

04 REPORT 



4.5.2.6 CONTROL ACTIVITIES AND 

PARTICIPANTS 

The Group’s organization relies on the precisely interlinked responsibilities of 

the Board of Directors, senior executives (Group Executive Committee), the 

Management Committee, and operations and support functions. 

BOARD OF DIRECTORS AND SENIOR EXECUTIVES 

Responsible both for managing and overseeing the company, the Board’s duly 

empowered and accountable members issue clear, transparent decisions. 

Their efforts, combined with those of the ever-watchful Accounts and Audit 

Committee, help to ensure an effective internal control process. 

When carrying out its supervisory and control duties, the Board of Directors 

relies on the opinions of the committees set up in 1996 and in particular on 

the Accounts and Audit Committee (see c hapter 4.1.5.1). 

CONTROLS PERFORMED BY MANAGEMENT CONTROL AND 

ACCOUNTING TEAMS 

A key element of the internal control system, the management control function 

coordinates and measures economic performance at different levels of the 

organization (Group, business area, operations). 

Within the Group’s management model, the management control function’s 

specifi c role consists in: 

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supervising the Group through: 

organized and consistent adaptation of the performance measurement 

process so as to compute operating margin for each entity, region and 

vehicles program, 

Key Performance Indicators to allow standardized measurement of business 

line results, 

use of Return On Invested Capital as an indicator to measure how well 

capital is allocated to operations; 

setting the company’s economic targets and budget, and delivering operating 

reports; 

making an economic analysis of proposed management decisions at every 

level, checking compliance with standards, plans and budgets, assessing 

economic relevance, and formulating an opinion and a recommendation in 

each case; 

implementing and controlling management of transfer pricing in line with 

OECD guidelines. 

Central and decentralized accounting teams revise the accounts, clarify interperiod 

changes and, in conjunction with management controllers, help to 

analyze disparities between budgets, reforecasts and outturns. If this analysis, 

or any other verifi cation procedure, reveals shortcomings in the quality of the 

information originating from the linked accounting and operational systems, 

action plans are implemented, with the active involvement of line personnel 

and the management control function, to deal with the root causes. 

Assets, liabilities and off-balance sheet commitments are subject to control and 

audit, in conjunction with the legal, fi nancial and general functions of the entities 

and the Group. The Group circulates special memos about off-balance sheet 

commitments, which are reported by means of the consolidation tool. 

INTERNAL AUDIT CONTROLS 

Renault has a centralized, independent Internal Audit function that assesses 

the level and quality of internal controls, and helps management to carry out 

its duties. 

The Internal Audit function has jurisdiction over the entire Group. An annual audit 

plan is defi ned after consulting with all company entities and presented to the 

Group Executive Committee and the Accounts and Audit Committee. 

Whenever it intervenes, the Internal Audit function provides the President and 

CEO and the relevant members of the Group Executive Committee a summary 

report outlining the level of internal control, as well as the main strong and 

weak points noted, and setting out its main recommendations and a list of 

commitments made by the entities in their action plan. An annual internal 

audit report is presented to the Group Executive Committee and the Accounts 

and Audit Committee. 

In 2007, as in previous years, Internal Audit controls covered: 

assessment of the internal control of activities, including compliance of 

operations with internal rules; 

identifi cation of factors for improving the effectiveness of audited processes, 

in line with the objectives of the Renault Commitment 2009. 

Line managers are tasked with implementing audit mission recommendations. 

However, the Internal Audit function keeps precise track of action plans related to 

key recommendations, working closely with the Group’s network of management 

controllers. A status report is presented every half-year to the Group Executive 

Committee and Accounts and Audit Committee, to help ensure that progress 

is effective across the company. 

In 2007, IFACI-IIA certifi cation – the international standard for the internal 

audit industry – awarded the previous year to the Corporate Audit Department 

was confi rmed. 

The Vice President of Corporate Audit is required at all times to alert the Chairman 

of the Accounts and Audit Committee, after fi rst informing the President and 

CEO, of any unusual facts that have come to his attention. 



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4.5.2.7 ORGANIZATION OF PROCEDURES 

FOR PREPARING FINANCIAL 

AND ACCOUNTING INFORMATION 

The Renault group’s activities are divided into two separate arms, Automobile 

and Sales Financing (RCI Banque). The consolidated fi nancial statements are 

prepared for publication using a single consolidation tool, organized according 

to a chart of accounts common to all entities within the consolidation. 

The Group’s information systems support simultaneous generation of fi nancial 

statements under local accounting rules to guarantee data consistency at a 

time when lead times for centralizing and consolidating information are being 

shortened. 

PRINCIPLES USED IN PREPARING THE FINANCIAL 

STATEMENTS 

Renault SA, the consolidating company, gives defi nitions for, coordinates and 

supervises the preparation of fi nancial and accounting disclosures. Working 

under the Chairmen and CEOs of the subsidiaries, management controllers 

and administrative and fi nance directors are responsible for preparing the 

parent company fi nancial statements and the restated accounts used in the 

consolidated statements. 

At all levels in the Group, the main principles used in preparing the fi nancial 

statements are: 

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exhaustive treatment of transactions; 

consistency of transactions with Group accounting policies; Group standards 

on presentation and valuation are contained in a manual; this manual, which 

is being updated, is supplied to all entities so that information is reported 

in a uniform manner; 

periodic review of assets (inventories, fi xed assets, accounts receivable, 

cash and cash equivalents). 

Effi cient linkages between the fi nancial reporting mechanisms and the Group’s 

operational systems lie at the heart of the procedures used to prepare fi nancial 

and accounting information. The company has quickly come to rely on powerful, 

well managed information systems that can cope with the large amounts of 

information to be processed, supply processed data to the necessary high 

standard, and meet the ever shorter deadlines required by senior management 

for the preparation of fi nancial reports. 



GROUP FINANCIAL STATEMENTS PUBLISHED UNDER IFRS 

Pursuant to Regulation 1606/2002 passed on July 19, 2002 by the European 

Parliament and the Council of Europe, Renault’s consolidated fi nancial statements 

for 2007 are prepared under International Financial Reporting Standards 

(IFRS) as issued by the International Accounting Standards Board (lASB) at 

December 31, 2007 and endorsed for application by European Commission 

regulations published in the Offi cial Journal of the E.U. at year-end close. 

The Group publishes half-yearly and annual statements. Preparations for these 

statements are made by organizing anticipated close dates (May 31 for June 30, 

and October 31 for December 31). Summary meetings are organized with the 

Statutory Auditors and attended by senior management. The Accounts and 

Audit Committee acts as an oversight body, participating in the key stages of 

the approval process for fi nancial and accounting disclosures. 

STRUCTURAL ELEMENTS OF THE CONTROL PROCESS 

The Renault group’s two divisions have to manage not just the decentralization 

of business activities into subsidiaries in France and abroad, but also major 

international expansion into countries like Romania, Russia, South Korea and 

India. As a result, Renault is continuing to bolster the internal control process 

across the board, in long-standing members of the Group and recently acquired 

entities, as well as in companies that are still being set up. For this, the Group 

relies on the core strategies already being used to obtain high-quality fi nancial 

and accounting disclosures and reduce lead times for the preparation of fi nancial 

statements: 

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operational systems upstream of accounting are systematically 

standardized; 

introduction of ERP fi nancial and accounting modules into industrial and/or 

commercial entities worldwide was pursued; this involved 13 subsidiaries 

in 2007, taking the number of legal entities concerned to 57 in 28 countries; 

in 2008, the roll-out of ERP at the South Korean subsidiary is planned; 

the project structure designed for international deployment of the business 

provides a target architecture combining operational and accounting 

information systems; the aim is to achieve a high degree of standardization 

and implement procedures that have already proved themselves in the rest 

of the Group; 

the consolidation tool’s data recovery capability and parameterization have 

been audited; user training programs have been organized and a permanent 

surveillance system is now in service at technical and functional levels. 


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04 REPORT 



4.5.3 PRINCIPLES AND RULES ADOPTED BY THE BOARD OF DIRECTORS FOR THE 

REMUNERATION OF CORPORATE OFFICERS 

The Board of Directors, acting on the recommendation of the Appointments and 

Remuneration Committee, decides on the remuneration and benefi ts received 

by the Chairman of the Board of Directors and the President and CEO. 

The remuneration of the President and CEO includes a variable portion ranging 

from zero to 150% of the fi xed portion, based on: 

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return on equity; 

difference between budgeted and actual operating margin; 

a qualitative criterion linked to strategy and management; 

It also includes four option plans. The fi rst plan is exercisable depending on whether 

the three commitments under Renault Commitment 2009 are achieved; the other 

three depend on reaching fi nancial objectives in 2006, 2007 and 2008. 


The Chairman of the Board of Directors is not entitled to these option plans but 

receives a lump sum of €200,000 in respect of his function. 

Both men have a supplementary pension scheme. The annuity from this scheme, 

combined with the other schemes, is capped at 50% of their remuneration. 

The fees paid to the other directors are voted by the Group’s Annual General 

Meeting on the recommendation of the Board of Directors. The policy applied 

by the Group so far is that directors should receive the median of the fees paid 

by CAC 40 companies. 



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STATUTORY AUDITORS’ REPORT ON THE REPORT OF THE CHAIRMAN 

4.6 STATUTORY AUDITORS’ REPORT 

ON THE REPORT OF THE CHAIRMAN ✦ 


Year ended December 31, 2007 

Statutory Auditors’ report, prepared in accordance with Article L. 225-235 

of French Company Law (Code de commerce) on the report prepared by 

the Chairman of the Board of Directors of Renault on the internal control 

procedures relating to the preparation and processing of accounting and 

fi nancial information 

This is a free translation into English of the statutory auditors’ report issued 

in the French language and is provided solely for the convenience of English 

speaking readers. 

This report should be read in conjunction with, and is construed in accordance 

with French law and professional auditing standards applicable in France. 

To the s hareholders, 

In our capacity as Statutory Auditors of Renault and in accordance with Article 

L. 225-235 of French Company Law (Code de commerce), we hereby report 

to you on the report prepared by the Chairman of your company in accordance 

with Article L. 225-37 of French Company Law (Code de commerce) for the 

year ended December 31, 2007. 

It is the Chairman’s responsibility to describe in his report the preparation and 

organization of the Board of Directors’ work and the internal control procedures 

implemented by the Company. It is our responsibility to report to you on the 

information contained in the Chairman’s report in respect of the internal control 

procedures relating to the preparation and processing of the accounting and 

fi nancial information. 

Neuilly-sur-Seine and Paris-La Défense, February 13, 2008 

We conducted our procedures in accordance with the relevant French 

professional standard. This standard requires that we perform the necessary 

procedures to assess the fairness of the information provided in the Chairman’s 

report in respect of the internal control procedures relating to the preparation 

and processing of the accounting and fi nancial information. These procedures 

consisted mainly in: 

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The Statutory Auditors 

obtaining an understanding of the internal control procedures relating to 

the preparation and processing of the accounting and fi nancial information 

on which the information presented in the Chairman’s report and existing 

documentation are based; 

obtaining an understanding of the work involved in the preparation of this 

information and existing documentation; 

determining if any signifi cant weaknesses in the internal control procedures 

relating to the preparation and processing of the accounting and fi nancial 

information that we would have noted in the course of our engagement are 

properly disclosed in the Chairman’s report. 

On the basis of these procedures, we have no matters to report in connection 

with the information given in respect of the company’s internal control 

procedures relating to the preparation and processing of accounting and 

fi nancial information contained in the report prepared by the Chairman of the 

Board of Directors in accordance with Article L. 225-37 of French Company 

Law (Code de commerce). 

French original signed by 

DELOITTE & ASSOCIES ERNST & YOUNG Audit 


Amadou Raimi Pascale Chastaing-Doblin Daniel Mary-Dauphin Aymeric de la Morandière 


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Renault and 

its shareholders 


5.1 GENERAL INFORMATION 158 

5.1.1 Overview 158 

5.1.2 Special provisions of the articles of incorporation 158 

5.2 GENERAL INFORMATION ABOUT RENAULT’S SHARE CAPITAL 160 

5.2.1 Capital and voting rights 160 

5.2.2 Change in share capital 160 

5.2.3 Changes in capital ownership over five years 160 

5.2.4 Unissued authorized capital 161 

5.2.5 Potential capital 161 

5.2.6 Renault share ownership 162 

5.3 MARKET FOR RENAULT SHARES 163 

5.3.1 Renault shares 163 

5.3.2 Renault and Diac redeemable shares 165 

5.3.3 Dividends 166 

5.4 INVESTOR RELATIONS POLICY 167 

5.4.1 Individual shareholders 167 

5.4.2 Institutional investors 167 

5.4.3 Website 167 

5.4.4 2008 schedule for financial releases 168 

5.4.5 Contacts 168 

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05 GENERAL 

RENAULT AND ITS SHAREHOLDERS 

INFORMATION 

5.1 GENERAL INFORMATION 

5.1.1 OVERVIEW 

5.1.1.1 BUSINESS NAME AND REGISTERED 

OFFICE ✦ 

Business name: Renault 

Registered offi ce: 13-15 Quai Le Gallo, 92100 Boulogne Billancourt – France 

5.1.1.2 LEGAL FORM ✦ 

Organized as a société anonyme (public limited company) under French law, 

Renault is governed by the provisions of Book II of the Commercial Code on 

commercial undertakings, and the provisions of the Employee Profi t Sharing 

Act No. 94-640 of July 25, 1994. 

5.1.1.3 DATE OF FORMATION AND 

DURATION OF THE COMPANY 

The company was formed on January 16, 1945 and will cease to exist 

on December 31, 2088 except in the case of early termination or renewal. 

5.1.1.4 PURPOSE 

The company’s corporate purpose includes the design, manufacture, trade, 

repair, maintenance and leasing of motor vehicles (commercial, light commercial 

and passenger vehicles, tractors, farm machinery and construction equipment) 

as well as the design and manufacture of spare parts and accessories used in 

connection with the manufacture and operation of vehicles. It also encompasses 

all types of services relative to such operations and, more generally, all industrial, 

commercial, fi nancial, investment and real estate transactions relating directly 

or indirectly, in whole or in part, to any of the above purposes (see Article 3 

of the articles of incorporation). 

5.1.1.5 COMPANY REGISTRATION NUMBER 

Renault is registered with the Registrar of Companies in Nanterre 

under the number 441 639 465 (APE code 341 Z; Siret code: 

441.639.465.03591) 

5.1.1.6 ACCESS TO LEGAL DOCUMENTS 

Legal documents such as the memorandum and articles of incorporation, 

minutes of Annual General Meetings, auditors’ reports and all other documents 

made available to shareholders in accordance with law are available at 

the company’s head offi ce. 

5.1.1.7 FISCAL YEAR 

The company’s fiscal year runs for 12 months from January 1 

to December 31. 

5.1.2 SPECIAL PROVISIONS OF THE ARTICLES OF INCORPORATION 

5.1.2.1 APPROPRIATION OF NET INCOME 

Net income is appropriated in compliance with existing legislation. 

Distributable income consists of the current year’s income, less previous 

losses and amounts transferred to the legal reserves, plus retained earnings 

brought forward from previous years. Upon recommendation by the Board of 

Directors, the General Meeting may then determine portions of this income to 

be allocated to optional ordinary and special reserves or to be carried over. 

The balance, if any, is divided among the shares in proportion to their paid-up 

and unamortized value. 


In accordance with legal provisions, the General Meeting has the authority to 

offer shareholders the option of receiving all or part of the dividend payout 

in cash or in shares. Requests for the payment of scrip dividends must be 

submitted within the time period established by the General Meeting, without 

exceeding three months from the date of the Meeting. The Board of Directors 

may choose to suspend this period for up to three months if the share capital 

is increased. 



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5.1.2.2 GENERAL MEETINGS 

OF SHAREHOLDERS 

General Meetings are convened in accordance with legal and regulatory 

provisions. The meetings are open to all shareholders who have registered 

their shares under their own name at least three clear days before the meeting. 

The right to attend the meeting is evidenced by a book entry in the name of the 

shareholder or the registered intermediary acting on his or her behalf, pursuant 

to Article L. 228-1 of the French Commercial Code. The entry must be made 

by midnight (zero hours) CET on the third business day before the G eneral 

M eeting, either in the registered share account kept by the company or in the 

bearer share accounts held by an authorized intermediary. Registration or book 

entry of bearer shares in the accounts held by the authorized intermediary is 

evidenced by an attendance certifi cate issued by said intermediary. 

5.1.2.3 SHARES AND VOTING RIGHTS 

Shares are registered in an account according to the provisions and terms 

established by law. Fully paid-up shares are in either registered or bearer form, 

at the discretion of their owner. However, shares that are not fully paid-up must 

be in registered form. 

Shares entitle the holder to vote, within the limits of French regulations. 

5.1.2.4 IDENTIFIABLE BEARER SHARES 

The company is authorized to make use of the appropriate legal provisions for 

identifying shareholders having immediate or future voting rights in its own 

shareholders’ meetings. 



GENERAL INFORMATION 

5.1.2.5 SHAREHOLDING DISCLOSURE 

In addition to the legal requirement that shareholders inform the company if they 

hold certain percentages of its share capital or voting rights, every shareholder 

or fund management company that comes into possession of a number of 

shares greater than 2% of the share capital or voting rights, or a multiple of this 

percentage less than or equal to 5% of the share capital or voting rights, shall 

inform the company of the total number of shares held. That disclosure shall 

be made by registered letter with return-receipt within a time period set forth 

in a Conseil d’Etat decree, starting from the date of registration of the shares 

that took the shareholder’s interest up to or beyond the threshold. In excess of 

5%, the aforementioned disclosure requirement applies to 1% fractions of the 

share capital or voting rights. For the purposes of determining the thresholds 

described above, indirectly held shares or equity equivalents held as defi ned 

by the provisions of Article L. 233-7 of the Commercial Code will also be taken 

into account. The declarer must certify that the said declaration includes all 

shares held or owned within the meaning of the preceding paragraph, and 

must indicate the acquisition date (s). The disclosure requirement applies in the 

same manner if the holding falls below any of the aforementioned thresholds, 

2% or 1% as applicable. 

If the conditions described above are not respected, any shares exceeding 

the fraction that should have been declared are stripped of voting rights 

for all shareholders’ meetings for a period of two years after the required 

disclosures are made, insofar as this is requested at the meeting by one or 

more shareholders who together hold at least 1% of share capital. 


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05 GENERAL 


INFORMATION ABOUT RENAULT’S SHARE CAPITAL 

5.2 GENERAL INFORMATION ABOUT RENAULT’S 

SHARE CAPITAL 

5.2.1 CAPITAL AND VOTING RIGHTS 

At December 31, 2007 the share capital amounted to €1,085,610,419.58 

(one billion eighty-fi ve million six hundred and ten thousand, four hundred and 

nineteen euro and fi fty-eight cents) consisting of 284,937,118 shares with a 

par value of €3.81. The shares are fully subscribed and paid in. 

5.2.2 CHANGE IN SHARE CAPITAL 

The Extraordinary General Meeting may, as specifi ed by law, increase or 

reduce the share capital and authorize the Board of Directors to carry out such 

transactions, with the possibility of delegating them in accordance with law. 

The most recent changes in the share capital occurred in 2002. For the second 

stage of the Alliance, the Extraordinary General Meeting of March 28, 2002 

5.2.3 CHANGES IN CAPITAL OWNERSHIP OVER FIVE YEARS 

DATE TRANSACTION 

In view of the 7,555,139 shares of treasury stock and the 42,740,568 shares 

held by Nissan Finance Co., Ltd., the total number of voting rights at that date 

was 234,641,411. 

endorsed a capital increase reserved for Nissan Finance Co., Ltd. 15 . This took 

place in two stages: 

March 29, 2002 on the decision of the Board of Directors meeting of 

March 28, 2002; 

May 28, 2002 on the decision of the Board of Directors meeting of 

May 24, 2002. 

(15) A prospectus registered with the French securities regulator (the then Commission des Opérations de Bourse) on March 26, 2002 under N°02-275 describes the arrangements for this issue. 

The document is available (in French only) online at www.renault.com > Finance and also on the website of the regulator, now called Autorité des m archés f inanciers (AMF) at www.amf-f rance.org. 



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RESULTING CAPITAL 

€ no. of shares* 

01/2001 Conversion of share capital to euro 913,632,540.27 239,798,567 

12/2001 Capital increase reserved for employees: 2,397,983 shares issued at €3.81 (par) 922,768,855.50 242,196,550 

03/2002 Capital increase reserved for Nissan Finance Co., Ltd.: 37,799,462 shares issued at €50.39 (par: €3.81) 1,066,784,805.72 279,996,012 

05/2002 Capital increase reserved for Nissan Finance Co., Ltd.: 4,941,106 shares issued at €52.91 (par: €3.81) 1,085,610,419.58 284,937,118 

NB: No changes in the share capital in FY 2000, 2003, 2004, 2005, 2006 and 2007. 

* Per value: €3.81. 

Pursuant to Article L. 225-178 of the Commercial Code, the Board of Directors, 

at its meeting on February 12, 2008, noted the capital increase resulting from 

the creation of 11,000 new shares after the early exercise of 11,000 stock 

options during FY 2007. The Board of Directors then cancelled 11,000 treasury 


shares which were no longer allotted to a specifi c allocation and reduced the 

share capital accordingly. Following these two transactions, the share capital 

and the number of shares remained unchanged and the articles of incorporation 

were not amended. 

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5.2.4 UNISSUED AUTHORIZED CAPITAL 

5.2.4.1 OVERALL AUTHORIZATIONS 

The General Meeting of S hareholders of May 2, 2007 gave the Board of 

Directors an authorization for a maximum period of 26 months to proceed at 

its own discretion with miscellaneous fi nancial transactions to increase the 

company’s share capital, with or without preferential rights. 

At this writing, these authorizations have not been used. 


GENERAL INFORMATION ABOUT RENAULT’S SHARE CAPITAL 

5.2.4.2 EXTRAORDINARY GENERAL 

MEETING, MAY 2, 2007 

The following table summarizes the capital increase authorizations given by the 

General Meeting to the Board of Directors and that are currently in force: 

DESCRIPTION OF AUTHORIZATION GIVEN TO THE BOARD OF DIRECTORS UTILIZATION 

12th resolution* Issue with preemptive rights of shares or securities granting access to the company’s capital. Valid 26 months until the GM called 

to approve the 2008 financial statements. 

15th resolution* Issue without preemptive rights of shares as consideration for cash contributions. Valid 26 months until the GM called to approve 

the 2008 financial statements. 

16th resolution Capital increase through capitalization of reserves, income or issuance or share premiums. Valid 26 months until the GM called to 

approve the 2008 financial statements. Capped at a nominal value of €1 billion. 

18th resolution Capital increase through issuance of shares reserved for employees. Valid 26 months until the GM called to approve the 2008 

financial statements. Capped at 4% of the share capital. 

* Overall ceiling: the maximum nominal amount of the capital increases that may be made, either immediately or in future, pursuant to the twelfth and fifteenth resolutions, is set in the seventeenth resolution at 

€500 million by the Extraordinary General Meeting of May 2, 2007. 

The authorizations granted to the Board of Directors will be submitted to a 

shareholder vote at the next General Meeting. 

5.2.5 POTENTIAL CAPITAL 

5.2.5.1 OPTIONS 

The fourteenth resolution of the Combined General Meeting of May 4, 2006 

authorized the Board of Directors to grant, on one or more occasions, in favor of 

certain employees in the company and in the companies and groupings which 

are bound to it under those conditions referred to in Article L. 225-180 of the 

Commercial Code, stock options providing entitlement to the subscription of new 

shares in the company issued by way of a capital increase, or the purchase of 

shares in the company as repurchased by the company itself under statutory 

and regulatory conditions. 

The total number of stock options which may be granted in this way may not 

provide entitlement to the acquisition of a number of shares which is greater 

than 3.2% of the amount of the shares making up the registered capital at 

the present date. 

5.2.5.2 BONUS SHARES 

The fi fteenth resolution of the Combined General Meeting of May 4, 2006 

authorized the Board of Directors to grant, on one or more occasions, in favor 

of certain employees in the company and in the companies and groupings 


which are bound to it under those conditions referred to in Article L. 225-197- 

2 of the Commercial Code a free allocation of existing or newly issued shares 

(“bonus shares”). 

The total number of shares that may be freely allotted shall not be greater 

than 0.53% of the amount of the shares making up the registered capital at 

the present date. 

5.2.5.3 SHARE BUYBACKS 

Pursuant to Article L. 225-209 of the Commercial Code and to the description 

of the buyback program fi led at the AMF in April 20, 2007, the tenth resolution 

of the Combined General Meeting of May 2, 2007 authorized the Company to 

deal in its own stock in order to make use of the possibilities allowed by law 

for trading in own shares. 

The company began to implement the buyback program in September 2007 

by acquiring 2,136,650 shares. It purchased a further 1,618,000 shares in 

January 2008.These shares were allocated to the option plans in order to 

offset the dilution caused by the exercise of stock options granted to employees 

and managers. 


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05 GENERAL 


INFORMATION ABOUT RENAULT’S SHARE CAPITAL 

As at December 31, 2007 the company held 7,555,139 in treasury. 

Pursuant to Article L. 225-209 of the Commercial Code, a special report 

will inform the General Meeting of S hareholders on completion of the 

share purchases that it has authorized. This special report will be included in 

the description of the next buyback program, details of which will be submitted 

5.2.6 RENAULT SHARE OWNERSHIP ✦ 

5.2.6.1 RENAULT SHAREHOLDERS AT DECEMBER 31, 2007 

Ownership of shares and voting rights for the last three fiscal years 

NUMBER OF 

SHARES 

% OF 

CAPITAL 

12/31/2007 12/31/2006 12/31/2005 

% OF VOTING 

RIGHTS 

NUMBER OF 

SHARES 

% OF 

CAPITAL 

% OF VOTING 

RIGHTS 

NUMBER OF 

SHARES 

% OF 

CAPITAL 

% OF VOTING 

RIGHTS 

French State 42,759,571 15.01 18.22 42,759,571 15.01 18.23 43,685,217 15.33 18.78 

Nissan Finance. Co, Ltd 42,740,568 15.00 - 42,740,568 15.00 - 42,740,568 15.00 - 

Employees (1) 8,873,624 3.11 3.78 9,970,259 3.50 4.25 10,264,918 3.60 4.41 

Treasury stock 7,555,139 2.65 - 7,681,580 2.70 - 9,539,964 3.35 - 

Public 183,008,216 64.23 77.99 181,785,140 63.79 77.52 178,706,451 62.72 76.81 

TOTAL 284,937,118 100 100 284,937,118 100 100 284,937,118 100 100 

(1) The employee-owned shares (present and former employees) counted in this category are those held in company savings schemes. 

Some of the major shareholdings changed slightly in 2007: 

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the French State’s holding was unchanged at 15.01%; 

the Nissan group, through its wholly-owned subsidiary Nissan Finance Co., Ltd., 

holds 15% of Renault’s capital, the same percentage as at December 31, 

2006. Nissan Finance Co., Ltd. is not entitled to exercise the voting rights 

attached to these shares, owing to Renault’s ownership interest in Nissan; 

current and former Renault employees hold 3.11% of the capital in the form 

of shares managed through collective investment schemes; 

the percentage of treasury stock contracted by 0.05 of a percentage point 

to 2.65% following the exercise of options granted under the fi rst plans 

between 1996 and 2003, despite the acquisition of shares to cover stock 

option programs. These shares do not carry voting rights; 

to the General Meeting of S hareholders on April 29, 2008, in compliance 

with Articles 241-1 to 242-7 of the General Regulation of the Autorité 

des m archés f inanciers. This information will also be posted online at 

www.renault.com > Finance > Regulated Information, as well as on the AMF 

website: www.amf-france.org. 

in view of these changes, the free fl oat is now 64.23% of the capital compared 

with 63.79% at December 31, 2006. 

A survey of the holders of Renault bearer shares was carried out on September 30, 

2007 to obtain an estimated breakdown of the public’s ownership interest. 

At that date, French and foreign institutions held approximately 60.1% of the 

capital, with French institutions holding 13.9% and foreign institutions 46.2%. 

The 10 largest French and foreign institutional investors held approximately 

29% of the capital. Individual shareholders were estimated to own around 

4.5% of the capital. 



n 


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5.3 MARKET FOR RENAULT SHARES 

5.3.1 RENAULT SHARES 

5.3.1.1 LISTING EXCHANGE AND STOCK 

INDEXES 

Renault was listed on Euronext Paris (formerly the Paris Bourse) on November 17, 

1994, when the company was partially privatized. The issue price was FRF165 

(€25.15). Renault was added to the CAC 40 index on February 9, 1995. 

Renault shares (ISIN code FR0000131906) are listed on Eurolist and qualify 

for the deferred-settlement account system (SRD). 

5.3.1.2 SHARE PRICE PERFORMANCE SINCE NOVEMBER 17, 1994 

500 

450 

400 

350 

300 

250 

200 

150 

100 

50 

0 

Base 100 

1995 

11/17/94 

Source: Reuters. 

Renault CAC 40 



MARKET FOR RENAULT SHARES 

The share is also a component of the SBF 120 and SBF 250 indexes, as well 

as the Euronext 100, Euronext 150 and Euro Stoxx 50 indexes. 

Furthermore, Renault receives annual ratings from sustainability agencies 

for its performance in spheres such as risk management, labor relations 

and environmental protection. It is included in the Dow Jones Sustainability 

World Index (SAM), the Ethibel Excellence Sustainability Index and also in the 

Aspi eurozone and Ethical euro indexes. See c hapter 3.5 for further details. 

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 


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FOR RENAULT SHARES 

5.3.1.3 SHARE PRICE AND TRADING VOLUMES OVER THE PAST 18 MONTHS 

NUMBER OF SHARES TRADED 

PRICE in € 

CLOSE HIGH LOW 

September-06 25,865,871 90.45 91.2 88 

October-06 32,227,580 91.65 93.25 87.5 

November- 06 22,081,275 90.5 97.85 90.5 

December- 06 21,186,118 91 91.8 88.05 

January-07 25,025,786 94.85 96.4 90.4 

February-07 31,998,165 89.89 95.80 89.89 

March-07 34,687,982 87.55 90.45 84.86 

April-07 33,364,519 95.72 97.86 87.32 

May-07 43,285,517 106.25 106.45 95.10 

June-07 44,162,776 119.21 119.21 107.64 

July-07 38,281,694 107.06 121.38 102.30 

August-07 48,067,839 99.02 105.11 91.20 

September-07 35,135,378 101.62 101.77 89.37 

October-07 41,658,409 115.90 115.90 104.15 

November- 07 43,850,639 99.45 112.47 90.94 

December- 07 30,626,798 97.01 103.63 93.79 

January-08 61,704,754 75.79 95.74 72.80 

February-08 61,063,764 71.20 77.42 67.31 


Renault shares gained more than 6% in 2007. They ended the year at €97.01, 

having ranged from a closing low of €84.86 on March 14 and a new all-time 

high of €121.38 at the close on July 3, 2007. 

The CAC 40 index of leading French shares gained 1.31% and the European 

auto sector index (DJEuro Stoxx Auto) put on nearly 20% during the year. 

Renault’s share price performance in 2007 

In terms of market capitalization at December 31, 2007 Renault was the 

twenty second most highly capitalized company in the CAC 40 and sixth in the 

automotive industry rankings, with market capitalization of €27,642 million. 

RENAULT INDEXES 

CLOSING PRICE AT 

DEC. 31, 2007 

MARKET 

CAPITALIZATION AT 

DEC. 31, 2007 (€ million) 

HIGH IN 2007 

(JUL. 3) 


LOW IN 2007 

(MAR. 14) 

CHANGE SINCE 

DEC. 29, 2006 

CHANGE SINCE DEC. 29, 2006 

CAC 40 DJ STOXX AUTO 

€97.01 


27,642 €121.38 €84.86 + 6.6% + 1.31% + 19.59% 



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5.3.2 RENAULT AND DIAC REDEEMABLE SHARES 

5.3.2.1 RENAULT REDEEMABLE SHARES 

CHARACTERISTICS 

Renault has issued a total of 2,000,000 redeemable shares with a par value 

FRF1,000/€152.45, in two fungible issues of 1,000,000, in October 1983 and 

October 1984. 

Renault redeemable shares are listed on Euronext Paris under ISIN code 

FR0000140014. 

The issue prospectus (in French) can be downloaded from the Finance section 

of the renault. com site or obtained on request from the Investor Relations 

Department (toll-free number 0800 650 650). 

Between March and April 2004 Renault made a public buyback offer for its 

redeemable shares at €450 per share. In all, 1,202,341 shares, or 60.12% of 

the total, were bought back and cancelled. The number of shares outstanding 

after the buyback was 797,659. 

Trading volumes and prices of Renault redeemable shares over the past eighteen months 

NUMBER OF SHARES TRADED 


MARKET FOR RENAULT SHARES 

NUMBER OF SHARES OUTSTANDING 

A total of 797,659 Renault redeemable shares were still outstanding 

at December 31, 2007. 

PAYOUT IN 2007 

The interest on redeemable shares, paid on October 24, 2007 in respect 

of 2006, was €20.77 euros (€10.29 for the fi xed portion and €10.48 for the 

variable portion). 

The interest on redeemable shares for 2007, payable on October 24, 

2008, will be €20.96 per share, breaking down into €10.29 for the fi xed 

portion and €10.67 for the variable portion (based on consolidated revenues 

of €40,682 million for 2007 and 39,969 million for 2006 on a consistent 

basis). 

PRICE in € 

CLOSE HIGH LOW 

September-06 2,219 950 958 931 

October-06 3,125 925 950 920 

November- 06 3,230 945 961 925 

December 06 4,760 940 940 920 

January-07 3,231 928 944 925 

February-07 3,937 919.8 925 910 

March-07 2,500 910 920 907 

April-07 2,943 922 935 910 

May-07 2,515 978 1,001 920 

June-07 6,170 1,080 1,080 1,006 

July-07 5,800 1,075 1,135 1,065 

August-07 1,981 1,040 1,077 1,022 

September-07 802 1,030 1,039 1,015 

October-07 1,489 1,018.5 1,030 985 

November -07 4,281 932 1,023.9 924.5 

December -07 8,822 874 927.9 873.8 

January-08 10,066 555 862 555 

February-08 5,905 533 593 532.5 


5.3.2.2 DIAC REDEEMABLE SHARES 

Diac, the French credit subsidiary of RCI Banque, issued 500,000 redeemable 

shares with a par value of FRF1,000/€152.45 in 1985. 

Diac redeemable shares are listed on Euronext Paris under ISIN code 

FR000047821. 


At December 31, 2007, the number of redeemable shares issued by Diac 

in 1985 and still outstanding was 99,439 (par value €152.45), for a total value 

of €15,159,475.55. 

In the course of 2007 the share price fl uctuated between €189.60 and €198.01. 

It closed the year at €190. 


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FOR RENAULT SHARES 

5.3.3 DIVIDENDS ✦ 

5.3.3.1 FIVE-YEAR DIVIDEND RECORD 

Dividends are paid out at the times and places specifi ed either by the Annual 

General Meeting or, failing this, by the Board of Directors. 

NUMBER OF SHARES IN 

THE AUTHORIZED CAPITAL 

5.3.3.2 DIVIDEND POLICY AS PART OF 

RENAULT COMMITMENT 2009 

Presenting Renault Commitment 2009 on February 9, 2006 Carlos Ghosn 

stressed the Group’s intention of sharing the fruits of the growth plan with 

shareholders. Mr. Ghosn said that, each year, he would recommend an increase 

in the dividend so as to reach €4.50 by 2009. 

In 2008 the Board of Directors will recommend to the Annual General Meeting 

that the dividend per share should be raised to €3.80 (compared with 

€3.10 in 2007 and €2.40 in 2006). 

EARNINGS PER SHARE (€) 

DIVIDEND TAX CREDIT TOTAL RETURN 

5.3.3.3 UNCLAIMED DIVIDENDS 

DIVIDEND PAID ON 

2003 284,937,118 1.4 0,7 2.1 May 17, 2004 

2004 284,937,118 1.8 n ote (2) 1.8 May 13, 2005 

2005 284,937,118 2.4 - 2.4 May 15, 2006 

2006 284,937,118 3.1 - 3.1 May 15, 2007 

2007 (1) 284,937,118 3.8 - 3.8 May 15, 2008 

(1) In accordance with the proposal of the Board of Directors subject to the decision of the Annual General Meeting of April 29th, 2008. 

(2) The tax credit was eliminated in 2005. 


Dividends remaining unclaimed after the fi ve-year validity period shall lapse, as 

specifi ed by law. Unclaimed dividends are paid over to the French Treasury. 



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5.4 INVESTOR RELATIONS POLICY ✦ 

Since it fl oated in November 1994 Renault has endeavored to provide all its 

institutional and individual investors with the same level of understandable and 

transparent information on a regular basis. 

5.4.1 INDIVIDUAL SHAREHOLDERS 

To build loyalty, Renault has introduced tools that enable ongoing communication with 

individual shareholders, including a special section on the website, a free voicemail 

server, and a special e-mail address (communication.actionnaires@renault.com). 

Briefi ngs on Group strategy are organized in venues throughout France. In 2007 

Renault met with shareholders in Marseilles, Lille, Lyon and Nantes and also at the 

Salon Actionaria investor forum in Paris. 

In May 1995 Renault set up Shareholders’ Club, eligible to anyone holding 

at least one share, in order to forge closer ties between the company and 

its investors. The club’s aims are to inform and to educate. Its 8,000-plus 

members receive a quarterly newsletter and are entitled to take part in 

an extensive program of activities organized especially for them. These 

include tours of Renault sites and plants; breakfasts at Atelier Renault on 

5.4.2 INSTITUTIONAL INVESTORS 

Renault also maintains regular relations with fi nancial analysts and institutional 

investors from France and abroad. The Group organizes conferences with 

investment analysts when releasing its financial results or announcing 

5.4.3 WEBSITE 

The Finance section of Renault’s website has been designed to provide 

unrestricted access for individual or institutional shareholders. 

The section contains full information about the Group’s fi nancial communications: 

real-time and historic Renault share price data, news releases and publications 

(including interactive annual reports and Interactive Analyst fi nancial database), 



INVESTOR RELATIONS POLICY 

the Champs Elysées in Paris with guided tours of its temporary exhibitions; and 

presentations of activities relating to automobiles, F1 racing, and concept cars. 

In 2007, Renault organized 18 events for its Shareholders’ Club. 

A twelve-member S hareholder Consultative Committee, formed in 1996, helps 

to improve the communication media designed for individual shareholders. 

The committee met four times in 2007, with an agenda that included overhauling 

the fi nancial pages of the Renault website. The committee’s activities were 

instrumental in Renault’s winning the Boursoscan Grand Prix (see inset). 

In 2007, the Group launched Gisnomi, an online service that allows registered 

shareholders to manage their Renault shares directly. 

events and product launches (e.g. New Twingo and New Laguna in 2007). 

One-on-one meetings with investors are also held throughout the year, as well 

as road-shows in Europe and the USA. 

membership of the Board of Directors and management bodies; programs, 

issues and ratings by specialized agencies; events calendar; webcasts of 

AGMs and fi nancial results presentations to the press or analysts; sign-ups 

for email alerts. 


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05 INVESTOR 


RELATIONS POLICY 

Renault wins Boursoscan 2007 Grand Prix awarded 

by Boursorama ✦ 

Based on assessments by more than 6,300 web users, the prize 

recognizes the quality of the information presented on renault. 

com. Accepting the award, Thierry Moulonguet, Executive Vice 

President, Chief Financial Offi cer and RMC Leader, Americas, said: 

5.4.4 2008 SCHEDULE FOR FINANCIAL RELEASES 

February 14 2007 annual results 

April 21 First-quarter revenues, 2008 

April 29 Annual General Meeting 

May 15 Dividend payment date (1) 

July 24 Half-year results, 2008 

October 23 Nine-month revenues 

(1) In accordance with the proposal of the Board of Directors subject to the decision of the 

Combined General Meeting of April 29, 2008. 

5.4.5 CONTACTS ✦ 

INVESTOR RELATIONS DEPARTMENT 

E-mail: communication.actionnaires@renault.com 

Shareholder hotline: + 33 (0)1 76 84 59 99 

Fax: +33 (0)1 76 89 13 30 

Phone information for employee shareholders: +33 (0)1 76 84 33 38 

Free voicemail: 0 800 650 650 

Website: www.renault.com > Finance 

Contact: 

Véronique Dosdat 

Investor Relations Director 

Tel: +33 (0)1 76 84 53 09 – Fax: +33 (0)1 76 89 13 30 


“We are especially proud to receive the Boursoscan Grand Prix, which 

rewards the efforts made by the Renault group to facilitate access 

to all its fi nancial disclosures and to develop them via the internet. 

We signifi cantly upgraded the Home Finance section of our website 

this year. The prize honors the endeavors of our teams and their 

commitment to reaching the number-one spot”. 

Renault shares can be registered with: 

BNP Paribas 

Securities Service 

Actionnariat Renault 

Immeuble Tolbiac 

75450 Paris Cedex 09 – France 

Tel.: +33 (0)1 40 14 89 89 – Fax: +33 (0)1 55 77 34 17 



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06 

Mixed General Meeting 

of April 29, 2008: 

presentation of the 

resolutions 

Approval of the financial statements and appropriation of the results 172 

Regulated agreements 172 

Renewal of the term of office of two Directors 172 

Appointment of a director 173 

Renewal of the terms of office of the principal and substitute Statutory Auditors 173 

Statutory Auditors’ report on redeemable shares 173 

Authorisation for the Board to purchase the company’s own shares 174 

Authorisation given to the Board to reduce the share capital by cancelling shares 174 

Capital increase 175 

Amendments to the articles of association 176 

Appointment of a new Director 176 

Formalities 176 

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MIXED GENERAL MEETING OF APRIL 29, 2008 

OF THE RESOLUTIONS 

Nineteen resolutions are being submitted to the Mixed General Meeting which 

will be convened on April 29, 2008. 

THE BOARD FIRST OF ALL PROPOSES 

THE ADOPTION OF ELEVEN RESOLUTIONS 

BY THE ORDINARY GENERAL MEETING: 

APPROVAL OF THE FINANCIAL STATEMENTS AND APPROPRIATION OF THE RESULTS 

The first two resolutions deal with the approval of the consolidated fi nancial 

statements and Renault’s fi nancial statements for the 2007 fi nancial year. 

The presented accounts have been drawn up in accordance with regulations 

in force, using IFRS (International Financial Reporting Standards) for the 

consolidated fi nancial statements and in compliance with French statutory 

and regulatory provisions for the company’s own annual fi nancial statements. 

The third resolution deals with the appropriation of the company’s results for 

the 2007 fi nancial year and the payment of dividends. It is proposed that the 

shareholders approve the distribution of a dividend of 3.80 euros, for payment 

in cash on May 15, 2008. 

REGULATED AGREEMENTS 

In the fourth resolution, you are asked to approve the company’s regulated 

conventions – agreements which are concluded by Renault with its senior 

executives or directors, or with another company having the same senior 

executives or directors – which have given rise to a report drafted by the 

Statutory Auditors. According to French law, such report must be approved 

RENEWAL OF THE TERM OF OFFICE OF TWO DIRECTORS 

The fifth and sixth resolutions ask you to approve the renewal of the terms 

of offi ce of two members of the Board of Directors for a new term of four year. 

These terms of offi ce will expire at the end of the General Meeting which 

votes on the accounts of the fi nancial year ending on December 31, 2011. 

The following directors would thus be reappointed: 

n Mrs Catherine Bréchignac, 61 years old, sits in her capacity as representative 

of the State. She is President of the CNRS and a member of the International 

Strategy Committee; 

each year, although no agreements have been concluded during the considered 

fi nancial year. 

That having been recalled, you are informed that no regulated agreements were 

concluded over the 2007 fi nancial year. 

Mr Charles de Croisset, 64 years old, is Vice-Chairman of Goldman Sachs 

Europe and a member of the Accounts and Audit Committee. 

Mr Charles de Croisset meets the independence criteria set out in the 

AFEP/MEDEF 2003 report, as he has no ties of any nature whatsoever with 

Renault. 



n 


Following growth of more than 33% for the 2005 fi nancial 

year and 29% for 2006, the dividend for the 2007 fi nancial 

year will increase by 22,6%. Considering the number of 

shares in circulation, this distribution corresponds to a total 

amount of 1,082,761,048.40 euros. It will therefore comply 

with Renault’s dividend distribution policy as announced in 

the framework of the Renault Commitment 2009 plan, which 

aims for a linear increase in the dividend from 1.80 euros 

in 2005 to a target of 4.50 euros in 2009. 

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APPOINTMENT OF A DIRECTOR 

The seventh resolution asks you to: 

Additional information about the positions held by the Directors is presented 

on page 20, 21 and 24 to 26 of the shareholders meeting notice and taken up 

in c hapter 4.1 of the Registration document. Moreover, the www.renault.com 

website under the fi nance tab will give you access to the whole information 

relating to the General Meeting. 

MIXED GENERAL MEETING OF APRIL 29, 2008 06 

PRESENTATION OF THE RESOLUTIONS 

n appoint Mr Jean-Pierre Garnier to replace Mr François de Combret, who does 

Mr Desmarest and Mr Garnier meet the individual qualities 

not wish to be reappointed, for a new term of four years which will expire at 

which Renault expects of a director, namely: their experience 

the end of the General Meeting which votes on the accounts of the fi nancial 

in industry, their understanding of the economic and fi nancial 

year ending on December 31, 2011. 

world, their international outlook, their courage to adopt a 

Mr Jean-Pierre Garnier, 60 years old, is Chairman and Chief Executive Offi cer 

of GlaxoSmithKline. 

We would also inform you in advance that in the eighteenth resolution, 

you will be asked, subject to the adoption of the seventeenth resolution 

which adds an age limit for directors in the Articles of Association, to appoint 

Mr Thierry Desmarest, currently Chairman of the Board of Directors of Total, 

as director to replace Mr Henri Martre. 

position even if that puts them in the minority, their integrity 

and their faithfulness. 

The competence, the personality and the international 

experience of both Mr Desmarest and Mr Garnier would 

constitute a precious contribution to the Board. 

RENEWAL OF THE TERMS OF OFFICE OF THE PRINCIPAL AND SUBSTITUTE 

STATUTORY AUDITORS 

The eighth and ninth resolutions concern the renewal of the terms of offi ce 

of Ernst & Young Audit and Deloitte & Associés, principal Statutory Auditors, 

and Mr Gabriel Galet and Beas, substitute Statutory Auditors, for a new period 

of six years, i.e. until the end of the General Meeting deciding on the accounts 

for the fi nancial year ending on December 31, 2013. 

STATUTORY AUDITORS’ REPORT ON REDEEMABLE SHARES 

The tenth resolution proposes that the General Meeting take formal note of 

the Statutory Auditors’ report on elements used to determine the remuneration 

of redeemable shares, including in particular its variable part tied to the 

development of Renault’s consolidated turnover in 2007 as determined by 

constant methods with reference to a constant structure. 


It should be noted that in 2007, Mr Aymeric de la Morandière 

succeeded Mr Jean-François Bélorgey as signatory 

for Ernst & Young Audit, in accordance with corporate 

governance standards for the rotating of signatories for fi rms 

of Statutory Auditors. 

The coupon which will be paid to bearers of Renault redeemable shares on 

October 24, 2008 will amount to €20.96 , comprising a fi xed part of €10.29 

and a variable part of €10.67 . 


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AUTHORISATION FOR THE BOARD TO PURCHASE THE COMPANY’S OWN SHARES 

Over 2007, your Company acquired 2,136,650 shares pursuant to the 

authorisation granted by the General Meeting of May 2, 2007. As at 

31 December 2007, the portfolio contained 7,555,139 shares; this holding 

of Company’s own share capital was equivalent to 2.65% of the company’s 

share capital. Shares held as Company’s own share capital are not entitled to 

dividends or voting rights. 

In the eleventh resolution, you are asked to authorise the Board of Directors 

to put a programme into place for the acquisition of the company’s own 

shares under those conditions and with those objectives laid down by law. 

This authorisation is given for a maximum period of eighteen months as of this 

General Meeting, and will substitute itself for the authorisation given at the last 

General Meeting. This resolution provides that share acquisitions cannot be 

made during a takeover bid, except with strict compliance with the conditions 

defi ned by the General Regulations of the Autorité des marchés fi nanciers (AMF), 

and solely in order to allow the Company to perform its prior commitments. 

The presented resolution provides for a maximum purchase price of 150 euros 

per share, plus acquisition costs. 

The maximum number of shares that may be acquired is limited to 10% of 

the share capital and the maximum amount of funds which may be invested 

in purchasing these shares is €2.9 billion . 

A document entitled “programme description”, describing the terms of these 

purchases can be consulted on the renault.com website under the fi nance 

tab. Moreover, in accordance with the Transparency Directive which entered 

into force on January 20, 2007, this information is published in the “Regulated 

Information” section on said website. 

An overview of these operations will be presented in the special report to be 

presented to the General Meeting called to decide on the accounts for the 

2008 fi nancial year. 

NEXT, SIX RESOLUTIONS ARE WITHIN THE POWERS 

OF THE EXTRAORDINARY GENERAL MEETING: 

AUTHORISATION GIVEN TO THE BOARD TO REDUCE THE SHARE CAPITAL 

BY CANCEL ING SHARES 

In the twelfth resolution, it is proposed that the General Meeting authorise the 

Board, for a period of 18 months, to reduce the registered capital by cancel ing 

shares acquired in the programme for the purchase of the company’s own 

shares. The terms for these acquisitions are those defi ned in the eleventh 

resolution. 

Cancel ing shares causes a change in the amount of the registered capital, and 

consequently a change in the terms of the Articles of Association, which can 

only be authorised by the Extraordinary General Meeting. The purpose of this 

resolution is therefore to delegate such powers to the Board. 


This authorisation will cause any prior authorisation of the same nature to lapse, 

with respect to any unused amounts thereunder. 

The power to cancel shares was used by the Board of Directors at its meeting of 

February 12, 2008 in order to cover the stock dilution associated with the exercise 

of stock options following the death of their benefi ciaries. This cancel ation did 

not cause any amendment to the Articles of Association insofar as shares held 

as Company’s own share capital, initially allocated to cover the stock options 

plans and consequently unallocated due to the cancellation of the corresponding 

options (resignation of the benefi ciaries, etc.), were used. 



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CAPITAL INCREASE 

AUTHORISATION GIVEN TO THE BOARD 

OF DIRECTORS TO GRANT OPTIONS 

FOR SUBSCRIPTION TO OR PURCHASE 

OF RENAULT SHARES TO CERTAIN 

EMPLOYEES 

The thirteenth resolution is intended to allow Renault to attract and heighten 

the loyalty of members of staff by granting them access to the share capital. 

This resolution enters in line with the resolution adopted by the General Meeting 

on May 4, 2006, which authorised a total amount of options for purchase of or 

subscription to shares, representing a maximum of 3.80% of the share capital 

over a period of 38 months. 

Your Company has made the exercise of stock options together with the 

acquisition of gratuitous shares (bonus share issues) subject to the attainment 

of individual and collective performance criteria in the framework of the Renault 

Commitment 2009 medium-term plan, and on an annual basis. 

For employees other than senior management, the performance criteria are 

based on meeting our collective commitment regarding the company’s operating 

margin (for 50% of the awards), and on individual performance conditions 

(for 50% of the awards). The individual performance indicators are associated, 

in quantity and/or quality, with each function or business segment which 

contributes to performance. 

These criteria, deployed within the Group, are also applicable to senior 

management, it being specifi ed that the annual plan for 2008 integrated, in 

addition to the operating margin criterion weighing in for 35%, a new indicator 

associated with the company’s net earnings, for 15%. Senior management’s 

individual performance criteria are very closely connected with the commercial, 

industrial, fi nancial or economic performance of the Group, and the performance 

of the Regions for the Regional Leaders. 

This constitutes a veritable tool for management, making it possible to tie 

individual and collective performance closer together. 

The purpose of the thirteenth resolution is therefore to ensure the continuity 

of this policy for the grant of stock options to all of the employees in order to 

cover a 2009 Annual Plan, since the total number of options authorised by the 

previous General Meeting on May 4, 2006 has been used in its entirety. 

O n December 5, 2007 the Board of Directors, on a proposal by the 

Remunerations Committee, decided to attribute the options still available under 

the previous authorisation in order to provide a complement to the attributions 

made in 2006 under the “Renault Commitment 2009” plan. This complement 

was adopted as part of a vector to encourage employees in strategic sectors 

of the enterprise to pursue their commitments over and above their targets. 



PRESENTATION OF THE RESOLUTIONS 

These attributions have therefore been made subject to a “super target” portion 

in certain areas deemed to make a particularly important contribution to the 

success of the Renault Commitment 2009 plan. 

In the thirteenth resolution, it is proposed that you authorise the Board of 

Directors, for a period of 18 months, to grant, on one or more occasions, options 

to subscribe to new shares or to purchase existing shares in the Company, to the 

corporate offi cers and to certain members of personnel of the Company and of 

companies and groupings which are affi liated to it under those conditions laid 

down in Article L. 225-180 of the Commercial Code; this authorisation will cover 

a number of shares representing a maximum of 0.8% of the shares making up 

the Company’s registered capital on the date of this General Meeting. 

Considering the ambitious nature of the performance 

conditions described above, stock options are increasingly 

being used as a tool to converge the interests of the 

benefi ciaries with those of the shareholders; this is therefore 

a manner of sharing the same confi dence in the strong and 

long-lasting growth of the enterprise. 

AUTHORISATION TO PROCEED WITH 

A CAPITAL INCREASE BY THE ISSUE 

OF SHARES RESERVED FOR EMPLOYEES 

As this Extraordinary General Meeting is being called upon to decide on 

authorisation granted to the Board to attribute stock options, including notably 

subscription options which if exercised will increase the Company’s registered 

capital, then in accordance with Article L. 225-129-6 of the Commercial Code 

we are asking the General Meeting to adopt a resolution concerning a capital 

increase reserved to employees in the framework of Articles L. 443-1 and 

L. 443-5 of the Employment Code on employee shareholding, and Articles 

L. 225-138 and L. 225-138-1 of the Commercial Code. This fourteenth 

resolution grants your Board power to proceed, on one or more occasions, 

with a capital increase reserved for employees who are members of a company 

savings scheme, by issuing new shares and, where applicable, the award of 

bonus shares, capped at 4% of the amount of shares making up the registered 

capital. 

The authorisation given by the Mixed General Meeting on May 2, 2007 to 

proceed with capital increases reserved for employees, capped at 4% of the 

share capital, has not been used. 


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AMENDMENTS TO THE ARTICLES OF ASSOCIATION 

In the fifteenth, sixteenth and seventeenth resolutions, and in accordance 

with good corporate governance practice, you are asked to approve amendments 

to the Articles of Association, for the purposes of: 

n reducing the terms of office of directors elected by employees and a 

director representing the employee shareholders from six to four years, in 

line with all of the other directors (amendment of Article 11 of the Articles 

of Association); 

specifying, pursuant to the Decree of December 11, 2006, the terms for 

electronic voting and in particular the identifi cation methods (amendment 

of Article 28 of the Articles of Association); 

fi xing an age limit in the Articles of Association applicable to directors; 

the age limit for directors will henceforth be fi xed at 80 years old. 

FINALLY, THE BOARD PROPOSES THE ADOPTION 

OF TWO RESOLUTIONS BY THE ORDINARY 

GENERAL MEETING: 

APPOINTMENT OF A NEW DIRECTOR 

As mentioned earlier, in the eighteenth resolution it is proposed to apply, 

subject to its adoption, the seventeenth resolution concerning the insertion of 

an age limit of 80 applicable to the directors. 

You are therefore asked to appoint Mr Thierry Desmarest to replace 

Mr Henri Martre, for a term of offi ce of four years, which will expire at the end 

FORMALITIES 

The nineteenth resolution is a standard resolution granting powers necessary 

to proceed with publication and other formalities. 



n 

n 


of the General Meeting called to decide on the accounts of the fi nancial year 

ending December 31, 2011. 

Mr Thierry Desmarest, 62 years old, is Chairman of the Board of Directors 

of Total. 

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07 

Financial statements 

7.1 STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL 

STATEMENTS 180 

7.2 CONSOLIDATED FINANCIAL STATEMENTS 181 

7.2.1 Consolidated income statements 181 

7.2.2 Consolidated balance sheets 182 

7.2.3 Consolidated shareholders’ equity 183 

7.2.4 Consolidated statements of cash flows 185 

7.2.5 Segment information 186 

7.2.6 Notes to the consolidated financial statement 194 

7.3 STATUTORY AUDITORS’ REPORTS ON THE PARENT COMPANY ONLY 237 

7.3.1 On the financial statements 237 

7.3.2 Special report on regulated agreements and commitments with related third parties 238 

7.4 RENAULT SA PARENT COMPANY FINANCIAL STATEMENTS 240 

7.4.1 Financial statements 240 

7.4.2 Notes to the financial statements 242 

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07 STATUTORY 


AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 

7.1 STATUTORY AUDITORS’ REPORT ON 

THE CONSOLIDATED FINANCIAL STATEMENTS 



Statutory Auditors’ report on the consolidated fi nancial statements 

(Free translation of a French language original) 

This is a free translation into English of the statutory auditors’ report issued in the 

French language and is provided solely for the convenience of English speaking 

readers. This report includes information specifi cally required by French law in 

all audit reports, whether qualifi ed or not, and this is presented below the opinion 

on the consolidated fi nancial statements. This information includes explanatory 

paragraphs discussing the auditors’ assessments of certain signifi cant accounting 

matters. These assessments were made for the purpose of issuing an opinion on 

the fi nancial statements taken as a whole and not to provide separate assurance 

on individual account captions or on information taken outside of the consolidated 

fi nancial statements. The report also includes information relating to the specifi c 

verifi cation of information in the group management report. ✦ 




In accordance with our appointment as statutory auditors by your Annual General 

Meeting, we have audited the accompanying consolidated fi nancial statements 

of Renault for the year ended December 31, 2007. 

These consolidated fi nancial statements have been approved by the Board 

of Directors. Our role is to express an opinion on these fi nancial statements 

based on our audit. 

I. OPINION ON THE CONSOLIDATED FINANCIAL STATEMENTS 

We conducted our audit in accordance with the professional standards applicable 

in France; those standards require that we plan and perform the audit to obtain 

reasonable assurance about whether the consolidated fi nancial statements are 

free of material misstatement. An audit includes examining, on a test basis, 

evidence supporting the amounts and disclosures in the consolidated fi nancial 

statements. An audit also includes assessing the accounting principles used 

and signifi cant estimates made by the management, as well as evaluating the 

overall consolidated fi nancial statements presentation. We believe that our audit 

provides a reasonable basis for our opinion. 

In our opinion, the consolidated fi nancial statements give a true and fair view 

of the assets and liabilities and of the fi nancial position of the Group as at 

December 31, 2007 and results of its operations, for the year then ended in 

accordance with the IFRSs as adopted by the European Union. 


Without qualifying our opinion, we draw your attention to the matter discussed 

in note 2-A to the fi nancial statements relating to the changes in accounting 

methods introduced during the year 2007. 

II. JUSTIFICATION OF ASSESSMENTS 

In accordance with the requirements of article L. 823-9 of French Company 

Law (Code de commerce) relating to the justifi cation of our assessments, we 

bring to your attention the following matters: 

n As disclosed in note 13-A to the consolidated fi nancial statements, the Group 

accounts for its investments in Nissan under the equity method; our audit of the 

consolidation scope included a review of the factual and legal aspects of the 

Alliance which serve as the underlying basis for this accounting method. 

n As part of our assessment of the accounting methods applied by the Group, 

we have reviewed the methodology used for the capitalization of development 

costs as intangible assets, their depreciation and the verifi cation of their 

recoverable value and we satisfi ed ourselves that these methods were 

properly disclosed in notes 2-J, 2-L and 11-C. 

n For the purpose of preparing the consolidated fi nancial statements, Renault 

group management makes certain estimates and assumptions concerning 

primarily the impairment of tangible and intangible fi xed assets, sales 

fi nancing receivables, deferred taxes and provisions – in particular the 

warranty provisions and pensions and other long-term employee benefi t 

obligations. As regards to non current assets, Renault group used planning 

tools and multi-annual fi nancial plans, the various components of which (cashfl 

ows and forecasted taxable income, in particular) are used to ascertain the 

recoverable value of tangible and intangible fi xed assets. In order to estimate 

provisions, Renault used internal or external expert reports, particularly in 

respect of warranties, which are based on statistics concerning technical 

incidents. For all such estimates, we reviewed the available documentation 

and we assessed the reasonable nature of the assessments made. 

The assessments were thus made in the context of the performance of our audit of 

the consolidated fi nancial statements taken as a whole and therefore contributed 

to the formation of our audit opinion expressed in the fi rst part of this report. 

III. SPECIFIC VERIFICATION 

In accordance with professional standards applicable in France, we have also 

verifi ed the information given in the group’s management report. We have 

no matters to report regarding its fair presentation and conformity with the 

consolidated fi nancial statements. 




Deloitte & Associés Ernst & Young Audit 




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FINANCIAL STATEMENTS 07 

CONSOLIDATED FINANCIAL STATEMENTS 

7.2 CONSOLIDATED FINANCIAL STATEMENTS 

The comparative fi gures for 2005 and 2006 are reported after adjustment 

to refl ect changes in accounting methods introduced in the 2007 fi nancial 

statements. 

7.2.1 CONSOLIDATED INCOME STATEMENTS ✦ 


Sales of goods and services 39,190 38,901 38,886 

Sales financing revenues 1,492 1,431 1,360 

Revenues (note 4) 40,682 40,332 40,246 

Cost of goods and services sold (31,408) (31,343) (31,080) 

Cost of sales financing (note 5) (1,121) (985) (926) 

Research and development expenses (note 11-C) (1,850) (1,963) (2,034) 

Selling, general and administrative expenses (4,949) (4,978) (4,883) 

Operating margin (note 6) 1,354 1,063 1,323 

Other operating income and expenses (note 7) (116) (186) 191 

Operating income 1,238 877 1,514 

Net interest income (expense) (101) (110) (95) 

Interest income 274 223 153 

Interest expenses (375) (333) (248) 

Other financial income and expenses, net 177 171 (232) 

Financial expense (note 8) 76 61 (327) 

Share in net income (loss) of associates 1,675 2,277 2,606 

Nissan (note 13) 1,288 1,888 2,284 

Other associates (note 14) 387 389 322 

Pre-tax income 2,989 3,215 3,793 

Current and deferred taxes (note 9) (255) (255) (331) 

Net income 2,734 2,960 3,462 

Net income - minority interests’ share 65 74 86 

Net income - Renault share 2,669 2,886 3,376 

Earnings per share (1) in € (note 10) 10.32 11.23 13.23 

Diluted earnings per share (1) in € (note 10) 

Number of shares outstanding (in thousands) (note 10) 

10.17 11.10 13.12 

for earnings per share 258,621 256,994 255,177 

for diluted earnings per share 262,362 260,090 257,342 

(1) Net income – Renault share divided by number of shares stated. 


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07 CONSOLIDATED 



7.2.2 CONSOLIDATED BALANCE SHEETS 

(€ million) DECEMBER 31, 2007 DECEMBER 31, 2006 DECEMBER 31, 2005 

ASSETS 

Non-current assets 

Intangible assets (note 11) 4,056 3,422 2,972 

Property, plant and equipment (note 12) 13,055 13,166 12,691 

Investments in associates 12,977 12,958 12,372 

Nissan (note 13) 10,966 10,777 10,441 

Other associates (note 14) 2,011 2,181 1,931 

Non-current financial assets (notes 22 and 25) 606 563 577 

Deferred tax assets (note 9) 220 313 355 

Other non-current assets 504 376 358 

TOTAL NON-CURRENT ASSETS 31,418 30,798 29,325 

Current assets 

Inventories (note 15) 5,932 5,309 5,857 

Sales financing receivables (notes 16 and 25) 20,430 20,360 20,700 

Automobile receivables (notes 17 and 25) 2,083 2,102 2,055 

Current financial assets (notes 22 and 25) 1,239 2,229 1,871 

Other current assets (note 18) 2,375 2,043 2,413 

Cash and cash equivalents (note 23) 4,721 6,010 6,151 

TOTAL CURRENT ASSETS 36,780 38,053 39,047 

TOTAL ASSETS 68,198 68,851 68,372 


SHAREHOLDERS’ EQUITY AND LIABILITIES 


Shareholders’ equity 

Share capital 1,086 1,086 1,086 

Share premium 3,453 3,453 3,453 

Treasury shares (499) (373) (456) 

Revaluation of financial instruments 68 105 54 

Translation adjustment (982) (269) 548 

Reserves 15,782 13,700 10,968 

Net income – Renault share 2,669 2,886 3,376 

Shareholders’ equity – Renault share 21,577 20,588 19,029 

Shareholders’ equity – minority interests’ share 492 483 463 

TOTAL SHAREHOLDERS’ EQUITY (note 19) 22,069 21,071 19,492 

Non-current liabilities 

Deferred tax liabilities (note 9) 118 251 231 

Provisions – long-term (note 20) 1,765 1,847 1,884 

Non-current financial liabilities (notes 24 and 25) 5,413 5,430 5,901 

Other non-current liabilities 523 428 516 

TOTAL NON-CURRENT LIABILITIES 7,819 7,956 8,532 

Current liabilities 

Provisions – short-term (note 20) 954 1,053 1,264 

Current financial liabilities (notes 24 and 25) 1,517 3,715 2,547 

Sales financing debts (notes 24 and 25) 21,196 21,212 22,427 

Trade payables (note 25) 8,224 7,384 7,788 

Current tax liability 166 121 215 

Other current liabilities (note 21) 6,253 6,339 6,107 

TOTAL CURRENT LIABILITIES 38,310 39,824 40,348 

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 68,198 68,851 68,372 



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7.2.3 CONSOLIDATED SHAREHOLDERS’ EQUITY 

A – STATEMENT OF INCOME AND EXPENSES FOR THE PERIOD 

All amounts are reported net of taxes. 





Net income for the period 2,734 2,960 3,462 

Actuarial gains and losses on defined-benefit pension plans (1) (60) 21 (95) 

Translation adjustment on foreign activities (1) (2) (738) (835) 796 

Fair value adjustments on cash flow hedging instruments (1) (3) (38) 85 26 

Fair value adjustments on available-for-sale financial assets (1) (3) 1 (34) (70) 

Income and expenses recorded in shareholders’ equity (835) (763) 657 

TOTAL INCOME AND EXPENSES FOR THE PERIOD 1,899 2,197 4,119 

Renault share 1,862 2,141 4,001 

Minority interests’ share 37 56 118 

(1) Associates’ share (€ million). 


Actuarial gains and losses (12) 77 (29) 

Translation adjustments on foreign activities (662) (1,182) 630 

Cash flow hedges (18) 17 (26) 

Available-for-sale financial assets - 5 34 

(2) Including €153 million for the partial hedge of the investment in Nissan in 2007 (€351 million in 2006 and €(10) million in 2005). 

(3) See note 19-F 


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B – STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY 

(€ million) 

NUMBER 

OF SHARES 

(thousand) 

SHARE 

CAPITAL 

SHARE 

PREMIUM 

TREASURY 

SHARES 

REVALUATION 

OF FINANCIAL TRANSLATION 

INSTRUMENTS ADJUSTMENT RESERVES 

NET 

INCOME 

– RENAULT 

SHARE 

SHARE- 

HOLDERS’ 

EQUITY 

(RENAULT 

SHARE) 

SHARE- 

HOLDERS’ 

EQUITY 

(MINORITY 

INTERESTS) 

TOTAL 

SHARE- 

HOLDERS’ 

EQUITY 

BALANCE AT 

DECEMBER 31, 2005 284,937 1,086 3,453 (456) 54 548 10,968 3,376 19,029 463 19,492 

2006 net income 

Income and expenses 

recorded in shareholders’ 

2,886 2,886 74 2,960 

equity 51 (817) 21 (745) (18) (763) 

Total income and 

expenses for the period 

Allocation of 2005 

51 (817) 21 2,886 2,141 56 2,197 

net income 3,376 (3,376) - - 

Dividends 

Cost of stock option 

(617) (617) (18) (635) 

plans 

(Acquisitions)/diposals 

55 55 55 

of treasury shares 

Impact of changes in the 

scope of consolidation 

83 83 83 

and capital increases (1) (103) (103) (18) (121) 

BALANCE AT 

DECEMBER 31, 2006 284,937 1,086 3,453 (373) 105 (269) 13,700 2,886 20,588 483 21,071 

2007 net income 

Income and expenses 

recorded in shareholders’ 

2,669 2,669 65 2,734 

equity (37) (713) (57) (807) (28) (835) 

Total income and 

expenses for the period 

Allocation of 2006 

(37) (713) (57) 2,669 1,862 37 1,899 

net income 2,886 (2,886) - - 

Dividends 

Cost of stock option 

(803) (803) (50) (853) 

plans 

(Acquisitions)/diposals 

66 66 66 

of treasury shares 

Impact of changes in the 

scope of consolidation 

(126) (126) (126) 

and capital increases (1) (10) (10) 22 12 

BALANCE AT 

DECEMBER 31, 2007 284,937 1,086 3,453 (499) 68 (982) 15,782 2,669 21,577 492 22,069 

(1) The impact of changes in the scope of consolidation on the Renault share of shareholders’ equity result from the treatment applied to acquisitions of minority interests and put options for buyouts of minority 

shareholdings in controlled companies (note 2-J) 

Details of changes in consolidated shareholders’ equity in 2007 are given in note 19. 




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7.2.4 CONSOLIDATED STATEMENTS OF CASH FLOWS 





NET INCOME 2,734 2,960 3,462 

Cancellation of unrealised income and expenses: 

Depreciation and amortisation 2,865 2,835 2,705 

Share in net income (loss) of associates (1,675) (2,277) (2,606) 

Dividends received from associates 936 602 516 

Other unrealised income and expenses (note 27-A) (1) (114) (430) 164 

Cash flow 4,746 3,690 4,241 

Financing for final customers (11,114) (12,008) (12,998) 

Customer repayments 11,708 12,300 12,485 

Net change in renewable dealer financing (37) 231 (304) 

Decrease (increase) in sales financing receivables 557 523 (817) 

Bond issuance by the Sales financing division (note 24-A) 2,022 1,875 2,988 

Bond redemption by the Sales financing division (note 24-A) (3,139) (2,966) (2,866) 

Net change in other Sales financing debts 1,265 (792) 1,952 

Net change in other securities and loans of the Sales financing division (359) (58) (39) 

Net change in Sales financing financial assets and debts (211) (1,941) 2,035 

Decrease (increase) in working capital (note 27-B) (1) (347) 314 (374) 

CASH FLOWS FROM OPERATING ACTIVITIES 4,745 2,586 5,085 

Capital expenditure (note 27-C) (4,644) (4,644) (4,018) 

Acquisitions of investments, net of cash acquired (67) (30) (59) 

Disposals of property, plant and equipment and intangibles 1,086 1,152 1,073 

Disposals of investments, net of cash transferred, and other 63 55 100 

Net decrease (increase) in other securities and loans of the Automobile division (2) 615 423 (149) 

CASH FLOWS FROM INVESTING ACTIVITIES (2,947) (3,044) (3,053) 

Transactions with minority shareholders (3) 26 (131) (2) 

Dividends paid to parent company shareholders (note 19-D) (863) (664) (494) 

Dividends paid to minority shareholders (50) (22) (60) 

Purchases/sales of treasury shares (126) 85 56 

Cash flows with shareholders (1,013) (732) (500) 

Bond issuance by the Automobile division (note 24-A) 588 851 245 

Bond redemption by the Automobile division (note 24-A) (451) (928) (388) 

Net increase (decrease) in other financial liabilities of the Automobile division (2,065) 1,069 (867) 

Net change in financial liabilities of the Automobile division (1,928) 992 (1,010) 

CASH FLOWS FROM FINANCING ACTIVITIES (2,941) 260 (1,510) 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,143) (198) 522 

(1) Other unrealised income and expenses include the change in net allocations to long-term and short-term provisions. The short-term portion was previously included in the decrease (increase) in working 

capital requirements (see note 2-A). 

(2) In 2006, this includes a €135 million gain on the sale of Scania shares. 

(3) Via capital increases or capital reductions and acquisitions of additional investments in controlled companies (note 2-J). 


Cash and cash equivalents: opening balance 6,010 6,151 5,521 

Increase (decrease) (1,143) (198) 522 

Effect of changes in exchange rate and other changes (146) 57 108 

Cash and cash equivalents: closing balance 4,721 6,010 6,151 

Details of interest received and paid by the Automobile division are given in note 27-D. 

Current taxes paid by the Group are reported in note 9-A. 


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7.2.5 SEGMENT INFORMATION 

A – INFORMATION BY DIVISION 

A1 – CONSOLIDATED INCOME STATEMENTS BY DIVISION 

(€ million) AUTOMOBILE SALES FINANCING 

INTERDIVISION 

TRANSACTIONS (1) 2007 

CONSOLIDATED TOTAL 

Sales of goods and services 38,679 511 - 39,190 

Sales financing revenues - 1,492 - 1,492 

External sales (note 4) 38,679 2,003 - 40,682 

Interdivision sales (1) (276) 327 (51) - 

Revenues 38,403 2,330 (51) 40,682 

Operating margin 858 472 24 1,354 

Operating income 767 457 14 1,238 

Financial expense 76 

Share in net income (loss) of associates 1,668 7 - 1,675 

Pre-tax income 2,989 

Current and deferred taxes (255) 

Net income 2,734 

2006 





Revenues 38,206 2,193 (67) 40,332 

Operating margin 486 492 85 1,063 

Operating income 303 489 85 877 

Financial expense 61 





2005 





Revenues 38,332 2,148 (234) 40,246 

Operating margin 858 465 - 1,323 

Operating income 1,058 456 - 1,514 

Financial expense (327) 





(1) Interdivision transactions are carried out under near-market conditions. 




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A2 – CONSOLIDATED BALANCE SHEETS BY DIVISION 

DECEMBER 31, 2007 





INTERDIVISION 

TRANSACTIONS (1) CONSOLIDATED TOTAL 


Property, plant and equipment and intangible assets 16,788 343 (20) 17,111 

Investments in associates 12,956 21 - 12,977 

Non-current financial assets – investments in non-controlled entities 

Non-current financial assets – other securities, loans and derivatives on 

2,423 10 (2,395) 38 

financing operations of the Automobile division 585 (17) 568 

Deferred tax assets and other non-current assets 603 111 10 724 

TOTAL NON-CURRENT ASSETS 33,355 485 (2,422) 31,418 


Inventories 5,927 5 - 5,932 

Customer receivables 2,177 21,104 (768) 22,513 

Current financial assets 1,184 608 (553) 1,239 

Other current assets 1,839 2,124 (1,588) 2,375 

Cash and cash equivalents 3,697 1,319 (295) 4,721 

TOTAL CURRENT ASSETS 14,824 25,160 (3,204) 36,780 

TOTAL ASSETS 48,179 25,645 (5,626) 68,198 

SHAREHOLDERS’ EQUITY 21,987 2,385 (2,303) 22,069 


Deferred tax liabilities and long-term provisions 1,582 248 53 1,883 

Non-current financial liabilities 5,141 272 - 5,413 

Other non-current liabilities 459 64 - 523 

TOTAL NON-CURRENT LIABILITIES 7,182 584 53 7,819 


Short-term provisions 902 52 - 954 

Current financial liabilities 2,413 - (896) 1,517 

Trade payables and Sales financing debts 8,347 21,964 (891) 29,420 

Other current liabilities and current tax liability 7,348 660 (1,589) 6,419 

TOTAL CURRENT LIABILITIES 19,010 22,676 (3,376) 38,310 

TOTAL SHAREHOLDERS’EQUITY AND LIABILITIES 48,179 25,645 (5,626) 68,198 



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DECEMBER 31, 2006 


INTERDIVISION 







2,401 2 (2,367) 36 

financing operations of the Automobile division 527 - - 527 

Deferred tax assets and other non-current assets 588 103 (2) 689 



Inventories 5,301 8 - 5,309 


Current financial assets 1,678 1,171 (620) 2,229 




TOTAL ASSETS 48,507 25,573 (5,229) 68,851 








Short-term provisions 994 59 - 1,053 










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INTERDIVISION 







2,107 17 (2,024) 100 

financing operations of the Automobile division 477 - - 477 

Deferred tax assets and other non-current assets 592 91 30 713 



Inventories 5,846 11 - 5,857 


Current financial assets 1,917 590 (636) 1,871 




TOTAL ASSETS 46,812 26,367 (4,807) 68,372 








Short-term provisions 1,191 73 - 1,264 








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A3 – CONSOLIDATED CASH FLOW STATEMENTS BY DIVISION 



INTERDIVISION 


Net income 


2,654 323 (243) 2,734 

Depreciation and amortisation 2,815 87 (37) 2,865 

Share in net income (loss) of associates (1,668) (7) - (1,675) 

Dividends received from associates 936 - - 936 

Other unrealised income and expenses (2) (185) 55 16 (114) 

Cash flow 4,552 458 (264) 4,746 

Decrease (increase) in sales financing receivables - 413 144 557 

Net change in Sales financing financial assets and debts - 13 (224) (211) 

Decrease (increase) in working capital (2) (26) (336) 15 (347) 

CASH FLOWS FROM OPERATING ACTIVITIES 4,526 548 (329) 4,745 

Purchases of intangible assets (1,347) (1) - (1,348) 

Purchases of property, plant and equipment (3) (3,160) (145) 9 (3,296) 

Disposals of property, plant and equipment and intangibles (3) 942 141 3 1,086 

Acquisition of investments, net of disposals and other 

Net decrease (increase) in other securities and loans 

41 (45) - (4) 

of the Automobile division (3) 652 - (37) 615 

CASH FLOWS FROM INVESTING ACTIVITIES (2,872) (50) (25) (2,947) 

Cash flows with shareholders (1,017) (248) 252 (1,013) 

Net change in financial liabilities of the Automobile division (1,765) - (163) (1,928) 

CASH FLOWS FROM FINANCING ACTIVITIES (2,782) (248) 89 (2,941) 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,128) 250 (265) (1,143) 




(3) Including impact of leased vehicles: 

(€ million) Automobile Sales financing Group total 

Purchases of property, plant and equipment (876) (130) (1,006) 

Disposals of property, plant and equipment 767 144 911 




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2006 




INTERDIVISION 


Net income 


2,603 312 45 2,960 

Depreciation and amortisation 2,817 86 (68) 2,835 

Share in net income (loss) of associates (2,272) (5) - (2,277) 

Dividends received from associates 602 - - 602 

Other unrealised income and expenses (2) (487) 32 25 (430) 

Cash flow 3,263 425 2 3,690 

Decrease (increase) in sales financing receivables - 524 (1) 523 

Net change in Sales financing financial assets and debts - (1,935) (6) (1,941) 

Decrease (increase) in working capital (2) 281 70 (37) 314 

CASH FLOWS FROM OPERATING ACTIVITIES 3,544 (916) (42) 2,586 

Purchases of intangible assets (1,129) (3) - (1,132) 


Disposals of property, plant and equipment and intangibles (3) 884 268 - 1,152 



23 2 - 25 

of the Automobile division (4) 421 - 2 423 

CASH FLOWS FROM INVESTING ACTIVITIES (3,141) 74 23 (3,044) 

Cash flows with shareholders (719) (14) 1 (732) 

Net change in financial liabilities of the Automobile division 966 - 26 992 

CASH FLOWS FROM FINANCING ACTIVITIES 247 (14) 27 260 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 650 (856) 8 (198) 








(4) In 2006, this includes a €135 million gain on the sale of Scania shares. 


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2005 

INTERDIVISION 


Net income 


3,329 313 (180) 3,462 

- Depreciation and amortisation 2,658 103 (56) 2,705 

- Share in net income (loss) of associates (2,604) (2) - (2,606) 

- Dividends received from associates 516 - - 516 

- Other unrealised income and expenses (2) (28) 191 1 164 

Cash flow 3,871 605 (235) 4,241 

Decrease (increase) in sales financing receivables - (1,009) 192 (817) 

Net change in Sales financing financial assets and debts - 1,587 448 2,035 

Decrease (increase) in working capital (2) (299) (45) (30) (374) 

CASH FLOWS FROM OPERATING ACTIVITIES 3,572 1,138 375 5,085 

Purchases of intangible assets (876) (4) - (880) 


Disposals of property, plant and equipment and intangibles (3) 900 173 - 1,073 



77 (36) - 41 

of the Automobile division 274 - (423) (149) 

CASH FLOWS FROM INVESTING ACTIVITIES (2,528) (155) (370) (3,053) 

Cash flows with shareholders (500) (180) 180 (500) 

Net change in financial liabilities of the Automobile division (819) - (191) (1,010) 

CASH FLOWS FROM FINANCING ACTIVITIES (1,319) (180) (11) (1,510) 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (275) 803 (6) 522 











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B – INFORMATION BY GEOGRAPHIC AREA 




(€ million) FRANCE EUROPE EUROMED ASIA-AFRICA AMERICA 

CONSOLIDATED 

TOTAL 


Revenues 13,105 17,342 4,310 2,757 3,168 40,682 

Capital expenditure 3,238 598 408 266 134 4,644 

Property, plant and equipment and intangibles 11,363 2,559 1,751 756 682 17,111 

Other operating assets (1) 5,130 3,060 813 577 810 10,390 

2006 

Revenues 13,643 17,950 3,733 2,689 2,317 40,332 




2005 

Revenues 13,753 18,889 3,396 2,130 2,078 40,246 




(1) Other operating assets include inventories, Automobile receivables and other current assets. 

Consolidated revenues are presented by location of customers. 

Property, plant and equipment and intangibles, capital expenditure and other 

operating assets are presented by location of subsidiaries and joint-ventures. 


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7.2.6 N OTES TO THE CONSOLIDATED FINANCIAL STATEMENT 


7.2.6.1 ACCOUNTING POLICIES AND SCOPE OF CONSOLIDATION 195 

note 1 – Approval of the financial statements 195 

note 2 – Accounting policies 195 

note 3 – Changes in the scope of consolidation 201 

7.2.6.2 INCOME STATEMENT 202 

note 4 – Revenues 202 

note 5 – Cost of sales financing 202 

note 6 – Operating margin: details of income and expenses by nature 202 

note 7 – Other operating income and expenses 203 

note 8 – Financial expense 203 

note 9 – Current and deferred taxes 203 

note 10 – Basic and diluted earnings per share 204 

7.2.6.3 OPERATING ASSETS AND LIABILITIES, SHAREHOLDERS’ EQUITY 204 

note 11 – Intangible assets 204 

note 12 – Property, plant and equipment 205 

note 13 – Investment in Nissan 207 

note 14 – Investments in other associates 210 

note 15 – Inventories 211 

note 16 – Sales financing receivables 211 

note 17 – Automobile receivables 212 

note 18 – Other current assets 212 

note 19 – Shareholders’ equity 212 

note 20 – Provisions 215 

note 21 – Other current liabilities 218 

7.2.6.4 FINANCIAL ASSETS AND LIABILITIES 218 

note 22 – Financial assets 218 

note 23 – Cash and cash equivalents 219 

note 24 – Financial liabilities and sales financing debts 220 

note 25 – Fair value of financial instruments and impact on net income 224 

note 26 – Derivatives and management of financial risks 226 

7.2.6.5 CASH FLOWS AND OTHER INFORMATION 230 

note 27 – Cash flows 230 

note 28 – Related parties 231 

note 29 – Off-balance sheet commitments and contingent liabilities 231 

note 30 – Subsequent events 232 

note 31 – Consolidated companies 233 



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7.2.6.1 ACCOUNTING POLICIES AND SCOPE 

OF CONSOLIDATION 

1 – APPROVAL OF THE FINANCIAL STATEMENTS 

The Renault group’s consolidated fi nancial statements for 2007 were fi nalised 

at the Board of Directors’ meeting of February 12, 2008 and will be submitted 

for approval by the shareholders at the General Shareholders’ Meeting to be 

held on April 29, 2008. 

2 – ACCOUNTING POLICIES 

In application of regulation 1606/2002 passed on July 19, 2002 by the 

European Parliament and the Council of Europe, Renault’s consolidated fi nancial 

statements for 2007 are prepared under IFRS (International Financial Reporting 

Standards) as issued by the lASB (International Accounting Standards Board) at 

December 31, 2007 and adopted by the European Union at the year-end. 

A – Changes in accounting policies 

The following standards and interpretations which became mandatory from 

January 1, 2007 and were published in the Offi cial Journal of the European 

Union at December 31, 2007, have been applied for the fi rst time in 2007: 

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IFRS 7, “Financial Instruments: Disclosures”. 

In application of this standard, the Group includes the required disclosures in 

the notes to the fi nancial statements. The classifi cation and valuation of the 

Group’s fi nancial instruments are unaffected by application of IFRS 7; 

Amendment to IAS 1 concerning capital disclosures. 

For application of the amendment to IAS 1, the Group describes its capital 

management policy (note 19-B); 

IFRIC 7, “Applying the Restatement Approach under IAS 29 Financial 

Reporting in Hyperinfl ationary Economies”; 

IFRIC 8, “Scope of IFRS 2 – Share-based payment”; 

IFRIC 9, “Reassessment of Embedded Derivatives”. 

Application of these interpretations has no impact on the fi nancial statements 

at December 31, 2007. 

The Group undertakes no early application of any standard or interpretation, 

including the following, which were already released at December 31, 2007: 

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IFRIC 11 “intra-group and Treasury Share Transactions”, mandatory for 

fi nancial years beginning on or after March 1, 2007; 

IFRS 8 “Operating segments”, which replaces IAS 14 “Segment Reporting”, 

mandatory for fi nancial years beginning on or after January 1, 2009. 

The Group does not currently expect adoption of these new standards and 

interpretations to have any signifi cant impact on the fi nancial statements. 




The Group has also introduced several new accounting policies in 2007, with 

the effects described below. 

The Renault Group opted in 2007 to recognise actuarial gains and losses in 

equity as allowed by the amendment to IAS 19. This change of policy has a 

negative impact on equity of €196 million at December 31, 2007 (€127 million 

at December 31, 2006 and €166 million at December 31, 2005). 

The Group has also reviewed its accounting treatment of certain components 

of revenues in order to provide a more fair refl ection of its transactions: 

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sales of raw materials, parts and engines to subcontractors are now 

considered as a consignment of inventories at subcontractors’ premises, 

and are no longer included in sales. The inventories concerned remain in 

Group assets until the vehicle is sold to the fi nal customer. This change 

in presentation results in a €638 million reduction in revenues for 2007 

(€498 million for 2006 and €449 million for 2005). There is no impact on 

operating margin; 

sales of spare parts to dealers to be reinvoiced to the Group through warranty 

costs are no longer included in sales, but deducted from the cost of sales. 

This change in presentation results in a €529 million reduction in revenues 

for 2007 (€658 million for 2006 and €608 million for 2005). There is no 

impact on operating margin; 

the cost of promotional campaigns offering reduced-interest loans to endusers, 

previously included in selling, general and administrative expenses, 

is now charged to sales revenues. This change in presentation results in 

a €30 million reduction in revenues for 2007 (€40 million for 2006 and 

€35 million for 2005). There is no impact on operating margin. 

In order to clarify certain indicators in the statements of cash fl ows, net 

allocations to short-term provisions in those statements are now included with 

net allocations to long-term provisions in other unrealised income and expenses. 

This change in presentation has a negative impact of €401 million on cash fl ow 

for 2007 (€623 million for 2006 and €229 million for 2005). Cash fl ows from 

operating activities were unaffected given that this reclassifi cation is refl ected 

in the change in working capital. 

B – Estimates and judgments 

In preparing its fi nancial statements, Renault has to make estimates and 

assumptions that affect the book value of certain assets and liabilities, 

income and expense items, and the information disclosed in certain notes. 

Renault regularly revises its estimates and assessments to take account of 

past experience and other factors deemed relevant in view of the economic 

circumstances. If changes in these assumptions or circumstances are not 

as anticipated, the fi gures reported in Renault’s future fi nancial statements 

could differ from current estimates. The recoverable value of fi xed assets and 

sales fi nancing receivables, deferred taxes and provisions, particularly vehicle 

warranty provisions (note 2-G) and provisions for pension and other long-term 

employee benefi t obligations (note 20-C), are the principal items that depend 

on estimates and assumptions 

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C – Consolidation principles 

The consolidated financial statements include the financial statements 

of all companies controlled exclusively, directly or indirectly, by the Group 

(“subsidiaries”). Jointly controlled companies (“joint-ventures”) are proportionately 

consolidated. Companies in which the Group exercises signifi cant infl uence 

(“associates”) are included in the fi nancial statements on an equity basis. 

Significant intercompany transactions and unrealised internal profits are 

eliminated. 

Non-consolidated companies which fulfi l these criteria are recorded as other 

non-current assets. 

None of these companies’ individual contributions to consolidated fi gures 

exceeds the following: 

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revenues: €20 million; 

inventories: €20 million. 

Their consolidation would have a negligible impact on the consolidated fi nancial 

statements, since they are Group-fi nanced entities whose losses, if any, are 

recognised via impairment losses, and which: 

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acquire almost all their purchases from Group companies, most of these 

companies being dealership-type establishments; or 

carry out almost all their sales transactions with Group companies, the 

principal company concerned being Renault Sport. 

D – Presentation of the financial statements 

Operating income and operating margin 

Operating income includes all revenues and costs directly related to the 

Group’s activities, whether recurrent or resulting from non-recurring decisions 

or operations, such as restructuring costs. 

The operating margin corresponds to the operating income before other 

operating income and expenses, which cover: 

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restructuring costs and costs relating to workforce adjustment; 

gains or losses on disposal of businesses or operating entities; 

gains or losses on disposal of property, plant and equipment or intangible 

assets (except vehicle sales); 

unusual items, i.e. income and charges that are unusual in their frequency, 

nature or amount 

Primary segment reporting 

Primary segment information is disclosed for the following divisions: 

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the Automobile division, comprising the production, sales, and distribution 

subsidiaries for passenger and light commercial vehicles, automobile service 

subsidiaries, and the subsidiaries in charge of cash management for these 

companies; 

the Sales fi nancing division, which the Group considers as an operating 

activity, carried out by RCI Banque and its subsidiaries for the distribution 

network and fi nal customers. 

Each of these two divisions forms a coherent unit with its own specifi c risks 

and returns. 

Apart from taxes, income and expenses relating to sales fi nancing are recorded 

as operating items. The tax effect inherent to the French consolidated taxation 

system is included in the tax expense of the Automobile division. 

Assets and liabilities are specifi c to each division. Receivables assigned 

by the Automobile division to the sales fi nancing companies are treated as 

operating assets by the assignee when the risks and benefi ts are substantially 

transferred. 

Vehicles for which the Automobile division has a repurchase commitment are 

included in the division’s assets. When these vehicles are fi nanced by the Sales 

fi nancing division, the Sales fi nancing division recognises a receivable on the 

Automobile division. 

Secondary segment reporting 

Secondary segment information is disclosed by geographic area, as defi ned in 

the Renault Commitment 2009 growth plan. 

Current and non-current assets and liabilities 

Sales fi nancing receivables, other securities, derivatives, loans and fi nancial 

liabilities of the Sales fi nancing division (other than redeemable shares and 

subordinated loans) are considered as current assets and liabilities, as they 

are used in the division’s normal business cycle. 

For the Automobile division, in addition to items directly related to the business 

cycle, all assets and liabilities maturing within one year are classifi ed as 

current. 

E – Translation of the financial statements 

of foreign companies 

The Group’s presentation currency is the e uro. 

For foreign companies, the functional currency is generally the local currency. 

In cases where most transactions are carried out in a different currency, that 

currency is adopted as the functional currency. 

To determine whether a country is in hyperinfl ation, the Group refers to the 

list published by the AICPA (American Institute of Certifi ed Public Accountants) 

Task Force. In 2007, this list included none of the countries where Renault has 

signifi cant business activity. 

Foreign companies’ accounts are established in their functional currency, and 

subsequently translated into the Group’s presentation currency as follows: 

balance sheet items other than components of shareholders’ equity, which are 

stated at historical value, are translated at the closing rate of exchange; 

income statement items are translated at the average exchange rate for 

the period; 

the translation adjustment is included in consolidated shareholders’ equity 

and has no impact on net income. 

Goodwill and valuation adjustments generated by a business combination with 

a foreign company are treated as an asset or liability of the entity acquired, 

as appropriate. 

When a foreign company is sold, the translation adjustments recorded 

in shareholder’s equity in respect of its assets and liabilities are taken to 

income. 



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F – Translation of foreign currency transactions 

Transactions undertaken in a currency other than the functional currency of 

the entity concerned are initially translated to and recorded in the functional 

currency, using the rate applicable at the transaction date. 

For fi nancial reporting purposes, monetary items in currencies other than 

the functional currency are translated at the closing rate. All resulting foreign 

exchange differences are recognised in the income statement, except for foreign 

exchange gains and losses on debts, receivables, and fi nancial instruments 

designated as hedges of the net investment in a foreign entity (note 2-V). 

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translation adjustments related to fi nancial operations by the Automobile 

division are included in the net fi nancial income; 

other translation adjustments are included in the operating margin. 

Derivatives are measured and recorded as described in note 2-V. 

G – Revenues and margin 

Revenues comprise all proceeds from sales of the Group’s automobile products, 

services related to these sales, and the various sales fi nancing products 

marketed by the Group’s companies to their customers. 

Sales of goods and services and margin recognition 

Sales and margin recognition 

Sales of goods are recognised when vehicles are made available to the 

distribution network in the case of non-Group dealers, or upon delivery to 

the end-user in the case of direct sales. The margin on sales is recognised 

immediately for normal sales by the Automobile division, including sales with 

associated fi nancing contracts that can be considered as fi nance leases (longterm 

or with a purchase option). However, no sale is recognised when the vehicle 

is covered by an operating lease from a Group fi nance company or the Group 

has made a buy-back commitment, when the term of the contract covers an 

insuffi cient portion of the vehicle’s useful life. 

In such cases, the transactions are recorded as operating leases and included 

in sales of services. The difference between the price paid by the customer and 

the buy-back price is treated as rental income, and spread over the period the 

vehicle is at the customer’s disposal. The production cost for the new vehicle 

concerned is recorded in inventories for contracts of less than one year, or 

included in property, plant and equipment under vehicles leased to customers 

when the contracts exceed one year. The sale of the vehicle as second-hand at 

the end of the lease gives rise to recognition of sales revenue and the related 

margin. As soon as a loss is expected on the resale, a provision (if the vehicle 

is in inventories) or additional depreciation (if the vehicle is included in property, 

plant and equipment) is recognised to cover the loss. 

Sales incentive programmes 

When based on the volume or price of the products sold, the cost of these 

programmes is deducted from revenues when the corresponding sales are 

recorded. Otherwise, the cost is included in selling, general and administrative 

expenses. If programmes are approved after the sales, a provision is established 

when the decision is made. 

The Group sometimes organises promotional campaigns offering reducedinterest 

loans to end-users. The cost of these operations is deducted from 





sales. This expense is recognised immediately when the rates offered cannot 

cover refi nancing and administration costs, and spread over the duration of 

the loan otherwise. 

Warranty 

The estimated or incurred costs relating to product or part warranties not 

covered by insurance are charged to expenses when the sales are recorded. 

In the event of product recalls relating to incidents that come to light after the 

vehicle has been put on the market, provisions are established to cover the 

costs involved as soon as the decision to undertake the recall campaign has 

been made. Amounts claimed from suppliers are deducted from the warranty 

expense when it is considered practically certain they will be recovered. 

Services related to sales of automobile products 

Renault offers its customers extended warranty and maintenance contracts, 

the income and margin on which are recognised over the period covered by 

the contract. 

Sales financing revenues and margin recognition 

Sales financing revenues 

Sales fi nancing revenues are generated by fi nancing operations for sales of 

vehicles to dealers and end-users. These fi nancing operations take the form 

of loans from the Sales fi nancing division companies, and are carried in the 

balance sheet at amortised cost under the effective tax rate method, less any 

impairment. Income on these contracts is calculated so as to give a constant 

interest rate over the period, and is included in sales revenues. 

Sales financing costs 

The costs of sales fi nancing are considered as operating expenses and included 

in the operating margin. They mainly comprise interest incurred by sales 

fi nancing companies to refi nance their customer transactions, other costs and 

revenues directly related to administration of this type of refi nancing (temporary 

investments, hedging and management of exchange and interest rate risks), and 

the cost of risks other than those relating to refi nancing of receivables. 

Commissions payable to business intermediaries 

Commissions are treated as external distribution costs, and therefore deferred 

as contract acquisition costs, so as to give a constant interest rate over the 

term of the fi nancing contracts. 

Impaired receivables 

Impairment for credit risk is recognised to cover the risk of non-recovery of 

receivables. When there is objective evidence of a loss of value (payments 

overdue, deterioration in the fi nancial position, litigation procedures, etc) for an 

individual receivable, impairment is determined on an individual basis (using a 

statistical or case-by-case approach). Otherwise, a collectively-based provision 

may be recorded (for example in the event of unfavourable developments in a 

macro-economic and/or segment indicator associated with otherwise sound 

receivables). 

Impairment for country risk is determined based on assessment of the transfer 

risk (related to the future solvency of each country in the base affected by 

the impairment) or the systemic credit risk to which debtors are exposed (in 

the event of long-term continuous deterioration in the economic and general 

environment of the countries included in the base). 

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H – Financial income (expense) 

Interest income and expenses are recognised under the effective interest rate 

method, whereby interest and transaction costs are spread on an actuarial 

basis over the duration of the loan or borrowing. 

Interest income and expenses include accrued interest on interest rate 

derivatives used in fair value and cash fl ow hedging (when this income or 

expense is transferred from equity). Changes in the fair value of interest rate 

derivatives, excluding accrued interest, are included in other fi nancial income 

and expenses. 

Other fi nancial income and expenses also include changes in the fair value of 

redeemable shares. 

I – Income tax 

The Group recognises deferred taxes for all temporary differences between the 

tax and book values of assets and liabilities in the consolidated balance sheet. 

Using the liability method, deferred taxes are calculated at the latest tax rate 

enacted at the closing date applicable to the period when temporary differences 

are reversed. Each individual fi scal entity (legal entity, establishment or group 

of entities that pays tax to the tax administration) that is authorised to offset its 

current tax assets and liabilities reports deferred tax assets and liabilities net. 

Valuation allowances are established for deferred tax assets according to the 

probability of future recovery. 

For fully consolidated companies, a deferred tax liability is recorded in respect 

of dividend distributions likely to be made by the Group. 

For joint-ventures and associates, a deferred tax liability on dividend distributions 

is booked for all differences between the book value and fi scal value of shares 

held. 

Tax credits that can only be used against a taxable profi t are recorded as 

a deduction from the income tax payable. Tax credits that are recoverable 

regardless of whether the company makes a taxable profi t are set against the 

relevant nature of expense. 

J – Intangible assets 

Goodwill 

Goodwill recorded upon acquisitions of investments in subsidiaries, jointventures 

or associates corresponds to the difference at acquisition date between 

the purchase price of the shares (including acquisition expenses) and the share 

in the fair value of assets and liabilities acquired. 

Goodwill is not amortised, but impairment tests are carried out at least annually 

or whenever there is evidence of loss of value. After initial recognition, goodwill is 

stated at cost less accumulated impairment. Any impairment losses on goodwill 

are included in the operating margin. 

Goodwill relating to associates is included in the balance sheet line “investments 

in associates”. In the event of impairment, an impairment loss is booked and 

included in the consolidated income statement via the share in net income 

(loss) of associates. 

Acquisitions of additional investments in controlled companies and put options 

to buy out minority interests are treated as equity transactions. The positive or 

negative difference between the cost of acquiring shares (including acquisition 


expenses) and the book value of the minority interests acquired is recorded in 

shareholders’ equity. The minority interests concerned by the put options are 

stated at present value and reclassifi ed as liabilities in the balance sheet. 

Research and development expenses 

Development expenses incurred between the approval of the decision to 

begin development and implement production facilities for a new vehicle or 

part (e.g. engine or gearbox) and the subsequent approval of the design for 

mass production are capitalised as intangible assets. They are amortised on a 

straight-line basis from the date of approval for production, over the expected 

market life of the vehicle or part, up to a maximum period of seven years. 

Capitalised development expenses mainly comprise the cost of prototypes, the 

cost of studies invoiced by external fi rms, and a share of overheads dedicated 

exclusively to development activities. 

Expenses incurred before the formal approval of product development are 

recorded as costs in the period they are incurred, in the same way as research 

expenses. Expenses incurred after the start of mass production are treated as 

production costs. 

K – Property, plant and equipment 

The gross value of property, plant and equipment corresponds to historical 

acquisition or production cost. 

Design and preparation expenses are included in the asset’s production cost. 

Borrowing costs borne during the fi nal preparation of the assets for use are 

charged to expenses for the period they are incurred, and are not included in 

the value of the asset. 

Investment subsidies received are deducted from the gross value of the assets 

concerned. 

Subsequent expenses for property, plant and equipment, except those incurred 

to increase productivity or prolong the life of an asset, are charged to expenses 

as incurred. 

Assets used by the Group under fi nance leases are treated as assets fi nanced 

by credit. 

Vehicles leased to customers are vehicles under lease from a Group fi nance 

company, for which the Group has a repurchase commitment, or vehicles sold 

under an agreement including a buy-back clause covering more than one 

year (note 2-G). 

Depreciation 

Depreciation is calculated on a straight-line basis over the following estimated 

useful lives: 

Buildings (1) 15 to 30 years 

Specific tools 2 to 7 years 

Machinery and other tools (other than press lines) 5 to 15 years 

Press lines 20 to 30 years 

Other tangible assets 4 to 6 years 

(1) Buildings in use before 1987 are depreciated over a period of up to 40 years. 



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Useful lives are regularly reviewed, and accelerated depreciation is recorded 

when an asset’s useful life becomes shorter than the initially expected period 

of use, particularly when it is decided to withdraw a vehicle or part from the 

market. 

L – Impairment of assets 

Signifi cant unfavourable developments on the markets in which Renault operates, 

or signifi cant changes that adversely affect the circumstances and manner of 

use of an asset, are the principal indications that an asset is impaired. 

The recoverable value of assets is assessed at the level of each division. For 

the Automobile division, the return on assets is measured taking all European 

countries together, since the industrial plant and the product range throughout 

Europe form one coherent unit. The return on industrial assets outside Europe is 

measured for each coherent sub-unit that produces independent cash fl ows. 

The recoverable value is the higher of an asset’s value in use and its net fair 

value. Value in use is determined based on the discounted value of future cash 

fl ows expected from use of the assets. These future cash fl ows are derived 

from the business plan established and validated by Management, founded 

on assumptions including the estimated shares of markets in which the Group 

operates, and developments in product sale prices and the cost of purchased 

components and raw materials. The pre-tax discount rate used is the average 

weighted cost of capital as determined by Renault. For the year reported here 

(2007) and the areas covered it is 10.1%, plus a risk premium for zones 

outside Europe. 

When recoverable value is lower than net book value, impairment equivalent to 

the difference is recorded against the assets concerned and in the operating 

margin. 

M – Non-current assets or groups of assets held for sale 

Assets held for sale are non-current assets or groups of assets that are available 

for sale (and do not require signifi cant work to prepare them for sale) and very 

likely to be sold. 

Non-current assets or groups of assets considered to be held for sale are 

measured and recorded at the lower of net book value or fair value less selling 

costs. No further depreciation or amortisation is recorded once an asset is 

classifi ed as held for sale (or included in a group of assets held for sale). These 

assets are reported on a specifi c line of the balance sheet. 

N – Inventories 

Inventories are stated at the lower of cost or net realisable value. Cost 

corresponds to acquisition cost or production cost, which includes direct and 

indirect production expenses and a share of manufacturing overheads based 

on a normal level of activity. Inventories are valued under the FIFO (First In 

First Out) method. 

When the net realisable value is lower than the value under the FIFO method, 

impairment equal to the difference is recorded. 

O – Assignment of receivables 

Receivables assigned to third parties (through securitisation or discounting) are 

removed from Group assets when the associated risks and benefi ts are also 

substantially transferred to the third parties in question. 




The same treatment applies to assignments between the Automobile and Sales 

fi nancing divisions. The resulting receivables and liabilities are recorded as 

operating items. 

P – Treasury shares 

Treasury shares, including those held for the purposes of stock option plans 

awarded to Group managers and executives, are recorded at acquisition cost 

and deducted from Group shareholders’ equity until the date of sale. 

T he sale price is directly included in consolidated shareholders’ equity, and 

transferred to cash and cash equivalents once payment has been received. 

Consequently, no gain or loss on treasury shares is included in the net income 

for the period. 

Q – Stock option plans/Free share attribution plans 

The Group awards stock option plans (purchase and subscription options) and 

share attribution plans, all for Renault shares. The grant date is the date at 

which benefi ciaries are informed of the decision to grant these options or 

shares, and the terms of the relevant plans. For plans subject to performance 

conditions, an estimate of achievement of those conditions is taken into account 

in determining the number of options or free shares attributed. This estimate is 

reviewed annually based on changes in the probability of performance condition 

achievement. The fi nal fair value of services rendered in return for attribution 

of options or free shares is measured by reference to the fair value of those 

options or shares at their grant date, using a binomial mathematical model. 

Entitlements to attribution of free shares are valued based on the share value 

at grant date less dividends expected during the vesting period. 

The fair value is spread on a straight-line basis over the vesting period for the 

relevant plan. The cost is included in personnel expenses, with a corresponding 

adjustment to consolidated reserves. When the option is exercised, the cash 

amount received by the Group in settlement of the exercise price is booked in 

cash and cash equivalents, with a corresponding adjustment to consolidated 

reserves. 

In compliance with IFRS 2’s transitional measures, only plans beginning after 

November 7, 2002 concerning options unvested at January 1, 2005 have been 

valued and recorded as described above. 

R – Provisions 


Pensions and other long-term employee benefit obligations 

The Group’s payments for defi ned-contribution benefi t plans are recorded as 

expenses for the relevant period. 

For defi ned-benefi t plans concerning post-employment benefi ts, the Group 

uses the Projected Unit Credit Method to determine the present value of its 

obligations. Under this method, benefi ts are attributed to periods of service 

according to the plan’s benefi t formula. However, if an employee’s service in 

later years will earn a materially higher level of benefi t than in earlier years, 

benefi ts are attributed to periods of service on a straight-line basis. 

The future payments for employee benefi ts are measured on the basis of future 

salary increases, retirement age, mortality and length of employment with the 

company, and are discounted at a rate determined by reference to yields on 

long-term high quality corporate bonds of a duration corresponding to the 

estimated duration of the benefi t plan concerned. 

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The unrecognised actuarial gains and losses resulting from revisions of the 

underlying assumptions are included in equity, as allowed under the option 

contained in the amendment to IAS 19 (see note 2-A). 

The net expense for the year, corresponding to the sum of the current period 

service costs, the discount cost less the expected return on fund assets and 

a portion of deferred past service costs, is charged in full to the operating 

margin. 

Restructuring measures/Termination benefits 

The estimated cost of restructuring and the cost of workforce adjustment 

measures is recognised as soon as a detailed plan has been defi ned and is 

either announced or in progress. 

S – Financial assets 

The Group recognises a financial asset when it becomes a party to the 

contractual provisions of the instrument. 

Financial assets comprise investments in non-controlled companies in which 

Renault does not exercise signifi cant infl uence, securities, loans, and derivative 

assets related to fi nancial transactions (note 2-V). 

These instruments are presented as non-current assets, apart from those 

maturing within 12 months of the closing date, which are classifi ed as current 

assets or cash equivalents as appropriate. 

Securities: investments in non-controlled companies in which Renault 

does not have significant influence 

Dividends from such companies are recorded in the year of distribution. 

These investments are considered to be “available for sale”, and are accordingly 

stated at their fair value at the fi nancial reporting date, with any changes in 

fair value included directly in consolidated reserves. The amounts recorded in 

consolidated reserves are transferred to the income statement upon disposal 

of the investment. 

Impairment is calculated and recognised in the income statement when there is 

objective evidence that these investments are impaired. One indicator providing 

objective evidence of impairment is a signifi cant or prolonged fall in the fair 

value of investments below their acquisition cost. 

The fair values of such investments are determined by reference to the market 

price when possible. 

Securities that do not represent a share in another entity’s capital 

These securities are short-term investments undertaken as part of the Group’s 

cash surplus management policy, and are initially stated at fair value. 

The valuation methods and subsequent accounting treatment vary according 

to whether such securities are considered “available for sale” or designated 

from the outset as “assets stated at fair value through profi t or loss”. The 

relevant category is determined on a case-by-case basis and depends on the 

underlying management strategy. Securities intended for sale in the short term 

are classifi ed as “assets stated at fair value through profi t or loss”; all other 

securities are classifi ed as “available for sale”. 

Securities intended for sale in the short term are stated at fair value at the 

reporting date, with changes in fair value taken to income. 


Available-for-sale securities are stated at fair value at the reporting date, and 

changes in this fair value are recorded directly in equity. The amounts included 

in equity are taken to income upon derecognition of the asset. Impairment 

losses are recorded in the income statement when there is objective evidence 

of signifi cant long-term depreciation in value. 

Fair values of securities are mainly determined by reference to the market 

price. 

Loans 

Loans include interbank loans for investment of cash surpluses and loans to 

non-controlled companies in which Renault holds investments. 

Loans are initially recognised at fair value, plus directly attributable transaction 

costs. 

At each closing date, loans are valued at amortised cost. Impairment is recognised 

in the income statement when there is objective evidence of depreciation in 

value caused by an event that occurred after the initial recognition of the 

asset. 

T – Cash and cash equivalents 

Cash includes cash on hand and bank deposits, with the exception of bank 

overdrafts, which are included in fi nancial liabilities. 

Cash equivalents are investments held for the purpose of meeting short-term 

cash commitments. For an investment to qualify as a cash equivalent, it must be 

readily convertible for a known amount of cash and be subject to an insignifi cant 

risk of change in value. 

U – Financial liabilities and sales financing debts 

The Group recognises a fi nancial liability (for the Automobile division) or a 

sales fi nancing debt when it becomes a party to the contractual provisions of 

the instrument. 

Financial liabilities and sales fi nancing debts comprise redeemable shares, 

bonds, other interest-bearing borrowings and derivative liabilities related to 

fi nancial transactions (note 2-V). 

Redeemable shares 

In accordance with IAS 39, the Group considers that the variable interest 

on redeemable shares is an embedded derivative which cannot be valued 

separately. Consequently, the Group has stated all its redeemable shares at 

fair value. For these shares, fair value is equal to market value. Changes in fair 

value are recorded in fi nancial income and expenses. 

Bonds and other interest-bearing borrowings 

Bonds and other interest-bearing borrowings are initially recorded at fair value, 

less any directly attributable transaction costs. 

At each reporting date, apart from specifi c hedge accounting methods (note 2-V), 

these fi nancial liabilities are restated at amortised cost using the effective 

interest rate method. The fi nancial expense calculated in this way includes 

issuance expenses and issuance or redemption premiums, together with the 

impact of debt renegotiations when the old and new terms are not substantially 

different. 



01 

02 

03 

04 

05 

06 

07 

08

Renegotiations of the terms of borrowings and similar operations are recorded 

as an extinction of the former liability with recognition of a new liability only if 

there are substantial differences between the old and new terms. When this is 

the case, the costs borne for renegotiation are included in the fi nancial expenses 

for the period during which the negotiation takes place. 

V – Derivatives and hedge accounting 

Measurement and presentation 

Derivatives are initially recognised at fair value. This fair value is subsequently 

reviewed at each closing date. 

n 

n 

n 

The fair value of forward exchange contracts is based on market conditions. 

The fair value of currency swaps is determined by discounting future cash 

fl ows, using closing-date market rates (exchange and interest rates); 

The fair value of interest rate derivatives is the amount the Group would 

receive (or pay) to settle outstanding contracts at the closing date, taking into 

account any unrealised gains or losses based on current interest rates and 

the quality of the counterparty to each contract at the closing date. 

This fair value includes accrued interest; 

The fair value of commodity derivatives is based on market conditions. 

The Automobile division’s derivatives are reported in the balance sheet as 

current if they mature within 12 months and non-current otherwise. All Sales 

fi nancing division derivatives are reported in the balance sheet as current. 

Hedge accounting 

The treatment of derivatives designated as hedging instruments depends on 

the type of hedging relationship: 

n 

n 

n 

fair value hedge; 

cash fl ow hedge; 

hedge of a net investment in a foreign operation. 

The Group identifi es the hedging instrument and the hedged item as soon 

as the hedge is set up, and documents the hedging relationship, stating the 

hedging strategy, the risk hedged and the method used to assess the hedge’s 

effectiveness. This documentation is subsequently updated, such that the 

effectiveness of the designated hedge can be demonstrated. 

Hedge accounting uses specifi c measurement and recognition methods for 

each category of hedge. 

n 

n 

Fair value hedges: the hedged item is adjusted to fair value in view of the risk 

hedged and the hedging instrument is recorded at fair value. As changes in 

these items are recorded in the income statement simultaneously, only the 

ineffective portion of the hedge has an impact on net income. It is recorded in 

the same income statement item as changes in the fair value of the hedged 

item and the hedging instrument. 

Cash fl ow hedges: no adjustment is made to the value of the hedged 

item; only the hedging instrument is adjusted to fair value. Following this 

adjustment, the effective portion of the change in fair value attributable to the 

hedged risk is recorded, net of taxes, in equity, while the ineffective portion 

is included in the income statement. The cumulative amount included in 


n 



equity is transferred to the income statement when the hedged item has an 

impact on net income. 

Hedge of a net investment in a foreign operation: the hedging instrument is 

adjusted to fair value. Following this adjustment, the effective portion of the 

change in fair value attributable to the hedged exchange risk is recorded, 

net of taxes, in equity, while the ineffective portion is included in the income 

statement. The cumulative amount included in equity is transferred to 

the income statement at the date of liquidation or sale of the investment. 

The interest rate component of fi nancial instruments used to hedge the 

investment in Nissan (forward sales and fi xed/fi xed c ross c urrency s waps) 

is treated as an ineffective portion and consequently recorded directly in 

fi nancial income and expenses. 

Derivatives not designated as hedges 

Changes in the fair value of derivatives not designated as hedges are recognised 

directly in fi nancial income, except in the case of derivatives entered into 

exclusively for reasons closely related to business operations. In this case, 

changes in the fair value of derivatives are included in the operating margin. 

3 – CHANGES IN THE SCOPE OF CONSOLIDATION 

AUTOMOBILE 

SALES 

FINANCING TOTAL 

Number of companies consolidated 

at December 31, 2005 

Newly consolidated companies 

122 48 170 

(acquisitions, formations, etc) 

Deconsolidated companies (disposals, 

35 2 37 

mergers, liquidations, etc) (4) (1) (5) 


at December 31, 2006 

Newly consolidated companies 

153 49 202 

(acquisitions, formations, etc) 

Deconsolidated companies (disposals, 

3 1 4 

mergers, liquidations, etc) (7) (8) (15) 


at December 31, 2007 149 42 191 

The main newly consolidated entities are the following. 



Somaca (Société marocaine de construction) was fi rst consolidated at January 1, 

2007 after Renault brought its investment in the company to 80% through 

successive acquisitions of shares. 

Under an agreement with the Japanese group NTN, Renault sold 35% of the 

capital of SNR on March 31, 2007. In application of this agreement, Renault 

has deconsolidated its investment in SNR. 

In July 2007, the Group raised its interest in Renault Financial Services Ltd. 

(RFS) from 50% to 100% and now fully consolidates the investment (which was 

proportionately consolidated up to the date of the transaction). This generated 

goodwill of €32 million. 

01 

02 

03 

04 

05 

06 

07 

08 





2006 

Renault Pars (Iran) has been consolidated since January 1, 2006. This company 

is 51% owned by Renault and 49% owned by the Iranian company AID co, 

an entity set up by IDRO (Industrial Development & Renovation Organization, 

a state-owned Iranian body in charge of the automotive industry) and Iran’s 

two leading automakers, Iran Khodro and SAIPA. Renault Pars holds the 

Logan license, and is responsible for engineering, purchasing and logistics, 

coordination of sales policy, marketing and after-sales services. Iran Khodro 

and SAIPA will manufacture and sell the Logan. 

At January 1, 2006, 24 dealers in Europe (located in Belgium, the Czech 

republic, Luxembourg, Poland, Portugal, and Switzerland) were also consolidated 

for the fi rst time. 

Minority interests in the holding company COFAL were acquired at the end 

of 2006. The main effect of this operation was to bring Renault’s percentage 

ownership of Renault do Brasil and Renault Argentina to 100%. 

7.2.6.2 INCOME STATEMENT 

4 – REVENUES 

A – 2006 Revenues applying 2007 Group structure 

and methods 

(€ million) AUTOMOBILE 

SALES 

FINANCING TOTAL 

2006 revenues as published 39,605 1,923 41,528 

Changes of method (1) (1,196) - (1,196) 

Changes in scope of consolidation (351) (12) (363) 

2006 revenues applying 2007 

Group structure and methods 38,058 1,911 39,969 

2007 REVENUES 38,679 2,003 40,682 

(1) Changes of accounting method concern transactions related to subcontracting agreements, 

sales of spare parts in connection with customer warranties and the cost of promotional 

campaigns offering reduced-interest loans. A more detailed description of these changes is 

contained in note 2-A. 

B – Breakdown of revenues 


Sales of goods 37,104 37,020 36,976 

Sales of services (1) 2,086 1,881 1,910 

Sales of goods and services 39,190 38,901 38,886 

Income on customer financing 1,053 997 909 

Income on leasing and similar operations 439 434 451 

Sales financing revenues 1,492 1,431 1,360 

REVENUES 40,682 40,332 40,246 

(1) Including €511 million generated by the Sales Financing division in 2007 (€492 million in 2006 

and €520 million in 2005). 


C – Vehicle rental income 

Rental income recorded by the Group in connection with vehicle sales with 

a repurchase commitment or vehicle rentals totalled €638 million in 2007 

(€612 million in 2006 and €670 million in 2005). This income is included in 

sales of services. 

5 – COST OF SALES FINANCING 


New impairment (291) (269) (269) 

Recovery of impairment 

Forgiveness of debt and other net credit 

240 255 194 

losses (103) (127) (89) 

Net credit losses (154) (141) (164) 

Income on cash investments 294 174 206 

Refinancing expenses (1,261) (1,018) (968) 

Other sales financing costs (967) (844) (762) 

COST OF SALES FINANCING (1,121) (985) (926) 

6 – OPERATING MARGIN: DETAILS OF INCOME 

AND EXPENSES BY NATURE 

A – Personnel expenses 

2007 2006 2005 

Personnel expenses (€ million) 5,962 5,948 5,782 

Workforce at December 31 133,854 134,236 132,831 

Personnel expenses include €113 million for pensions and other long-term 

benefi ts paid out to employees in 2007 (€114 million in 2006 and €131 million 

in 2005). 

B – Share-based payments 

Share-based payments exclusively concern stock options and free shares 

granted to personnel. These generated personnel expenses of €62 million in 

2007 (€41 million in 2006 and €18 million in 2005). 

The plan valuation method is presented in note 19-H. 

C – Rental expenses 

Property rents amounted to approximately €300 million in 2007 (stable 

compared to 2006 and 2005). 

D – Foreign exchange gains/losses 

In 2007, the operating margin included a net foreign exchange loss of 

€56 million (compared to a net foreign exchange loss of €13 million in 2006 

and a gain of €27 million in 2005). 



01 

02 

03 

04 

05 

06 

07 

08

7 – OTHER OPERATING INCOME AND EXPENSES 


Restructuring and workforce adjustment 

costs and provisions 

Gains and losses on disposal of businesses 

(143) (241) (109) 

or operating entities 

Gains and losses on disposal of property, 

plant and equipment and intangible assets 

(63) (59) 119 

(except vehicle sales) 86 109 148 

Unusual items 4 5 33 

TOTAL (116) (186) 191 

A – Restructuring and workforce adjustment costs 

and provisions 

These costs and provisions arise principally from the implementation of 

restructuring measures in certain businesses, and adjustment of workforce 

levels, particularly in Spain in 2006. 

B – Gains and losses on disposal of businesses 

or operating entities 

Gains and losses on sales of businesses or operating entities include a gain of 

€150 million in 2005 on the sale of Renault’s 17.88% investment in Nissan 

Diesel Motors Co. Ltd. 

C – Gains and losses on disposal of property, 

plant and equipment and intangible assets 

(except vehicle sales) 

Most of the gain on disposal of property, plant and equipment and intangible 

assets results from sales of land (in Spain and France) during the years 

presented. 

8 – FINANCIAL EXPENSE 

Other fi nancial income and expenses comprise: 

(€ million) 

Change in fair value of redeemable shares 

2007 2006 2005 

(note 24-A) 53 (31) (271) 

Other 124 202 39 

TOTAL 177 171 (232) 

Foreign exchange gains and losses included under “Other” represented a net 

loss of €4 million in 2007 (compared to a net gain of €18 million in 2006 and 

a loss of €8 million loss in 2005). 

In 2006, “Other” included a €135 million profi t on the sale of Scania shares. 





9 – CURRENT AND DEFERRED TAXES 

As Renault SA elected to determine French income taxes under the domestic 

tax consolidation regime when it was formed, this is the regime applicable to 

the Group in which Renault SA is taxed in France. 

The Renault group also applies other optional tax consolidation systems in 

Germany, Spain, the UK, the Netherlands and Portugal. 

A – Current and deferred tax expense 

Breakdown of the tax charge 


Current income taxes (313) (341) (305) 

Deferred tax credits (charges) 58 86 (26) 

CURRENT AND DEFERRED TAXES (255) (255) (331) 

In 2007, €323 million of current income taxes were generated by foreign entities 

(€269 million in 2006 and €253 million in 2005). 

The amount of deferred taxes reported in the income statement includes a 

€12 million charge resulting from tax rate changes during 2007 (tax rate 

changes generated income of €16 million in 2006 and an expense of €7 million 

in 2005). 

Current taxes paid by the Group during 2007 totalled €243 million (€309 million 

in 2006 and €430 million in 2005). 

B – Reconciliation between the French corporate income 

tax rate and the Group’s effective tax rate 

2007 2006 2005 

French tax rate 

Effect of differences between local rate and 

34.4% 34.4 % 34.9 % 

the French rate (5.7%) (8.3%) (2.4%) 

Tax credits 

Deferred tax liabilities on net income 

(6.6%) (7.6%) (9.1%) 

(distributed or undistributed) of associates 

Change in unrecognised deferred tax 

1.9% 4.3 % 3.8 % 

assets 1.3% (0.6%) (0.6%) 

Other impacts (1) (5.9 %) 5.0 % 1.3 % 

Effective tax rate before share in net 

income of associates 19.4% 27.2 % 27.9 % 

(1) Other impacts mainly comprise : permanent differences, income subject to reduced tax rates 

and the cost of tax reassessments. 

The effective tax rate for 2007 (excluding the impact of Renault’s shares in net 

income of associates) was 19% (27% in 2006 and 28% in 2005), largely due 

to the reimbursement of Italian tax credits and recognition of certain deferred 

tax assets on loss carryforwards in Brazil and Argentina, due to the continuing 

improvement in profi tability prospects in those countries. 

01 

02 

03 

04 

05 

06 

07 

08 





C – Breakdown of net deferred taxes 

C1 – Change in deferred tax assets and liabilities 


Deferred tax assets 313 355 

(Deferred tax liabilities) (251) (231) 

Net deferred tax assets (liabilities) at January 1 62 124 

Deferred tax income (expense) for the period 58 86 

Change in deferred taxes included in equity (1) (30) (158) 

Translation adjustments (5) - 

Change in scope of consolidation and other 17 10 

Net deferred tax assets (liabilities) at December 31 102 62 

Including: deferred tax assets 220 313 

(deferred tax liabilities) (118) (251) 

(1) Mainly related to changes in the financial instrument revaluation reserve, actuarial gains and 

losses, and the effect of the hedge of the investment in Nissan. 

C2 – Breakdown of net deferred tax assets by nature 

(€ million) 

DECEMBER 31, 


DECEMBER 31, 

2006 

DECEMBER 31, 

2005 

Deferred taxes on: 

Investments in associates (84) (83) (72) 

Fixed assets 

Provisions and other expenses or 

valuation allowances deductible 

(1,577) (1,372) (1,240) 

upon utilisation 762 808 943 

Loss carryforwards 1,195 969 762 

Other 457 340 378 

Net deferred tax assets 

(liabilities) 

Unrecognised deferred tax assets 

753 662 771 

(note 9-C3) (651) (600) (647) 

NET DEFERRED TAX ASSETS 

(LIABILITIES) REPORTED 102 62 124 

C3 – Breakdown of unrecognised net deferred tax assets, by expiry 

DECEMBER 31, DECEMBER 31, DECEMBER 31, 

(€ million) 

Net deferred tax assets that can be 

2007 2006 2005 

carried forward indefinitely 

Other net deferred tax assets 

509 492 458 

expiring in more than 5 years 


12 5 22 

expiring between 1 and 5 years 


54 60 87 

expiring within 1 year 76 43 80 

TOTAL UNRECOGNISED NET 

DEFERRED TAX ASSETS 

Including: 

deferred taxes on tax loss 

651 600 647 

carryforwards 547 545 535 

other deferred taxes 104 55 112 


10 – BASIC AND DILUTED EARNINGS PER SHARE 

Renault’s basic earnings per share and diluted earnings per share are calculated 

by dividing Renault’s share of net income by the relevant number of shares. 

The number of shares used to calculate the basic earnings per share is the 

weighted average number of ordinary shares in circulation during the period, i.e. 

after neutralisation of treasury shares and Renault shares held by Nissan. 

(i n thousands of shares) 2007 2006 2005 

Shares in circulation 284,937 284,937 284,937 

Treasury shares 

Shares held by Nissan x Renault’s 

(6,897) (8,500) (10,176) 

share in Nissan (19,419) (19,443) (19,584) 

Number of shares used 

to calculate basic earnings 

per share 258,621 256,994 255,177 

The number of shares used to calculate the diluted earnings per share is the 

weighted average number of ordinary shares potentially in circulation during 

the period, i.e. the number of shares used to calculate the basic earnings 

per share plus the number of dilutive stock options and dilutive rights to free 

share attribution. 

(i n thousands of shares) 

Number of shares used to calculate 

2007 2006 2005 

basic earnings per share 

Number of dilutive stock options 

258,621 256,994 255,177 

and free share attribution rights 3,741 3,096 2,165 

Number of shares used 

to calculate diluted earnings 

per share 262,362 260,090 257,342 

7.2.6.3 OPERATING ASSETS AND 

LIABILITIES, SHAREHOLDERS’ EQUITY 

11 – INTANGIBLE ASSETS 

A – Intangible assets at December 31 


(€ million) 

2007 2006 2005 

Capitalised development expenses 6,301 5,403 4,647 

Goodwill 300 278 247 

Other intangible assets 300 280 301 

Intangible assets, gross 

Amortisation of capitalised 

6,901 5,961 5,195 

development expenses 

Amortisation of other intangible 

(2,641) (2,341) (2,030) 

assets (204) (198) (193) 

Amortisation and impairment (2,845) (2,539) (2,223) 

INTANGIBLE ASSETS, NET 4,056 3,422 2,972 

Most goodwill is in Europe. 



01 

02 

03 

04 

05 

06 

07 

08

B – Changes during the year 

(€ million) 

GROSS 

VALUE 


AMORTISATION 

AND IMPAIRMENT 

NET 

VALUE 

Value at December 31, 2005 

Acquisitions (note 27-C)/ 

5,195 (2,223) 2,972 

(amortisation) 1,132 (697) 435 

(Disposals)/reversals (381) 379 (2) 

Translation adjustment 

Change in scope of consolidation 

(13) 2 (11) 

and other 28 - 28 

Value at December 31, 2006 

Acquisitions (note 27-C)/ 

5,961 (2,539) 3,422 

(amortisation) 1,348 (724) 624 

(Disposals)/reversals (401) 399 (2) 

Translation adjustment 

Change in scope of consolidation 

(40) 11 (29) 

and other 33 8 41 

Value at December 31, 2007 6,901 (2,845) 4,056 

Acquisitions of intangible assets in 2007 comprise €1,237 million of selfproduced 

assets and €111 million of purchased assets (respectively €976 million 

and €156 million in 2006 and €834 million and €46 million in 2005). 

C – Research and development expenses included 

in income 


Research and development expenses (2,462) (2,400) (2,264) 

Capitalised development expenses 

Amortisation of capitalised development 

1,287 1,091 833 

expenses (675) (654) (603) 

TOTAL (1,850) (1,963) (2,034) 


12 – PROPERTY, PLANT AND EQUIPMENT 



A – Property, plant and equipment at December 31 


(€ million) 

2007 2006 2005 

Land 613 645 612 

Buildings 5,571 5,422 5,200 

Specific tools 8,143 7,675 7,064 

Machinery and other tools 11,938 11,605 11,799 

Vehicles leased to customers 2,246 2,308 2,240 

Other tangibles 718 830 970 

Construction in progress 1,232 1,718 1,086 

Property, plant and equipment, 

gross 30,461 30,203 28,971 

Land and buildings (2,430) (2,304) (2,228) 

Specific tools (5,947) (5,732) (5,141) 

Machinery and other tools (7,867) (7,675) (7,480) 

Vehicles leased to customers (578) (632) (654) 

Other tangibles (584) (694) (777) 

Depreciation (17,406) (17,037) (16,280) 

PROPERTY, PLANT AND 

EQUIPMENT, NET 13,055 13,166 12,691 

01 

02 

03 

04 

05 

06 

07 

08 





B – Changes during the year 

Changes during 2007 in property, plant and equipment were as follows: 

DECEMBER 31, ACQUISITIONS/ (DISPOSALS)/ 

CHANGE IN SCOPE 

TRANSLATION OF CONSOLIDATION DECEMBER 31, 

(€ million) 

2006 (DEPRECIATION) REVERSALS ADJUSTMENTS AND OTHER 


Land 645 23 (28) (10) (17) 613 

Buildings 5,422 316 (129) (43) 5 5,571 

Specific tools 7,675 1,229 (677) (79) (5) 8,143 

Machinery and other tools 11,605 1,096 (457) (48) (258) 11,938 

Vehicles leased to customers 2,308 1,005 (1,126) (20) 79 2,246 

Other tangibles 830 35 (130) (7) (10) 718 

Construction in progress (1) 1,718 (426) - (14) (46) 1,232 

Property, plant and equipment, gross 30,203 3,278 (2,547) (221) (252) 30,461 

Land - - - - - - 

Buildings (2,304) (266) 103 13 24 (2,430) 

Specific tools (5,732) (841) 671 39 (84) (5,947) 

Machinery and other tools (7,675) (875) 395 17 271 (7,867) 

Vehicles leased to customers (632) (124) 215 6 (43) (578) 

Other tangibles (694) (35) 137 4 4 (584) 

Construction in progress - - - - - - 

Depreciation (17,037) (2,141) 1,521 79 172 (17,406) 

Land 645 23 (28) (10) (17) 613 

Buildings 3,118 50 (26) (30) 29 3,141 

Specific tools 1,943 388 (6) (40) (89) 2,196 

Machinery and other tools 3,930 221 (62) (31) 13 4,071 

Vehicles leased to customers 1,676 881 (911) (14) 36 1,668 

Other tangibles 136 - 7 (3) (6) 134 

Construction in progress (1) 1,718 (426) - (14) (46) 1,232 

Property, plant and equipment net 13,166 1,137 (1,026) (142) (80) 13,055 

(1) Construction in progress is reported in the “acquisitions/depreciation” column. 

Changes during 2006 in property, plant and equipment were as follows: 


(€ million) GROSS VALUE DEPRECIATION NET VALUE 

Value at December 31, 2005 28,971 (16,280) 12,691 

Acquisitions (note 27-C)/(depreciation) 3,577 (2,139) 1,438 

(Disposals)/reversals (2,480) 1,420 (1,060) 

Translation adjustment (22) 31 9 

Change in scope of consolidation and other 157 (69) 88 

Value at December 31, 2006 30,203 (17,037) 13,166 



01 

02 

03 

04 

05 

06 

07 

08

13 – INVESTMENT IN NISSAN 

A – Nissan consolidation method 

Renault holds 44.3% ownership in Nissan. Renault and Nissan have chosen 

to develop a unique type of alliance between two distinct companies with 

common interests, uniting forces to achieve optimum performance. The Alliance 

is organised so as to preserve individual brand identities and respect each 

company’s corporate culture. 

Consequently: 

n 

n 

n 

n 

Renault does not hold the majority of Nissan voting rights; 

the terms of the Renault-Nissan agreements do not entitle Renault to appoint 

the majority of Nissan directors, nor to hold the majority of voting rights at 

meetings of Nissan’s Board of Directors; at December 31, 2007 as in 2006 

and 2005, Renault supplied 4 of the total 9 members of Nissan’s Board of 

Directors; 

Renault-Nissan b.v., owned 50% by Renault and 50% by Nissan, is the 

Alliance’s joint decision-making body for strategic issues concerning either 

group individually. Its decisions are applicable to both Renault and Nissan. 

This entity does not enable Renault to direct Nissan’s fi nancial and operating 

strategies, and cannot therefore be considered to represent contractual 

control by Renault over Nissan. The matters examined by Renault-Nissan b.v. 

since it was formed have remained strictly within this contractual framework, 

and are not an indication that Renault exercises control over Nissan; 

Renault can neither use nor infl uence the use of Nissan’s assets in the same 

way as its own assets; 

C – Changes in the investment in Nissan 

(€ million) 


BEFORE 

NEUTRALISATION 

(SEE RIGHT) 

n 



Renault provides no guarantees in respect of Nissan’s debt. 

In view of this situation, Renault is considered to exercise signifi cant infl uence 

in Nissan, and therefore uses the equity method to include its investment in 

Nissan in the consolidation. 

B – Nissan consolidated financial statements included 

under the equity method in the Renault consolidation 

The Nissan accounts included under the equity method in Renault’s fi nancial 

statements are Nissan’s consolidated accounts published in compliance with 

Japanese accounting standards (as Nissan is listed on the Tokyo stock exchange), 

after adjustments for the requirements of the Renault consolidation. 

Nissan publishes consolidated fi nancial statements quarterly, and annually at 

March 31. For the purposes of the Renault consolidation, Nissan results are 

included in line with the Renault calendar (the results for the period January to 

December are consolidated in Renault’s annual fi nancial statements). The threemonth 

difference in Nissan’s consolidation of certain entities in its group (mainly 

in Europe and Mexico) has been absorbed over 2007. This has given rise to a 

profi t of some €50 million , included in Nissan’s contribution to Renault’s net 

income for 2007. 

Following Nissan’s equity transactions, Nissan held 2.7% of its own shares at 

December 31, 2007, compared to 2.1% at December 31, 2006 and 3.0% at 

December 31, 2005. Consequently, Renault’s percentage interest in Nissan was 

45.6% at December 31, 2007, compared to 45.3% at December 31, 2006 

and 45.7% at December 31, 2005. 

NEUTRALISATION OF 

44.3% OF NISSAN’S 

INVESTMENT 

IN RENAULT (1) NET 


SHARE IN NET ASSETS NET GOODWILL TOTAL 

At December 31, 2005 10,590 (962) 9,628 813 10,441 

2006 net income 1,888 - 1,888 - 1,888 

Dividend distributed (431) - (431) - (431) 

Translation adjustment (1,093) - (1,093) (92) (1,185) 

Other changes (2) 144 - 144 (80) 64 

At December 31, 2006 11,098 (962) 10,136 641 10,777 

2007 net income 1,288 - 1,288 - 1,288 

Dividend distributed (456) - (456) - (456) 

Translation adjustment (587) - (587) (31) (618) 

Other changes (2) (6) - (6) (19) (25) 

At December 31, 2007 11,337 (962) 10,375 591 10,966 

(1) At December 31, 2007 and 2006, Nissan held 15% of Renault. 

(2) Other changes include Renault dividends received by Nissan, the change in actuarial gains and losses on pension obligations, the change in the financial instruments revaluation reserve and changes in 

Nissan treasury shares. 

Nissan’s contribution to Renault net income for 2006 included an exceptional profi t of €82 million due to fi nalisation of the transfer of part of Nissan’s pension 

obligations to the Japanese state (€450 million in 2005). 

01 

02 

03 

04 

05 

06 

07 

08 





D – Changes in Nissan equity restated for the purposes of the Renault consolidation 

(in billions of yen) 

DECEMBER 31, 

2006 

2007 NET 

INCOME DIVIDENDS 

TRANSLATION 

ADJUSTMENT 

OTHER 

CHANGES (1) 

DECEMBER 31, 


Shareholders’ equity – Nissan share under Japanese GAAP 

Restatements for Renault group requirements: 

3,430 427 (152) 23 (15) 3,713 

Restatement of fixed assets 

Provision for pension and other long term employee 

458 (43) - - - 415 

benefit obligations (2) (123) 6 - - (25) (142) 

Capitalisation of development expenses 497 51 - - - 548 

Deferred taxes and other restatements (417) 16 (11) (31) 13 (430) 

Net assets restated for Renault group requirements 3,845 457 (163) (8) (27) 4,104 

(€ million) 

Net assets restated for Renault group requirements 24,499 2,837 (1,002) (1,289) (162) 24,883 

Renault’s share 45.3% 45.6% 

(before neutralisation described below) 11,098 1,288 (456) (587) (6) 11,337 

Neutralisation of 44.3% of Nissan’s investment in Renault (3) (962) - - - - (962) 

Renault’s share in the net assets of Nissan 10,136 1,288 (456) (587) (6) 10,375 

(1) “Other changes” include Renault dividends received by Nissan, the change in actuarial gains and losses on pension obligations, the change in the financial instruments revaluation reserve and changes in 

Nissan treasury shares. 

(2) Including actuarial gains and losses recognised in equity (note 2-A). 

(3) At December 31, 2007, Nissan held 15% of Renault. 

E – Nissan net income under Japanese GAAP 

Since Nissan’s fi nancial year ends at March 31, the Nissan net income included 

in the 2007 Renault consolidation is the sum of Nissan’s net income for the 

fi nal quarter of its 2006 fi nancial year and the fi rst three quarters of its 2007 

fi nancial year. 

JANUARY TO MARCH 2007 APRIL TO SEPTEMBER 2007 OCTOBER TO DECEMBER 2007 JANUARY TO DECEMBER 2007 

FINAL QUARTER OF NISSAN’S 2006 

FINANCIAL YEAR IN JAPAN 

FIRST HALF OF NISSAN’S 2007 


THIRD QUARTER OF NISSAN’S 2007 


REFERENCE PERIOD FOR RENAULT’S 

2007 CONSOLIDATED FINANCIAL 

STATEMENTS 

(in billions of yen) (€ million) (1) (in billions of yen) (€ million) (1) (in billions of yen) (€ million) (1) (in billions of yen) (€ million) (1) 

Net income – 

share 82.2 525 212.4 1,309 132.2 807 426.8 2,641 

(1) Converted at the average 2007 exchange rate for each quarter. 

F – Nissan financial information under IFRS 

The table below presents Nissan fi nancial information, restated for the purposes 

of the Renault consolidation, for the period January 1 – December 31, 2007. 

The restatements include adjustments for harmonisation of accounting 

standards and the adjustments to fair value of assets and liabilities applied by 

Renault at the time of acquisitions in 1999 and 2002. 


(in billions of yen) (€ million) (1) 

2007 revenues 11,030 68,407 

2007 net income (2) Shareholders’ equity 

475 2,948 

at December 31, 2007 4,549 27,583 

Balance sheet total at December 31, 2007 13,327 80,802 

(1) Converted at the average exchange rate for 2007 i.e. 161 yen = 1 euro for income statement 

items, and at the December 31, 2007 rate i.e. 165 yen = 1 euro for balance sheet items. 

(2) The net income reported does not include Renault’s contribution to Nissan net income. 



01 

02 

03 

04 

05 

06 

07 

08

G – Hedging of the investment in Nissan 

The investment in Nissan is hedged by operations with a total value at 

December 31, 2007 of 824 billion yen (€4,996 million), comprising 150 billion 

yen (€909 million) of private placements on the EMTN market and bonds issued 

directly in yen, and 674 billion yen (€4,087 million) of currency swaps. During 

2007, these operations generated foreign exchange differences totalling 

€153 million net of tax, which were included in the Group’s consolidated 

reserves (note 19-E). 

Hedging transactions were increased by 44 billion yen (€273 million) in 

2007. 

H – Valuation of Renault’s investment in Nissan at stock 

market prices 

Based on the quoted price at December 31, 2007 of 1,230 yen per share, 

Renault’s investment in Nissan is valued at €14,945 million (€18,299 million at 

December 31, 2006 based on the price of 1,433 yen per share, €17,241 million 

at December 31, 2005 based on the price of 1 195 yen per share). 

I – Renault - Nissan cooperation 

Renault and Nissan follow joint strategies for vehicle and part development, 

purchasing, and production and distribution resources. 

The cooperation between the two groups in 2007 mainly takes the following 

forms: 

Joint investments 

Renault and Nissan share development costs and investments for gearbox and 

engine production for medium range vehicles. The two groups have been working 

together since March 2006 on development of a new V6 diesel engine. 

In parallel to these projects, joint development and investment operations 

continued in 2007 for the production of a future cross-over-type vehicle, and 

developments and investments are also being shared for production of Logan 

vehicles in Brazil. 

Vehicle manufacturing 

In Mexico, Nissan supplies Renault with assembly services for the Clio, and 

also assembles the Platina model (Nissan-badged Clio sedans). Production 

totalled 21,000 units in 2007. 

In Brazil, Renault launched production of Nissan-badged Logans at the Curitibia 

plant in 2007, for sale on the Mexican market. The total output for the year 

was 19,000 units. Renault also supplies Nissan with assembly services for its 

Frontier pick-up and X-Terra models (9,000 vehicles in 2007). 

Renault Samsung Motors produced 52,000 Nissan-badged SM3 vehicles in 

2007, purchased by Nissan for sale through its own network (mainly in Russia 

and the Middle East). 

Concerning light commercial vehicles, Nissan produced 86,000 Trafi c vans at its 

Barcelona plant over the year. One quarter of these are sold through the Nissan 

network. Renault, meanwhile, produced 11,000 Nissan-badged Masters and 

Kangoos, purchased by Nissan for sale through its own network. 





Part sales 

In Europe, 2007 saw the Renault Group begin production of engines common 

to the Alliance at its Cléon plant, for use by Nissan’s Japanese and UK plants 

in the Nissan Qashqai and X-Trail vehicles. Meanwhile, Renault continues to 

supply Nissan’s Sunderland plant in the UK and Barcelona plant in Spain with 

gearboxes and engines produced at the plants in Cacia in Portugal, Valladolid 

in Spain and Cléon in France. These parts are used in Nissan’s Micra, N ote and 

Qashqai . Renault also supplies gearboxes to Nissan for use in production at its 

plants in Japan, China, South Africa, Indonesia and Thailand. 

In Mexico, Renault supplies engines and gearboxes to Nissan for the Clio, 

Platina, Tiida and Versa. 

In total, Renault supplied 540,000 gearboxes and 160,000 engines during 


In South Korea, Nissan supplies Renault Samsung Motors with parts and engines 

used in the SM3, SM5, SM7 and the new QM5. 

Renault uses Nissan’s V6 3.5 litre petrol engine for the Vel Satis and the Espace 

and Nissan pinions for the Mégane. Renault also uses a 2.0 litre engine, jointly 

develo ped with Nissan, for the new Laguna and Clio. 

Sales 

Group Offi ces, run by Renault, have been set up at European level to facilitate 

exchanges of best practices for after-sales documentation and marketing 

studies. 

At local level, local joint Group Offi ces, held and run by Renault, have been 

set up in four European countries: France, the UK, Spain and Italy. Front-offi ce 

operations remain separate for the two groups. 

Similarly, Nissan markets Renault vehicles in Australia and the Gulf countries. 

Finance 

From trading rooms in Lausanne and Singapore, Renault Finance acts as the 

Nissan group’s counterparty in fi nancial instruments trading to hedge foreign 

exchange, interest rate and commodity risks, in addition to its business for 

Renault. On the foreign exchange markets in 2007, Renault Finance undertook 

foreign exchange transactions totalling approximately €16.5 billion on behalf of 

Nissan. Foreign exchange, interest rate and commodity derivative transactions 

undertaken for Nissan are recorded at market price and included in the positions 

managed by Renault Finance. These positions are invested on the market with 

a banking counterparty. Renault Finance also participates in Nissan’s cash 

management. Nissan’s deposits with Renault Finance are always invested on 

the market, and cannot be used to fi nance the Renault group. 

Total figures for 2007 

Total sales by Renault to Nissan and purchases by Renault from Nissan 

during 2007 amounted to an estimated €1,500 million and €1,400 million 

respectively. 

The joint policies for purchasing and other administrative functions such as 

information systems departments are refl ected directly in the Renault and Nissan 

fi nancial statements, and therefore generate no fi nancial exchanges between 

the two Groups. 

01 

02 

03 

04 

05 

06 

07 

08 





14 – INVESTMENTS IN OTHER ASSOCIATES 

Details of other investments in other associates are as follows: 

n balance sheet value: €2,011 million at December 31, 2007 (€2,181 million 

at December 31, 2006 and €1,931 million at December 31, 2005); 

A – Changes in the value of Renault’s investment in AB Volvo 

Renault’s share in the net income of other associates: €387 million for 2007 

(€389 million for 2006 and €322 million for 2005). 

Most of these amounts relate to the investment in AB Volvo, accounted for 

under the equity method. 

(€ million) SHARE IN NET ASSETS NET GOODWILL TOTAL 

At December 31, 2005 1,733 41 1,774 

2006 net income 384 - 384 

Dividend distributed (158) - (158) 

Repurchase of AB Volvo own shares (2) (1) (3) 

Translation adjustment, actuarial gains and losses and revaluation of financial instruments 41 2 43 

At December 31, 2006 1,998 42 2,040 

2007 net income 352 - 352 

Dividend distributed (477) - (477) 

Repurchase of AB Volvo own shares (1) - (1) 

Translation adjustment, actuarial gains and losses and revaluation of financial instruments (78) (1) (79) 

At December 31, 2007 1,794 41 1,835 

AB Volvo owned 4.8% of its own shares at December 31, 2007 (4.9% at 

December 31, 2006 and 5.0% at December 31, 2005). Renault’s investment 

in AB Volvo thus stood at 21.8% at December 31, 2007, unchanged from 

December 31, 2006 and from December 31, 2005. 

B – Changes in AB Volvo equity restated for the purposes of the Renault consolidation 



n 

Based on AB Volvo’s stock market share price of SEK 108.0 per A share and SEK 

108.5 per B share at December 31, 2007, Renault’s investment in AB Volvo is 

valued at €5,067 million (€4,650 million at December 31, 2006 based on the 

prices of SEK 486.0 per A share and SEK 471.5 per B share). 

(€ million) DECEMBER 31, 2006 NET INCOME 2007 DIVIDENDS OTHER CHANGES DECEMBER 31, 2007 

Shareholders’ equity – AB Volvo share 9,613 1,615 (2,189) (333) 8,706 

Restatements for Renault group requirements 

Net assets restated for Renault group 

(451) - - (24) (475) 

requirements 

Renault’s share in the net assets of 

9,162 1,615 (2,189) (357) 8,231 

AB Volvo 1,998 352 (477) (79) 1,794 

The restatements applied for Renault group requirements mainly concern 

cancellation of goodwill booked in AB Volvo’s accounts when AB Volvo was 

acquired by Renault and recognition of actuarial gains and losses in equity. 

C – AB Volvo financial information under IFRS 

AB Volvo fi nancial information for 2007 established under IFRS, as published 

by AB Volvo, is summarised as follows: 


(in millions of SEK) (€ million) (1) 

2007 revenues 285,405 30,848 

2007 net income 

Shareholders’ equity 

15,029 1,624 

at December 31, 2007 

Balance sheet total 

82,781 8,768 

at December 31, 2007 321,582 34,060 

(1) Converted at the average exchange rate for 2007 i.e. SEK 9.25 = 1 euro for income statement 

items, and at the December 31, 2007 rate i.e. SEK 9.44 = 1 euro for balance sheet items. 

01 

02 

03 

04 

05 

06 

07 

08

15 – INVENTORIES 


(€ million) 

2007 2006 2005 

Raw materials and supplies 1,185 1,052 1,052 

Work-in-progress 340 370 420 

Finished products (1) 4,407 3,887 4,385 

INVENTORIES, NET 5,932 5,309 5,857 

Inventories, gross 6,428 5,785 6,325 

Impairment (496) (476) (468) 

(1) Including €413 million at December 31, 2007 for rental vehicles (€454 million at December 31, 

2006 and €546 million at December 31, 2005). 

16 – SALES FINANCING RECEIVABLES 

A – Sales financing receivables by nature 


(€ million) 

2007 2006 2005 

Dealership receivables 4,678 4,503 4,673 

Financing for end-users 12,184 12,222 12,207 

Leasing and similar operations 4,315 4,347 4,498 

Gross value 21,177 21,072 21,378 

Impairment (747) (712) (678) 

NET VALUE 20,430 20,360 20,700 

The Sales fi nancing division undertook several securitisation operations through 

S pecial P urpose V ehicles (in France, Italy and Germany) involving receivables 

on the dealership network or loans to fi nal customers. This did not lead to 

derecognition of the receivables assigned, as all risks were retained by the 

Group. Sales fi nancing receivables in the balance sheet thus amounted to 

€6,776 million at December 31, 2007 (€5,727 million at December 31, 2006). A 

liability of €3,533 million was recognised at December 31, 2007 (€3,108 million 

at December 31, 2006) in other debts represented by a certifi cate, corresponding 

to the issue resulting from the securitisation operations. The difference between 

the receivables assigned and the amount of the liability corresponds to the 

higher credit necessary for these operations, and the share of securities retained 

by RCI Banque to form a liquidity reserve. 

B – Sales financing receivables by maturity 


(€ million) 

2007 2006 2005 

-1 year 11,064 10,929 10,902 

1 to 5 years 9,272 9,341 9,679 

+5 years 94 90 119 

TOTAL SALES FINANCING 

RECEIVABLES, NET 20,430 20,360 20,700 




C – Breakdown of overdue sales financing receivables 

(gross values) 

(€ million) DECEMBER 31, 2007 

Receivables for which impairment has been recognised (1) : 

overdue by 526 

0 to 30 days 24 

30 to 90 days 56 

90 to 180 days 110 

More than 180 days 336 

Receivables for which no impairment has been 

recognised: overdue by 117 

0 to 30 days 28 

30 to 90 days 40 

90 to 180 days 49 

More than 180 days - 

(1) This only includes sales financing receivables partly or totally written off through impairment on 

an individual basis. 

The maximum exposure to credit risk for the sales financing activity is 

represented by the net book value of sales fi nancing receivables plus the 

amount of confi rmed credit to customers reported under off-balance sheet 

commitments given (note 29-A). 

This risk is reduced by guarantees provided by customers, as reported in 

off-balance sheet commitments received (note 29-B). Guarantees held in 

connection with overdue or impaired sales fi nancing receivables amounted to 

€409 million at December 31, 2007. 

There is no indication at the year-end that the quality of sales fi nancing 

receivables not yet due or unimpaired has been adversely affected, nor is 

there any signifi cant concentration of risks within the Sales fi nancing customer 

base. 

D – Changes in impairment of sales financing receivables 

(€ million) 


Impairment at December 31, 2005 (678) 

Impairment recorded during the year (287) 

Reversals for application 119 

Reversals of unused residual amounts 155 

Translation adjustment and other (21) 

Impairment at December 31, 2006 (712) 

Impairment recorded during the year (309) 

Reversals for application 128 

Reversals of unused residual amounts 127 

Translation adjustment and other 19 

Impairment at December 31, 2007 (747) 

01 

02 

03 

04 

05 

06 

07 

08 





17 – AUTOMOBILE RECEIVABLES 


(€ million) 

2007 2006 2005 

Gross value 2,180 2,221 2,176 

Impairment (97) (119) (121) 

AUTOMOBILE RECEIVABLES, NET 2,083 2,102 2,055 

These receivables do not include accounts receivable from dealers, in France 

and certain other European countries, when they are assigned to the Group’s 

sales fi nancing companies together with the risk of non-recovery. Receivables 

transferred in this way are included in sales fi nancing receivables. If the risk 

is not transferred, although the receivables have been assigned from a legal 

point of view, these items remain in Automobile receivables and a corresponding 

fi nancial liability is recorded (in other interest-bearing borrowings). This rule 

also applies to receivables assigned outside the Group, for example through 

discounting or factoring. The amount of assigned Automobile receivables 

reported in the balance sheet is not signifi cant for the periods presented. 

There is no signifi cant concentration of risks within the Automobile customer 

base. 

18 – OTHER CURRENT ASSETS 


(€ million) 

2007 2006 2005 

Prepaid expenses 259 148 120 

Tax receivables 900 910 874 

Other receivables 

Derivatives on operating 

892 717 1,160 

transactions (1) (note 26-A) 324 268 259 

OTHER CURRENT ASSETS 2,375 2,043 2,413 

Gross value 2,409 2,062 2,437 

Impairment (34) (19) (24) 

(1) Including €176 million for derivatives on financing operations of the Sales financing division in 

2007 (€186 million in 2006 and €177 million in 2005). 

19 – SHAREHOLDERS’ E QUITY 

A – Share capital 

The total number of ordinary shares issued and fully paid-up at December 31, 

2007 was 284,937 thousand, with par value of €3.81 per share (the total 

number and par value are unchanged from December 31, 2006 and from 

December 31, 2005). 

Treasury shares do not bear dividends. They accounted for 2.65% of Renault’s 

share capital at December 31, 2007 (2.70% at December 31, 2006 and 3.35% 


The Nissan group holds 15% of Renault through its wholly-owned subsidiary 

Nissan Finance Co., Ltd. (the voting rights attached to these shares cannot 

be exercised). 


B – Capital management 

In managing its capital, the Group’s objective is to guarantee continuity of 

business in order to provide returns for shareholders and benefi ts for other 

stakeholders, and to maintain optimum capital structure in order to optimise 

its cost. 

The Group actively manages its capital structure, making adjustments in view 

of developments in economic conditions. To maintain or adjust the capital 

structure, the Group may adjust dividend payments to shareholders, redeem 

some of the capital or issue new shares. The management objectives, policies 

and procedures are unchanged from 2006. 

The Group’s objectives are monitored in different ways in the different 

divisions. 

The Group manages the division’s capital with reference to a ratio equal to the 

division’s net indebtedness divided by the sum of shareholders’ equity (net 

indebtedness includes all non-operating interest-bearing fi nancial liabilities and 

commitments less cash and cash equivalents and other non-operating fi nancial 

assets such as marketable securities or the division’s loans; shareholders’ 

equity is as reported in the division’s balance sheet). This ratio stood at 

9.5% at December 31, 2007 (11.5% at December 31, 2006 and 11.6% at 

December 31, 2005). 

The Sales fi nancing division must comply with regulatory ratios specifi c to 

banking operations. The minimum solvency ratio (shareholders’ equity including 

subordinated loans to total risk-weighted assets) is 8%, and the division 

achieved 9.2% for 2007. 

Finally, since 1999, the Group has partially hedged the yen/euro exchange 

risk associated with its investment in Nissan. These hedging operations are 

described in note 13-G, and have impacts on Group equity, generating exchange 

differences which are included in the Group’s translation adjustment reserves 

(note 19-E). These amounts partly offset the exchange differences arising on 

the share of Nissan’s equity stated in yen. 

C – Renault treasury shares 

In accordance with decisions approved at General Shareholders’ Meetings, the 

Board of Directors decided to allocate all Renault treasury shares to current 

stock option plans awarded to Group managers and executives. 

DECEMBER 31, 


DECEMBER 31, 

2006 

DECEMBER 31, 

2005 

Total value of treasury shares 

(€ million) 499 373 456 

Total number of treasury shares 7,555,139 7,681,580 9,539,964 

D – Distributions 

At the General and Extraordinary Shareholders’ Meeting of May 2, 2007, it was 

decided to distribute €3.10 per share or €863 million in dividends (compared 

to €2.40 per share or €664 million in 2006). 

After elimination of dividends received by Nissan in proportion to Renault’s 

interest in Nissan, the dividend distribution recorded in shareholders’ equity 

amounted to €803 million in 2007 (€617 million in 2006 and €459 million 

in 2005). 



01 

02 

03 

04 

05 

06 

07 

08

A dividend distribution of €3.80 per share, i.e. a total of €1,054 million, will be 

proposed at the General and Extraordinary Shareholders’ Meeting of April 29, 

2008. 

The Renault Commitment 2009 growth plan has set a target dividend of 

€4.50 per share for 2009. 

E – Translation adjustment 

The change in translation adjustment over the year is as follows: 

(€ million) 

Change in translation adjustment on 

the value of the investment in Nissan 

2007 2006 2005 

(note 13-C) 

Impact, net of tax, of partial hedging of the 

(618) (1,185) 615 

investment in Nissan (note 13-G) 153 351 (10) 

Total change in translation adjustment 

related to Nissan (465) (834) 605 

Other changes in translation adjustment (248) 17 159 

TOTAL CHANGE IN TRANSLATION 

ADJUSTMENT (713) (817) 764 

The impact of the translation of Nissan’s fi nancial statements, after adjustment for 

the partial hedging operations concerning the portion of Nissan’s shareholders’ 

equity expressed in yen, mainly relates to translation by Renault of Nissan’s 

North American and Mexican subsidiaries’ shareholders’ equity. 

F Financial instrument revaluation reserve 

F1 – Change in the financial instrument revaluation reserve 

The fi gures below are reported net of tax effects. 

(€ million) 

CASH FLOW 

HEDGES 


AVAILABLE- 

FOR-SALE 

FINANCIAL 

ASSETS TOTAL 

At December 31, 2005 (1 ) Changes in fair value recorded in 

(1) 55 54 

shareholders’ equity 

Transfer from shareholders’ equity 

59 57 116 

to the income statement (2 ) 26 (91) (65) 

At December 31, 2006 (1 ) Changes in fair value recorded in 

84 21 105 

shareholders’ equity 

Transfer from shareholders’ equity 

24 2 26 

to the income statement (2 ) (62) (1) (63) 

At December 31, 2007 (1 ) 46 22 68 

(1) For a breakdown of the amounts related to cash flow hedges transferred to shareholders’ 

equity, see note F-2 below. 

(2) For the schedule of transfers of amounts related to cash flow hedges transferred to 

shareholders’ equity, see note F-3 below. 




F2 – Breakdown of the amounts related to cash flow hedges 

transferred from the financial instrument revaluation reserve to the 

income statement 


Cash flow hedges 

Operating margin (81) (1) 57 

Other operating income and expenses - - - 

Net financial income (expense) (7) - - 

Share in net income of associates (4) 27 (32) 

Current and deferred taxes 30 - (20) 

TOTAL TRANSFERRED TO THE INCOME 

STATEMENT FOR CASH FLOW HEDGES (62) 26 5 

F3 – Schedule of amounts related to cash flow hedges transferred 

from the financial instruments revaluation reserve to the income 

statement 


(€ million) 

2007 2006 2005 

Within one year 44 52 2 

After one year 9 20 (1) 

Revaluation reserve for 

cash flow hedges excluding 

associates 53 72 1 

Revaluation reserve for cash flow 

hedges - associates (7) 12 (2) 

TOTAL REVALUATION RESERVE 

FOR CASH FLOW HEDGES 46 84 (1) 

This schedule is based on contractual maturities of hedged cash fl ows. 

G – Stock option and free share attribution plans 

Since October 1996, the Board of Directors has periodically granted stock 

options to Group executives and managers, with prices and exercise periods 

specifi c to each plan. 

In 2007, a stock option plan and free share attribution plan were introduced 

under the Renault Commitment 2009 plan, in addition to the plans set up in 

2006. A stock option plan was also introduced in 2007 related to 2008 results. 

All 2006 and 2007 plans include performance conditions which determine the 

number of options or shares awarded to benefi ciaries. 

01 

02 

03 

04 

05 

06 

07 

08 





Changes in the number of stock options held by personnel 

QUANTITY 

WEIGHTED 

AVERAGE 

EXERCISE PRICE 

(€) 

WEIGHTED AVERAGE SHARE 

PRICE AT GRANT AND 

EXERCISE DATES (€) QUANTITY 


WEIGHTED 

AVERAGE 

EXERCISE PRICE 

(€) 

WEIGHTED AVERAGE SHARE 

PRICE AT GRANT AND 

EXERCISE DATES (€) 

Outstanding at January 1 16,539,634 66 13,299,707 54 

Granted 2,018,300 95 96 5,096,400 89 88 

Exercised (2,268,502) 47 99 (1,856,473) 46 86 

Expired (66,500) 67 100 - - - 

Outstanding at December 31 16,222,932 72 16,539,634 66 

Options and free share attribution rights yet to be exercised at December 31, 2007 

N° PLAN TYPE OF PLAN GRANT DATE EXERCISE PRICE (€) OUTSTANDING EXERCISE PERIOD 

Plan 2 Stock purchase options October 28, 1997 24. 89 - October 29, 2002 – October 27, 2007 

Plan 3 Stock purchase options October 27, 1998 32. 13 243,769 October 28, 2003 – October 26, 2008 

Plan 4 Stock purchase options March 16, 1999 40. 82 20,000 March 17, 2004 – March 15, 2009 

Plan 5 Stock purchase options October 19, 1999 50. 94 356,714 October 20, 2004 – October 18, 2009 

September 7, 2000 

49. 27 

September 8, 2005 – September 6, 2010 

Plan 6 Stock purchase options 

and October 24, 2000 

49. 57 486,774 October 25, 2005 – October 23, 2010 

Plan 7 Stock purchase options December 18, 2001 48. 97 968,741 December 19, 2006 – December 17, 2011 

Plan 8 Stock purchase options September 5, 2002 49. 21 1,609,007 September 6, 2007 – September 4, 2012 

Plan 9 Stock purchase options September 8, 2003 53. 36 1,700,484 September 9, 2007 – September 7, 2011 

Plan 10 Stock subscription options September 14, 2004 66. 03 2,128,650 September 15, 2008 – September 13, 2012 

Plan 11 Stock subscription options September 13, 2005 72. 98 1,618,593 September 14, 2009 – September 12, 2013 

Plan 12 Stock subscription options May 4, 2006 and May 12, 2006 and June 30, 2006 87. 98 1,663,200 May 5, 2010 – May 5, 2014 

Plan 13 Stock subscription options May 4, 2006 and May 12, 2006 and July 17, 2006 87. 98 2,728,700 May 5, 2010 – May 5, 2014 

Plan 13 bis Attribution of free shares May 12, 2006 and July 17, 2006 - 1,374 ,5 00 May 5, 2012 (1) 

December 5, 2006 

Plan 14 Stock subscription options 

and February 19, 2007 93. 86 1,843,300 December 6, 2010 – December 4, 2014 

Plan 15 (2) Stock subscription options December 5, 2007 96. 54 695,000 December 6, 2011 – December 5, 2015 

Plan 16 (2) Stock subscription options December 5, 2007 96. 54 160,000 December 6, 2011 – December 5, 2015 

Plan 16 bis (2) Attribution of free shares December 5, 2007 - 60,000 December 6, 2013 (1) 

(1) The free shares will be delivered to employees on May 5, 2010 and December 6, 2011 respectively for plans 13 and 16 bis, and must be held a minimum of two years before resale. 

(2) 695,000 options, 160,000 options and 60,000 free shares respectively had been attributed at December 31, 2007 under plans 15, 16 and 16 bis. The total authorised by the Board of Directors is 2,080,000 

options, 797,787 options and 132,166 free shares respectively. 

The grant date is the date at which benefi ciaries are informed of the decision 

to grant these options or shares, and the terms of the relevant plans. 

H – Share-based payments 

Share-based payments exclusively concern stock options and free shares 

awarded to personnel. 

Plan values 

The options awarded under these plans only become vested after a period of 

fi ve years for plans 1 to 8, and four years for plans 9 to 16. For stock option 


plans, the exercise period then covers fi ve years for plans 1 to 8 and four years 

for plans 9 to 16. Loss of the benefi t of these options follows the applicable 

regulations: all options are forfeited in the event of resignation, and a decision 

is made for each individual case when an employee leaves at the company’s 

instigation. 

The valuation method follows a suitable binomial mathematical model, with 

exercise of the options anticipated and spread over the exercise period on a 

straight-line basis. The volatility factor applied is implicit volatility at the grant 

date. The dividend used is determined by reference to the dividend payout 

schedule contained in the Renault Commitment 2009 plan. 



01 

02 

03 

04 

05 

06 

07 

08

The plans have been valued as follows: 




EXPENSE EXPENSE EXPENSE 

SHARE 

PRICE 

DURATION 

INITIAL VALUE UNIT FAIR FOR 2007 FOR 2006 FOR 2005 AT GRANT 

INTEREST EXERCISE OF 

PLAN 

(thousands of €) VALUE (€ million) (€ million) (€ million) DATE (€) VOLATILITY RATE PRICE (€) OPTION (1) 

DIVIDEND 

PER SHARE 

(€) 

Plan 9 32,820 18.15 (6) (8) (8) 55.40 33.0% 3.79% 53.36 4–8 years 1.15 

Plan 10 39,870 19.75 (9) (9) (9) 69.05 27.0% 3.71% 66.03 4–8 years 1.40 

Plan 11 22,480 14.65 (6) (8) (1) 72.45 23.5% 2.68% 72.98 4–8 years 1.80 

Plan 12 (2) 17,324 15.42 (5) (3) - 87.05 28.1% 3.90% 87.98 4–8 years 2.40–4.50 

Plan 13 (2) 36,634 15.59 (9) (5) - 87.82 27.2% 3.85% 87.98 4–8 years 2.40–4.50 

Plan 13 bis (2) 74,666 69.86 (20) (8) - 83.71 N/A 3.83% N/A N/A 2.40–4.50 

Plan 14 (2) 26,066 14.14 (6) - - 92.65 26.7% 3.88% 93.86 4–8 years 2.40–4.50 

Plan 15 14,849 21.36 (1) - - 99.10 34.0% 3.89% 96.54 4–8 years 2.40–4.50 

Plan 16 3,418 21.36 - - - 99.10 34.0% 3.89% 96.54 4–8 years 2.40–4.50 

Plan 16 bis 4,787 79.78 - - - 99.10 N/A 3.89% N/A N/A 2.40–4.50 

TOTAL 272,914 (62) (41) (18) 

(1) Period during which the option is not considered vested for tax purposes. 

(2) For these plans, options or free share attribution rights have been awarded at different dates within the stated period. The information reported m ay correspond to weighted averages based on quantities 

awarded per grant date. 

20 – PROVISIONS 

A – Provisions at December 31 


Provisions (other than provisions for pension and other long-term employee obligations) 1,516 1,743 2,093 

Provisions for restructuring and workforce adjustment costs 253 445 435 

Provisions for warranty costs 819 735 945 

Provisions for tax risks and litigation 173 222 237 

Other provisions 271 341 476 

Provisions for pension and other long-term employee benefit obligations 1,203 1,157 1,055 

TOTAL PROVISIONS 2,719 2,900 3,148 

Provisions – long-term 1,765 1,847 1,884 

Provision – short-term 954 1,053 1,264 

All known litigation in which Renault or Group companies are involved is 

examined at each closing. After seeking the opinion of legal advisors, any 

provisions deemed necessary are set aside to cover the estimated risk. 


01 

02 

03 

04 

05 

06 

07 

08 





B – Changes in provisions (other than provisions for pension and other long-term employee obligations) 

(€ million) 

RESTRUCTURING 

PROVISIONS 

WARRANTY 

PROVISIONS 

TAX RISKS AND 

LITIGATION PROVISIONS OTHER PROVISIONS TOTAL 

At December 31, 2005 435 945 237 476 2,093 

Increases 187 649 89 128 1,053 

Reversals of provisions for application (178) (817) (65) (134) (1,194) 

Reversals of unused balance of provisions (22) (48) (32) (76) (178) 

Changes in scope of consolidation - - 1 (4) (3) 

Translation adjustments and other changes 23 6 (8) (49) (28) 

At December 31, 2006 445 735 222 341 1,743 

Increases 58 695 59 91 903 

Reversals of provisions for application (278) (589) (26) (81) (974) 

Reversals of unused balance of provisions (6) (6) (76) (37) (125) 

Changes in scope of consolidation - (3) - (26) (29) 

Translation adjustments and other changes 34 (13) (6) (17) (2) 

At December 31, 2007 253 819 173 271 1,516 

Reversal of unused balances mainly result from changes in the assumptions 

used to estimate the original provision. 

At December 31, 2007, other provisions included €50 million of provisions 

established in application of environmental regulations (€81 million at 

December 31, 2006). These provisions principally concern environmental 

compliance costs for industrial land that the Group intends to sell (particularly 

on the Boulogne Billancourt site) and expenses related to the EU directive on 

end-of-life vehicles (note 29-A2). In 2007, €4 million were allocated to these 

provisions, and €20 million were reversed. 

As greenhouse gas emissions were lower than the Group’s allocated quotas, 

no associated provisions were booked at December 31, 2007. 

C – Provisions for pensions and other long-term employee 

benefit obligations 

C1 – Pension and benefit plans 

Pensions and other long-term employee benefi t obligations essentially concern 

current employees. 

These benefi ts are covered either by contributions to defi ned-contribution plans 

or by defi ned-benefi t plans. 

Defined-contribution plans 

The Group makes earnings-related payments, in accordance with local 

practices , to the national organisations responsible for paying pensions and 

similar fi nancial benefi ts. There is no actuarial liability concerning these pension 

arrangements. 

The total expense for defi ned-contribution plans is approximately €450 million 

in 2007 (€500 million in 2006). 

Defined-benefit plans 

Provisions are established for this type of plan, mainly concerning indemnities 

payable upon retirement, but also covering: 

other payments upon retirement and supplementary pensions; 

other long-term benefi ts, chiefl y long-service awards and fl exible holiday 

entitlements; 

healthcare expense coverage. 

Defi ned-benefi t plans are sometimes covered by funds which are valued 

annually based on market value. The value of fund assets, if any, is deducted 

from the corresponding liability. In view of the amounts involved (€388 million 

at December 31, 2007), the Group’s exposure to risk resulting from changes 

in these fund asset values is low (see note 20-C3). 

C2 – Actuarial assumptions 

The main actuarial assumptions used for the companies in France, the country 

accounting for most of the Group’s obligations, are the following: 

Retirement age 60 to 65 

Salary increase 3% 

Discount rate (1) 5.3 % 

(1) The rate most frequently used to value the Group’s obligations in France is 5.3% (4,4% in 2006 

and 4,0% in 2005). However, the rate varies between companies depending on the maturities 

of obligations. 



n 

n 

n 


01 

02 

03 

04 

05 

06 

07 

08

C3 – Summary 




(€ million) DECEMBER 31, 2007 DECEMBER 31, 2006 DECEMBER 31, 2005 DECEMBER 31, 2004 

Present value of obligations 1,580 1,507 1,287 1,097 

Fair value of fund assets (388) (363) (247) (230) 

Actuarial gains and losses on obligations (335) (242) (138) (30) 

Actuarial gains and losses on fund assets 37 27 8 - 

C4 – Provisions for pension and other long-term employee benefit obligations (at December 31) 


French companies 1,064 978 877 

Foreign companies 139 179 178 

TOTAL 1,203 1,157 1,055 

C5 – Change in the provisions for pension and other long-term employee benefit obligations 

(€ million) OBLIGATIONS FUND ASSETS 

OBLIGATIONS NET 

OF FUND ASSETS PAST SERVICE COSTS 

BALANCE SHEET 

PROVISION 

Balance at December 31, 2005 1,287 (247) 1,040 15 1,055 

Net expense for the year 2006 (note 20-C6) 131 (15) 116 (2) 114 

Benefits paid and contribution to funds (63) (28) (91) - (91) 

Actuarial gains (losses) 102 (19) 83 - 83 

Unrecorded past service cost - - - - - 

Translation adjustments 2 (3) (1) - (1) 

Change in scope of consolidation and other 48 (51) (3) - (3) 

Balance at December 31, 2006 1,507 (363) 1,144 13 1,157 

Net expense for the year 2007 (note 20-C6) 136 (21) 115 (2) 113 

Benefits paid and contribution to funds (91) (16) (107) (107) 

Actuarial gains (losses) 93 (10) 83 83 

Unrecorded past service cost - - - - 

Translation adjustments (27) 23 (4) (4) 

Change in scope of consolidation and other (38) (1) (39) (39) 

Balance at December 31, 2007 1,580 (388) 1,192 11 1,203 

The increase in actuarial losses in 2007 and 2006 is principally attributable to 

the French companies, largely as a result of the French laws on S ocial S ecurity 

fi nancing. These laws subject retirement bonuses to S ocial S ecurity charges 

C6 – Net expense for the year 


when the employee leaves the company at his own initiative. While the Group 

has not modifi ed the way it manages retirements, the effects of these laws 

have been taken into consideration in its actuarial parameters. 


Current service cost 88 86 97 

Cost of unwinding the discount 46 43 40 

Expected return on fund assets (21) (15) (6) 

Net expense for the year 113 114 131 

01 

02 

03 

04 

05 

06 

07 

08 





C7 – Reconciliation of the value of the obligations and the provisions 


Actuarial value of obligations not covered by funds 1,130 1,021 944 

Actuarial value of obligations covered by funds 450 486 343 

Value of fund assets (note 20-C5) (388) (363) (247) 

Obligations net of fund assets 1,192 1,144 1,040 

Unrecorded past service costs 11 13 15 

PROVISIONS FOR PENSION AND OTHER LONG-TERM EMPLOYEE BENEFIT 1,203 1,157 1,055 

C8 – Breakdown of fund assets 


Equities 143 229 176 

Bonds 212 126 58 

Other 33 8 13 

Total fund assets 388 363 247 

The current best estimate for contributions payable in 2008 is €23 million. 

21 – OTHER CURRENT LIABILITIES 


Tax liabilities (excluding current taxes) 455 496 431 

Social liabilities 1,616 1,505 1,403 

Other liabilities 3,571 3,894 3,984 

Deferred income 446 414 276 

Derivatives on operating transactions (note 26-A) 165 30 13 

TOTAL 6,253 6,339 6,107 

7.2.6.4 FINANCIAL ASSETS AND LIABILITIES 

22 – FINANCIAL ASSETS 

A – Breakdown by nature 


NON-CURRENT CURRENT TOTAL NON-CURRENT CURRENT TOTAL NON-CURRENT CURRENT TOTAL 

Investments in non-controlled entities 38 38 36 - 36 100 - 100 

Other securities - 204 204 1 312 313 1 469 470 

Loans 

Derivative assets on financing operations 

72 669 741 78 1,575 1,653 87 1,141 1,228 

by the Automobile division (note 26-A) 496 366 862 448 342 790 389 261 650 

TOTAL 606 1,239 1,845 563 2,229 2,792 577 1,871 2,448 

Gross value 659 1,240 1,899 600 2,230 2,830 625 1,872 2,497 

Impairment (53) (1) (54) (37) (1) (38) (48) (1) (49) 

The current portion of other securities corresponds to securities that cannot 

be classifi ed as cash equivalents. The change in the current portion of other 

available-for-sale marketable securities mainly results from the sale of Scania 

shares in 2005 and 2006. 


Loans essentially comprise short-term investments of Automobile division cash 

surpluses with fi nancial institutions. 



01 

02 

03 

04 

05 

06 

07 

08

B – Breakdown by category 




INSTRUMENTS HELD 

(€ million) 

FOR TRADING (1) 

HEDGING AVAILABLE-FOR- LOANS AND 

DERIVATIVES SALE INSTRUMENTS RECEIVABLES TOTAL 

Investments in non-controlled entities 38 38 

Other securities 102 102 204 

Loans 


741 741 

by the Automobile division 558 304 862 

TOTAL FINANCIAL ASSETS AT DECEMBER 31, 2007 660 304 140 741 1,845 

(1) Including derivatives not designated as hedges for accounting purposes. 


(€ million) 


HEDGING AVAILABLE-FOR- LOANS AND 

DERIVATIVES SALE INSTRUMENTS RECEIVABLES TOTAL 



Loans 


1,653 1,653 


TOTAL FINANCIAL ASSETS AT DECEMBER 31, 2006 542 386 211 1,653 2,792 



Loans 


1,228 1,228 


TOTAL FINANCIAL ASSETS AT DECEMBER 31, 2005 607 234 379 1,228 2,448 

(1) Including derivatives not designated as hedges for accounting purposes. 

23 – CASH AND CASH EQUIVALENTS 


Cash equivalents 1,058 1,694 2,550 

classified as held for trading 1,041 1,686 2,544 

classified as available-for-sale 17 8 6 

Cash on hand and bank deposits 3,663 4,316 3,601 

TOTAL 4,721 6,010 6,151 

Cash on hand and bank deposits are classifi ed as loans and receivables. 


01 

02 

03 

04 

05 

06 

07 

08 





24 – FINANCIAL LIABILITIES AND SALES FINANCING DEBTS 

A – Breakdown by nature 

DECEMBER 31, 2007 DECEMBER 31, 2006 DECEMBER 31, 2005 

(€ million) NON-CURRENT CURRENT TOTAL NON-CURRENT CURRENT TOTAL NON-CURRENT CURRENT TOTAL 

Renault SA redeemable shares 697 - 697 749 - 749 718 - 718 

Bonds 3,728 416 4,144 3,575 618 4,193 3,415 1,084 4,499 

Other debts represented by a certificate - - - - - - - 46 46 

Borrowings from credit institutions 179 275 454 346 1,508 1,854 1,063 584 1,647 

Other interest-bearing borrowings 244 598 842 310 1,397 1,707 267 626 893 

Financial liabilities of the Automobile 

division (excluding derivatives) 

Derivative liabilities on financing operations 

4,848 1,289 6,137 4,980 3,523 8,503 5,463 2,340 7,803 

of the Automobile division 293 228 521 179 192 371 171 207 378 

Total financial liabilities of the 

Automobile division (note 24-B) 5,141 1,517 6,658 5,159 3,715 8,874 5,634 2,547 8,181 

Diac redeemable shares 19 - 19 19 - 19 15 - 15 

Bonds - 7,847 7,847 - 8,961 8,961 - 10,116 10,116 

Other debts represented by a certificate 253 9,142 9,395 252 7,609 7,861 252 7,405 7,657 

Borrowings from credit institutions - 3,989 3,989 - 4,401 4,401 - 4,652 4,652 

Other interest-bearing borrowings - 62 62 - 124 124 - 75 75 

Total financial liabilities and debts 

of the Sales financing division 

(excluding derivatives) 

Derivative liabilities on financing operations 

272 21,040 21,312 271 21,095 21,366 267 22,248 22,515 

of the Sales financing division - 156 156 - 117 117 - 179 179 

Financial liabilities and debts of the 

Sales financing division (note 24-B) 272 21,196 21,468 271 21,212 21,483 267 22,427 22,694 

TOTAL FINANCIAL LIABILITIES AND 

DEBTS OF THE SALES FINANCING 

DIVISION 5,413 22,713 28,126 5,430 24,927 30,357 5,901 24,974 30,875 

Redeemable shares 

The redeemable shares issued in October 1983 and April 1984 by Renault SA 

are subordinated perpetual shares. They earn a minimum annual return of 9% 

comprising a fi xed portion (6.75%) and a variable portion that depends on 

consolidated revenues and is calculated based on identical Group structure and 

methods. The return on redeemable shares, amounting to €17 million for 2007 

(identical to 2006 and 2005), is included in interest expenses. These shares 

are listed on the Paris Stock Exchange, and traded for €940 at December 31, 

2006 and €874 at December 31, 2007 for par value of €153, leading to a 

corresponding €53 million adjustment to the fair value of redeemable shares 

recorded in other fi nancial income (note 8). 

The return on Diac redeemable shares issued in 1985 comprises a fi xed 

portion equal to the Annual Monetary Rate, and a variable portion calculated 

by multiplying an amount equal to 40% of the Annual Monetary Rate by the 

rate of increase in net consolidated profi t of the Diac sub-group compared to 

the prior year. 


Changes in bonds 

In 2007, Renault SA redeemed bonds issued in 2000 and 2004 for a total 

of €451 million, and undertook new bond issues totalling €588 million and 

maturing between 2010 and 2017. 

RCI Banque also redeemed bonds for a total of €3,139 million in 2007, and 

issued new bonds totalling €2,022 million and maturing between 2008 and 

2012. 

Credit lines 

At December 31, 2007 the Renault group’s open credit lines with banks amounted 

to the equivalent of €10,818 million in various currencies (€10,731 million in 

2006), with maturities extending to 2011. The short-term portion amounted 

to €3,600 million at December 31, 2007 (€3,440 million in 2006). A total of 

€59 million of these credit lines was in use at December 31, 2007 (€48 million 




01 

02 

03 

04 

05 

06 

07 

08

B – Breakdown by category 


(€ million) 




HEDGING 

DERIVATIVES 

INSTRUMENTS 

DESIGNATED FROM 

INITIAL RECOGNITION 

AS AT FAIR VALUE 



INSTRUMENTS 

STATED AT 

AMORTISED 

COST (2) TOTAL 

Renault SA redeemable shares 697 697 

Bonds 10 4,134 4,144 

Other debts represented by a certificate - 

Borrowings from credit institutions 454 454 

Other interest-bearing borrowings 842 842 

Derivative liabilities on financing operations of the Automobile division 503 18 521 

TOTAL FINANCIAL LIABILITIES OF THE AUTOMOBILE DIVISION 503 18 707 5,430 6,658 

Diac redeemable shares 19 19 

Bonds 7,847 7,847 

Other debts represented by a certificate 9,395 9,395 

Borrowings from credit institutions 3,989 3,989 


Derivative liabilities on financing operations of the Sales financing division 58 98 156 

TOTAL FINANCIAL LIABILITIES AND SALES FINANCING DEBTS 

OF THE SALES FINANCING DIVISION 58 98 19 21,293 21,468 


(€ million) 



HEDGING 

DERIVATIVES 

INSTRUMENTS 




INSTRUMENTS 

STATED AT 

AMORTISED 



Bonds 4,193 4,193 

Other debts represented by a certificate - - 


Other interest-bearing borrowings 1,707 1,707 




Bonds 8,961 8,961 







(1) Including derivatives not classified as hedges for accounting purposes. 

(2) Including financial liabilities covered by fair value hedges. 


01 

02 

03 

04 

05 

06 

07 

08 






(€ million) 



HEDGING 

DERIVATIVES 

INSTRUMENTS 




INSTRUMENTS 

STATED AT 

AMORTISED 



Bonds 4,499 4,499 

Other debts represented by a certificate 46 46 






Bonds 10,116 10,116 







(1) Including derivatives not classified as hedges for accounting purposes. 

(2) Including financial liabilities covered by fair value hedges. 

C – Breakdown by maturity 

For derivative liabilities, contractual fl ows are the amounts to be paid. 

For other fi nancial liabilities, the contractual fl ows correspond to repayment of 

the principal and payment of interest. 


For fl oating-rate fi nancial instruments, interest is calculated using interest rates 

as at December 31. 

No contractual fl ows are reported for Renault and Diac redeemable shares as 

they have no fi xed redemption date. 



01 

02 

03 

04 

05 

06 

07 

08

C1 – Financial liabilities of the Automobile division 

(€ million) 


BALANCE 

SHEET VALUE 




TOTAL 

CONTRACTUAL 

FLOWS -1 YR 1–2 YRS 2–3 YRS 3–4 YRS 4–5 YRS +5 YRS 

Bonds issued by Renault SA (by issue date) 

2002 1,009 1,000 1,000 

2003 1,194 1,194 383 770 41 

2004 278 278 228 50 

2005 212 212 151 61 

2006 831 831 303 528 

2007 592 588 8 523 57 

Accrued interest, expenses and premiums 28 36 36 

Total 4,144 4,139 419 1,228 929 353 584 626 

Other debts represented by a certificate - - 

Borrowings from credit institutions 454 454 275 109 7 8 10 45 

Other interest-bearing borrowings 842 842 614 24 18 26 43 117 

Total 1,296 1,296 889 133 25 34 53 162 

Future interest on bonds and other financial 

liabilities - 429 136 90 74 65 45 19 

Redeemable shares 697 

Derivative liabilities on financing operations 521 521 228 291 2 

TOTAL FINANCIAL LIABILITIES 6,658 6,385 1,672 1,742 1,028 452 682 809 

C2 – Financial liabilities of the Sales financing division and sales financing debts 

(€ million) 

BALANCE 

SHEET VALUE 


TOTAL 

CONTRACTUAL 

FLOWS -1 YR 1–2 YRS 2–3 YRS 3–4 YRS 4–5 YRS +5 YRS 

Bonds issued by RCI Banque (year of issue) 

1997 214 214 214 

2000 75 75 75 

2001 18 18 18 

2002 675 675 675 

2003 1,048 1,048 1,023 25 

2004 1,124 1,124 25 1,099 

2005 1,182 1,182 316 832 1 23 10 

2006 1,380 1,380 555 317 425 71 1 11 

2007 2,022 2,022 640 722 160 500 

Accrued interest, expenses and premiums 109 119 119 

Total 7,847 7,857 3,446 2,352 1,442 72 524 21 

Other debts represented by a certificate 9,395 9,404 5,653 129 209 1,985 1,175 253 

Borrowings from credit institutions 3,989 3,989 2,779 617 319 265 9 

Other interest-bearing borrowings 62 62 62 

Total 13,446 13,455 8,494 746 528 2,250 1,175 262 

Future interest on financial liabilities - 773 302 227 114 51 23 56 

Redeemable shares 19 

Derivative liabilities on financing operations 156 165 97 38 18 12 


TOTAL FINANCIAL LIABILITIES 21,468 22,250 12,339 3,363 2,102 2,385 1,722 339 

01 

02 

03 

04 

05 

06 

07 

08 





D – Breakdown by currency 


BEFORE 

AFTER BEFORE 

AFTER BEFORE 

AFTER 

(€ million) 

DERIVATIVES DERIVATIVES DERIVATIVES DERIVATIVES DERIVATIVES DERIVATIVES 

Euro 23,581 22,595 25,733 24,258 26,559 24,565 

Yen 1,268 1,928 1,078 2,507 1,527 3,321 

Other 2,600 2,926 3,058 3,104 2,232 2,432 

TOTAL FINANCIAL LIABILITIES AND SALES 

FINANCING DEBTS (EXCLUDING DERIVATIVES) 27,449 27,449 29,869 29,869 30,318 30,318 

25 – FAIR VALUE OF FINANCIAL INSTRUMENTS AND 

IMPACT ON NET INCOME 

A – Fair value of financial instruments 

The carrying amounts on the balance sheet and the estimated fair values 

of the Group’s fi nancial instruments are as follows: 

(€ million) 

Estimated fair values are based on information available on the markets and 

calculated using valuation methods appropriate to the types of instrument in 

question. However, the methods and assumptions used are by nature theoretical, 

and judgment plays a major role in interpreting market data. Adopting different 

assumptions and/or pricing methods could therefore have a signifi cant impact 

on the values estimated. 

Fair values have been determined on the basis of information available at the end 

of the year and do not therefore take account of subsequent movements. 

In general, when the fi nancial instrument is listed on an active and liquid 

market, the last listed price is used to calculate the market value. For unlisted 

instruments, market value is determined based on recognised valuation models 

that refer to observable market parameters. If Renault has no valuation tools, 

particularly for complex products, valuation is carried out by quality fi nancial 

institutions. 

The main assumptions and valuation methods are as follows: 

n securities : the fair value of securities is determined mainly by reference to 

market prices; 


BALANCE 

SHEET VALUE FAIR VALUE 

loans: for loans with an original maturity of less than three months and for 

fl oating-rate loans, the value recorded on the balance sheet is considered to 

be the fair value. Other fi xed-rate loans have been measured by discounting 

future cash fl ows using the rates offered to Renault at December 31, 2007, 

and December 31, 2006 for loans with similar conditions and maturities; 

sales fi nancing receivables: fi xed-rate sales fi nancing receivables have been 

estimated by discounting future cash fl ows at rates that would be applicable 

to similar loans (conditions, maturity and debtor quality) as at December 31, 

2007, and December 31, 2006; 

financial liabilities and sales financing debts: the fair value has been 

determined by discounting future cash fl ows at the rates offered to Renault 

at December 31, 2007 and December 31, 2006 for borrowings with similar 

conditions and maturities. For sales fi nancing debts evidenced by securities 

issued with a life of less than 90 days, the value recorded on the balance 

sheet is considered as the fair value. 



n 

n 

n 


BALANCE 


BALANCE 


ASSETS 

Non-current financial assets 606 599 563 559 577 573 

Sales financing receivables 20,430 20,317 20,360 20,329 20,700 20,820 

Automobile receivables 2,083 2,083 2,102 2,102 2,055 2,055 

Current financial assets 1,239 1,239 2,229 2,229 1,871 1,871 

LIABILITIES 

Non-current financial liabilities 5,413 5,427 5,430 5,525 5,901 6,098 

Current financial liabilities 1,517 1,521 3,715 3,692 2,547 2,518 

Sales financing debts 21,196 21,157 21,212 21,296 22,427 22,504 

Trade payables 8,224 8,224 7,384 7,384 7,788 7,788 

01 

02 

03 

04 

05 

06 

07 

08

B – Impact of financial instruments on net income 


(€ million) 


INSTRUMENTS 

HELD FOR 

TRADING 

FINANCIAL ASSETS 

OTHER THAN DERIVATIVES 

AVAILABLE- 

FOR-SALE 

INSTRUMENTS 

LOANS AND 

RECEIVABLES 



FINANCIAL LIABILITIES 

OTHER THAN DERIVATIVES DERIVATIVES 

INSTRUMENTS 

DESIGNATED AS 

AT FAIR VALUE 

THROUGH PROFIT 

AND LOSS 

INSTRUMENTS 

STATED AT 

AMORTISED 

COST 

TOTAL IMPACT 

ON NET INCOME 

AUTOMOBILE 

Interest income 41 238 279 

Interest expenses (17) (362) (1) (380) 

Change in fair value 19 53 21 16 109 

Impairment (1) (11) (12) 

Dividends 3 3 

Gains (losses) on sale 13 13 

Net foreign exchange gains and losses 14 (8) (66) (60) 

TOTAL IMPACT ON NET INCOME - 

AUTOMOBILE DIVISION 

Including: 

74 15 219 36 (407) 15 (48) 

operating margin 14 2 (17) (63) (66) (130) 

other operating income and expenses 6 6 

net financial income (expense) 60 7 236 36 (344) 81 76 

SALES FINANCING 

Interest income 9 1,520 131 1,660 

Interest expenses (1,037) (67) (1,104) 

Change in fair value 9 (9) - 

Impairment 

Dividends 

(1) (155) (156) 

Gains (losses) on sale 1 (31) (30) 

Net foreign exchange gains and losses 2 2 

TOTAL IMPACT ON NET INCOME - 

SALES FINANCING DIVISION 

Including: 

9 1,336 (1,028) 55 372 

operating margin 8 1,336 (1,028) 55 371 

other operating income and expenses 

net financial income (expense) 

1 1 

TOTAL GAINS AND LOSSES WITH IMPACT ON 

NET INCOME 74 24 1,555 36 (1,435) 70 324 

For the Automobile division, the impact of fi nancial instruments on net income 

mainly corresponds to foreign exchange gains and losses on operating 

C – Fair value hedges 

transactions, and the effects of derivatives related to commodity hedging 

(note 26-B4). 


Change in fair value of the hedging instrument (29) (53) (30) 

Change in fair value of the hedged item 30 52 30 

Net impact on net income of fair value hedges 1 (1) - 

This net impact of fair value hedges on the net income corresponds to the ineffective 

portion of hedges. Hedge accounting methods are described in note 2-V. 


01 

02 

03 

04 

05 

06 

07 

08 





26 – DERIVATIVES AND MANAGEMENT OF FINANCIAL RISKS 

A – Fair value of derivatives 

The fair value of derivatives corresponds to their balance sheet value. 


(€ million) 

FINANCIAL ASSETS OTHER ASSETS 

FINANCIAL LIABILITIES AND 

SALES FINANCING DEBTS 

OTHER 

LIABILITIES 

NON-CURRENT CURRENT CURRENT NON-CURRENT CURRENT CURRENT 

Cash flow hedges - - - - - - 

Fair value hedges - - - - 1 - 

Hedge of the net investment in Nissan 

Derivatives not classified as hedges and derivatives 

143 115 - - 10 - 

held for trading - 129 12 - 115 - 

TOTAL FOREIGN EXCHANGE RISK 143 244 12 - 126 - 

Cash flow hedges 23 - 116 2 90 - 

Fair value hedges 


22 - 2 5 8 - 

held for trading 308 122 45 286 160 - 

TOTAL INTEREST RATE RISK 353 122 163 293 258 - 




- - - - - - 

held for trading - - 149 - - 165 

TOTAL COMMODITY RISK - - 149 - - 165 

TOTAL 496 366 324 293 384 165 


(€ million) 



FINANCIAL LIABILITIES AND 


OTHER 

LIABILITIES 



Fair value hedges - - - - - - 



193 139 - - - - 

held for trading - 98 6 - 90 - 

TOTAL FOREIGN EXCHANGE RISKS 193 237 6 - 90 - 




29 - 8 - 6 - 

held for trading 201 105 49 174 156 - 

TOTAL INTEREST RATE RISKS 255 105 180 179 219 - 




- - - - - - 

held for trading - - 82 - - 30 

TOTAL COMMODITY RISKS - - 82 - - 30 

TOTAL 448 342 268 179 309 30 



01 

02 

03 

04 

05 

06 

07 

08


(€ million) 





FINANCIAL LIABILITIES AND SALES 

FINANCING DEBTS 

OTHER 

LIABILITIES 



Fair value hedges - - - - - 6 


Derivatives not classified as hedges and derivatives held 

103 53 - - - - 

for trading - 79 6 - 87 - 

TOTAL FOREIGN EXCHANGE RISKS 103 132 6 - 87 6 




53 - 61 - 2 - 

for trading 208 129 87 159 188 - 

TOTAL INTEREST RATE RISKS 286 129 171 171 299 - 




- - - - - - 

for trading - - 82 - - 7 

TOTAL COMMODITY RISKS - - 82 - - 7 

TOTAL 389 261 259 171 386 13 

The specialist subsidiary Renault Finance handles the Automobile division’s 

short-term interbank investments. It is also Nissan’s counterparty in derivatives 

trading to hedge exchange, interest rate and commodity risks. 

The fair values of derivatives reported in the Group’s consolidated balance sheet 

assets and liabilities mainly relate to Renault Finance’s business conducted on 

its own behalf and its transactions with Nissan. 

B – Management of financial risks 

Given their nature, the fi nancial instruments held by the Group are exposed to 

the following fi nancial risks: 

n 

n 

n 

n 

market risks (foreign exchange, interest rate, equity and commodity risks); 

counterparty risks; 

liquidity risks; 

credit risks (see notes 16 and 17). 

The sensitivity analyses refl ect the accounting sensitivity generated by fi nancial 

instruments. This information does not therefore represent the Group’s economic 

sensitivity. 

B1 – Foreign exchange risks 

Management of foreign exchange risks 

The Automobile division is exposed to foreign exchange risks in the course of its 

industrial and commercial business. These risks are monitored and centralised 

by Renault’s Cash and Financing department. 

It is Renault’s general policy not to hedge future operating cash fl ows in foreign 

currencies. 

The s ubsidiaries’ fi nancing cash fl ows in foreign currencies are hedged in the 

same currencies when they are managed by Renault SA. 


Equity investments are not hedged, except for the portion of Nissan’s 

shareholders’ equity expressed in yen, totalling ¥824 billion at December 31, 

2007 (note 13-G). 

Renault Finance m ay undertake operations unrelated to operating cash fl ows 

on its own behalf. This has no signifi cant impact on Renault’s consolidated 

results. 

The Sales fi nancing division has low exposure to foreign exchange risks since 

its policy is to provide refi nancing for subsidiaries in their own currencies. 

The Group made no major changes to its foreign exchange risk management 

policy in 2007. 

Analysis of the sensitivity of financial instruments to foreign exchange risks 

This analysis concerns the sensitivity to foreign exchange risks of monetary 

assets and liabilities (including inter-company balances) and derivatives in a 

currency other than the currency of the entity that holds them. However, it does 

not take into account items covered by fair value hedges (hedged assets or 

liabilities and derivatives), for which changes in fair value of the hedged item 

and the hedging instrument almost totally offset each other in the income 

statement. 

The Group’s exposure essentially concerns fi nancial instruments in Japanese 

yen. 

Impacts are estimated solely on the basis of instant conversion of the fi nancial 

assets and liabilities concerned at year-end after application of the 1% variation 

in the Euro exchange rate. 

The impact on equity concerns the 1% variation in the Euro against other 

currencies applied to available-for-sale fi nancial assets and cash fl ow hedges 

and the partial hedge of the investment in Nissan. All other impacts affect net 

income. 

01 

02 

03 

04 

05 

06 

07 

08 





For the Automobile division, the impact on shareholders’ equity (before taxes) 

of a 1% rise in the Euro against the main currencies, applied to fi nancial 

instruments exposed to foreign exchange risks, would be €48 million at 

December 31, 2007. The impact on shareholders’ equity results mainly from 

Currency derivatives 

(€ million) 


NOMINAL -1 YR 1–5 YRS +5 YRS NOMINAL -1 YR 1–5 YRS +5 YRS NOMINAL -1 YR 1–5 YRS +5 YRS 

Currency swaps – 

purchases 2,594 1,397 1,166 31 2,438 669 1,715 54 2,488 840 1,597 51 

Currency swaps – sales 2,719 1,431 1,267 21 2,357 555 1,748 54 2,640 893 1,696 51 

Forward purchases 14,851 14,849 2 - 11,508 11,508 - - 12,991 12,991 - - 

Forward sales 14,808 14,806 2 - 11,461 11,461 - - 12,983 12,983 - - 

B2 – Interest rate risk 

Interest rate risk management 

The Renault group’s exposure to interest rate risk mainly concerns the sales 

fi nancing business of RCI Banque and its subsidiaries. Customer loans are 

generally issued at fi xed interest rates, for durations of between 12 and 

72 months. 

Interest rate risk is monitored using a methodology common to the entire RCI 

group, to allow overall management of interest rate risks at consolidated group 

level. Exposure is assessed daily and hedging is systematic, using swaps to 

convert fl oating-rate liabilities to fi xed-rate liabilities (cash fl ow hedges). The 

objective for each subsidiary is to hedge all risks in order to protect the sales 

margin. 

The Automobile division’s interest rate risk management policy applies two basic 

principles: long-term investments use fi xed-rate fi nancing, and investments 

for cash reserves use fl oating-rate fi nancing. In addition, the fi nancing in yen 

undertaken as part of the hedge of Nissan equity is fi xed-rate, over terms varying 

from one month to seven years. 

Finally, Renault Finance carries out interest rate transactions on its own behalf, 

within strictly defi ned risk limits. This arbitrage activity has no signifi cant impact 

on Renault’s consolidated net income. 

The Group made no major changes to its interest rate risk management policy 

in 2007. 

Analysis of the sensitivity of financial instruments to interest rate risks 

The Group is exposed to the following interest rate risks: 

n 

n 

n 

variations in the interest fl ows on fl oating-rate fi nancial instruments stated 

at amortised cost, and variations in the fair value of fi nancial instruments 

stated at fair value (including fi xed-rate instruments swapped to fl oating 

rate, and structured products); 

variations in the fair value of the fi xed-rate fi nancial instruments stated at 

fair value; 

variations in the fair value of derivatives (hedging derivatives and other 

derivatives). 


the partial hedge of the investment in Nissan. This impact is offset by the 

opposite variation in the translation adjustment on the value of the investment 

in Nissan (note 19-D). The estimated impact on net income at December 31, 

2007 is not signifi cant. 

Impacts are estimated by applying this 1% rise in interest rates over a one-year 

period to fi nancial instruments reported in the closing balance sheet. 

The impact on equity corresponds to the change in fair value of available-forsale 

fi xed-rate fi nancial assets and cash fl ow hedges after a 1% rise in interest 

rates. All other impacts affect net income. 

Calculation of the individual divisions’ sensitivity to interest rates includes 

interdivision loans and borrowings. 

For the Automobile division, the impact on net income and shareholders’ equity 

(before taxes) of a 1% rise in interest rates applied to fi nancial instruments 

exposed to interest rate risks would not be significant at December 31, 


For the Sales fi nancing division, the impact on net income and equity (before 

taxes) of a 1% rise in interest rates applied to fi nancial instruments exposed 

to interest rate risks would be €(5) million and €75 million respectively at 

December 31, 2007. The impact on equity results mainly from the change in the 

fair value of swaps undertaken to hedge future cash fl ows. The Sales fi nancing 

division’s sensitivity to interest rate risks is stable in comparison to 2006. 

Fixed rate/floating rate breakdown of financial liabilities and sales financing debts 

(excluding derivatives) 

DECEMBER 31, 


DECEMBER 31, 

2006 

DECEMBER 31, 

2005 

AFTER AFTER AFTER 

IMPACT OF IMPACT OF IMPACT OF 

(€ million) 

DERIVATIVES DERIVATIVES DERIVATIVES 

Fixed rate 22,215 24,721 22,094 

Floating rate 5,234 5,148 8,224 

TOTAL FINANCIAL LIABILITIES, 


(EXCLUDING DERIVATIVES) 27,449 29,869 30,318 



01 

02 

03 

04 

05 

06 

07 

08

Interest rate derivatives 

B3 – Equity risks 

Management of equity risks 

The Group’s exposure to equity risks essentially concerns marketable securities 

indexed to share prices. The Group does not use equity derivatives to hedge 

this risk. 

The Group made no major changes to its equity risk management policy in 


Analysis of sensitivity of financial instruments to equity risks 

Impacts are estimated by applying this 10% decline in share prices to the 

fi nancial assets concerned at year-end. 

The financial instruments’ sensitivity to equity risks is not significant at 

December 31, 2007. 

B4 – Commodity risks 

Management of commodity risks 

Renault’s Purchases department hedges part of its commodity risks using 

fi nancial instruments such as forward purchase contracts, purchase options 

and tunnel contracts. These hedges concern physical purchasing operations 

required by the factories, and are subject to volume and time constraints. The 

Group does not take any speculative positions on metals. 

Commodity derivatives 




The Group made no major changes to its commodity risk management policy 


At December 31, 2007, outstanding commodity hedges concerned certain 

purchases of copper, aluminium and platinum. These transactions are not 

currently classifi ed as hedges and the change in their fair value is therefore 

included in the cost of goods and services sold reported in the income 

statement. 

Analysis of the sensitivity of financial instruments to commodity risks 

Financial instruments’ accounting sensitivity to commodity risks results from 

derivatives used to hedge the Group’s economic sensitivity to such risks. 

Impacts are estimated by applying this 10% rise in commodity prices to 

derivatives at the year-end. 

The impact on net income (before taxes) of a 10% rise in commodity prices 

applied to derivatives not designated as hedges would be €34 million at 

December 31, 2007. 

The financial instruments’ sensitivity to commodity risks has increased 

compared to 2006 due to reinforcement of hedging operations, particularly 

in respect of aluminium. 


(€ million) 


Forward purchases 623 493 130 - 177 177 - - 222 111 111 - 

Forward sales 418 305 113 - 229 229 - - 118 59 59 - 

B5 – Counterparty risk 

The Group only does business on the fi nancial and banking markets with quality 

counterparties, and is not subject to any signifi cant risk concentration. 

The various Group entities’ counterparty risk is managed using a scoring system, 

based principally on the counterparties’ long-term credit rating and equity level. 

For Group companies with signifi cant exposure, compliance with authorised 

limits is monitored on a daily basis under strict internal control procedures. 

The Group made no major changes to its counterparty risk management policy 


B6 – Liquidity risk 

The Automobile division is fi nanced via the capital markets, through: 

n 

long-term resources (bond issues, private placements, etc); 

n 

n 



(€ million) 


Interest rate swaps 67,865 25,357 41,534 974 67,947 25,264 41,780 903 69,558 21,260 47,723 575 

FRA 

Other interest rate hedging 

550 550 - - - - - 

instruments 940 940 3,914 3,698 216 517 292 225 - 

short-term bank loans or commercial paper issues; 

a receivable securitisation programme by RCI Banque. 

Short-term fi nancing arrangements are secured by confi rmed “evergreen” or 

permanently renewable credit agreements. The documentation for these credit 

facilities contains no clause that might adversely affect credit availability as a 

result of a change in Renault’s credit rating. 

At all times, RCI Banque thus has suffi cient fi nancial resources at its disposal 

to guarantee continuity of business without calling on the Automobile division, 

in compliance with strict internal standards. 

The Group made no major changes to its liquidity risk management policy in 


Details of the Group’s fi nancing structure are provided in note 24 on fi nancial 

liabilities and sales fi nancing debts. 

01 

02 

03 

04 

05 

06 

07 

08 





7.2.6.5 CASH FLOWS AND OTHER INFORMATION 

27 – CASH FLOWS 

A – Other unrealised income and expenses 


Net allocation to provisions (185) (256) (19) 

Net effects of sales financing credit losses 54 14 167 

Net gain (loss) on asset disposals (19) (188) (194) 

Change in fair value of redeemable shares (53) 34 271 

Change in fair value of other financial instruments 76 40 (93) 

Deferred taxes (58) (86) 26 

Other 71 12 6 

OTHER UNREALISED INCOME AND EXPENSES (114) (430) 164 

B – Change in working capital 


Decrease (increase) in net inventories (862) 656 (496) 

Decrease (increase) in Automobile receivables (171) 51 (88) 

Decrease (increase) in other assets (419) 190 (256) 

Increase (decrease) in trade payables 1 008 (522) 364 

Increase (decrease) in other liabilities 97 (61) 102 

DECREASE (INCREASE) IN WORKING CAPITAL (347) 314 (374) 

C – Cash flows from investing activities 


Purchases of intangible assets (1,348) (1,132) (880) 

Purchases of property, plant and equipment (3,278) (3,577) (3,223) 

Total purchases for the period (4,626) (4,709) (4,103) 

Deferred payments (18) 65 85 

TOTAL CAPITAL EXPENDITURE (4,644) (4,644) (4,018) 

D – Interest received and paid by the Automobile division 



Interest received 280 202 131 

Interest paid (350) (281) (200) 

INTEREST RECEIVED AND PAID (70) (79) (69) 



01 

02 

03 

04 

05 

06 

07 

08

28 – RELATED PARTIES 

A – Remuneration of Directors and Executives 

The consideration and related benefi ts of the President and CEO and the 

Chairman of the Board of Directors amounted to €11.5 million and €2.4 million 

respectively for 2007 (€9.2 million and €4.0 million respectively for 2006). The 

following amounts were recognised in expenses in the relevant years: 


Basic salary 1.2 1.2 

Performance-related salary 1.4 1.4 

Employer’s social security charges 0.8 0.8 

Complementary pension 0.6 0.7 

Stock option plans 7.4 5.0 

Other remuneration 0.1 0.1 

President and CEO 11.5 9.2 

Basic salary - 0.9 

Fixed fee payable to the Chairman of the Board 0.2 0.2 

Employer’s social security charges 0.1 0.3 

Complementary pension 0.8 1.2 

Stock option plans 1.3 1.3 

Other remuneration 0.1 0.1 

Chairman of the Board of Directors 2.4 4.0 

Directors’ fees amounted to €557,770 in 2007 (€542,752 in 2006), of which 

€56,000 for the President and CEO and the Chairman of the Board (unchanged 

from 2006). 

B – Renault’s investment in Nissan 

Details of Renault’s investment in Nissan are provided in note 13. 

C – Renault’s investment in AB Volvo 

Details of Renault’s investment in AB Volvo are provided in note 14. 

29 – OFF- BALANCE SHEET COMMITMENTS AND 

CONTINGENT LIABILITIES 

Renault enters into a certain number of commitments in the course of its 

business. When these commitments qualify as liabilities, they are covered by 

provisions (e.g. retirement and other personnel benefi ts, litigations, etc.). 

Details of off-balance sheet commitments and contingencies are provided 

below (note 29-A). 

Renault also receives commitments from customers (deposits, mortgages, etc) 

and m ay benefi t from credit lines with credit institutions (note 29-B). 




A – Off-balance sheet commitments given 

A1 – Ordinary operations 

The Group is committed for the following amounts: 


(€ million) 

2007 2006 2005 

Other guarantees given 

Opening of confirmed credit lines 

595 540 518 

for customers (1) 2,616 2,509 2,198 

Firm investment orders 690 799 949 

Lease commitments 355 404 317 

Assets pledged or mortgaged (2) 167 254 216 

(1) Confirmed credit lines opened for customers by the Sales financing division lead to a maximum 

payment of this amount within 12 months after the year-end. 

(2) Pledged and mortgaged assets are mainly financial assets provided as guarantees by 

Renault Samsung Motors when it was acquired by Renault in 2000. 

Lease commitments include rent from non-cancellable leases. The breakdown 

is as follows: 


(€ million) 

2007 2006 2005 

Less than 1 year 56 56 55 

Between 1 and 5 years 234 239 207 

More than 5 years 65 109 55 

LEASE COMMITMENTS 355 404 317 

A2 – Special operations 

End-of-life vehicles 

Under EC Directive 2000/53/EC concerning end-of-life vehicles, published 

in September 2000, EU member states will be obliged to take measures to 

ensure that: 

n 

n 


vehicles at the end of their useful life can be transferred to an approved 

processing centre free of charge to the last owner; 

specifi c progressive targets are met concerning the re-use rate for vehicle 

components, with priority given to recycling, and the value of components 

that can be re-used. 

Since January 1, 2007, this Directive has concerned all vehicles on the road. 

The Group establishes provisions in relation to the corresponding cost on a 

country-by-country basis, as the Directive is incorporated into national laws and 

when the procedures for recycling operations are defi ned. These provisions are 

regularly reviewed to ensure they take account of changes in each country’s 

situation. 

For countries where the legislation is not yet complete, until the laws are in 

existence, it is impossible to accurately determine whether the Group will have 

to bear a residual cost 

01 

02 

03 

04 

05 

06 

07 

08 





Renault Argentina 

Renault Argentina SA manages a savings plan called Plan Rombo SA, designed 

to enable savers’ groups to acquire vehicles. The savers make monthly 

contributions to the plan and a vehicle is delivered at the end of a given period. 

At December 31, 2007, Plan Rombo SA had approximately 500 savers’ groups 

on its books. Renault Argentina SA and Plan Rombo SA are jointly responsible 

to subscribers for the correct operation of the plan. Renault’s corresponding 

off-balance sheet commitment amounts to 82 million Argentinean pesos at 

December 31, 2007 (€18 million). 

Other commitments 

Disposals of subsidiaries or businesses by the Group generally include 

representations and warranties in the buyer’s favour. At December 31, 2007, 

Renault had not identified any significant risks in connection with these 

operations. 

Following partial sales of subsidiaries during previous years, Renault retains 

options to sell all or a portion of its residual investment. Exercising these 

options would not have any signifi cant impact on the consolidated fi nancial 

statements. 

Under the agreement signed in April 2003, when Renault sold a 51% stake 

in Renault Agriculture to Claas, after Claas exercised its option to acquire a 

further 29% in February 2006, Renault and Claas now hold a sale and purchase 

option respectively for the remaining 20%, which may be exercised from 

January 1, 2010. 

The agreement signed in March 2007 by Renault and the Japanese group 

NTN for the sale of 35% of SNR also provides for a fi rm future purchase by 

NTN of a further 16% in SNR on the fi rst anniversary of the sale. In addition, 

Renault and NTN respectively hold a sale and purchase option concerning 29% 

of SNR, which can be exercised during a 60-day period starting on the 3 rd and 

4 th anniversary dates of the original transaction. From the 5 th anniversary date, 

Renault has a unilateral option to sell its residual 20% investment in SNR, valid 

for fi ve years. If this option is not exercised by the end of the fi ve-year period, 

NTN will have a purchase option on the residual investment. 

Group companies are periodically subject to tax inspections in the countries 

in which they operate. Tax adjustments are recorded as provisions in the 

fi nancial statements. Contested tax adjustments are recognised on a caseby-case 

basis, taking into account the risk that the proceedings or appeal m ay 

be unsuccessful. 


B – Off-balance sheet commitments received 


(€ million) 

2007 2006 2005 

Other guarantees given 

Opening of confirmed credit lines 

1,154 784 764 

for customers (1) 10,759 10,683 10,643 

Firm investment orders 506 395 208 

Lease commitments 361 537 616 

Assets pledged or mortgaged (2) 2,185 2,107 2,150 

(1) The Sales financing division receives guarantees from its customers in the course of 

sales financing for new or used vehicles. Guarantees received from customers amount to 

€425 million at December 31, 2007. 

(2) Including €1,574 million for commitments received by the Sales financing division for sale to a 

third party of rental vehicles at the end of the rental contract. 

30 – SUBSEQUENT EVENTS 

Substantial price decrease for Renault SA 

redeemable shares 

The value of the redeemable shares issued by Renault SA underwent a 

considerable decrease in early 2008: the quoted price fell from €874 at 

December 31, 2007 to €555 at January 31, 2008. As these shares are 

recorded at fair value (market value) through profi t and loss, such a change in 

the quoted price could have a signifi cant impact on the Group’s net fi nancial 

income. The estimated potential impact based on the price at January 31, 

2008 corresponds to fi nancial income of €256 million with a corresponding 

decrease in non-current fi nancial liabilities (no impact on consolidated cash). 

This estimated impact will vary with fl uctuations in the quoted price of the 

redeemable shares. 



01 

02 

03 

04 

05 

06 

07 

08

31 – CONSOLIDATED COMPANIES 

A – Fully consolidated companies (subsidiaries) 





RENAULT GROUP’S INTEREST (%) 

AUTOMOBILE 

COUNTRY DECEMBER 31, 2007 DECEMBER 31, 2006 DECEMBER 31, 2005 

FRANCE 

Renault s.a.s France 100 100 100 

Arkanéo France 100 100 100 

Auto Châssis International (ACI) Le Mans France 100 100 100 

Auto Châssis International (ACI) Villeurbanne France 100 100 100 

Car life Siège and subsidiaries France 100 100 100 

Emboutissage Tôlerie Gennevilliers (ETG) France 100 100 100 

France Services rapides and subsidiary France - - 100 

Fonderie Le Mans France - - 100 

SNR Group (Société Nouvelle de Roulements) France - 100 100 

IDVU France 100 100 100 

Maubeuge construction automobile (MCA) France 100 100 100 

Renault développement industriel et commercial (RDIC) France 100 100 100 

REAGROUP SA and subsidiaries France 100 100 100 

SCI parc industriel du Mans France 100 100 100 

SCI Plateau de Guyancourt France 100 100 100 

SNC Renault Cléon France 100 100 100 

SNC Renault Douai France 100 100 100 

SNC Renault Flins France 100 100 100 

SNC Renault Le Mans France 100 100 100 

SNC Renault Sandouville France 100 100 100 

Société des automobiles Alpine Renault France 100 100 100 

Sofrastock International France 100 100 100 

Société de transmissions automatiques France 80 80 80 

Société de véhicules automobiles de Batilly (SOVAB) 

Société Immobilière de Construction Française pour l’Automobile et la Mécanique 

France 100 100 100 

(SICOFRAM) and subsidiary France 100 100 100 

Société immobilière Renault Habitation (SIRHA) France 100 100 100 

Société Immobilière d’Epone France 100 100 100 

Société Immobilière pour l’Automobile et la Mécanique (SIAM) France 100 100 100 

SODICAM 2 France 100 100 100 

Société financière et foncière (SFF) France 100 100 100 

Technologie et exploitation informatique (TEI) France 100 100 100 

EUROPE 

Auto Châssis International (ACI) Valladolid Spain 100 100 100 

Cacia Portugal 100 100 100 

Cofal Luxembourg 100 100 77 

Grigny Ltd. United Kingdom 100 100 100 

Mecanizacion Contable SA (Meconsa) Spain 100 100 100 

Motor Reinsurance Company Luxembourg 100 100 100 

Renault Belgique Luxembourg and subsidiaries Belgium 100 100 100 

Renault Ceska Republica and subsidiaries Czech Republic 100 100 100 

Renault Croatia Croatia 100 100 100 

Renault Espana Comercial SA (REC SA) and subsidiaries Spain 100 100 100 

Renault Espana SA and subsidiaries Spain 100 100 100 

Renault Finance Switzerland 100 100 100 

Renault F1 Team Ltd. United Kingdom 100 100 100 

Renault Group b.v. Netherlands 100 100 100 

01 

02 

03 

04 

05 

06 

07 

08 





RENAULT GROUP’S INTEREST (%) COUNTRY DECEMBER 31, 2007 DECEMBER 31, 2006 DECEMBER 31, 2005 

Renault Hungaria and subsidiaries Hungary 100 100 100 

Renault Industrie Belgique (RIB) Belgium 100 100 100 

Renault Italia and subsidiaries Italy 100 100 100 

Renault Deutsche AG and subsidiaries Germany 100 100 100 

Renault Nederland and subsidiaries Netherlands 100 100 100 

Renault Ö sterreich and subsidiaries Austria 100 100 100 

Renault Nordic Sweden 100 - - 

Renault Suisse SA and subsidiaries Switzerland 100 100 100 

Renault Polska Poland 100 100 100 

Renault Portuguesa and subsidiaries Portugal 100 100 100 

REAGROUP U.K. Ltd. United Kingdom 100 100 100 

Renault Slovakia Slovakia 100 100 100 

Renault Nissan Slovenia d.o.o. Slovenia 100 100 100 

Renault U.K. United Kingdom 100 100 100 

Revoz Slovenia 100 100 100 

EUROMED 

AFM Industrie Russia 100 100 100 

Auto Châssis International (ACI) Romania Romania 100 100 100 

Avtoframos Russia 94 94 93 

Dacia and subsidiaries Romania 99 99 99 

Oyak-Renault Otomobil Fabrikalari Turkey 52 52 52 

Renault Algérie Algeria 100 100 100 

Renault Industrie Roumanie Romania 100 100 100 

Renault Maroc Morroco 80 80 80 

Renault Mécanique Roumanie Romania 100 100 - 

Renault Nissan Roumanie Romania 100 100 100 

Renault Technologie Roumanie Romania 100 - - 

Renault Ukraine Ukraine 100 100 - 

Renault Nissan Bulgarie Bulgaria 100 100 - 

Société marocaine de construction (Somaca) Morroco 77 - - 

AMERICAS 

Groupe Renault Argentina Argentina 100 100 88 

Renault do Brasil LTDA Brazil 100 100 78 

Renault do Brasil SA Brazil 100 100 77 

Renault Corporativo SA de C.V. Mexico 100 100 100 

Renault Mexico Mexico 100 100 100 

Sociedad de Fabricacion de Automotores (SOFA SA) Colombia 60 60 60 

Renault Venezuela Venezuela 100 100 100 

ASIA & AFRICA 

Renault Pars Iran 51 51 - 

Renault Samsung Motors South Korea 80 80 70 

Renault South Africa and subsidiaries South Africa 51 51 51 



FRANCE 

Diac France 100 100 100 

Diac Location France 100 100 100 

Compagnie de Gestion Rationnelle (Cogera) France 100 100 100 

RCI Banque France 100 100 100 

Réalisation, Études, Courtage et Assurances (RECA) France 100 100 100 

Société Internationale de Gestion et de Maintenance Automobile (SIGMA) France 100 100 100 

Société de Gestion, d’Exploitation de Services en Moyens Administratifs (SOGESMA) France 100 100 100 



01 

02 

03 

04 

05 

06 

07 

08






EUROPE 

Accordia Espana SA Spain - 100 100 

ARTIDA Spain 100 100 100 

RCI Financial Services Ltd. United Kingdom 100 100 100 

Overlease Espagne Spain 100 100 100 

RCI Banque Autriche Austria 100 100 100 

RCI Bank Polska Poland 100 100 100 

RCI Finance CZ Sro Czech Republic 100 100 100 

RCI Finance SK Slovakia 100 - - 

RCI Financial Services Belgique Belgium 100 100 100 

RCI Financial Services BV Netherlands 100 100 100 

RCI Finanzholding GmbH Germany 100 100 100 

RCI Gest IFIC and subsidiary Portugal 100 100 100 

RCI Gest Seguros Portugal 100 100 100 

RCI Leasing GmbH Germany 100 100 100 

RCI Versicherungs Service GmbH Germany 100 100 100 

Renault Acceptance GmbH Germany - - 100 

Renault Acceptance Ltd. United Kingdom 100 100 100 

Refactor Italy - 100 100 

Renault Autofin SA Belgique Belgium 100 100 100 

Renault Credit Polska Poland 100 100 100 

Renault Financial Services Ltd. (RFS) United Kingdom 100 - - 

RCI Zrt Hongrie Hungary 100 100 100 

RCI Finance SA Switzerland 100 100 100 

Renault Financiaciones Spain - 100 100 

Renault Services SA Belgique Belgium 100 100 100 

RNC (ex Accordia) Italy - 100 100 

EUROMED 

RCI Broker de Assigurare Romania 100 100 - 

RCI Leasing Romania Romania 100 100 50 

RCI Finantare Romania Romania 100 100 100 

AMERICAS 

Consorcio Renault do Brasil Brazil 100 100 100 

Cia Arrademento Mercantil Renault do Brasil Brazil 60 60 60 

CFI Renault do Brasil Brazil 60 60 60 

Renault do Brasil S/A Corr. de Seguros Brazil 100 100 100 

ROMBO Compania Financiera Argentina 60 60 60 

ASIA & AFRICA 

RCI Korea South Korea 100 100 - 

01 

02 

03 

04 

05 

06 

07 

08 





B – Proportionately consolidated companies (joint-ventures) 


AUTOMOBILE 

Française de Mécanique France 50 50 50 

GIE TA 96 France 50 50 50 

Ciudad Communicacion Valladolid Spain - 50 - 


Sygma Finance France 50 50 50 

Renault Leasing CZ Sro Czech Republic 50 50 50 

Renault Credit Car Belgium 50 50 50 

Renault Financial Services Ltd. (RFS) United Kingdom - 50 50 

Overlease Italia Italy 49 49 49 

C – Companies accounted for by the equity method (associates) 


AUTOMOBILE 

AB Volvo Group Sweden 21.8 21.8 21.8 

MAIS Turkey 49 49 49 

Nissan Group Japan 45.6 45.3 45.7 


Nissan Renault Wholesale Mexico Mexico - 15 15 

Nissan Renault Finance Mexico Mexico 15 15 15 

The percentage control is different from the percentage ownership for the following entity: 


RENAULT GROUP’S% CONTROL COUNTRY DECEMBER 31, 2007 DECEMBER 31, 2006 DECEMBER 31, 2005 

AB Volvo Group Sweden 21.3 21.3 21.3 



01 

02 

03 

04 

05 

06 

07 

08



STATUTORY AUDITORS’ REPORTS ON THE PARENT COMPANY ONLY 

7.3 STATUTORY AUDITORS’ REPORTS ON 

THE PARENT COMPANY ONLY 

7.3.1 ON THE FINANCIAL STATEMENTS 



Statutory Auditors’ report on the annual fi nancial statements 

This is a free translation into English of the statutory auditors’ report issued in the 

French language and is provided solely for the convenience of English speaking 

readers. This report includes information specifi cally required by French law in all 

audit reports, whether qualifi ed or not, and this is presented below the opinion 

on the fi nancial statements. This information includes explanatory paragraphs 

discussing the auditors’ assessments of certain signifi cant accounting matters. 

These assessments were made for the purpose of issuing an opinion on the 

fi nancial statements taken as a whole and not to provide separate assurance 

on individual account captions or on information taken outside of the annual 

fi nancial statements. The report also includes information relating to the specifi c 

verifi cation of information in the management report. 




In accordance with our appointment as statutory auditors by your Annual General 

Meeting, we hereby report to you, for the year ended December 31, 2007, 

on: 

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the audit of the accompanying annual fi nancial statements of Renault; 

the justifi cation of our assessments; 

the specifi c verifi cations and information required by law. 

These annual financial statements have been approved by the Board of 

Directors. Our role is to express an opinion on these fi nancial statements 

based on our audit. 


I. OPINION ON THE ANNUAL FINANCIAL STATEMENTS 

We conducted our audit in accordance with the professional standards 

applicable in France; those standards require that we plan and perform the audit 

to obtain reasonable assurance about whether the annual fi nancial statements 

are free of material misstatement. An audit includes examining, on a test 

basis, evidence supporting the amounts and disclosures in the annual fi nancial 

statements. An audit also includes assessing the accounting principles used 

and signifi cant estimates made by the management, as well as evaluating the 

overall annual fi nancial statements presentation. We believe that our audit 

provides a reasonable basis for our opinion. 

In our opinion, the annual fi nancial statements present fairly, in all material 

respects, the fi nancial position of the Company at December 31, 2007 and 

the results of its operations for the year then ended, in accordance with the 

accounting rules and principles applicable in France. 

II. JUSTIFICATION OF ASSESSMENTS 

In accordance with the requirements of article L. 823-9 of French Company 

Law (Code de commerce) relating to the justifi cation of our assessments, we 

bring to your attention the following matters: 

As disclosed in the note 1.C to the fi nancial statements, and in accordance 

with the Conseil national de la comptabilité (French National Accounting Body’s) 

Recommendation n°. 34, your company has elected to use the equity method 

to account for its investments in subsidiaries over which it exercises exclusive 

control. The equity value of these investments is determined in accordance with 

the accounting rules and methods used to draw up the Group’s consolidated 

fi nancial statements. Our assessment of this equity value is based on the 

result of the procedures performed to audit the Group’s consolidated fi nancial 

statements for the 2007 fi scal year. 

The assessments were thus made in the context of the performance of our audit 

of the fi nancial statements taken as a whole and therefore contributed to the 

formation of our audit opinion expressed in the fi rst part of this report. 

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07 STATUTORY 


AUDITORS’ REPORTS ON THE PARENT COMPANY ONLY 

III. SPECIFIC VERIFICATIONS AND INFORMATION 

We have also performed the specifi c verifi cations required by law in accordance 

with professional standards applicable in France. We have no matters to report 

regarding: 

n the fair presentation and the conformity with the annual fi nancial statements 

of the information given in the Board of Directors’ Management Report and 

in the documents addressed to the s hareholders with respect to the fi nancial 

position and the fi nancial statements; 

7.3.2 SPECIAL REPORT ON REGULATED AGREEMENTS AND COMMITMENTS 

WITH RELATED THIRD PARTIES 



Special report of the Statutory Auditors on regulated agreements and 

commitments with related third parties 

This is a free translation into English of the Statutory Auditors’ special report on 

regulated agreements and commitments with related third parties that is issued 

in the French language and is provided solely for the convenience of English 

speaking readers. This report on regulated agreements and commitments 

with related third parties should be read in conjunction with, and construed in 

accordance with, French law and professional auditing standards applicable 

in France. It should be understood that the agreements reported on are only 

those provided by the French Commercial Code and that the report does not 

apply to those related party transactions described in IAS 24 or other equivalent 

accounting standards 



the fair presentation of the information given in the Board of Directors’ 

Management Report in respect of remunerations and benefi ts received by 

the relevant directors and any other commitments made in their favour in 

connection with, or subsequent to, their appointment, termination or change 

in current function. 

In accordance with French law, we have ensured that the required information 

concerning the purchase of investments and controlling interests and the names 

of the principal shareholders and holders of the voting rights has been properly 

disclosed in the Board of Directors’ Management Report. 


In our capacity as Statutory Auditors of your Company, we hereby report on the 

regulated agreements and commitments with related third parties. 

We are not required to ascertain whether any other agreements and commitments 

exist but to inform you, on the basis of the information provided to us, of the 

terms and conditions of those agreements and commitments indicated to us. We 

are not required to comment as to whether they are benefi cial or appropriate. It is 

your responsibility, in accordance with Article R. 225-31 of French company law 

(Code de commerce), to assess the interest involved in respect of the conclusion 

of these agreements and commitments prior to their approval. 

We hereby inform you that we have not been advised of any agreements 

and commitments concluded during the year ended December 31, 2007 

which would be covered by Article L. 225-38 of French c ompany l aw (Code 

de commerce). 

In accordance with the French c ompany l aw (Code de commerce), we have 

been advised that the following agreements and commitments, approved in 

prior years, remained current in the year ended December 31, 2007. 



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1. WITH COGERA 

Credit facility agreement between your Company and Cogera 

A credit facility agreement was entered into between your Company and Cogera, 

a subsidiary of RCI Banque (controlled by Renault), in order to grant Cogera a 

credit facility of € 450,000,000 allocated to Cogera’s refi nancing of its banking 

activities, with a view to allowing RCI Banque to reduce its “Large Risks” ratio 

as defi ned in Article 1.1 of Comité de la réglementation bancaire et fi nancière 

(French Banking and Financial Regulation Committee) Regulation No. 93-05, 

calculated on a consolidated basis. In the 2007 fi scal year, the amount of interest 

concerning this agreement totaled € 20,134,963. 

2. WITH RENAULT S.A.S. 

A. Contracting-out agreement 

Contracting-out agreements were entered into between your Company and 

Renault s.a.s. within the scope of an operation to refi nance loans granted under 

the «1% construction» scheme (French Social Construction Tax), in particular, 

for the purpose of reinforcing the liquidity of these non-interest-bearing loans 

and to freeze the cost of refi nancing at current, exceptionally low interest rates 

up to the maturity date in 2020. 






STATUTORY AUDITORS’ REPORTS ON THE PARENT COMPANY ONLY 

B. Agreement for the provision of services 

Your Company entered into a contract with Renault s.a.s. under which the 

latter is to provide a certain number of legal, accounting, tax, customs and 

fi nancial services to enable your Company to meet its legal obligations in these 

matters. In the 2007 fi scal year, the amount of interest invoiced by Renault 

s.a.s. concerning these services totaled € 3,908,528. 

We conducted our work in accordance with French professional standards. 

These standards require that we perform the necessary procedures to verify 

that the information provided to us is consistent with the documentation from 

which it has been extracted. 




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07 RENAULT 


SA PARENT COMPANY FINANCIAL STATEMENTS 

7.4 RENAULT SA PARENT COMPANY 


7.4.1 F INANCIAL STATEMENTS 

INCOME STATEMENT 



Operating income 4 1 1 

Operating expenses (24) (28) (25) 

NET OPERATING EXPENSE (20) (27) (24) 

Investment income 853 1,661 580 

Increases to provisions (1) (1) 

INVESTMENT INCOME AND EXPENSES (note 2) 853 1,660 579 

Foreign exchange gains 534 417 34 

Reversals of provision for exchange risks 7 (6) 

Foreign exchange losses (179) (14) (5) 

FOREIGN EXCHANGE GAINS AND LOSSES (note 3) 355 410 23 

Interest and equivalent income 5 3 3 

Interest and equivalent expenses (263) (206) (203) 

Reversals of provisions and transfers of charges 3 6 8 

Net gains on sales of marketable securities 45 18 1 

OTHER FINANCIAL INCOME AND EXPENSES (note 4) (210) (179) (191) 

NET FINANCIAL INCOME 998 1,891 411 

PRE-TAX INCOME BEFORE EXCEPTIONAL ITEMS 978 1,864 387 

EXCEPTIONAL INCOME 160 

EXCEPTIONAL EXPENSES (1) (1) (57) 

NET EXCEPTIONAL ITEMS (note 5) (1) (1) 103 

INCOME TAX (note 6) 119 78 91 

NET INCOME 1,096 1,941 581 



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BALANCE SHEET 




RENAULT SA PARENT COMPANY FINANCIAL STATEMENTS 


ASSETS (€ million) GROSS 

DEPRECIATION 

AMORTISATION & 

PROVISIONS NET NET 

Invetsments stated at equity (note 7) 8,490 8,490 7,448 

Investment in Nissan Motor (note 7) 6,413 6,413 6,413 

Other investments (note 7) 245 (13) 232 0 

Advances to subsidiaries and affiliates (note 8) 9,647 (5) 9,642 9,513 

Loans 9 (2) 7 7 

FINANCIAL ASSETS 24,804 (20) 24,784 23,381 

TOTAL FIXED ASSETS 24,804 (20) 24,784 23,381 

RECEIVABLES 15 15 3 

MARKETABLE SECURITIES (note 9) 582 582 1,203 

CASH AND CASH EQUIVALENTS 9 9 30 

OTHER ASSETS (note 10) 35 35 40 

TOTAL ASSETS 25,445 (20) 25,425 24,657 

SHAREHOLDERS’ EQUITY AND LIABILITIES (€ million) 2007 2006 

Share capital 1,086 1,086 

Share premium 4,423 4,423 

Revaluation surplus 9 9 

Equity valuation difference 4,829 3,787 

Legal and tax basis reserves 108 108 

Retained earnings 7,120 6,041 

Net income 1,096 1,941 

SHAREHOLDERS’ EQUITY (note 11) 18,671 17,395 

REDEEMABLE SHARES (note 12) 130 130 

PROVISIONS FOR RISKS AND LIABILITIES (note 13) 54 89 

Bonds 3,954 3,914 

Borrowings from credit institutions 322 484 

Other loans and financial debts 1,904 2,235 

FINANCIAL LOANS AND BORROWINGS (note 14) 6,180 6,633 

OTHER LIABILITIES (note 15) 40 18 

DEFERRED INCOME (note 16) 350 392 

TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 25,425 24,657 

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07 RENAULT 



STATEMENT OF CHANGES IN CASH 


Cash flow (note 20) 1,064 1,933 

Change in working capital requirements 9 24 

CASH FLOW FROM OPERATING ACTIVITIES 1,073 1,957 

Net decrease (increase) in other investments (232) 

Net decrease (increase) in loans (128) (999) 

Net decrease (increase) in marketable securities 620 855 

CASH FLOW FROM INVESTING ACTIVITIES 260 (144) 

Bond issues 588 856 

Bond redemptions (597) (1,143) 

Net increase (decrease) in other interest-bearing borrowings (492) (843) 

Dividends paid to shareholders (863) (663) 

CASH FLOW FROM FINANCING ACTIVITIES (1,364) (1,793) 

CASH AND CASH EQUIVALENTS: OPENING BALANCE 30 10 

Increase (decrease) in cash and cash equivalents (31) 20 

CASH AND CASH EQUIVALENTS: CLOSING BALANCE (1) 30 

7.4.2 N OTES TO THE FINANCIAL STATEMENTS 

7.4.2.1 ACCOUNTING POLICIES 

Renault SA draws up its accounts in accordance with French law and accounting 

regulations. The annual fi nancial statements are presented using French 

chart of accounts 99-03 of April 29, 1999, amended by CRC (Comité de la 

Règlementation Comptable) regulations. 

The following methods were applied in valuing balance sheet and income 

statement items: 

A – Net financial income 

The net fi nancial income comprises interest income and expenses related 

to Renault SA’s indebtedness and short-term investment activities. Financial 

expenses correspond to charges payable on borrowing sources, which depend 

on the level of indebtedness and interest rates. Financial income includes 

gains on short-term investments (marketable securities, loans) and dividends 

received. The net fi nancial income includes realised foreign exchange gains 

and losses. 

B – Net exceptional items 

Exceptional items are revenues and expenses resulting from events or 

transactions that are clearly distinct from the company’s normal business 

operations, and are not expected to recur on a frequent or regular basis. 

C – Investments 

As allowed by CNC (Conseil National de la Comptabilité) avis N°34 (July 1988), 

as an alternative to the standard valuation method for investments carried in the 

balance sheet, Renault SA has opted to state investments in wholly-controlled 

companies at equity: 

this method is applied to all fully consolidated companies; 

the shareholders’ equity of these companies is determined under the 

accounting policies applied in the consolidated fi nancial statements; as this is 

a valuation method, intercompany eliminations are not taken into account; 

in valuing a subsidiary, its holdings in companies wholly controlled by the 

Group are valued in the same way; 

the change during the year in the overall percentage of shareholders’ equity 

corresponding to these interests is not an income or loss item; it is included in 

shareholders’ equity under “equity valuation difference”. This amount cannot 

be distributed or used to offset losses. When it is negative, a provision for 

general impairment is established as a charge against income. 

Investments in companies not wholly controlled by Renault SA are valued at 

acquisition cost, less related expenses, or at their book value if this is lower. 

Provisions are established when the book value of the investments is lower than 

the gross value. The book value takes account of profi tability and commercial 

prospects, and the share of net assets. 

Other investments include treasury shares acquired for the purposes of stock 

option plans. 

D – Advances to subsidiaries and affiliates 

Loans to companies in which Renault SA holds an investment are recorded at 

historical cost. Impairment is recognised when there is a probability that these 

loans will not be recovered. 



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E – Marketable securities 

Marketable securities are valued at acquisition cost, excluding related expenses 

and accrued interest for bonds, or at market value if this is lower. 

Treasury shares held for the purposes of stock option plans awarded to Group 

managers and executives are recorded in marketable securities at the lower of 

purchase price and stock market price. A provision equivalent to the difference 

is established where relevant. An additional provision for risks and liabilities is 

established when the option exercise price falls below the net book value. 

F – Loan costs and issuance expenses 

Loan costs, including issuance expenses, and bond redemption premiums are 

amortised over the corresponding duration. 

G – Translation of foreign currency receivables and 

liabilities 

Receivables and liabilities denominated in foreign currencies are translated 

as follows: 

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all receivables and liabilities in foreign currencies are converted at the yearend 

exchange rate; 

exchange differences arising between the date of transactions and 

December 31 are recorded in Other assets and Deferred income (translation 

adjustment); 

a provision for risk equal to the unrealised exchange losses is established 

as follows: 

. 

. 

. 

a foreign exchange position is determined for each currency and term, 

based on balance sheet items stated in foreign currencies and derivatives 

entered into to hedge foreign exchange risks, 

unrealised foreign exchange gains are netted against unrealised foreign 

exchange losses with a similar term in the same currency, 

any residual unrealised foreign exchange losses by currency and term 

are recognised. 

H – Provisions for risks and liabilities 

Provisions for risks and liabilities are established for obligations that are probable 

or defi nite at year-end. A contingent liability is an obligation that is neither 

probable nor defi nite at the date the fi nancial statements are established, 

or a probable obligation for which expenditure of resources is not probable. 

Provisions are not established for contingent liabilities, but an off-balance sheet 

commitment is reported where relevant. 

I – Derivatives 

Gains and losses on derivatives designated as hedges are recorded in the 

income statement in the same way as the revenues and expenses relating to 

the hedged item. 




Derivatives not designated as hedges are adjusted to fair value at each closing 

date. Any resulting unrealised loss is recognised in the income statement, 

while in application of the conservatism principle, unrealised gains are not 

taken to income. 

The fair value of forward exchange contracts is based on market conditions. 

The fair value of currency swaps is determined by discounting future cash fl ows, 

using closing-date market rates (exchange and interest rates). The fair 

value of interest rate derivatives is the amount the Group would receive 

(or pay) to settle outstanding contracts at the closing date, taking year-end 

market conditions into consideration. 

7.4.2.2 INVESTMENT INCOME AND 

EXPENSES 

Details are as follows: 


Dividends received from Renault s.a.s. 973 

Dividends received from Nissan Motor Co. Ltd. 456 431 

Dividends received from Sofasa 

Interest on loans and advances to subsidiaries and 

4 0 

affiliates 393 257 

TOTAL 853 1,661 

7.4.2.3 FOREIGN EXCHANGE GAINS 

AND LOSSES 

In 2007, redemption of three bonds for a total of €597 million generated a total 

foreign exchange gain of €145 million: 

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settlement of the cross-currency swap undertaken to hedge the bond issued 

on October 19, 2000 (nominal value €500 million) generated a foreign 

exchange gain of €127 million; 

settlement of the interest rate swap undertaken to hedge the bond issued on 

April 23, 2004 on the Japanese domestic market (nominal value 10 billion 

yen) generated a foreign exchange gain of €15 million; 

redemption of the bond issued on April 26, 2004 on the Japanese domestic 

market (nominal value 3 billion yen) generated a foreign exchange gain of 

€3 million. 

Settlements of short-term forward sales forming part of the hedge of Nissan’s 

net assets generated a €211 million net foreign exchange gain in 2007 

(a €387 million gain and a €176 million loss). 

The net foreign exchange gain in 2006 included a gain of €215 million following 

redemption of six bonds totalling ¥136 billion (€1,143 million), and a gain of 

€189 million as for settlements of short-term forward sales (a €201 million 

gain and a €12 million loss). 

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07 RENAULT 



7.4.2.4 OTHER FINANCIAL INCOME 

AND EXPENSES 

Other fi nancial income and expenses totalled €210 million in 2007 (€179 million 

in 2006), mainly refl ecting net interest payments on Renault bonds after 

swaps. The net interest on bonds comprises accrued and paid interest of 

€329 million (€281 million in 2006), and accrued and received interest on 

swaps of €177 million (€168 million in 2006). 

7.4.2.5 NET EXCEPTIONAL ITEMS 

The net exceptional expense of €1 million mainly comprises the loss on sales of 

shares to employees through options exercised under stock option plans. 

7.4.2.6 INCOME TAX 

As Renault SA elected to determine French income taxes under the domestic 

tax consolidation regime when it was formed, this regime has continued to 

apply to the Group in which Renault SA is taxed in France since January 1, 

2004. French subsidiaries that are more than 95%-owned by Renault SA 

pay their income taxes directly to Renault SA under this regime. Each entity 

included in the domestic tax consolidation records its theoretical taxes as if 

it were taxed separately. The tax saving generated by this system is treated 

as income for the company heading the group of entities concerned. When 

subsidiaries return to profi t, the parent company records additional tax due to 

the fact that the subsidiaries’ past tax losses have already been utilised. The 

parent company is not obliged to refund a subsidiary that returns to profi t or 

leaves the tax consolidated group for any tax savings resulting from utilisation 

of its tax losses. 

The income generated by income taxes for 2007 was €119 million (€89 million 

income from the domestic tax consolidation, plus an amount of €30 million 

recovered from provisions for tax risks). The loss reported under the domestic 

tax consolidation amounts to €1,623 million, a €585 million increase over the 

previous year. 

Details of the tax charge for the year are as follows: 

INCOME 

TAXES 

NET INCOME 

(€ million) 

BEFORE TAX THEORETICAL NETTING TAX CREDIT NET TAX DUE THEORETICAL AS BOOKED 

Current income subject to normal rate 

Current income subject to reduced rate 

978 162 (3) 159 819 819 

Exceptional income subject to normal rate (1) (1) (1) 

Tax consolidation (247) 247 

Increase/reversal of provision for tax risks 

Tax reassessments 

(30) 30 

TOTAL 977 161 0 (3) (119) 819 1,096 

Details of Renault SA’s future tax position are as follows: 

(€ million) 

2007 2006 CHANGE 

ASSETS (1) LIABILITIES (2) ASSETS (1) LIABILITIES (2) ASSETS LIABILITIES 

Temporarily non-deductible expenses 

Provisions for risks and liabilities 

Other 

Operations taxed at reduced rate 

18 20 (2) 

Temporarily non-taxable income 

Expenses deducted (or taxable income) not yet recognized for accounting purposes 143 3 166 3 (23) 

TOTAL 161 3 186 3 (25) 

(1) i.e. future tax credit. 

(2) i.e. future tax charge. 




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7.4.2.7 INVESTMENTS 

Changes during the year were as follows: 




(€ million) AT START OF YEAR 

CHANGE OVER 

THE YEAR AT YEAR-END 

Invetsments stated at equity 7,448 1,042 8,490 

Investment in Nissan Motor Co. Ltd. 6,413 6,413 

Other investments 13 232 245 

Provisions on other investments (13) (13) 

TOTAL 13,861 1,274 15,135 

The €1,042 million change during the year in investments stated at equity is 

taken to shareholders’ equity (see note 11). No new investments or disposals 

took place in 2007. 

7.4.2.8 ADVANCES TO SUBSIDIARIES AND AFFILIATES 

Changes during the year were as follows: 

The €232 million increase in other investments corresponds to purchases of 

2 136 650 treasury shares acquired for the purpose of stock option plans. 

The market value of these shares at December 31, 2007 was €207 million. 

(€ million) AT START OF YEAR INCREASES DECREASES AT YEAR-END 

Capitalisable advances 5 5 

Advances to subsidiaries and affiliates 9,513 2,356 (2,227) 9,642 

TOTAL BEFORE IMPAIRMENT (1) 9,518 2,356 (2,227) 9,647 

Impairment (5) (5) 

NET TOTAL 9,513 2,356 (2,227) 9,642 

(1) Current portion (less than one year) 9,413 2,356 (2,220) 9,549 

Long-term portion (over 1 year) 105 (7) 98 

Advances to subsidiaries and affi liates include: 

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€1,785 million in short-term investments with Group fi nance companies 

as part of the Group’s cash management programme (€3,257 million in 

2006); 

€25 million in long-term loans to Renault s.a.s. (identical to 2006); 

€7,832 million in current accounts resulting from centralised cash 

management agreements with Group subsidiaries (€6,231 million in 

2006). 

7.4.2.9 MARKETABLE SECURITIES 

Marketable securities include €314 million of short-term investment funds 

(€832 million in 2006) and €268 million for Renault SA’s treasury shares 

(€371 million in 2006). 

Renault SA invests its cash surpluses in coherence with the Group’s aim to 

develop a more active cash investment policy. These short-term investment 


securities meet strict risk control requirements such as capital guarantees, and 

must present no foreign exchange or liquidity risks. 

Renault SA carried out arbitrage in favour of very short-term investments in 

the form of bank investment certifi cates with terms of up to three months, 

offering a better risk/return profi le since the crisis experienced by the fi nancial 

markets of August 2007. 

Changes in treasury shares were as follows: 

AT START 

OF YEAR 

OPTIONS 

EXERCISED 

EARLY 

EXERCISE 

OF SHARE 

SUBSCRIPTION 

OPTIONS 

AT 

YEAR-END 

Number of shares 7,681,580 2,262,591 500 5,418,489 

Value (€ million) 372 104 268 

Stock option plans introduced since 2004 award share subscription options 

rather than share purchase options. 

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07 RENAULT 



7.4.2.10 OTHER ASSETS 

The major item included in Other assets is the €26 million payment made in 

connection with the Calyon loan (€28 million at December 31, 2006). For the 

purposes of the 1%-rate housing loan fi nancing operation introduced in 2004, 

Renault contracted a loan from Calyon with nominal value of €112 million, 

bearing interest at the fl oating rate of 6-month Euribor +0.67%, terminating 

7.4.2.11 SHAREHOLDERS’ EQUITY 

Changes in shareholders’ equity were as follows: 

on December 31, 2019. An interest rate swap was undertaken to convert this 

to a fi xed rate of approximately 0.13%, and Renault SA also paid a sum of 

€33 million corresponding to the discounted interest differential recorded over 

the duration of the operation. This payment is amortised over the duration of 

the loan (15 years) at the same rate as the interest paid on the debt. 

BALANCE AT START ALLOCATION OF 

BALANCE 

(€ million) 

OF YEAR 2006 NET INCOME DIVIDENDS 2007 NET INCOME OTHER AT YEAR-END 

Share capital 1,086 1,086 

Share premium 4,423 4,423 

Revaluation surplus 9 9 

Equity valuation difference 3,787 1,042 4,829 

Legal and tax basis reserves 108 108 

Retained earnings 6,041 1,941 (863) 7,120 

Net income 1,941 (1,941) 1,096 1,096 

TOTAL 17,395 0 (863) 1,096 1,042 18,671 

At the General Shareholders’ Meeting of May 2, 2007, a decision was made to 

allocate the net income for 2006 as follows: €883 million (€3.10 per share) to 

distribution of dividends, including a non-distributable amount of €20 million 

attached to treasury shares, and €1,078 million to retained earnings. 

Non-distributable reserves amounted to €4 ,946 million at December 31, 


A total of €499 million of reserves corresponds to the treasury share 

accounts. 

Renault SA’s shareholding structure was as follows at December 31, 2007: 

OWNERSHIP STRUCTURE VOTING RIGHTS 

NUMBER OF SHARES 

HELD % OF CAPITAL NUMBER % 

French state 42,759,571 15.01 42,759,571 18.22 

Employees 8,873,624 3.11 8,873,624 3.78 

Treasury shares 7,555,139 2.65 

Nissan 42,740,568 15.00 

Other 183,008,216 64.23 183,008,216 78.00 

TOTAL 284,937,118 100 234,641,411 100 

The par value of a Renault SA share is €3.81. 

7.4.2.12 REDEEMABLE SHARES 

These shares, issued in October 1983 and April 1984 by Renault SA, can be 

redeemed with a premium on the sole initiative of Renault SA. They earn a 

minimum annual return of 9% comprising a fi xed portion (6.75%) and a variable 

portion that depends on consolidated revenues and is calculated based on 

identical structure and methods. 


In March and April 2004, Renault SA made a cash tender offer to buy back 

its redeemable shares at €450 per share, representing a 21% premium over 

market price. This operation generated a loss of €343 million. 

797,659 redeemable shares remained on the market at December 31, 2007, 

with an average weighted cost of €158.93 each or a total of €130 million 

including accrued interest. These shares are listed on the Paris Bourse, and 

over the period December 31, 2006 to December 31, 2007 traded at between 

€940 and €874 for par value of €153. 

The 2007 return on redeemable shares, amounting to €17 million (identical to 

2006), is included in interest expenses. 



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7.4.2.13 PROVISIONS FOR RISKS AND LIABILITIES 

Provisions for risks and liabilities break down as follows: 

(€ million) 2006 INCREASES 




Provisions for tax risks and litigation 33 (33) 

- Current (less than 1 year) 

- Long-term (over 1 year) 

33 (33) 

REVERSALS WITHOUT 

APPLICATION 2007 

Other provisions for risks and liabilities 56 (2) 54 

- Current (less than 1 year) 33 33 

- Long-term (over 1 year) 23 (2) 21 

TOTAL 

Increases/reversals concerning: 

89 (35) 54 

- operating items (4) 

- financial items (2) 

- income taxes (29) 

All known litigation in which Renault SA is involved was examined at year-end. 

After seeking the opinion of legal and tax advisors, the provisions deemed 

necessary have been established as appropriate to cover the estimated risk. 

7.4.2.14 BORROWINGS AND FINANCIAL 

DEBTS 

A – Bonds 

The principal changes in bonds over 2007 were as follows: 

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issuance on January 15, 2007 of a 7-year bond with total nominal value of 

€29 million, at the indexed fl oating rate of 10-year CMS, swapped to the 

fl oating rate of 3-month Euribor +0.62%; 

issuance on April 16, 2007 of a 5-year bond with total nominal value of 

€500 million, at the fi xed rate of 4.5% swapped to a fl oating rate of 3-month 

Euribor +0.3948%; 

issuance on April 27, 2007 of a 10-year bond with total nominal value of 

€10 million, at the fi xed rate of 5.35% with an adjustment option (a swap was 

undertaken to convert this to a fl oating rate of 3-month Euribor +0.55%); 

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n 


issuance on April 27, 2007 on the Japanese market of a 3-year bond with 

total nominal value of ¥2 billion , at the fi xed rate of 1.285%; 

issuance on June 5, 2007 on the Japanese market of a 7-year bond with 








redemption of the April 23, 2004 3-year bond issue totalling ¥10 billion at the 

fl oating rate of 3-month Libor +0.28% (a swap was undertaken to convert 

this to a fi xed rate of 0.7375%); 

redemption of the April 26, 2004 3-year bond issue totalling ¥3 billion at 

the fi xed rate of 0.67%; 

redemption of the October 19, 2000 7-year bond issue totalling €500 million 

at the fi xed rate of 6.375% (a currency swap was undertaken to convert this 

issue into ¥62 billion with a rate of 2.7276%). 

01 

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07 

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07 RENAULT 



Breakdown by maturity 


(€ million) TOTAL -1 YR 1 TO 2 YRS 2 TO 3 YRS 3 TO 4 YRS 4 TO 5 YRS +5 YRS 

2002 1,000 1,000 

2003 1,031 365 625 41 

2004 278 228 50 

2005 213 152 61 

2006 831 303 528 

2007 588 12 519 57 

Accrued interest 13 13 

TOTAL 3,954 378 1,228 789 353 580 626 



2000 

2001 

394 394 

2002 1,000 1,000 

2003 1,075 376 658 41 

2004 365 80 235 50 

2005 224 160 64 

2006 847 319 528 


TOTAL 3,914 483 376 1,235 818 369 633 

Breakdown by currency 

DECEMBER 31, 2007 DECEMBER 31, 2006 

(€ million) BEFORE DERIVATIVES AFTER DERIVATIVES BEFORE DERIVATIVES AFTER DERIVATIVES 

Euro 3,044 2,370 2,928 1,824 

Yen 910 1,584 986 2,090 

TOTAL 3,954 3,954 3,914 3,914 

Breakdown by interest rate 


(€ million) AFTER DERIVATIVES AFTER DERIVATIVES 

Fixed rate 1,757 2,263 

Floating rate 2,197 1,651 

TOTAL 3,954 3,914 

B – Borrowings from credit institutions 

Borrowings from credit institutions stood at €322 million at December 31, 2007 

(€484 million in 2006), and are mainly contracted on the market. 


Borrowings from credit institutions due after one year include short-term 

drawings on long-term credit lines (due after one year). They bear interest at 

market rates. 



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02 

03 

04 

05 

06 

07 

08

Breakdown by maturity 






2001 

2002 

2003 

127 127 

2004 

2005 

2006 

183 8 107 5 8 10 45 


TOTAL 322 147 107 5 8 10 45 



2001 282 150 132 

2002 

2003 

4 4 

2004 

2005 

2006 

192 10 8 105 6 8 55 


TOTAL 484 170 140 105 6 8 55 

Breakdown by currency 


(€ million) BEFORE DERIVATIVES AFTER DERIVATIVES BEFORE DERIVATIVES AFTER DERIVATIVES 

Euro 273 195 436 352 

Yen 127 132 

Other currencies 49 48 

TOTAL 322 322 484 484 

Breakdown by interest rate 


(€ million) AFTER DERIVATIVES AFTER DERIVATIVES 

Fixed rate 211 383 

Floating rate 111 101 

TOTAL 322 484 

C – Other loans and financial debts 

Other loans and fi nancial debts amounted to €1,904 million at December 31, 

2007 (€2,235 million in 2006), and mainly comprise borrowings from Group 

subsidiaries with surplus cash, as follows: 

n 

n 

€763 million of borrowings from Renault Espana SA; 

€474 million of borrowings from SI Epone; 

n 

n 

n 

n 

n 


€142 million of borrowings from SIAM; 

€72 million of borrowings from Renault Nederland; 

€69 million of borrowings from Renault Nissan Deutschland AG; 

€60 million of borrowings from Revoz; 

€53 million of borrowings from Renault Belgique Luxembourg; 

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07 RENAULT 



n 

n 

n 

€45 million of borrowings from Renault Ö sterreich; 

€44 million of borrowings from Sirha; 

€42 million of borrowings from SICOFRAM; 

No loans or fi nancial debts are secured. 

The total includes approximately €7 million of accrued interest receivable 

following implementation on February 21, 2006 of the ¥45 billion crosscurrency 

swap with no underlying. 

7.4.2.15 OTHER LIABILITIES 

Changes in other liabilities were as follows: 


VARIATION 

2007/2006 

Tax liabilities 40 18 22 

TOTAL 40 18 22 

The €22 million increase in other liabilities results from a €36 million increase 

in tax liabilities, offset by a €14 million reduction in the liability for taxes payable 

to subsidiaries under the French domestic tax consolidation system. 

7.4.2.16 DEFERRED INCOME 

Deferred income mainly comprises unrealised foreign exchange gains on bond 

issues in yen or swapped to yen, totalling €342 million. Renault SA issues bonds 

in yen or swapped to yen as part of the hedge of the net assets of Nissan. 

7.4.2.17 INFORMATION CONCERNING 

RELATED COMPANIES 

“Related companies” are all entities fully consolidated in the Group’s consolidated 

fi nancial statements. 

INCOME STATEMENT 

(€ million) TOTAL 


RELATED 

COMPANIES TOTAL 

RELATED 

COMPANIES 

Interest on loans and advances 

to subsidiaries and affiliates 

Interest and equivalent 

393 390 257 254 

expenses 

Reversals of provisions and 

(263) (45) (206) (4) 

transfers of charges 3 6 


BALANCE SHEET 



RELATED 

COMPANIES TOTAL 

RELATED 

COMPANIES 

Advances to subsidiaries and 

affiliates 9,642 9,566 9,513 9,434 

Loans 7 4 7 

Receivables 15 3 

Cash and cash equivalents 9 6 30 13 

Loans and financial debts 1,904 1,851 2,235 1,784 

Other liabilities 40 18 

7.4.2.18 FINANCIAL INSTRUMENTS 

A – Management of exchange and interest rate risk 

The corresponding commitments, expressed in terms of notional amount where 

appropriate, are shown below: 

(€ million) 

FOREIGN EXCHANGE RISKS 

AT DECEMBER 31 


AT DECEMBER 31 

2006 

Currency swaps 

Purchases 1,120 1,569 

with Renault Finance 513 931 

Sales 1,367 1,868 

with Renault Finance 617 1,118 

Other forward exchange contracts 

and options 

Purchases 3,174 2,626 

with Renault Finance 3,174 2,626 

Sales 3,149 2,587 


INTEREST RATE RISKS 

Interest rate swaps 2,569 2,132 


Transactions undertaken to manage exchange rate exposure mainly comprise 

currency swaps and forward sales of yen, with total nominal value of 

€4,996 million (¥824 billion ) at December 31, 2007. These operations form a 

partial hedge of Renault’s investment in Nissan’s net assets in yen. Renault SA 

also carries out forward sales to hedge loans to subsidiaries denominated in 

foreign currencies. 

Renault SA carries most of the Group’s indebtedness. Its management policy for 

interest rate risk applies two basic principles: long-term investments use fi xedrate 

fi nancing, and investments for cash reserves use variable-rate fi nancing. 

The fi nancing in yen undertaken as part of the hedge of Nissan equity is fi xedrate, 

over terms varying from 1 month to 7 years. 



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07 

08

Renault SA uses derivatives to implement the above interest rate and exchange 

risk management policies. Most of its operations on the forward markets are 

with Renault Finance, a wholly-owned Group subsidiary. 

B – Fair value of financial instruments 

The carrying amounts in the balance sheet and the estimated fair values of 

Renault SA’s fi nancial instruments are as follows: 

(€ million) 


AT DECEMBER 31 2007 AT DECEMBER 31 2006 

BALANCE 

SHEET 

VALUE 

FAIR 

VALUE 

BALANCE 

SHEET 

VALUE FAIR VALUE 

ASSETS 

Marketable securities (1) Loans and advances to 

582 842 1,203 1,559 

subsidiaries and affiliates 9,656 9,663 9,515 9,522 

Cash and cash equivalents 9 9 30 30 

LIABILITIES 

Redeemable shares 130 697 130 750 

Bonds 

Other interest-bearing 

3,954 4,129 3,914 4,252 

borrowings (2) 2,226 2,213 2,719 2,757 

(1) Including treasury shares 

(2) Excluding redeemable shares 

C – Estimated fair value of off-balance sheet financial 

instruments 

AT DECEMBER 31 2007 AT DECEMBER 31 2006 

(€ million) 

ASSETS LIABILITIES ASSETS LIABILITIES 

Forward exchange contracts 3,174 3,154 2,625 2,589 

with Renault Finance 3,174 3,154 2,625 2,589 

Currency swaps 1,400 1,132 1,925 1,590 

with Renault Finance 579 468 1,094 896 

Interest rate swaps 21 5 27 8 

with Renault Finance 21 1 27 1 

Assumptions and methods adopted: 

Estimated fair values are based on information available on the markets and 

arrived at using valuation methods appropriate to the types of instrument in 



question. However, the methods and assumptions used are by nature theoretical, 

and judgment plays a major role in interpreting market data. Adopting different 

assumptions and/or pricing methods could therefore have a signifi cant impact 

on the values estimated. 

Fair values have been determined on the basis of information available at the end 

of the year and do not therefore take account of subsequent movements. 

In general, when the fi nancial instrument is listed on an active and liquid 

market, the last listed price is used to calculate the market value. For unlisted 

instruments, market value is determined based on recognised valuation models 

that refer to observable market parameters. If Renault SA has no valuation tools, 

particularly for complex products, valuation is carried out by quality fi nancial 

institutions. 

The main assumptions and valuation methods are as follows: 

n 

n 

n 

n 

. 

. 


fi nancial assets: 

marketable securities: the fair value of securities is determined mainly by 

reference to market prices, 

loans and advances to subsidiaries and affi liates: for loans with an original 

maturity of less than three months, fl oating-rate loans and advances to 

subsidiaries and affi liates, the value recorded on the balance sheet is 

considered to be the fair value. Other fi xed-rate loans have been measured 

by discounting future cash fl ows using the rates offered to Renault SA 

at December 31, 2007 and December 31, 2006 for loans with similar 

conditions and maturities; 

liabilities: the fair value of fi nancial liabilities is determined by discounting 

future cash flows at the rates offered to Renault SA at December 31, 

2007 and December 31, 2006 for borrowings with similar conditions and 

maturities. The fair value of redeemable shares is based on their year-end 

stock market value; 

off-balance sheet foreign exchange instruments: the fair value of forward 

contracts is estimated on the basis of prevailing market conditions. The fair 

value of currency swaps is determined by discounting cash fl ows using 

exchange rates and interest rates prevailing at December 31, 2007 and 

December 31, 2006 for the contracts’ residual terms; 

off-balance sheet interest rate instruments: the fair value of interest rate 

swaps represents the amount Renault would receive (or pay) if it settled 

outstanding contracts at the end of the year. Unrealised capital gains or 

losses, determined on the basis of prevailing interest rates and the quality 

of the counterparty to each contract, are taken into account at December 31, 

2007 and December 31, 2006. 

01 

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07 RENAULT 



7.4.2.1 OTHER COMMITMENTS AND CONTINGENCIES 

Off-balance sheet commitments are as follows: 



CONCERNING 

RELATED COMPANIES TOTAL 

CONCERNING 

RELATED COMPANIES 

Commitments received 

Guarantees and deposits 1 1 

Unused credit lines 4,677 205 4,665 142 

TOTAL 4,677 205 4,666 143 

Commitments given 

Guarantees and deposits 453 450 453 450 

Unused credit lines 141 141 165 165 

TOTAL 594 591 618 615 

Financial commitments 

Forward currency sales 3,149 3,149 2,587 2,587 

Forward currency purchases 3,174 3,174 2,626 2,626 

Currency swaps: loan 1,367 617 1,868 1,118 

Currency swaps: borrowing 1,120 513 1,569 931 

Interest rate swaps 2,569 2,282 2,132 1,836 

As part of the management of RCI Banque’s major risk ratio, Renault SA has 

provided Cogera (a fully-owned RCI Banque subsidiary) with a €450 million credit 

line since December 2004. For purposes of compliance with French Banking 

Commission regulations, Renault SA will only be reimbursed by Cogera to the 

extent of the amounts Cogera recovers in repayment of its fi nancing for Renault 

Retail Group’s inventories. Furthermore, to guarantee payment by Renault Retail 

Group to Cogera of the receivables resulting from this fi nancing arrangement, 

Renault SA’s receivable related to the credit line is pledged in favour of Cogera. 

The value of this pledge at December 31, 2007 was €450 million. 

The forward sales and swaps undertaken by Renault SA are described above 

(note 18.A - Management of exchange and interest rate risk). 


7.4.2.20 CASH FLOW 

Cash fl ow is determined as follows: 


Net income 1,096 1,941 

Increases to provisions and deferred charges 

Net increase to long-term provisions for risks and 

5 5 

liabilities (36) (9) 

Transfer of financial charges (1) (4) 

TOTAL 1,064 1,933 

7.4.2.21 WORKFORCE 

Renault SA has no employees. 

7.4.2.22 REMUNERATION OF DIRECTORS 

AND EXECUTIVE MANAGERS 

Total remuneration to members of the Board of Directors was less than 

€1 million. 



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7.4.2.23 SUBSEQUENT EVENTS 

No signifi cant event has occurred subsequent to the year-end. 

OTHER INFORMATION – SUBSIDIARIES AND AFFILIATES (€ MILLION) 

COMPANIES SHARE CAPITAL 




RESERVES AND RETAINED 

EARNINGS (3) % OF CAPITAL HELD 

BOOK VALUE OF SHARES 

OWNED 

INVESTMENTS 

Renault s.a.s. 534 2,681 100.00 7,694 

Dacia (2) 705 (80) 99.31 768 

Nissan Motor Co. Ltd. (1) 3,673 18,840 44.33 

Sofasa (2) 1 96 23.71 28 

TOTAL INVESTMENTS 8,490 

(1) Based on the financial proforma statements published by Nissan Motor Co. Ltd. at December 31, 2007 (exchange rate: 164.93 yen = 1 Euro). 

(2) Exchange rates for Dacia and Sofasa are respectively 3.6077 Romanian lei and 2967 Colombian peso for one Euro. 

(3) Before allocation of net income. 

OTHER INFORMATION – SUBSIDIARIES AND AFFILIATES (€ MILLION) 

COMPANIES 

OUTSTANDING LOANS 

AND ADVANCES 

FROM RENAULT SA 

SALES REVENUES, 

PRIOR YEAR 

NET INCOME (LOSS), 

PRIOR YEAR 

DIVIDENDS RECEIVED 

BY RENAULT SA IN 2007 

INVESTMENTS 

Renault s.a.s. 3,065 32,921 100 

Dacia 1,923 123 

Nissan Motor Co. Ltd. 70,863 2,647 456 

Sofasa 826 24 4 

ACQUISITION OF INVESTMENTS IN OTHER COMPANIES 

No investments were acquired during 2007. 


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02 

03 

04 

05 

06 

07 

08 





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07 

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08 

Additional 

information 


8.1 PERSON RESPONSIBLE FOR THE REGISTRATION DOCUMENT 256 

8.2 INFORMATION CONCERNING FY 2005 AND 2006 257 

8.2.1 FY 2005 257 

8.2.2 FY 2006 257 

8.3 INTERNAL REGULATIONS OF THE BOARD OF DIRECTORS 258 

8.3.1 Internal Regulations of the Board of Directors 258 

8.3.2 Directors’ Charter 261 

8.3.3 Procedure concerning the use and/or communication of inside information 262 

8.4 APPENDICES RELATING TO THE ENVIRONMENT 264 

8.4.1 Method used for the “Site environmental indicators in 2007” table 264 

8.4.2 Site environmental indicators in 2007 266 

8.4.3 Environmental indicators for products 268 

8.4.4 Statutory Auditors’ report 268 

8.5 CROSS-REFERENCE TABLES 270 

8.5.1 Disclosure requirements – Annex I / EC809/2004 270 

8.5.2 Global Reporting Initiative indicators and Global Compact principles 272 

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07 

08 


08 PERSON 

ADDITIONAL INFORMATION 

RESPONSIBLE FOR THE REGISTRATION DOCUMENT 

8.1 PERSON RESPONSIBLE 

FOR THE REGISTRATION DOCUMENT 

Mr. Carlos Ghosn, President and Chief Executive Offi cer, accepts full responsibility 

for the Registration Document and the related supplemental information. 

I hereby declare that, to the best of my knowledge, the information in this 

document is correct and that all reasonable measures have been taken to that 

end. There are no omissions likely to alter the scope of this information. 

I hereby declare that, to the best of my knowledge, the fi nancial statements have 

been prepared in accordance with the applicable set of accounting standards 

and give a true and fair view of the assets, liabilities, fi nancial position and results 

of the company and all the undertakings included in the consolidation taken as 

a whole; and that the management report in c hapter 2 includes a fair review of 

the development and performance of the business, the results and the fi nancial 

position of the company and all the undertakings in the consolidation taken 


as a whole, together with a description of the principal risks and uncertainties 

that they face. 

A statutory auditors’ report has been issued in respect of the historical information 

in the registration document; it appears in c hapter 7.1 of the document and 

contains observations concerning the changes of method made in 2007. 

I have received a completion letter from Renault’s Statutory Auditors stating 

that they have verifi ed the information concerning the fi nancial situation and 

the fi nancial statements set forth in this Registration Document, which they 

have read in full. 

Paris, March 11, 2008 

President and Chief Executive Offi cer 

Carlos Ghosn 



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INFORMATION CONCERNING FY 2005 AND 2006 

8.2 INFORMATION CONCERNING FY 2005 AND 2006 

Pursuant to Article 28 of Commission Regulation (EC) 809/2004, the 

following historical data is incorporated by reference in the present 

Registration Document: 

8.2.1 FY 2005 

The 2005 Registration Document was fi led with the Autorité des m archés 

fi nanciers on March 13, 2006 under No. 06-0124 (French version). 

The consolidated financial statements are outlined on pages 167 to 231 

of c hapter 8 and the corresponding audit report is on page 166 of c hapter 8. 

8.2.2 FY 2006 

The 2006 Registration document was fi led with the Autorité des m archés 

fi nanciers on March 13, 2007 under No. D07-0170 (French version). 

The consolidated financial statements are outlined on pages 165 to 213 

of c hapter 7 and the corresponding audit report is on page 164 of c hapter 7. 


Financial information is on pages 50 to 54 of c hapter 2.1.2. 

Data not incorporated in this document is either not appropriate for investors 

or covered in another chapter of the Registration Document. 

Financial information is on pages 50 to 53 of c hapter 2.1.2. 

Data not incorporated in this document is either not appropriate for investors 

or covered in another chapter of the Registration Document. 


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07 

08

08 INTERNAL 


REGULATIONS OF THE BOARD OF DIRECTORS 

8.3 INTERNAL REGULATIONS OF THE BOARD 

OF DIRECTORS 

Adopted by the Board during its meeting of September 10, 1996 and amended 

during its meetings of June 8, 2000, October 23, 2001, July 25, 2002, 

December 17, 2002 and February 22, 2005. 

8.3.1 INTERNAL REGULATIONS OF THE BOARD OF DIRECTORS 

8.3.1.1 THE BOARD OF DIRECTORS 

Renault’s Board of Directors is a collegiate body that collectively represents all 

shareholders. It is required to act at all times in the company’s interest and is 

accountable to the General Meeting of S hareholders. 

The Board of Directors elects its Chairman, who takes the title of Chairman of 

the Board of Directors. 

The Board of Directors appoints the Chief Executive Offi cer who takes the title 

of President and Chief Executive Offi cer, and frames Renault’s strategy at the 

behest of the Board. The Board of Directors supervises the management of the 

company and ensures the quality of information provided to the shareholders and 

to markets, both through the fi nancial statements and when major transactions 

are undertaken. It makes public its opinion as to the terms and conditions of 

transactions in the company’s shares whenever the nature of those transactions 

operations so requires. 

The Board of Directors discusses the strategic policies of the company, including 

with respect to the Alliance, as proposed by the President and Chief Executive 

Offi cer. Once a year, it examines any changes that may have occurred in these 

policies. It also gives its prior opinion on any important decision that is not 

consistent with the company’s strategy. 

Based on a report submitted by the President and Chief Executive Offi cer, the 

Board of Directors discusses and determines the decisions that the single 

shareholder in Renault s.a.s. might make, as well as those that may stem from 

the Restated Master Alliance Agreement. 

The Board of Directors examines Renault’s medium-term plan, operating budget 

and investment budget once a year. 

The Board is informed of developments relating to the company’s 

income statement, balance sheet and cash fl ow statement at each of its 

meetings, and, twice per year, of developments relating to its off-balance 

sheet commitments. 

The President and Chief Executive Offi cer informs the Board in timely fashion 

of any external event or internal development that has a material impact 

on the prospects of the company or the forecasts presented to the Board 

of Directors. 

Renault’s Board of Directors examines its membership structure whenever 

necessary and, each year, reviews its organisation and operating procedures. 

It then informs shareholders of the positions or arrangements it has adopted 

in this respect. 


The Board of Directors can use any and all technical resources for its 

deliberations, provided that such resources enable the directors to participate 

effectively. Directors who take part in Board meetings using technical resources 

shall therefore be deemed present for the calculation of quorum and majority, 

except for proceedings concerning the preparation of the parent-company and 

consolidated fi nancial statements, and proceedings concerning the appointment 

or removal from offi ce of the Chairman of the Board of Directors, the President 

and Chief Executive Offi cer or the executive vice presidents, where the directors 

must attend meetings in person. 

8.3.1.2 THE CHAIRMAN OF THE BOARD 

OF DIRECTORS 

The Chairman of the Board of Directors organizes and directs the work of the 

Board. He reports on the Board’s work to the General Meeting of S hareholders. 

He ensures that the company’s decision-making bodies, and especially the Board’s 

committees, function properly. In particular, he ensures that directors are in a 

position to discharge their duties, notably in terms of their committee work. 

He ensures that principles of corporate governance are set out and implemented 

at the highest level. 

The Chairman of the Board of Directors is the only person who may act and 

speak in the name of the Board. 

Subject to the agreement of the President and Chief Executive Offi cer, he may 

represent the Group in its high-level relations, notably with public authorities, 

both at home and internationally. 

He ensures that the Board devotes the necessary time to questions concerning 

the future of the Group and especially its strategy, notably with respect to 

the Alliance. 

The Chairman of the Board of Directors shall be kept regularly informed 

by the President and Chief Executive Offi cer and other members of senior 

management of major events and situations affecting the Group. He shall receive 

the information required to lead the work of the Board and committees and to 

prepare the internal control report. 

The Chairman of the Board of Directors may meet with the statutory auditors. 

The Chairman of the Board of Directors may attend meetings of Board 

committees on which he does not sit, in a consultative capacity, and may 

consult these committees on any question within their remit. 



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8.3.1.3 PRESIDENT AND CHIEF EXECUTIVE 

OFFICER 

The President and Chief Executive Offi cer is vested with the broadest powers 

to act in all circumstances in the name of the company. 

The President and Chief Executive Offi cer and the persons he appoints for this 

purpose are the only ones who may speak in the name of the company. 

He has authority over all Group employees. 

He proposes the strategic policies of the company to the Board, including with 

respect to the Alliance, as well as the decisions that the sole shareholder in 

Renault s.a.s. may be led to make. He informs the Board of measures taken 

pursuant to the Restated Master Alliance Agreement, and reports to it on the 

decisions that the Board may be led to take pursuant to the Restated Master 

Alliance Agreement. 

The President and Chief Executive Offi cer may consult the Board’s committees 

on any question within their remit. He shall appear before each committee 

whenever it so requests. 

8.3.1.4 COMMITTEES OF THE BOARD 

OF DIRECTORS 

Renault’s Board of Directors has established four specialized committees to 

help it complete its tasks and achieve its objectives: 

n 

n 

n 

n 

an Accounts and Audit Committee; 

a Remunerations Committee; 

an Appointments and Governance Committee; 

an International Strategy Committee. 

Committee chairmen report on the work and opinions of their committees at 

Board meetings. 

COMPOSITION, TASKS AND OPERATING PROCEDURES OF 

THE ACCOUNTS AND AUDIT COMMITTEE 

Composition 

The Accounts and Audit Committee is made up of directors chosen by the Board 

of Directors. It shall contain a majority of independent directors. The Chairman 

of the Board of Directors and the President and Chief Executive Offi cer may 

not sit on this committee. 

The committee shall not include any director or permanent representative of a 

director who holds offi ce at a company whose Accounts and Audit Committee 

includes a Renault director or permanent representative. 

The Board of Directors selects the committee chairman. 


INTERNAL REGULATIONS OF THE BOARD OF DIRECTORS 

Tasks and powers 

The Accounts and Audit Committee has the following tasks, which it performs 

notably when preparing the half-yearly and annual parent-company and 

consolidated fi nancial statements (hereinafter referred to as “the fi nancial 

statements”), and when preparing decisions submitted to the vote of the Board 

of Directors in this respect: 

n 

n 

n 

n 

n 

n 

n 


analyze the fi nancial statements as prepared by the company’s departments 

and divisions. Two memos accompany the committee’s examination of the 

fi nancial statements, one from the statutory auditors outlining the salient 

features of the results and the accounting principles applied, and one from 

the Chief Financial Offi cer describing the company’s risk exposures and offbalance 

sheet commitments. With respect to internal audit and risk control, 

the committee must examine signifi cant off-balance sheet commitments and 

risks, meet the head of internal audit, give its opinion on the organization of 

this department and be informed of the department’s work program. It must 

receive the detailed internal audit reports or a periodical summary of these 

reports to ensure that signifi cant risks are detected; 

ensure that the methods used to prepare the fi nancial statements comply 

with applicable standards and analyze any changes to these methods; 

examine with the statutory auditors the nature, extent and results of their 

inspection of the fi nancial statements and discuss with them any remarks 

that they may wish to make on the fi nancial statements at the close of their 

review; 

give its opinion on the appointment or renewal of the statutory auditors and 

on the quality of their work. The committee is thus required to prepare the 

selection of external auditors, proposing the candidate making the lowest bid. 

In general, it ensures compliance with rules guaranteeing the independence 

of the statutory auditors; 

verify the appropriateness of internal control methods; 

examine the extent of group consolidation, and the reasons why certain 

companies are not included within the consolidated scope of the Group; 

make recommendations to the Board in the fi elds described above. 

The Chairman of the Board of Directors and the President and Chief Executive 

Offi cer may consult the committee on any question within its remit. 

Operating procedures 

The committee meets whenever necessary and always before Board meetings 

where the agenda includes approving or examining the fi nancial statements or 

any decision concerning the fi nancial statements. 

In order to discharge its duties, the committee shall be entitled to meet with 

the statutory auditors without company executives present, as well as internal 

auditors and the persons involved in preparing the fi nancial statements, and 

may request that they produce any and all documents or information necessary 

to the completion of their tasks. 

Its secretariat is provided by the secretariat of the Board of Directors. 


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08 INTERNAL 



COMPOSITION, TASKS AND OPERATING PROCEDURES 

OF THE REMUNERATIONS COMMITTEE 

Composition 

The Remunerations Committee is made up of directors chosen by the Board, the 

majority of whom shall be independent. The Chairman of the Board of Directors 

and the President and Chief Executive Offi cer may not sit on this committee. 

The committee shall not include any director or permanent representative of 

a director who holds offi ce at a company whose Remunerations Committee 




The committee has the following tasks: 

n 

n 

n 

n 

propose to the Board the variable portion of the fees paid to corporate offi cers 

and the rules for fi xing this variable portion, making sure that these rules are 

consistent with the annual performance assessment of the interested parties 

as well as with the company’s medium-term strategy, and supervising the 

annual application of these rules; 

to make recommendations to the Board concerning the remuneration, benefi ts 

and pension of the Chairman of the Board of Directors, the President and 

Chief Executive Offi cer and other senior executives and corporate offi cers; 

to assess all remuneration and benefi ts paid to senior executives and 

members of the executive committee, including from other companies in 

the Group; 

to examine the general policy for granting options and comparable benefi ts 

and make proposals to the Board of Directors both on the policy itself and on 

the actual granting of options to buy or subscribe for stock and comparable 

benefi ts. 



The President and Chief Executive Offi cer may also consult the committee on 

any question concerning the compensation paid to Group executive committee 

members. 


The Remunerations Committee meets at least once a year and always before 

Board meetings where the agenda includes questions within the committee’s 

remit. Whenever necessary, it may have external bodies conduct such research 

and surveys as it thinks fi t, at the company’s expense. 



OF THE APPOINTMENTS AND GOVERNANCE COMMITTEE 

Composition 

The Appointments and Governance Committee is chaired by the Chairman 

of the Board of Directors and comprises two independent Board members 

chosen by the Board. 

The committee shall not include any director or permanent representative of 

a director who holds offi ce at a company whose Appointments Committee 




make proposals to the Board concerning the appointment of the Chairman 

of the Board of Directors, the President and Chief Executive Offi cer and 

corporate offi cers, in accordance with the procedure it has put in place to 

select directors, and to screen potential candidates; 

advise on the renewal of directorships that have expired, taking account of 

changes in the company’s shareholding structure and the need to maintain 

a suitable proportion of independent directors; 

be able to provide the Board with succession proposals in the event of 

unforeseen vacancies; 

make proposals concerning the chairmanship, membership and tasks of 

Board committees; 

follow up on questions of corporate governance; 

draft an annual review of Board’s operating procedures and where necessary 

propose changes. 

The President and Chief Executive Offi cer may consult the committee on any 

question within its remit. 


The Appointments and Governance Committee meets at least once a year and 

always before Board meetings where the agenda includes questions within the 

committee’s remit. Whenever necessary, it may have external bodies conduct 

such research and surveys as it thinks fi t, at the company’s expense. 




n 

n 

n 

n 

n 

n 


01 

02 

03 

04 

05 

06 

07 

08


OF THE INTERNATIONAL STRATEGY COMMITTEE 

Composition 

The International Strategy Committee is made up of directors chosen by the 

Board of Directors. 



Its work concerns the company’s activities outside wider Europe. 


n 

n 

study the strategic policies proposed by the President and Chief Executive 

Offi cer concerning the international development of the company and the 

Alliance; 

analyze and examine the company’s international projects on behalf of the 

Board and issue opinions on these projects; 

8.3.2 DIRECTORS’ CHARTER 

The Board has established a Directors’ Charter that sets out the rights 

and duties of directors. 

8.3.2.1 KNOWLEDGE OF THE LEGAL 

FRAMEWORK GOVERNING 

SOCIÉTÉS ANONYMES AND 

THE ARTICLES OF ASSOCIATION 

OF THE COMPANY 

Before he takes up his functions, every director must inform himself about the 

general and specifi c duties attaching to his offi ce. In particular he must inform 

himself about the laws and regulations governing sociétés anonymes [French 

public limited companies], Renault’s Articles of Association, a copy of which 

will have been given to him, these internal regulations and any subsequent 

additions or amendments. 

8.3.2.2 HOLDING SHARES IN THE COMPANY 

Pursuant to Article 10.2 of the Articles of Association, each director must be 

able to prove that he personally holds at least one share or any greater number 

of shares that he considers he should hold. This share or these shares must 

be registered. 

The law also obliges directors’ spouses to ensure that their shares are 

registered shares or to deposit them in a bank or fi nancial establishment which 

is authorized to receive deposits of shares from the general public, or with a 

n 




monitor the company’s international projects and draft reports at the Board’s 

request. 




This committee meets at least twice each year and whenever necessary, and 

always before Board meetings where the agenda includes the examination of 

international projects. 

To discharge its duties, the committee may meet the concerned departments 

and divisions of the company and persons who play a direct role in preparing 

these projects, and request that they produce any and all documents or 

information necessary to the completion of their tasks. 


stock market company. Moreover, as the company is obliged to communicate 

to the AMF all share transactions, including acquisitions, subscriptions and 

exchanges, by directors and persons closely associated with them, each director 

undertakes to inform the compliance offi cer within 24 hours of undertaking 

such a transaction. 

8.3.2.3 REPRESENTING 

THE SHAREHOLDERS 

Each director must act in Renault’s interest at all times and shall represent 

all shareholders. 

8.3.2.4 DUTY OF HONESTY AND FAIRNESS 

Each director is obliged to inform the Board of any situation or risk of a confl ict 

of interest with Renault or any company in its Group, and must abstain from 

voting in related decision(s). 

8.3.2.5 DUTY OF DILIGENCE 

Each director must devote the time and attention needed to discharge his duties. 

He must be diligent in his work and attend all meetings of the Board and of the 

committees on which he sits, unless genuinely unable to do so. 


01 

02 

03 

04 

05 

06 

07 

08

08 INTERNAL 



8.3.2.6 RIGHT TO OBTAIN INFORMATION 

AND DUTY TO BE PROPERLY 

INFORMED 

Each director has a duty to be properly informed. He must, in a timely fashion, 

ask the Chairman of the Board of Directors to provide him with the information 

that he considers necessary to fulfi ll his tasks and make a contribution with 

respect to the agenda items of Board meetings. In addition, the Board’s 

Secretariat shall be available to document this information for directors. 

8.3.2.7 PROFESSIONAL SECRECY 

In addition to complying with the confi dentiality requirement provided for in 

Article L. 225-37 of the Commercial Code, each director shall consider himself 

to be bound by professional secrecy as regards all non-public information that 

he may become aware of in the context of his directorship. 

8.3.2.8 INSIDE INFORMATION 

Like any Group senior manager, each director undertakes to comply with 

Renault’s internal procedure on the use and/or communication of inside 

information concerning Renault and/or Nissan, as well as with any applicable 

legal or regulatory provisions. 

8.3.2.9 REIMBURSEMENT OF EXPENSES 

Each director is entitled to reimbursement, on presentation of substantiating 

documents or receipts, of his traveling expenses as well as other expenses 

that he incurs in the interest of the company. 

8.3.3 PROCEDURE CONCERNING THE USE AND/OR COMMUNICATION 

OF INSIDE INFORMATION 

Furthermore, the Board of Directors has adopted the following provisions as 

internal procedure applicable to the whole Group on prevention of the use or 

communication of inside information. 

Since Renault’s share capital was opened up in 1994 and its shares were listed 

on the Paris fi nancial market, the company has become more exposed to the risk 

that inside information may be used and/or communicated. Aside from the civil, 

administrative and criminal penalties that Renault directors, senior executives, 

corporate offi cers and employees face if they are found guilty of committing, 

aiding and abetting or profi ting from offences in this area, the company’s public 

reputation could be lastingly damaged in the event of proven misconduct. 

Therefore, to prevent any use and/or communication of information that could 

prove harmful to the company, this procedure is intended to defi ne: 

A. the nature of such information; 

B. the terms governing its use and/or communication; 

C. the application of these rules to the granting of stock options. 


8.3.3.1 NATURE OF INSIDE INFORMATION 

Inside information shall mean any information concerning Renault and/or Nissan, 

whether favorable or unfavorable, that could have an effect on the price of 

Renault and/or Nissan shares were it to be made public (hereinafter referred 

to as “inside information”). Inside information may concern, but shall not be 

limited to, the current situation or prospects of Renault and/or Nissan and 

Group companies, as well as the prospects for the performance of Renault 

and/or Nissan shares. 

More generally, any information that has not been released onto the market, 

through a news release, memorandum published in the press or other means, 

shall remain non-public. Inside information shall only be considered to be public 

if published through mass media. 



01 

02 

03 

04 

05 

06 

07 

08

8.3.3.2 USE AND/OR COMMUNICATION 

OF INSIDE INFORMATION 

Any and all directors, senior executives, corporate offi cers and employees of 

Renault and the companies of its Group who hold inside information, whether 

permanently or from time to time (hereinafter referred to as “insiders”) 

must, whatever their level of responsibility, refrain from undertaking market 

transactions in Renault and/or Nissan shares, whether directly or via a third 

party, until such time as said information is made public. 

Directors, senior executives, corporate offi cers or employees of Renault whose 

position or offi ce makes them liable to permanently hold inside information 

must not, as a general rule, undertake transactions in Renault and/or Nissan 

shares, including shares in FCPE Actions Renault (the company investment fund 

invested in Renault shares) during the following periods: 

n 

n 

n 

n 

from January 1 to the announcement of Renault’s annual results and Nissan’s 

quarterly results (i.e. approximately the beginning of February); 

from April 1 to the announcement of Nissan’s annual results (i.e. approximately 

mid-May); 

from July 1 until the announcement of Renault’s half-yearly results and 

Nissan’s quarterly results (i.e. approximately the end of July); 

from October 1 until the announcement of Nissan’s quarterly results 

(i.e. approximately mid-November). 

Furthermore, insiders must not disclose any inside information within Renault or 

outside Renault other than in the normal course of their duties, i.e. for purposes 

or activities other than those for which the information is held, and must take 

appropriate steps to this end. 

Generally, insiders must act with the greatest care. Because they hold such 

information, they must refrain from undertaking any transaction in Renault 

and/or Nissan shares, even where the transaction was planned before they 

become aware of the information in question. 



8.3.3.3 APPLYING THE PROCEDURE 

TO THE ALLOCATION OF 

STOCK OPTIONS 

Without prejudice to the above, the Board of Directors undertakes not to grant 

stock options: 

n 

n 


within a period of ten stock exchange trading sessions prior to and following 

the date on which the consolidated accounts, or in their absence the parentcompany 

accounts, are made public; 

within the period beginning on the date on which the corporate decisionmaking 

bodies become aware of information concerning Renault and/or 

Nissan that could have a signifi cant effect on the stock market price of 

Renault shares were it to be made public, and the date following ten stock 

exchange trading sessions after the date on which said information was 

made public. 

The importance of this procedure to the company is obvious. To ensure that it 

is properly understood and enforced, on July 26, 2001 the Board appointed 

a compliance offi cer, who must be consulted on any question concerning the 

interpretation and application of the procedure. 


01 

02 

03 

04 

05 

06 

07 

08

08 APPENDICES 


RELATING TO THE ENVIRONMENT 

8.4.1.1 SCOPE 

The scope encompasses the industrial subsidiaries (body assembly, fi nal 

assembly, powertrain and foundry) and the support sites (product and process 

design and development, logistics) in which Renault holds a stake of at least 

50%. All impacts are attributed to Renault, with the exception of La Française 

de Mécanique (Douvrin site), a joint Renault/PSA subsidiary, in which Renault 

holds a 50% stake. Here, 21% of impacts were attributed to Renault in 

2007 (compared with 17% in 2006), corresponding to the breakdown of 

industrial activity at the site. Impacts of suppliers or third parties present on 

site are not included, with the exception of the sites listed at the bottom of 

the “Site Environmental Indicators in 2007” table. 

The data for sites covered by the scope of reporting in year N are consolidated 

with those of other sites only from year N+1. 

n 

n 

the Valladolid Centrales engineering site (Spain) and Villeroy logistics site 

(France) are included in the 2007 scope on a trial basis. They are not included 

in the reporting scope. The data are mentioned for information only; 

as was the case in previous years, the drinking water production activity 

at the Pitesti site (Dacia) was excluded from the reporting scope in 2007. 

The data are mentioned for information only. 

8.4.1.2 PROCEDURES FOR CONTROLLING 

AND CONSOLIDATING DATA 

Experts from the department of Environmental Protection and the Prevention of 

Industrial Risks check the coherence of data at each site. These checks include 

a comparison with data from previous years and an analysis of the impact of 

events occurring on site during the year. 

The environmental data presented in the Registration Document are also 

checked by outside entities: Ernst & Young Audit and Deloitte & Associés. 

Their conclusions are set out in the report provided at the end of the 

document. 

8.4.1.3 WATER CONSUMPTION ✦ 

Water consumption is expressed in thousands of cubic meters. 

Measured volumes include water obtained by pumping (underground and 

surface water) from the secondary distribution network. 


8.4 APPENDICES RELATING TO THE ENVIRONMENT 

8.4.1 METHOD USED FOR THE “SITE ENVIRONMENTAL INDICATORS IN 2007” TABLE 

8.4.1.4 LIQUID EFFLUENTS 

The quantity of SS represents the average daily fl ow of suspended solids 

discharged, expressed in kg per day. 

The quantity of OM represents the average daily fl ow of oxidizable matter 

discharged. This quantity, expressed in kg per day, is calculated as follows: 

OM = (COD + 2BOD 5 )/3. 

The quantity of toxic metals is the total average daily fl ow of toxic metals 

discharged, weighted by a coeffi cient of toxicity. This quantity, expressed in kg 

per day, is calculated as follows: 

Toxic metals = 5 fl ows (Ni+Cu) + 10 fl ows (Pb+As) + 1 fl ow (Cr+Zn) + 50 fl ows 

(Hg+Cd). 

The data presented in the table take account only of those fl ows of metals, 

SS, COD and BOD 5 that have to be measured by law. Where regulations do not 

require such measurements, the reported value is indicated as “not applicable”. 

the Bursa, Somaca and Santa Isabel sites, together with the Ayrton Senna 

complex at Curitiba, are not subject to mandatory measurement. But in view of 

the impact of these plants’ emissions, the corresponding fl ows have nevertheless 

been included in the scope. 

The fl ow calculation methods are not applied at three sites – Flins, Cléon and 

Novo Mesto – that have special characteristics. 

Data on pollutant fl ows are based on measurements made on effl uents after 

they have been treated in the plants and before they are discharged to the 

outside. Discharges from some plants may subsequently be treated in municipal 

treatment plants (see plant codes). 

With measurements of some water parameters made at most every four months 

at the Choisy-le-Roi, Lardy, Ruitz, SNR France, Cacia and Novo Mesto sites, 

the degree of incertitude on SS, OM and toxic metals is higher. 

8.4.1.5 ATMOSPHERIC EMISSIONS ✦ 

The atmospheric emissions of volatile organic compounds (VOCs) included in 

the data correspond to the emissions produced when bodywork is painted (body 

assembly plants). The painting of accessories is not taken into consideration; 

the corresponding VOC emissions have not been measured. 

The atmospheric emissions of SO 2 and NOx included in the data correspond 

to emissions produced by the burning of fossil fuels at all sites, excluding 

transport to the site. 



01 

02 

03 

04 

05 

06 

07 

08

Renault made its fi rst inventory of greenhouse gas (GHG) sources in 2004. 

Following this inventory, Renault modifi ed its reporting protocol to better refl ect 

the total emissions of the Renault group and to comply with the recommendations 

of the GHG Protocol and the French protocol developed by Entreprises Pour 

l’Environnement. 

Emissions from the following sources were included: 

n 

n 

n 

n 

combustion of fossil fuels transported to the site; 

coolant fi ll-up of the air conditioning systems fi tted in vehicles produced 

by the plant; 

fuel consumption during testing of engines, gearboxes and trials on the test 

track and test benches of non-TCM vehicles; 

fork-lift trucks using compressed natural gas or propane. 

These emissions make up more than 95% of the GHG emissions produced by 

the Renault group. 

The following emission sources have been excluded from the scope of reporting, 

as the corresponding emissions are considered to fall below the threshold of 

10,000 teqCO 2 /year adopted by the Renault group: 

n 

n 

n 

n 

n 

air conditioning of site premises; 

air conditioning of processes; 

heat treatment of powertrain components; 

solvent incineration; 

tests on vehicles leaving the assembly line (roller bench tests). 

It is not yet possible to correctly assess certain emissions, therefore the following 

are not included: 

n 

n 

emissions linked to onsite transport (excl. fork-lift trucks using compressed 

natural gas or propane); 

fugitive emissions occurring when tanks of coolant (for vehicle air conditioning 

systems) are fi lled and emptied. 

Indirect greenhouse gas emissions are not reported. 

Emissions linked to the foundry activity are not reported. 


APPENDICES RELATING TO THE ENVIRONMENT 

The emission factors used to calculate SO 2 , NOx and GHG emissions comply 

with the French circular of July 28, 2005 on procedures for verifying annual 

greenhouse gas emissions budgets by inspecting environmentally-sensitive 

installations, as well as with the CITEPA network’s OMINEA national inventory 

report, updated on January 29, 2007. Only sites using a fuel whose 

characteristics are completely unrelated to standard factors have used data 

validated by their energy supplier (Pitesti plant, Dacia). Only sites with fuels 

whose characteristics differ signifi cantly from standard factors have used data 

approved by their energy supplier (Pitesti plant, Dacia). 

8.4.1.6 WASTE 

The waste included in data is waste that leaves the geographical confi nes of 

the site. 

Construction waste from Renault sites is not reported (in the Inert Waste 

category) unless a contractual clause explicitly states that the construction 

company is not responsible for such waste. 

8.4.1.7 ENERGY CONSUMPTION ✦ 

This metric represents the quantity of gas, heating oil, steam, hot water, and 

electricity consumed within Renault sites. It is expressed in MWh NCV. 

The following are not included: 

n 

n 


primary energy supplied to third parties; 

energy consumed by emergency backup generators. 

Net calorifi c value (NCV) factors are used in accordance with a French government 

order issued on July 28, 2005 for the inspection and measurement of emissions 

reported through greenhouse gas emission allowance trading schemes. 


01 

02 

03 

04 

05 

06 

07 

08

08 APPENDICES 



8.4.2 SITE ENVIRONMENTAL INDICATORS IN 2007 ✦ 

SITE 

WATER 

CONSUMPTION 

(m 3 thousands) 

STATION SS 

(kg/day) 

DISCHARGES TO WATER DISCHARGES TO AIR WASTE 

OM 

(kg/day) 

TOXIC 

METALS 

(kg/day) 

ENERGY 

CONSUMPTION 

(MWh NCV) 



GHG 

(teqCO 2 ) 


PRODUCTION SITE 

ACI Le Mans 1,468.2 P 125.1 90.5 2.7 33,922.5 n/a 72.0 45.1 39,624.2 1,555.9 12,063.9 304,254.5 

ACI Pitesti (1) 69.6 PB n/a n/a n/a 2,111.5 n/a 0.0 1.9 14,037.4 227.2 n/a 24,454.9 

ACI Villeurbanne 71.6 U n/a n/a n/a 1,897.8 n/a 0.0 2.1 3,142.6 271.9 n/a 30,528.6 

Batilly (SOVAB) 244.9 PB 4.9 19.3 0.9 34,672.9 808.5 0.3 34.2 2,532.4 2,226.5 102.0 227,920.7 

Bursa (2) 538.6 PBU 94.2 74.6 5.8 35,315.5 1,321.9 0.3 32.8 55,382.9 1,976.2 25.2 244,223.7 

Busan (RSM) 664.3 PBU 8.3 15.2 0.7 35,905.9 883.0 0.3 31.0 26,712.2 1,961.9 2,270.0 273,702.5 

Cacia 95.6 PB 3.5 5.6 0.0 1,631.8 n/a 0.0 1.1 5,670.4 1,148.7 n/a 50,235.7 

Casablanca (SOMACA) (3) 263.4 - nm nm nm 7,320.8 435.9 0.2 4.5 7,028.2 632.5 34.8 49,303.6 

Choisy-le-Roi 29.5 PU 12.7 22.5 n/a 1,763.6 n/a 0.0 1.6 4,666.5 217.2 n/a 12,338.3 

Cléon 1,811.3 PU 64.1 430.3 0.2 22,436.7 n/a 0.2 21.9 34,630.4 6,904.6 n/a 377,485.8 

Complexe Ayrton Senna 

Cordoba Fonderie 

352.3 PU 82.3 521.5 1.5 22,618.0 611.0 0.2 20.9 24,359.9 2,613.9 10.3 190,938.2 

Aluminium 16.0 U n/a n/a n/a 3,392.9 n/a 0.0 4.0 48.0 6,212.9 861.8 21,528.1 

Dieppe 7.7 U n/a n/a n/a 4,927.1 69.7 0.1 4.2 653.1 413.7 n/a 28,967.3 

Douai 729.6 PB 42.5 56.7 2.6 58,010.9 891.1 0.4 56.7 96,668.8 3,370.1 n/a 385,826.5 

Douvrin (FM) (4) 192.6 PU 23.0 110.6 0.0 2,830.1 n/a 0.0 2.6 5,126.3 4,995.7 1,700.1 66,515.6 

Flins (5) 1,411.5 PB 56.0 76.7 0.8 36,084.1 637.5 0.3 28.8 66,600.4 3,416.0 n/a 480,148.2 

Los Andes 34.2 U n/a n/a n/a 1,583.7 n/a 0.1 1.0 3,730.2 941.6 n/a 14,333.9 

Maubeuge (MCA) 352.1 PB 9.6 7.6 1.8 39,094.3 712.6 0.3 41.6 43,638.0 2,061.8 5,123.8 287,127.0 

Medellin (Sofasa) 183.3 PU 13.7 124.7 0.9 6,267.9 593.5 0.0 4.7 14,864.3 307.6 841.4 43,628.6 

Moscou (AVTOFRAMOS) 251.6 PU 13.6 192.0 2.7 8,834.3 703.4 0.1 9.2 7,939.4 823.4 n/a 134,831.7 

Novo Mesto 247.1 PU 118.5 197.2 0.5 22,752.7 819.0 0.2 21.3 40,918.6 834.2 n/a 164,454.3 

Palencia (6) 485.1 PB 11.3 29.2 1.8 35,725.9 518.5 20.1 37.5 30,478.1 1,567.7 n/a 210,448.4 

Pitesti (DACIA) (7) 1,310.4 PU 359.3 611.8 6.3 76,611.5 1,668.9 18.6 63.4 136,487.6 4,008.6 134,917.2 490,427.3 

Ruitz (STA) 30.2 U 2.7 9.9 0.0 4,280.4 n/a 0.0 4.7 4,827.2 1,045.8 12.7 57,990.7 

Sandouville (8) 440.2 PB 10.6 26.1 1.4 38,618.9 507.5 0.3 39.2 24,374.7 2,535.4 201.0 290,509.6 

Santa Isabel Cordoba 330.3 PB n/a 16.6 0.1 12,376.7 604.2 0.1 12.5 15,309.7 884.5 n/a 96,158.4 

Séville 117.2 PU 6.7 76.3 0.5 5,204.9 n/a 0.0 6.1 8,247.8 3,534.2 n/a 105,016.9 

SNR Brésil 7.8 U n/a n/a n/a 0.0 n/a 0.0 0.0 1,334.5 322.4 n/a 4,687.0 

SNR France 140.3 PU 8.6 44.3 0.0 5,836.7 n/a 0.8 6.1 19,424.5 8,289.6 76.1 158,914.1 

SNR Sibiu 24.4 U n/a n/a n/a 4,527.4 n/a 0.0 3.9 351.5 295.6 n/a 27,759.9 

Tandil 88.2 U n/a n/a n/a 4,760.4 n/a 0.0 5.6 11,957.3 85.9 2,657.0 64,392.6 

Valladolid-Bodywork 134.1 PU 5.9 25.6 2.6 12,863.5 n/a 0.1 15.0 58,107.1 695.1 n/a 104,108.3 

Valladolid-Assembly 404.0 PU 15.3 87.1 5.9 27,263.2 435.4 0.2 31.7 2,953.3 1,368.8 n/a 191,541.0 

Valladolid-Engine (9) 193.0 PU n/a n/a n/a 7,694.0 n/a 0.1 8.4 25,037.6 3,661.4 n/a 151,695.6 

Vilvoorde (RIB) 6.1 U n/a n/a n/a 1,219.3 n/a 0.8 1.5 399.8 8.2 n/a 9,954.2 

PRODUCTION SITE 

TOTAL 12,746.4 1,092.4 2,872.0 39.6 620,358.2 12,221.6 116.2 606.6 837,265.0 71,416.6 160,897.1 5,376,351.8 

VOC 

(tonnes) 

SO 2 

(tonnes) 

NOx 

(tonnes) 

OIW 

(tonnes) 

HIW 

(tonnes) 

INERT 

(tonnes) 

01 

02 

03 

04 

05 

06 

07 

08

SITE 

WATER 

CONSUMPTION 

(m 3 thousands) 

STATION SS 

(kg/day) 

DISCHARGES TO WATER DISCHARGES TO AIR WASTE 

OM 

(kg/day) 

TOXIC 

METALS 

(kg/day) 

GHG 

(teqCO 2 ) 

VOC 

(tonnes) 



ENERGY 

CONSUMPTION 

(MWh NCV) 

ENGINEERING, LOGISTICS AND SUPPORT SITES 

Aubevoye 

Boulogne Billancourt 

43.1 U n/a n/a n/a 6,358.2 n/a 0.0 2.2 2,317.6 158.8 31.5 23,285.9 

Renault headquarters 99.2 U n/a n/a n/a 2,156.3 n/a 0.1 2.5 816.5 12.0 4.7 50,681.6 

Cergy-Pontoise 

DACIA Centre Logistique 

7.8 U n/a n/a n/a 461.0 n/a 0.0 0.5 2,691.3 58.6 n/a 19,616.9 

CKD 9.8 U n/a n/a n/a 2,123.8 n/a 0.0 1.6 1,187.9 0.1 n/a 10,358.4 

Giheung (RSM) 53.6 B 0.1 0.2 0.0 3,869.1 n/a 0.1 3.1 1,007.4 534.7 1,726.3 37,457.8 

Grand-Couronne 

Guyancourt 

4.1 U n/a n/a n/a 3,296.9 n/a 18.2 6.9 2,528.3 42.2 n/a 15,089.0 

(Technocentre) (10) 196.2 U n/a n/a n/a 12,353.4 n/a 0.1 9.9 3,112.8 393.1 388.0 140,678.9 

Heudebouville (Somac) 0.9 U n/a n/a n/a 162.6 n/a 0.0 0.2 112.8 0.8 n/a 1,392.1 

Lardy 283.3 U 121.6 109.5 0.3 16,082.1 n/a 0.2 6.3 924.6 747.9 724.7 99,105.3 

Rueil 25.0 U n/a n/a n/a 1,782.4 n/a 0.0 1.4 765.0 205.0 n/a 23,193.2 

Saint-André-de-l’Eure 12.2 U n/a n/a n/a 1,252.5 n/a 0.9 1.5 1,105.8 15.7 n/a 7,592.5 

Villiers-St-Frédéric 14.2 U n/a n/a n/a 1,175.1 n/a 0.0 1.2 369.3 134.4 n/a 16,617.4 

ENGINEERING, 

LOGISTICS AND 

SUPPORT SITE TOTAL 749.5 121.7 109.7 0.3 51,073.5 0.0 19.7 37.2 16,939.3 2,303.1 2,875.2 445,068.9 

GROUP TOTAL 13,495.9 1,214.1 2,981.7 39.9 671,431.8 12,221.6 135.9 643.8 854,204.2 73,719.7 163,772.3 5,821,420.8 

SITES OUTSIDE AREA OF VERIFICATION, FOR INFORMATION ONLY 

DACIA Drinking water 

Production 

Valladolid Direcciones 

557.8 - 84.0 2.0 0.1 n/a n/a n/a n/a n/a n/a n/a 1,929.0 

Centrales 25.2 U n/a n/a n/a 4,994.2 n/a 0.1 3.2 547.75 539.8 n/a 23,254.1 

Villeroy (DLPA) 14.0 U n/a n/a n/a 1,200.5 n/a 0.0 0.9 2,121.59 22.3 n/a 18,127.9 


SO 2 

(tonnes) 

NOx 

(tonnes) 

OIW 

(tonnes) 

n/a: not applicable (see comments on methodology). 

nm: not measured. 

Plant codes (treatment methods): 

P: Physical-chemical; 

B: Biological; 

U: Urban; 

SS: Suspended Solids; 

OM: Oxidizable Matter; 

COD: Chemical Oxygen Demand; 

BOD 5 : five-day Biological Oxygen Demand; 

Toxic Metals: total flow of metals to which a coefficient of toxicity is applied (arsenic 10, cadmium 50, copper 5, mercury 50, nickel 5, lead 10, zinc 1, chrome 1); 

GHG: Greenhouse gases; 

VOC: volatile organic compounds; 

OIW: ordinary industrial waste; 

HIW: hazardous industrial waste. 


(1) Liquid discharges from the ACI Pitesti plant are aggregated with those of the Pitesti plant (Dacia), as is some of the waste. 

(2) Water consumption at the Bursa site includes that of the Industrial Supplier Park. 

(3) Water discharges at the Casablanca site are shown as ‘not measured’. A single measure in 2007 can not be reliably extrapolated over the whole year. 

(4) The Douvrin (Française de Mécanique) site is a joint Renault/PSA subsidiary. The proportion of impacts attributed to Renault is calculated through a breakdown of the site’s industrial activity between 

Renault and PSA. Renault’ share was 21% in 2007. 

(5) Water consumption at the Flins site includes that of the Spare Parts Distribution Center. 

(6) Water consumption at the Palencia site includes that of the Industrial Supplier Park. 

(7) Liquid discharges at the Pitesti site (Dacia) include those of the Industrial Supplier Park, of which those of ACI Pitesti and Dacia Logistics. The quantity of waste includes part of the waste (i.e. household 

waste) produced by the ACI Pitesti site. 

(8) Water consumption at the Sandouville site includes that of the Industrial Supplier Park. 

(9) Liquid discharges from the Valladolid engine plant are aggregated with those of the Valladolid body assembly plant. 

(10) For the Technocentre, the discharge agreement being currently under negociation, data on SS, OM ant Toxic Metals are not issued in accordance with Renault’s reporting protocol. 

HIW 

(tonnes) 

INERT 

(tonnes) 

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08 APPENDICES 



8.4.3 ENVIRONMENTAL INDICATORS FOR PRODUCTS 

RESULTS OF THE MOST REPRESENTATIVE GASOLINE AND DIESEL VERSIONS 

FOR PASSENGER CAR SALES IN 2007 

POWER 

FUEL 

CONSUMPTION 

MODEL 

G: GASOLINE 

D: DIESEL ENGINE CAPACITY 

RATING 

(KW) TRANSMISSION 

EMISSION 

STANDARD 

NEDC*, 

L/100 KM 

CO EXTERNAL RENAULT ECO 2 

EMISSIONS NOISE DB (A) 

2 

SIGNATURE 

Twingo II E 1.2 16v 1,149 56 MAN 5 Euro 4 5.7 135 71.4 Renault eco2 D 1.5 dCi 1,461 47 MAN 5 Euro 4 4.3 113 71.2 Renault eco2 Clio III E 1.2 16v 1,149 55 MAN 5 Euro 4 5.9 139 73.2 Renault eco2 D 1.5 dCi 1,461 63 MAN 5 Euro 4 4.4 117 71.6 Renault eco2 Modus E 1.2 16v 1,149 55 MAN 5 Euro 4 5.9 140 71.0 Renault eco2 D 1.5 dCi 1,461 50 MAN 5 Euro 4 4.7 125 71.1 Renault eco2 Kangoo V P E 1.2 16v 1,149 55 MAN 5 Euro 4 6.9 163 70.5 

D 1.5 dCi 1,461 62 MAN 5 Euro 4 5.3 139 71.9 

Mégane II E 1.6 16v 1,598 82 MAN 5 Euro 4 6.9 164 71.0 

D 1.5 dCi 1,461 78 MAN 6 Euro 4 4.5 120 71.8 Renault eco2 Scénic II E 1.6 16v 1,598 82 MAN 6 Euro 4 7.6 182 73.5 

D 1.5 dCi 1,461 78 MAN 6 Euro 4 5.2 137 70.7 Renault eco2 Laguna III E 2.0 16v 1,997 103 MAN 6 Euro 4 7.9 185 71.0 

D 2.0 dCi 1,995 110 MAN 6 Euro 4 6.0 158 71.7 

Espace IV E 2.0 T 1,998 125 MAN 6 Euro 4 9.6 227 70.7 

D 2.0 dCi 1,995 110 MAN 6 Euro 4 7.2 191 72.6 

Vel Satis E 3.5 V6 3,498 177 MAN 6 Euro 4 11.5 275 71.0 

D 2.0 dCi 1,995 110 AUT 5 Euro 4 7.3 194 71.4 

* NEDC: standardized driving cycle for measuring the emissions and fuel consumption of vehicles marketed in Europe. 

8.4.4 STATUTORY AUDITORS’ REPORT ✦ 

ON THE 2007 ENVIRONMENTAL DATA RELATING TO THE 

RENAULT GROUP SITES 



Ladies and Gentlemen, 

As requested and in our capacity as Statutory Auditors of Renault, we have 

performed verifi cation work to obtain reasonable assurance on the environmental 

data of the Renault Group sites for fi scal year 2007, as set out under the 

“Total” line in the “Site environmental indicators in 2007” table in chapter 8.4.2. 

(“the Data”). 


The opinion expressed below relates solely to the Data and therefore does not 

relate to data regarding each site individually, nor to other environmental data 

presented in the A nnual R eport. 

The Data, which is the responsibility of Renault’s management, has been prepared 

in accordance with the Renault 2007 Environmental Guide (“the Guidelines”), 

available for consultation at the “Health, environment and risk prevention” offi ce 

and is summarized under “Method used for the Site environmental indicators 

in 2007 table” in c hapter 8.4.1. Our responsibility is to express an opinion on 

the Data, based on our audit. 



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Nature and scope of the audit 

We performed our work in accordance with the professional guidelines applicable 

in France. We conducted the following procedures in order to obtain reasonable 

assurance that the Data is not materially misstated: 

n 

n 

we met with key offi cers, responsible for compliance with the Guidelines; 

we assessed compliance with the Guidelines by testing, on the basis of an 

ongoing audit program, a representative sample of locations 16 presenting 

the following percentages for 2007, as compared with the environmental 

data published by Renault: 

Water consumption 61% Inert waste 91% Atm. emissions: VOC 40% 

Water discharge: SS 61% Non hazardous waste 52% Atm. emissions: GHG 47% 

Water discharge: OM 63% Hazardous waste 47% Atm. emissions: SO2 68% 

Water discharge: METOX 50% Energy consumption 49% Atm. emissions: NOx 47% 

n 

n 

u sing the same sample, we carried out substantive tests on the Data by 

reconciling it with supporting evidence and verifying compliance with the 

calculation formula, as provided in the Guidelines; 

w e performed analytical procedures and consistency checks, and verifi ed 

data processing and aggregation at Group level. 

To assist us in conducting our work, we referred to the environmental experts 

of our fi rms under the responsibility of Messrs Eric Duvaud for Ernst & Young 

et Associés and of Eric Dugelay for Deloitte & Associés. 




In view of the work carried out on the Group’s major locations over the last 

nine years and the improvements made by Renault to enhance the sites’ 

understanding of and compliance with the Guidelines, we consider that our 

verifi cation work concerning the Data provide a reasonable basis for our 

opinion. 

Opinion 

In our opinion, the Data has been prepared, in all material respects, in compliance 

with the Guidelines prepared by Renault. 




Pascale Chastaing-Doblin Amadou Raimi Daniel Mary-Dauphin Aymeric de la Morandière 

(16) The 2007 sample comprises the following sites: ACI Le Mans, Cléon, Complexe Ayrton Senna (Brazil), Cordoba Fonderie Aluminium (Argentina), Pitesti (Dacia ) (Romania), Douai, Flins, Santa Isabel 

Cordoba (Argentina), Valladolid Montage (Spain), Valladolid Moto res (Spain), Guyancourt Technological Center. 


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08 CROSS-REFERENCE 


TABLES 

8.5 CROSS-REFERENCE TABLES 

8.5.1 DISCLOSURE REQUIREMENTS – ANNEX I / EC809/2004 


1 Persons responsible 256 

2 Statutory auditors 142 

3 Selected financial information 

3.1 Historical information 257 

3.2 Interim information n.a. 

4 Risk factors 24 

5 Information about the issuer 

5.1 History and development of the issuer 7 

5.2 Investments 57 

6 Business overview 

6.1 Principal activities 9 

6.2 Principal markets 44 

6.3 Exceptional events n.a. 

6.4 Dependency risk n.a. 

6.5 Basis for any statements made by the issuer regarding its competitive position 44 

7 Organizational structure 

7.1 Brief description 9 

7.2 Significant subsidiaries 19 

8 Property, plant and equipment 

8.1 Existing or planned material tangible fixed assets 9 

8.2 Environmental issues that may influence the utilization of the tangible fixed assets 103 

9 Operating and financial review 

9.1 Financial condition 55 

9.2 Operating results 57 

10 Cash and capital resources 

10.1 Issuer’s capital resources 183 

10.2 Source and amount of cash flows 185 , 190 

10.3 Borrowing requirements and funding structure 

10.4 Information on any restriction on the use of capital resources that have materially affected or could materially affect, directly or indirectly 

58 , 222 

the issuer’s operations n.a. 

10.5 Anticipated sources of funds 71 

11 Research and development, patents and licences 62 

12 Trend information 62 

13 Profit forecasts or estimates n.a. 

14 Administrative, management and supervisory bodies, and senior management 

14.1 Administrative and management bodies 130 , 139-141 

14.2 Conflicts of interest on the administrative, management and supervisory bodies and in senior management 134 

15 Remuneration and benefits 

15.1 Amount of compensation paid and benefits in kind 144 , 213 

15.2 Total amounts set aside or accrued by the issuer to provide pension, retirement or similar benefits 145 , 199 , 215 



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CROSS-REFERENCE TABLES 

16 Board practices 

16.1 Date of expiration of current terms of office 134 

16.2 Service agreements binding the members of administrative bodies 134 

16.3 Information about the Audit Committee and the Remuneration Committee 136-137 

16.4 Corporate governance 129 

17 Employees 

17.1 Number of employees 6 , 84 

17.2 Shareholdings and stock options 82 , 145 

17.3 Arrangements for involving employees in the capital of the issuer n.a. 

18 Major shareholders 

18.1 Shareholders holding more than 5% of the share capital or voting rights 162 

18.2 Existence of different voting rights 160 

18.3 Corporate control 162 

18.4 Agreement, known to the issuer, the operation of which could result in a change in control of the issuer at a later date n.a. 

19 Related party transactions 16 , 207 , 210 

20 Financial information concerning the issuer’s assets and liabilities, financial position and profits and losses 

20.1 Historical financial information 6 

20.2 Pro forma financial information 179 

20.3 Financial statements 179 

20.4 Audit of annual historical financial information 179 

20.5 Age of the latest financial information 179 

20.6 Interim and other financial information n.a. 

20.7 Dividend policy 166 , 212 

20.8 Legal and arbitration proceedings 76 

20.9 Significant change in the financial or trading position n.a. 

21 Additional information 

21.1 Share capital 160 

21.2 Memorandum and articles of association 158 

22 Material contracts n.a. 

23 Third party information and statements by experts and declarations of any interest n.a. 

24 Documents on display 167 

25 Information on holdings 9 , 16-19 

n.a.: not applicable 



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TABLES 

8.5 .2 GLOBAL REPORTING INITIATIVE INDICATORS 

AND GLOBAL COMPACT PRINCIPLES 

GRI INDICATORS (1) 


GLOBAL 

COMPACT 

PRINCIPLES* PAGES (2) 

STRATEGY AND ANALYSIS 

1.2 Description of key impacts, risks, and opportunities 24; 66-77 

PROFILE 

2.1 Name of the organization 158 

2.2 Primary brands, products and services 9-12; 15-16 

2.3 Operational structure of the organization 9; 19-23; 28-31; 

139-141; 150-151 

2.4 Location of organization’s headquarters 158 

2.5 Number of countries where the organization operates 13; 41 

2.6 Nature of ownership and legal form 158; 162 

2.7 Markets served 51-54 

2.8 Scale of the reporting organization (number of employees, net sales, quantity of products or services provided) 38-41; 56; 84-85; 181 

2.9 Significant changes during the reporting period regarding size, structure or ownership : 85 

2.10 Awards received in the reporting period 65; 109; 117; 168 

REPORT PARAMETERS 

3.1 Reporting period for information provided 180 

3.4 Contact point for questions regarding the report or its contents 168 

3.13 Policy and current practice with regard to seeking external assurance for the report 155; 268-269 

GOVERNANCE AND COMMITMENTS 

4.1 Governance structure of the organization 28-31 

4.2 Indicate whether the Chair of Board of Directors is also an executive officer 130 

4.3 Number of independent or non-executive directors in the Board of Directors 130-133; 136 

4.4 Mechanisms for shareholders and employees to provide recommendations to the Direction of the organization 167-168 

4.5 Linkage between the compensation of management bodies and executives and the organization’s performances 144; 146 

4.6 Processes to ensure conflicts of interest are avoid 109-110; 136 

4.8 Internally developed statements of missions or values, codes of conduct and principles 89-93; 109-110; 136 

4.9 Procedures developed for overseeing the organization’s management of economic, environmental, and social performance and 

32; 103-107; 110; 111; 

their compliance with standards 

120-123; 149-153 

4.10 Processes for evaluating the highest governance body’s own performance particularly with respect to economic, environmental, 

and social performance 

135 

4.12 Externally developed charters, principles or other initiatives to which the organization subscribes 110; 120-123 

4.13 Memberships in associations 112 

4.14 List of stakeholder groups engaged by the organization 111-112 

4.15 Basis for identification and selection of stakeholders to engage 24; 111 

4.16 Approches to stakeholder engagement 111 

4.17 Key topics that have been raised through stakeholder engagement 111 

ECONOMIC PERFORMANCE INDICATORS 

EC1 Economic value generated and distributed 6; 55; 82; 118-119; 166; 181 

EC6 Policy, practices and proportion of spending on locally-based suppliers 18-19 

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit 117; 118-119 



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GRI INDICATORS (1) 


CROSS-REFERENCE TABLES 

GLOBAL 

COMPACT 

PRINCIPLES* PAGES (2) 

ENVIRONMENTAL PERFORMANCE INDICATORS 

EN2 % of materials used that are recycled input materials 8 & 9 100-102 

EN3 Direct energy consumption by primary source 96; 265-266 

EN5 

EN6 

Energy saved due to conservation and efficiency improvements 

Initiatives to provide energy-efficient or renewable energy based products and services and reductions achieved 

8 & 9 

96-102 

63-64; 97-99; 102 

EN8 Total water withdrawal by source 101; 264; 266-267 

EN14 Strategies for managing impacts on biodiversity 8 95 

EN16 Greenhouse gas emissions 97; 264-265; 266-267 

EN17 Other relevant indirect greenhouse gas emissions by weight 

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 8 & 9 96; 96-97; 97-99; 107 

EN20 Emissions of NOx, SOx and other significant polluants by type and weight 99; 266-267 

EN21 

EN22 

Total water discharge by quality and destination 

Total weight of waste by type and disposal method 

8 

101 

100; 266-267 

EN23 Total number and volume of significant spills 100; 266-267 

EN24 Weight of transported or treated waste deemed hazardous 266 -267 

EN26 

EN27 

Initiatives to mitigate environmental impacts of products and services 

% of products sold and their packaging materials that are reclaimed by category 

8 & 9 

97; 99; 102; 107 

101; 107 

EN29 Significant environmental impacts of transporting products, other goods and materials 

LABOR PRACTICES AND DECENT WORK PERFORMANCE INDICATORS 

LA1 Total workforce by employment type, employment contract, and region 84 

LA2 Total number and rate of employee turnover by age group, gender, and region 6 84 

LA4 % of employees covered by collective bargaining agreements 3 89; 90-91 

LA7 Rates of injury, occupational diseases, lost days, absenteeism and work-related fatalities 91; 92 

LA8 Programs in place to assist workorce or community members regarding serious diseases 92 

LA9 Health and safety topics covered in formal agreements with trade unions 86 

LA10 Average hours of training per year per employee by employee category 6 88 

LA11 Programs for skills management and lifelong learning 86 

LA12 % of employees receiving regular performance and carrer development reviews 81-82 

LA13 Composition of governance bodies and breakdown of employees per category according to indicators of diversity 6 90 

HUMAN RIGHTS PERFORMANCE INDICATORS 

HR1 

HR2 

% and total number of investment agreements that include human rights clauses 

% of suppliers and contractors that underwent screening on human rights and actions taken 

1 & 2 

111 

89; 111 

HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk and 

actions taken 

1 & 3 90-91 

HR6 Operations identified as having significant risk for incidents of child labor, and actions taken 1 & 5 89; 111 

HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and actions taken 1 & 4 89; 111 

SOCIETY PERFORMANCE INDICATORS 

SO1 Programs and practices that assess and manage the impacts of operations on communities 112-114 

PRODUCT AND CUSTOMER SATISFACTION PERFORMANCE INDICATORS 

PR1 Life cycle stages where health and safety impacts of products and services are assessed for improvment and % of products and 

services subject to such procedures 

PR3 Type of product and service information required by procedures, and % of significant products and services subject to such 

information requirements 

PR5 Practices related to customer satisfaction 111 

(1) The GRI structure and indicators changed in 2007: these modifications are taken into account in this table. 

(2) The ✦ symbol indicate information relating to the Global Reporting Initiative (GRI) Directives. 



115 

111 

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TABLES 

UNITED NATIONS GLOBAL COMPACT PRINCIPLES 

HUMAN RIGHTS 

1 Businesses should support and respect the protection of internationally proclaimed human rights; 

2 make sure that they are not complicit in human rights abuses. 

LABOUR STANDARDS 

3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargain; 

4 the elimination of all forms of forced and compulsory labour; 

5 the effective abolition of child labour; 

6 the elimination of discrimination in respect of employment and occupation. 

ENVIRONMENT 

7 Businesses should support a precautionary approach to environmental challenges; 

8 undertake initiatives to promote greater environmental responsibility; 

9 encourage the development and diffusion of environmentally friendly technologies. 

ANTI-CORRUPTION 

10 Businesses should work against all forms of corruption, including extorsion and bribery. 




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(www.renault.com) 

Photos cre dits: cover: Thomas Von Salomon - p. 3 : R. Kalvar - p. 4, 8, 22, 30 : BLM Studio, S. de Bourgies

2007 Interactive Registration Document - Renault

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