Dacia Renault România - Administrative Presentation

Company nature and background

Dacia, the first Romanian car manufacturer, was founded in 1966 with the creation of the Automobile Plant from Mioveni. After signing a license contract between Renault and the Romanian state in 1968, the company began manufacturing Dacia 1100 model under license R8, followed in 1969 by Dacia 1300 under license R12.

The company’s history reveals that: in 1970-1980, Dacia developed a whole range of models that were meant to cover more types of vehicles and persons utilities. And after 1978, Automobile Dacia continued an autonomous production cars derived from the Renault range 12. Later on, the year 1995 marked the launch of the first concept of a 100 % Romanian car: Dacia Nova. In 1998, the year when the company celebrated three decades from its first car production Dacia, the company registered the car number 2.000.000. In the same year the company obtained the Certificate of Attestation to Implement ISO 9001 Quality System.

On 2 July 1999, was signed the privatization contract of the company thus Dacia becoming one of the Renault Group’s brands, with a main mission to sustain the development in emerging markets. In 2000 was launched the model Dacia Supernova (a car equipped with Renault engine and gearbox), the first real collaboration between France and Romania. Renault and Dacia have several objectives for the medium and long term, among which to produce a new car for emerging markets, increase productivity and to produce quality Renault cars at low prices.

Since the privatization of the industrial plant, Dacia practiced a complete modernization process. An investment of 489 million euro in the plant from Pitesti brought the European standards which were missing. With Renault’s help, Dacia has become a trademark accessible worldwide, recognized by modernity and accessibility of its products.

Dacia and the Renault Group:

Dacia is considered a pole of development for the Renault Group in Central and Eastern Europe. Its mission is to produce modern, robust and economical models for new markets and adjusted expectations, needs and resources of new clients. In the center of this strategy is placed the Logan project, a relatively new and innovative project for the Romanian manufacturer.

Renault played an important role in this process because the investments have contributed to the renovation of buildings, equipment renewal and the installation of new lines of assembly for the Renault engines and gear boxes.

The link between Dacia and Renault is more obvious in present actions, one of the main reasons being the fact that Dacia applies the Renault methods and organizational structure both in industrial and commercial levels.

Management Structure:

Dacia Groupe Renault leadership is provided by the General Manager and the Board of Directors as fallows:

• Board of Directors

- Christian Esteve

- François Fourmont

- Constantin Stroe

- Dan Mihai Bedros

- Philippe Buros

• General Manager - François Fourmont

The capital and shareholding structure indicates that Renault SA is the principal shareholder with 99.43 % rate of participation:

Table 1.1: Shareholder Structure

SHAREHOLDER Participation (RON)

Total subscribed and fully paid-up No. of shares Participation (percentage)

RENAULT 2,527,154,307.70 25,271,543,077 99.426938%

Others 14,565,631 145,656,310 0.573061%

TOTAL 2,541,719,938.70 25,417,199,387 100%

Objectives and Strategy:

Objectives are important elements maintaining a positive flow in the company’s processes. Dacia’s 2010 objective is to produce 500.000 cars, of which 200.000 in Romania, and the rest in abroad production centers. From the point of view of Renault Group the main objective is to transform Dacia into a brand recognized at an international level for attributes such as: modernity and accessibility.

Numerical objectives are also taken into consideration, thus the values found in the table 1.2 indicate the intention to maintain in 2010 the ascending figures for the turnover, profit, number of employees and labor productivity.

Table 1.2: Numerical objectives

INDICATORS 2008 2009 2010

TURNOVER 246466842 295760210.4 354912252.4

PROFIT 13487676.2 16859595.2 21074494.01

NO. OF EMPLOYEES 755 765 775

LABOR PRODUCTIVITY 300888.3 346021.5 397924.7

By achieving these goals the company wants to obtain the highest levels in economic efficiency, quality and performance standards and an activity progress in the domain it operates.