A Manufacturer point of view on Business Services · A Manufacturer point of view on Business ... The Renault-Nissan Alliance is the 4th carmaker in the ... EU patent is a crucial

PUBLIC AFFAIRS DEPARTMENT 14/11/2014 RENAULT PROPERTY

A Manufacturer point of view on Business Services

PUBLIC AFFAIRS DEPARTMENT 14/11/2014 RENAULT PROPERTY 2

TABLE OF CONTENTS

01 RENAULTOVERALL PRESENTATION

02 RENAULTA SERVICES CONSUMER

03 RENAULTA SERVICES SUPPLIER

04 CONCLUSIONSMANUFACTURING & SERVICES


01RENAULT

OVERALL PRESENTATION


1. RENAULT OVERALL PRESENTATION

KEY FACTS AND FIGURES 2012

� The Renault Group, represented in over 118 countries , designs, manufactures and sells vehicles under three brands : Renault, Dacia and Renault Samsung Motors. It also provides financing for sales through its subsidiary RCI Banque

� 38 production sites and 13,300 sales outlets, for 2,550,286 vehicles

� A range of vehicles to meet a variety of mobility requirements and adapted to the specific demands of the different markets

� 127,086 employees

� Two business divisions: the Automotive Division (design, manufacturing, sales) and the Finance Division

� Revenues : 41,270 M€. Net income – Group share : 1.735 M€

� The Renault-Nissan Alliance is the 4th carmaker in the world



MANUFACTURING FACILITIES WORLDWIDE

PUBLIC AFFAIRS DEPARTMENT 14/11/2014 RENAULT PROPERTY6

RENAULT : A BROAD RANGE OF VEHICLES, INCLUDING COMM ERCIAL VEHICLES AND ELECTRIC VEHICLES

MÉGANE ESTATE

ESPACE ET GRAND ESPACE

THALIA

LAGUNA

MÉGANE BERLINE ET COUPÉ

KOLEOS

TWINGO

SCÉNIC ET GRAND SCÉNIC

TRAFIC PASSENGER

KANGOO BE BOP

CLIO BERLINE

LAGUNA COUPÉ

MÉGANE COUPÉ-CABRIOLET

KANGOO

CLIO CAMPUS

LAGUNA ESTATE LATITUDE

FLUENCE WIND

CLIO ESTATE

DUSTER

SANDERO SANDERO STEPWAY

LOGAN

KANGOO EXPRESSEXPRESS COMPACT TRAFIC VUKANGOO EXPRESS MAXI MASTER

TWINGO

ZOETWIZY KANGOO EXPRESS Z.E.FLUENCE Z.E.

LCE

V

MODUS ET GRAND MODUS


PUBLIC AFFAIRS DEPARTMENT 14/11/2014 RENAULT PROPERTY7

A FULL RANGE OF ELECTRIC VEHICLES: FROM QUADRICYCLE TO LIGHT COMMERCIAL VEHICLE


TWIZY

ZOEFLUENCE

KANGOO


02RENAULT

A SERVICES CONSUMER


2. RENAULT A SERVICES CONSUMER

Renault buys :

� Products: raw materials, automobile components, industrial equipment, or generic products e.g. office supplies

� Services: generic and specific to car manufacturing industry, with a strong international coverage, due to the international dimension of the Group

� Purchasing amounts in 2012 , € - billion:

� Automobile components = 18,1

� Industrial equipment, facilities and services, logistics = 4,6

� Zoom on facilities and services purchasing :

� Industrial Transport = 1200

� Marketing/Communication/ Advertising = 900

� Engineering & IT/IS = 850

� Energy = 271

� General Services (for employees and buildings) = 250

� Training, Interim, Audit = 218



Inside EU market – strength and weaknesses

� Strength:

� Easiness of concluding business – one deal/contract with conditions valid for all EU countries

� Example: IT hardware and software purchasing, deal concluded in one country with same conditions of application and effects in all EU countries

� Easiness of running business – border crossing and custom formalities = transparent, not complicated

� Weaknesses:

� Geographical coverage of providers : difficulty to find large-scale providers with a wide enough or full-EU coverage able to provide solutions to the specificity of local markets.

� Fragmentation of legal frameworks : makes comparison uneasy

� Heterogeneity of taxes/wages definition per countr y: need for a common transparent calculation basis for labor duration, tax regimes etc.

� Currency handling : currency management needed, because not only Euros involved



Ongoing initiatives to be pursued & improved on Int ellectual Property

� EU patent is a crucial milestone and a strategic to ol (as emphasized by Commissioner Michel Barnier during HLG kick-off meeting on March 14, 2013)

� Yet national patents legal frames are not harmonize d:

� Quite similar IP protection

� Different rules of patent usage

� Different rules of inventor rewarding

� Different litigation management

� Weaker IP protection is exploited by non-EU competitor s, entering EU through countries with lighter IP protection, to become « European players » and benefit from the internal market advantages.

� EU public research agencies keep the full property of their R&D activities, which makes the results harder accessible to EU com panies (might be considered as being against non-EU competitors?)

� Higher priority should be granted to the implementa tion of the European Research Area, in order for Europe to be in an advanced leadership position, including on IP protection



At the borders of EU market and outside:

� Positive aspects:

� New opportunities of doing business – less saturated markets among newest EU countries and outside EU

� New opportunities of recruiting people – relevance of education, experience, cost

� Negative aspects:

� Management of different currencies

� Unstable/changing political environment and low pre dictability of legal frame

� Additional costs incurred for doing business

� Complexity and cost for Transport and Customs


Mutual recognition of professional qualifications & European professional card:

As major employer of engineers, Renault is supportin g this approach

� Positive aspects:

� allows a better understanding and more fluid management of engineers within Europe

� facilitates recruiting and targeting trainings

� Negative aspects:

� currently limited to some professions

� currently limited to EU citizens



Towards new models: project-based mobility & remote management

�Trends developing:

� Temporary posting for training

� Temporary posting of engineers for an industrial project basis

� Legal guidelines

� Depend mainly on national rules

� Cover intra-group mobility in some member States (fragmentation)

� Facilitation for intra-partners mobility

�Identified needs

� EU legal guidelines for intra-group and, if feasible, intra-partnersmobility on a project-basis, in respect of employee legal rights

� EU legal guidelines for remote management (e.g. industrial projects) would give better protection and less administrative burden

� Ex: project based in country A with staff from country A, B and C: double hierarchical & functional links



03RENAULT

A SERVICES SUPPLIER


3. RENAULT A SERVICES SUPPLIER

Renault sells:

� Products : vehicles and vehicle parts for after-sal es

� Services :

� Finance

� Maintenance and repair

� Professionals

� Car hire

� Assistance

� Electric mobility solution : Twizy way

� Digital services: MyRenault

See more: http://www.renault.com/en/groupe/nos-autr es-metiers/pages/services.aspx


Towards innovative services in the internal market

� New markets reshuffle traditional qualifications an d sectors.

� Example: Car manufacturing interactions with digital environment

� Legal obstacles in the field of connected vehicles

� Data protection harmonisation in the EU

� Lower roaming fees for cross-border usage

� Contribution from other companies

� Intellectual property : need for EU instrument for non-patentable know-how (ex: trade secrets)

� Currency : currency risk when trading with non-€ countries

� Taxation :

� Tax base harmonisation for VAT (exemple: postal products)

� Tax base harmonisation for Corporate tax - will help analyze each country’sattractiveness for investment

� Public procurement : some issues in practice on local public procurementmanagement in some Member States (cancellation, mismanagement, delays, etc.)

3. RENAULT A SERVICES SUPPLIER


04CONCLUSIONS

MANUFACTURING & SERVICES


4. CONCLUSIONS MANUFACTURING & SERVICES

Renault is a “living proof” of the interdependence be tween Manufacturing and Services:

� Business Services are a must for Manufacturing

� Business Services done at EU market level are effective, being an advantage for the players

� Business conditions change at the EU border, generally becoming more complicated

� Incentive measures can be taken to develop further the Business Services in the European market.

� We suggest the following :


4. CONCLUSIONS MANUFACTURING & SERVICES

Suggested measures to be considered at the EC level in order to stimulate Business Services development :

� To promote the EU Patent as a strategic tool against non-EU threat against EU competitive position in R&D, Innovation

� To set up a common transparent standard of calculation for labor-related costs, also for R&D incentives, etc. between countries

� To set up legal frames for border states of EU in order to harmonize the transport, customs, taxes legal frame, towards a predictable environment

� To set up a legal frame to facilitate workforce exchange within an industrial group, between affiliates and between industrial partners (for training and/or industrial projects)

� Consider EU countries’ tools for attractiveness versus non-EU countries’, where business services are developing ? …


THANK YOU FOR YOUR ATTENTION

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A Manufacturer point of view on Business Services · A Manufacturer point of view on Business ... The Renault-Nissan Alliance is the 4th carmaker in the ... EU patent is a crucial