GROUPE RENAULT

Press Release - Cost reduction plan project 2o22 - Seite 2

"In a context of uncertainty and complexity, this project is vital to guarantee a solid and sustainable performance, with customer satisfaction as a priority. By capitalizing on our many assets such as the electric vehicle, by capitalizing on the resources and technologies of Groupe Renault and the Alliance, and by reducing the complexity of development and production of our vehicles, we want to generate economies of scale to restore our overall profitability and ensure our development in France and internationally. This project will enable us to look to the future with confidence," added Clotilde Delbos, interim Chief Executive Officer of Renault.

The project includes the following main elements:

• Improving efficiency and reducing engineering costs, by taking advantage of the strengthened assets of the Alliance, approximately €800 million:
   
  • Streamlining vehicle design and development: reducing component diversity, increasing standardization, Leader - Follower programs within the Alliance.
  • Optimization of resources: concentration of the development of strategic technologies with high added value in the engineering sites of Ile-de-France; optimization of the use of R&D centres abroad and subcontracting; optimization of the means of validation through the increased use of digital.

       

• Optimization of production saving approximately €650 million
   
  • Acceleration of plant transformation through the generalization of Industry 4.0
  • Process improvement in new engineering projects: accelerating digitalization and "design to process".
  • Right sizing of industrial capacities:
    • Global production capacity revised from 4 million vehicles in 2019 to 3.3 million by 2024 (Harbour reference).
    • Adjustment of production headcount.
    • Suspension of planned capacity increase projects in Morocco and Romania, study of the adaptation of the Group's production capacities in Russia, study of the rationalization of gearbox manufacturing worldwide.
    • In France, four working hypotheses for optimizing the production will be the subject of in-depth consultation with all stakeholders, in particular the social partners and local authorities:
      • Renault is launching a consultation process on the Douai and Maubeuge plants to study the creation of an optimized centre of excellence for electric vehicles and light commercial vehicles in northern France.
      • Open reflection on the reconversion of the Dieppe plant at the end of the production of the Alpine A110.
      • In Flins, the creation of a circular economy ecosystem on the site, including the transfer of Choisy-le-Roi's activities.
      • At the Fonderie de Bretagne, Renault is launching a strategic review.