Renault Invests €308 Million in Cléon Plant for New Diesel Engine and Gearbox

Paris – March 22, 2006: Building on its renowned excellence in diesel engine technologies, Renault has developed a new 2.0 dCi (M9R) engine and a new six-speed gearbox (PK4) to appear on Mégane II, Laguna II, Espace IV and Vel Satis. Both units were co-developed with Nissan under the Renault-Nissan Alliance.

To ready its Cléon plant in Normandy, France for making the new powertrain, Renault invested a total of €308 million ($373mm USD approx.): €250 million for engine production and €58 million for gearbox production. This investment addressed three main objectives:

- Manufacture a Renault engine achieving benchmark status and featuring state-of-the-art technologies;

- Achieve the highest standard of quality and reliability to satisfy Renault customers;

- Roll out a manufacturing process with maximum rigor in safety conditions, operator ergonomics and respect for the environment.

Renault production of the first Alliance powertrain is in line with the strategies of both Alliance partners, who are seeking top-three ranking in key technologies among automotive groups worldwide, with each partner leading its specific fields of excellence.