allianceGBGuy 13/09/04 18:06 Page 1 RENAULT-NISSAN ALLIANCE 2004 allianceGBGuy 13/09/04 18:06 Page 2 CONTENTS 1 - RENAULT-NISSAN ALLIANCE BASICS 04 2 - COOPERATION IN ALL MAJOR AREAS 12 3 - THE ALLIANCE CHARTER: PRINCIPLES AND VALUES 36 4 - ALLIANCE VISION - DESTINATION 38 5-FIVE YEARS OF THE ALLIANCE 40 6 - MANAGEMENT STRUCTURES AND GOVERNANCE OF THE ALLIANCE 46 7 - OVERVIEW OF RENAULT AND NISSAN 50 8 - RENAULT AND NISSAN PRODUCT LINE-UP 52 allianceGBGuy 13/09/04 18:06 Page 4 1. RENAULT-NISSAN ALLIANCE BASICS RENAULT-NISSAN ALLIANCE THE ALLIANCE BOARD Signed on March 27, 1999, the Renault-Nissan Alliance is the first of The Alliance Board steers the Alliance’s medium- and long-term its kind involving a Japanese and a French company, each with its strategy and coordinates joint activities on a worldwide scale. own distinct corporate culture and brand identity. Both companies Renault and Nissan run their operations under their respective share a single joint strategy of profitable growth and a community of Executive Committees, accountable to their Board of Directors, and interests. To promote this shared objective, the Renault-Nissan remain individually responsible for their day-to-day management. Alliance set up joint project structures as early as June 1999 covering most of both companies’ activities. President of the Alliance Board: Louis Schweitzer Vice-President of the Alliance Board: Carlos Ghosn ALLIANCE MANAGEMENT STRUCTURE To define a common strategy and manage synergies, an Alliance strategic management company, Renault-Nissan bv*, was founded on March 28, 2002. Renault-Nissan bv is jointly and equally owned by Renault and Nissan and hosts the Alliance Board, which met for the first time on May 29, 2002, and holds monthly meetings. Front row: Pierre-Alain De Smedt (Renault - Executive Vice-President: Industry and Technology), Norio Matsumura (Nissan - Executive Vice- President: Marketing & Sales), Louis Schweitzer (Renault - Chairman and Chief Executive Officer), Carlos Ghosn (Nissan - President and Chief Executive Officer) Back row: Georges Douin (Renault - Executive Vice-President: Product & Strategic Planning and International Operations), Nobuo Okubo (Nissan - Executive Vice-President: Research, Technology and Engineering), Tadao Takahashi * bv (Besloten vennootschap) is a closed limited liability company under (Nissan - Executive Vice-President: Manufacturing), François Hinfray (Renault Dutch law. - Executive Vice-President: Sales & Marketing and Light Commercial Vehicles) 04-05 allianceGBGuy 13/09/04 18:06 Page 6 1. RENAULT-NISSAN ALLIANCE BASICS The Alliance Board: FINANCIAL STRUCTURE • is solely responsible for medium- and long-term planning (three-, 44.4% five- and ten-year plans), joint projects in vehicles and powertrains, and defining the principles of the two partners’ economic and financial policies; RENAULT NISSAN 50% 50% L. Schweitzer C. Ghosn • validates Renault’s and Nissan’s product and powertrain plans; CEO CEO • has the exclusive right to propose the creation of joint companies RENAULT-NISSAN bv to Renault and Nissan, significant changes to market coverage or L. Schweitzer (P), C. Ghosn (VP), product offerings, major investments and strategic partnerships P. -A. De Smedt, T. Takahashi, G. Douin, with third parties. N. Matsumura, F. Hinfray, N. Okubo Strategic Strategic management management In addition, Renault-Nissan bv is the sole shareholder and manager 100% of existing (Renault-Nissan Purchasing Organization - RNPO Joint companies RNPO / RNIS* and Renault-Nissan Information Services - RNIS) and future joint companies. These joint companies sign exclusive service Cross-Company Teams (CCTs) agreements with Renault and Nissan. Functional Task Teams (FTTs) 15% Renault holds a 17.9% stake in Nissan Diesel; while Nissan holds a 23.9% stake. *RNPO: Renault-Nissan Purchasing Organization / RNIS: Renault-Nissan Information Services Renault holds a 44.4% stake in Nissan, while Nissan owns 15% of Renault shares. Each company has a direct interest in the results of its partner. 06-07 1. RENAULT-NISSAN ALLIANCE BASICS ALLIANCE WORLDWIDE SALES AND PRODUCTION SITES IN 2003 The figures* represent sales in thousands of vehicles. 2,296 827 864 2 1,806 316 Western 261 Central and Eastern 490 Europe 55 Europe(2) Russia North 825 Japan 864 America United Kingdom France Romania China Japan Slovenia United States Spain Korea China Portugal Spain Turkey Morocco Egypt Pakistan Taiwan Mexico Thailand 217 70 Philippines 395 Middle East Colombia 128 Latin 147 and Africa Malaysia 267 America(1) Kenya Indonesia Brazil Renault Group 443 121 Nissan Group Asia Chile Uruguay South Africa 322 and Oceania(3) Argentina Combined Renault and Nissan sales: 5,357,315 units (up 4.2% over 2002) RENAULT GROUP PLANTS NISSAN GROUP PLANTS Renault Group sales: 2,388,958 units Body assembly Body assembly Renault Samsung Motors (RSM): 111,431 units (down 4.8%) Argentina, Brazil, Colombia, France, Brazil, China, Indonesia, Japan, Dacia: 68,627 units (up 18.8%) Korea (RSM), Morocco, Romania Mexico, Philippines, South Africa, (Dacia), Slovenia, Spain, Turkey Spain, Taiwan, Thailand, United Nissan Group sales: 2,968,357 units Kingdom, United States Infiniti: 127,593 units (up 34.5%) CKD assembly CKD assembly (1) of which Mexico Brazil, Chile, China, France, Malaysia, Egypt, Kenya, Malaysia, Pakistan Renault-Nissan Alliance global market (2) of which Russia and Turkey Portugal, Romania (Dacia), Russia, share came to 9.3%, (3) of which Renault Samsung Motors Spain, Turkey, Uruguay of which 4.1% for Renault and 5.2% for Nissan. * The figures have been rounded-off. 08-09 allianceGBGuy 13/09/04 18:07 Page 10 1. RENAULT-NISSAN ALLIANCE BASICS COMBINED RENAULT AND NISSAN SALES IN 2003 Today, global combined sales top 5.3 million vehicles per year and (MAIN MARKETS) represent more than 9.3% of the worldwide market. The Renault- Nissan Alliance ranks among global leading automakers. It includes five brand names: Nissan and Infiniti for the Nissan group and Renault, Dacia and Samsung for the Renault group. Thanks to strong sales and industrial complementarities of the two companies, the Renault-Nissan Alliance has been able to grow in the global automotive market. Production line of Renault Trafic and Nissan Primastar in Nissan’s LCV plant in Barcelona, Spain Total Sales in 2003 : Renault Group 2,388,958 5,357, 315 Nissan Group 2,968,357 10-11 allianceGBGuy 13/09/04 18:14 Page 12 2. COOPERATION IN ALL MAJOR AREAS STRUCTURAL COOPERATION PRODUCT PLANNING Renault and Nissan develop and market their own vehicles with respect for their individual brand identity. However, in the short term, when brand image is not involved and for specific products (such as Light Commercial Vehicles) in certain markets, Renault and Nissan do not exclude the possibility of selling adapted products Renault Trafic Nissan Primastar from their partner's range under their own brand name. Nissan's Barcelona Plant in Spain produces the Renault Trafic, the Double-badging and cross-manufacturing take full advantage of Nissan Primastar (and the Opel Vivaro), enabling both brands to exchanging best practices and efficiency within the Alliance. In meet the growing demand for compact vans. Europe, this initiative was initially aimed to support Nissan’s LCV sales drive. Vehicles double-badged and cross-manufactured in Europe Renault Nissan Start of sales by Nissan Master Interstar March 2002 Trafic Primastar September 2002 Kangoo Kubistar October 2003 Renault Kangoo Nissan Kubistar Mexico Nissan Platina, an adapted version of the Renault Clio sedan, was launched in April 2002. Renault Master Nissan Interstar 12-13 allianceGBGuy 13/09/04 18:14 Page 14 2. COOPERATION IN ALL MAJOR AREAS COMMON PLATFORMS Common platforms are developed as the two partners renew their C Platform line-ups. Renault and Nissan aim to share platforms (1.5 million vehicles per year per platform for mainstream vehicles) with a Start of sales Cumulative sales volume target for 2010 of approximately 10 Alliance platforms. through June 2004 Renault Mégane II September 2002 in Europe 935,474 B platform Nissan Lafesta end of 2004 in Japan — Start of sales Cumulative sales volume through June 2004 Nissan March March 2002 in Japan 316,529 Nissan Cube October 2002 in Japan 249,988 Nissan Micra January 2003 in Europe 266,624 Renault Modus September 2004 in Europe — Dacia/Renault Logan * September 2004 in Europe — Nissan Tiida September 2004 in Japan — * derived from the B platform C platform B platform 14-15 allianceGBGuy 13/09/04 18:14 Page 16 2. COOPERATION IN ALL MAJOR AREAS POWERTRAINS 3. Nissan 3-liter diesel engine (ZD 30): Cooperation in the common use and development of engines and Master and Mascott in 2004. transmissions within the Alliance is accelerating. Components from Nissan to Renault ZD 30 1. Nissan V6 3.5-liter gasoline engine (VQ 35): Vel Satis in February 2002 and Espace in October 2002. VQ 35 Components from Renault to Nissan 1. Renault 160Nm manual transmission (JH 160): March in 2001 and Micra in 2002. JH 160 2. Nissan 4WD rear differential unit (R 145): Kangoo 4x4 in May 2001. 2. Renault 200Nm manual transmission (JR 200): Almera in 2002 and Micra in 2003. R 145 JR 200 16-17 allianceGBGuy 13/09/04 18:14 Page 18 2. COOPERATION IN ALL MAJOR AREAS 3. Renault 1.5 dCi engine (K9K): Production by Renault of Nissan components Almera in October 2002 and Micra in January 2003. for Renault and Nissan Production at the Renault Cacia Plant in Portugal of Nissan ND manual transmission for Nissan models Primera and Almera, built at Nissan Motor Manufacturing (UK) Ltd., and Almera Tino, built at Nissan Motor Iberica, S.A., and for the Renault Mégane II from February 2002. K9K ND 4. Renault 1.9 dCi engine (F9Q): Common engines Primera in December 2002. (co-developed by both Renault and Nissan) 1. S2G and M1G gasoline engines: - S2G on Tiida in September 2004, - M1G on Nissan Lafesta at the end of 2004 and on a Renault car in 2006.