Transfer technogy

RENAULT GROUP
 Generalites- Management of tehnology in
the context of globalization
• Technology transfer implementation requires good project management. Changes to product or
process technology may sometimes be essential to the successful implementation of a TT project.
Very often, firms in developing nations are confronted with finding suitable people at this stage
and close cooperation with the transferor may be needed to locate required skills. Scheduling the
timely arrival of allied materials, parts, and services is essential to ensure successful
implementation of the project. Training programs will also have to be scheduled and conducted
either in-house or at transferor approved locations.
•The major activities at this stage include the following:
• • Identification of changes to be made to the product or process to suit local conditions and making
the necessary adaptations.
• • Recruitment and selection of personnel not already available within the organization and
conducting training programs for existing staff.
• • Development of improved remuneration plan to facilitate change management.
• • Formulation of arrangements with ancillary suppliers of materials, parts and services based on a
make vs. buy analysis
• • Maintaining links with government authorities to keep track of policy changes
• • Commissioning the transferred technology on or before schedule.
About Renault Group

Renault Group is a French multinational automobile manufacturer established in 1899. The company
produces a range of cars and vans, and in the past has manufactured trucks, tractors, tanks,
buses/coaches, aircraft and aircraft engines, and autorail vehicles.
The Renault corporation was founded on 25 February 1899 as Société Renault Frères by Louis Renault
and his brothers Marcel and Fernand. Louis was a bright, aspiring young engineer who had already
designed and built several prototypes before teaming up with his brothers, who had honed their
business skills working for their father's textile firm. While Louis handled design and production,
Marcel and Fernand managed the business.
The first Renault car, the Renault Voiturette 1CV, was sold to a friend of Louis' father after giving him
a test ride on 24 December 1898.
 The Misson

" We keep the heart of innovation beating so that mobility brings us closer to each other.
Three pillars that illustrate the grope's mission:
• Carbon neutrality: moving towards carbon neutrality,
• sustainable sourcing, a solid model of circular economySafety:
• giving priority to the safety of road users and employees in the workplaceInclusion:
committing to employability and equality within the Group and beyond - being united through
inclusion through employment and inclusive mobility.
"
 The Strategy

On January 14, 2021, Luca de Meo, Groupe Renault CEO, presented Renaulution, a new strategic
plan, which aims to shift Groupe Renault’s strategy from volume to value.
This strategic plan is structured in three phases that are launched in parallel:
• “Resurrection”, running up to 2023, will focus on margin and cash generation recovery;
• “Renovation”, spanning up to 2025, will see renewed and enriched line-ups, feeding brand
profitability;
• “Revolution”, from 2025 onwards, will pivot the business model to tech, energy and mobility;
making Group Renault a frontrunner in the value chain of new mobility.

"
 The mains objectives
. The Group has set new financial objectives:
- by 2023, the Group to reach more than 3%, around €3 billion in cumulative Automotive
operational free cash flow(1) (2021-2023) and investments (R&D and capex) reduced to
approximately 8% of revenues;
- by 2025, the Group aims for at least 5% group operating margin, about €6 billion in cumulative
automotive operational free cash flow(1) (2021-2025), and an improvement in ROCE(2) of at least 15
points compared to 2019.

The Renaulution plan will ensure the Group’s sustainable profitability while keeping on track with its
Zero CO2 footprint commitment in Europe by 2050
 New organisation
A new organization will roll-out this plan:
- the functions, with engineering at the forefront, are accountable for the competitiveness, costs and
time-to-market of the brand products;
- the fully-fledged, clear and differentiated brands manage their profitability.
In accordance with this value-driven organization, the company will no longer measure its
performance on market shares and sales but on profitability, cash generation and investment
effectiveness.
Divisional structures focus their attention and activities around specific groups (e.g., markets, goods
and services, customer demographics, etc.). This type of organizational chart allows teams to
collaborate on broad, shared organizational goals while maintaining a primary focus on their
respective, specific goals.
 Business Units

Group Renault designs, manufactures and sells vehicles individuals and utilities as well as accessible
innovative services to the greatest number, under the five automobile brands that are Renault, Dacia,
Renault Samsung Motors, Alpine and LADA.
RENAULT
Renault cars have often been synonymous with progress, and that is why they have become icons like
the R4, the TWINGO and more recently the ZOE. First vehicle 100% electric consumer, the ZOE is
today the leading car in Europe in its segment
 Business Units

DACIA
First Dacia brand vehicle sold outside Romania, LOGAN was the result of close collaboration between
the teams Romanian engineering offices and those based at the Renault Techno Centre. The program
was from the outset breaking with the practice of the automotive industry, by rethinking the entire
chain of production starting from the cost constraint. An equation which has makes - and continues to
make - the success of the brand.
With the launch of SANDERO, then DUSTER, Dacia has confirmed its daring and its ability to shake
up codes, by offering new cars spacious, practical and robust, at the best market value / price ratio.
 Business Units

ALPINE
Alpine is the Renault Group brand dedicated to innovative, authentic and exclusive sports. 2020 has
been a year hinge for the brand with the announcement of its arrival in Formula 1 from 2021 and its rise
in LMP1, premier category of the championship of the Endurance World (WEC). On the product side,
Alpine is enriching its offer A110 - model multi-awarded by the press whose range is consists of the
A110 Pure, the A110 Legend, the A110S - with the launch of two limited series: A110 Color Edition
2020 and A110 Legend GT. In 2020 the brand registered 1,525 vehicles in total.
 Business Units

LADA
Emblematic leader of the Russian market for more than 50 years, LADA is the fifth brand of the
Renault Group. LADA vehicles are designed, produced and sold by AVTOVAZ, partner of the Renault
Group since 2008, leading manufacturer automobile Russia, also producing vehicles for the Alliance
Renault-Nissan-Mitsubishi for the Russian market and the CIS countries.
 Business Units

Mobilize, the new brand within Renault Group, goes beyond automotive to offer services related to
mobility, energy and data. Mobilize will be based on sustainable open ecosystems, in line with the
Renault Group’s commitment to achieve carbon neutrality in Europe by 2040 and its ambition to
develop the value of the circular economy.
Mobilize has flexible end-to-end management solutions for mobility, energy and data. What are the
objectives? To meet the needs of consumers, businesses, cities and regions, to make everyone’s life
easier and speed up the energy transition
Economic and financial indicators
2018 2019 2020
Indicator (€ million) (€ million) (€ million)
Revenues 57,419 55,537 43,474
Operating margin 3.612 2,662 -337
Share in Nissan Motors net income 1.509 242 -4,970
Renault net income, Group share 3.302 -141 -8,008
Earnings per share (€) 12.24 -0.52 -29.51
Share capital 1,127 1,127 1,127
Shareholders’ equity 36,145 35,331 25,338
Total assets 114,996 122,171 115,737
Dividends (€) 3.55 0* 0**
Automotive including AVTOVAZ net 3.702 1.734 -3,579
cash position
Operational free cash flow including 607 153 -4,551
AVTOVAZ
183,002 179,565 170,158
Total workforce at December 31, 2020 (of which 48,678 (of which (o/w 44,415
AVTOVAZ 46,327AVTOVAZ) AVTOVAZ
 SWOT Analysis
STRENGHS WEAKNESSES

-Strategic Alliance; - It is a French brand that promotes

-Strong focus on R&D;
-Presence on the international
market;
- Pioneering in hybrid and electric
cars;
- All range of prices;
- Strong corporate culture;
- Activity diversification;
- French know-how;
- aso.
OPPORTUNITIES
the made in France; as a result,
employees costs are paricularly
high;
- Weeak presence in the Asian
markets, which represents the
markets with the highest growth;
- Focusing the company's efforts on
entry level vehicles and quantities;
- aso
THREATS

- Ecological awareness helps to - Competitive car manufacturers;

create new markets and new
products;
- Emerging countries are seenig
their demand explode; conquering
these countries can significantly
inrease the company's market
share;
- Creating a autonomous car, flying
car of tomorrow;
- Fluel fluctuations;
- Energy fluctuation;
- Changes in the way that the clients
uses the cars;
- Economic crisis;
- Pandemics;
- Shorthages in raw materials
- aso.
 The Alliance

The Alliance between the Renault and Nissan groups constitutes the most sustainable and productive
multi-cultural strategic collaboration in the automotive industry. For more than 20 years, this
partnership has offered a unique, pragmatic and agile model, always able to evolve and integrate new
projects and partners. Extended to Mitsubishi group, it forms the largest automotive alliance in the
world.
The aim is to bring new technologies and businesses into the member companies of the Alliance while
ensuring a fair financial return. The key investment areas, in line with the views on the future of the
automotive industry, include New Mobility, Autonomous Driving, Connected Services, EV & Energy
and Enterprise2.0.
 The Alliance
- adoption of 3-, 5- and 10-year plans (strategic Company projects, with quantified data);
- approval of product plans (phase of strategic projects corresponding to the design, manufacturing
and sale of current or future products, vehicles and components);
- decisions concerning the sharing of products and powertrains (such as platforms, vehicles,
gearboxes, engines and other components);
- principles of financial policy, including:
• discount rates used for profitability studies and hurdle rates, applicable to future models and
investments,
• risk management rules and the policy applicable to them,
• financing and cash management rules,
• debt leverage strategy
 R&D

In 2020, net R&D investments and expenses, down by 1,038 million euros, amounted to 11.3% of
Group sales against 10.7% in 2019. The decrease in research and development expenses over 2020 is
explained by the end of an initial cycle of upgrades to the product range, the lower level of business,
and actions to reduce fixed costs, which focused particularly on subcontracting and purchases of
prototypes.
Renault continues its research activities with the academic world, the most prestigious universities,
and other universities.
Joint research activities are mainly carried out as part of subsidized collaborative projects, work
conducted within IRTs and ITEs (energy transition institutes), and as part of studies involving doctoral
students under industrial research training agreements (CIFREs).
 R&D
• Research and teaching chairs Established under sponsorship agreements or agreements of a more
competitive nature, research and teaching chairs are created to more quickly solve complex
problems relating to innovation (technology, management and Human Resources, mobility
ecosystems, etc.) in partnership with the best academic teams and in association with other
economic and industrial players.
• Since May 27, 2020, Groupe Renault, Nissan Motor Co, Ltd. and Mitsubishi Motors Corporation
have jointly positioned new strategic guidelines within a “leader-follower” business model. The
aim of the new business model is to strengthen the efficiency and competitiveness of vehicles and
technologies by reference region. It is expected to reduce investment costs for vehicle models by up
to 40%.
 Conclusions and future proposals

The Groupe is harnessing its international growth and the complementary fit of its five brands,
Renault, Dacia and Renault Samsung Motors, Alpine and LADA, together with electric vehicles and
the unique Alliance with Nissan and Mitsubishi. In order to meet the great technology challenges of
the future and to continue its profitable growth, the group draws on its international development.
We believe that in the future the general trend will be that people will no longer buy cars, they will be
interested in renting a car for a few hours a day or once a week; why pay so much money for the
purchase of a car, then for maintenance when you can rent. In this case, the group should develop more
projects such as Mobilize because they are the future.