What progress has been made on the commitments taken last year under the Renault Commitment 2009 plan?

Renault made three commitments on February 9, 2006. The first was quality. We are now on track to placing the future Laguna in the Top 3 in terms of product and service quality. We have made significantprogress, reflected in a 40% drop in the 12-month incident rate and a 30% decrease in warranty costs as a percentage of revenues. Clio III ranked among the Top 3 right after its launch. We are making progress on service quality as well.  
The second commitment is profitability. We have achieved the operating margin objective of 2.56% of revenues. This was achieved through cost reductions, improved profitability of international operations, and a strong result on the European LCV market.

Is the result more mixed for the third commitment, growth?

Our sales fell 4% in 2006 in a cycle of renewing unfavorable products and tough competition on the automotive market.
Internally, we focused on preparing out future products, our technological innovations, and winning new markets on which to launch the 26 vehicles between now and 2009. This product offensive will be supported by technological progress made in collaboration with Nissan to reduce CO2 emissions (alternative technologies, biofuels, optimised engines, etc.). We are also expanding into new markets, with the start-up of Logan production in India, Iran and Brazil from Spring 2007.

Has introducing this plan required a sea change in the company?

Renault experienced in-depth changes in 2006. First, the Renault Commitment 2009 plan was cascaded across the company. We set quantified objectives and prepared action plans for each function. Implementing the plan also meant re-examining our organization, methods and processes. The creation of Regional Management Committees (RMCs) enabled us to respond to the specific needs of each region and put international operations squarely at the center of the company.
We also made an objective assessment of the plan’s deployment by directly consulting Renault employees through a survey on management quality. This survey showed that the men and women of Renault are highly dedicated and committed to the Company’s ambitions.

What is your outlook for 2007?

The first half of 2007 will continue to be difficult, in line with 2006.  The second half, however, will mark the start of our product offensive. After the launch of Logan MCV and Logan Van, 4 new vehicles will come on the market: the new Twingo, to be unveiled in Geneva next month, then the sedan and station wagon versions of Laguna, and lastly, the Group’s first cross-over, foreshadowed by Koleos Concept. Eight other vehicles will enter the production stage. With these launches, Renault will return to growth in 2007 starting in Autumn. Last July we set annual profitability milestones to ensure that we remain on track for our commitment of 6% operating margin in 2009. Today, we are reaffirming the 3% operating margin milestone for 2007.