Renault chairperson Jean-Dominique Senard
Privatisation and the alliance era (1996–2019)
It was eventually decided that the company's state-owned status was a detriment. By 1994, plans to sell shares to public investors were officially announced. The company was privatised in 1996. This new freedom allowed the company to venture once again into markets in Eastern Europe and South America, including a new factory in Brazil and upgrades for its infrastructure in Argentina and Turkey. In December 1996, General Motors Europe and Renault begun to collaborate in the development of LCVs, starting with the second generation Trafic (codenamed X83).Renault's financial problems were not all fixed by the privatisation, and Renault's president, Louis Schweitzer gave to his then deputy, Carlos Ghosn, the task of confronting them. Ghosn elaborated a plan to cut costs for the period 1998–2000, reducing the workforce, revising production processes, standardising vehicle parts and pushing the launch of new models. The company also undertook organisational changes, introducing a lean production system with delegate responsibilities inspired by Japanese systems (the "Renault Production Way"), reforming work methods, and centralising research and development at its Technocentre to reduce vehicle conception costs while accelerating such conception.After Volvo's exit, Renault searched for a new partner to cope with an industry that was consolidating. Talks with BMW, Mitsubishi, Nissan, PSA and others were held and yielded a relationship with Nissan, whose negotiations with Daimler had stalled. Starting on 27 March 1999, the Renault–Nissan Alliance is the first of its kind involving a Japanese and a French company, including cross-ownership. Renault initially acquired a 36.8% stake at a cost of £2.7 billion in Nissan, while Nissan, in turn, took a 15% non-voting stake in Renault. Renault continued to operate as a stand-alone company, but with the intent to collaborate with its alliance partner to reduce costs. The same year, Renault bought a 51% majority stake of the Romanian company Dacia for £408.5 million, thus returning after 30 years, in which time the Romanians had built over 2 million cars that primarily consisted of local versions of the Renault 8, 12 and 20. In 2000, Renault acquired a controlling stake of the newly formed South Korean Samsung Group's automotive division for £59.5 million.In Japan, Renault was formerly licensed by Yanase Co, Japan's premier seller of imported cars. However, as a result of Renault's purchase of an interest in Nissan in 1999, Yanase cancelled its licensing contract with Renault in the spring of 2000, and Nissan took over as the sole licensee, hence sales of Renault vehicles in Japan were transferred from Yanase Store locations to Nissan Red Stage Store locations.
In the late 1990s and early 2000s, Renault sold various assets to finance its inversions and acquisitions, refocusing itself as a car and van manufacturer. In 1999, the company sold its industrial automation subsidiary, Renault Automation, to Comau and its engine parts division to TWR Engine Components. In 2001, Renault sold its 50% stake in bus/coach manufacturer Irisbus to co-owner Iveco and its logistics subsidiary, CAT France, to Global Automotive Logistics. Following the sale of Renault Véhicules Industriels to Volvo in 2001, the company retained a minority (but controlling) stake (20%) in the Volvo Group. In 2010 Renault reduced its shareholding to 6.5% and in December 2012 sold its remaining shares. In 2004, Renault sold a 51% majority stake in its agricultural machinery division, Renault Agriculture, to CLAAS. In 2006, CLAAS increased its ownership to 80% and in 2008 took full control.In the twenty-first century, Renault developed a reputation for distinctive, outlandish design. The second generation of the Laguna and Mégane featured ambitious, angular designs that turned out to be successful, The 2000 Laguna was the second European car to feature "keyless" entry and ignition. Less successful were the company's more upmarket models. The Avantime, a unique coupé multi-purpose vehicle, sold poorly and was quickly discontinued while the luxury Vel Satis model also disappointed. However, the design inspired the lines of the second-generation Mégane, the maker's most successful car. As well as its distinctive styling, Renault was to become known for its car safety by the independent company Euro NCAP Thus, in 2001, the Laguna achieved a five-star rating, followed in 2004 by the Modus, and acquired control of AvtoVAZ in 2008.In April 2010, Renault–Nissan announced an alliance with Daimler. Renault supplied Mercedes-Benz with its brand new 1.6-litre turbo-diesel engine and Mercedes-Benz provided a 2.0 litre four-cylinder petrol engine to Renault–Nissan. The resulting new alliance was to develop a replacement for the Smart based on the Twingo.In February 2010, Renault opened a new production factory near Tangier, Morocco, with an annual output capacity of 170,000 vehicles. Initially, it manufactured the Dacia Lodgy and Dacia Dokker models followed in October 2013 by the second generation Dacia Sandero. The output capacity increased to 340,000 vehicles per year with the inauguration of a second production line. The site is located in a dedicated free trade area, neighboring Tanger Automotive City. According to Renault, the new factory emits zero carbon and industrial liquid discharges. Over 100,000 vehicles were produced there in 2013. Renault expects to eventually increase production at the Tangier plant to 400,000 vehicles per year.In the 2010s, Renault increased its efforts to gain market share in the Chinese market. In 2013, it formed a joint venture with Dongfeng Motor Group named as Dongfeng Renault, based on a failed previous venture with the Chinese company Sanjiang. In December 2017, it signed an agreement with Brilliance Auto to create a new joint venture (Renault Brilliance Jinbei) aimed at producing light commercial vehicles and minivans under the Renault, Jinbei and Huasong marques. In December 2018, Renault announced it would acquire a "significant" stake in JMCG's electric vehicle subsidiary JMEV. In July 2019, Renault took a 50% majority stake from JMEV through capital increase. In April 2020, Renault announced it planned to withdraw from the Dongfeng Renault venture, transferring its stake to Dongfeng.In December 2012, the Algeria's National Investment Fund (FNI), the Société Nationale de Véhicules Industriels (SNVI), and Renault signed an agreement to establish a factory near the city of Oran, Algeria, with the aim of manufacturing Symbol units from 2014 onwards. The production output was estimated at 25,000 vehicles. The Algerian State has a 51% stake in the facility.In September 2013, Renault launched its brand in Indonesia, the world's fourth most populous country, with the aim of becoming one of the top European brands there until 2016. The model range at the time of the launch consisted of the Duster (locally assembled), the Koleos and the Mégane RS. Later, the Clio and the Captur were also added.In April 2015, the French government upped their stake in Renault from 15% to 19.73% with the aim of blocking a resolution at the next annual general meeting that could reduce its control over the company. In 2017, the government sold back shares and returned to a 15% stake as agreed with Renault.During 2016, Renault changed position on the viability of small (B-segment) diesel cars in Europe, as they become significantly more expensive when re-engineered to comply with new emissions regulations as a result of the Volkswagen emissions scandal. Renault believes that all small and some mid-size (C-segment) will no longer be diesels by 2020. However, on Friday, 13 January 2017, Renault shares fell as the Paris prosecutor started an investigation into possible exhaust emissions cheating. The company later recalled 15,000 cars for emission testing and fixing. Renault, along with several other automobile companies, has been accused of manipulating the measurement equipment for NOx pollution from diesel cars. Independent tests carried out by the German car club ADAC proved that, under normal driving conditions, diesel vehicles, including the Renault Espace, exceeded legal European emission limits for nitrogen oxide (NOx) by more than 10 times. Renault denied any foul play, stating compliance with French and European standards.In November 2018, Renault's CEO Ghosn was arrested by Japanese officials for allegedly underreporting his Nissan's salary, following an internal review conducted by the Japanese company. Renault traded shares fell more than 15% after the arrest was known. After Ghosn's arrest, the chief operating officer and company deputy chief Thierry Bolloré became the acting CEO and the board director Philippe Lagayette the acting chairman. In January 2019, following Ghosn's resignation, Renault announced it had appointed Jean-Dominique Senard as chairman and the acting CEO Bolloré as CEO. In October 2019, Bolloré was fired and replaced by Renault's CFO Clotilde Delbos as acting CEO. Bolloré said his dismissal was a "coup" by Senard. In January 2020, Renault announced it had named Italian Luca de Meo as its new CEO, with him taking his post on 1 July. Delbos was named as his deputy.Financial data
Corporate governance
Renault's head office is in Boulogne-Billancourt. The head office is located near the old Renault factories; Renault has maintained a historical presence in Boulogne-Billancourt since the company's opening in 1898.Renault is administered through a board of directors, an executive committee and a management committee. As of January 2019, members of the 19-seat board include Jean-Dominique Senard (as chairman), Cherie Blair, Catherine Barba and Pascale Sourisse. Clotilde Delbos is the acting CEO.
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