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.October 08, 2003
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Three years after its establishment, Renault-Nissan Purchasing Organization (RNPO) to reach 70% of the Alliance purchasing turnover

The Renault-Nissan Alliance Board agreed to enlarge the scope of joint purchasing by Renault Nissan Purchasing Organization (RNPO), from the current annual volume of $21.5 billion to $33 billion, or 43% to 70% of the Alliance purchasing turnover. This expansion was expected in view of the performance delivered.

The expansion of RNPO's scope consists in adding the purchasing of machinery and equipment, logistics and additional vehicle parts. In addition, RNPO's geographic responsibility will be expanded from Western Europe, Japan and North America to all areas where Renault or Nissan have industrial operations. This decision will become effective in January 2004.


One voice to suppliers

Established in April 2001, RNPO was the first Alliance joint-venture company. RNPO manages supplier relations on a worldwide basis focusing on competitiveness of purchasing in quality, cost and delivery. RNPO initially represented about 30% of Renault's and Nissan's global annual purchasing turnover and covered 17 families of commodities for a total amount of $15 billion.

The initial percentage was increased to 43% by the end of 2002, representing a yearly purchasing volume of $21.5 billion. At this time, the scope of activities was extended to all the powertrain area.

Odile Desforges, Senior Vice President of the Renault Supplier Relations Department and Hiroto Saikawa, Senior Vice President of Purchasing in Nissan are respectively Chairman & Managing Director and Vice Chairman & Deputy Managing Director of RNPO. RNPO has been fully owned and managed by Renault-Nissan bv1 since June 2003.

1 Renault-Nissan b.v. is the strategic management company of the Renault-Nissan Alliance, jointly and equally held by both Renault and Nissan groups. It is based in Paris and Tokyo and shelters the Alliance Board.

(October 1, 2003)

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