Renault, in cooperation with TomTom, maker of car navigation products, has developed a lower cost GPS navigation system that will appear on Renault cars.Experts say that the low cost of the unit will assist in having them appear in as standard equipment in high volume vehicles sold in Europe.
The unit, which is designed to be embedded into the dashboard of the car, will be released starting in 2009 and will cost 500 euro ($681).
Studies done in the recent past showed that European car buyers were reluctant about paying the additional money for a GPS navigation system. Reports say that between 12 percent and 14 percent of all new cars sold in Europe had an embedded navigation system.
Another study performed by J.D. Power of 5,000 consumers in Germany and the United Kingdom found that when price was not a factor, GPS navigation systems were the most asked for option. However, when the systems cost an average price of 1,800 euros ($2,454) in Germany and the UK, buyers of new cars decided not to include them.