TomTom partnership with Renault

TomTom is world’s biggest navigation elucidation provider. The PND manufacturer TomTom and French carmaker Renault teams up to provide best affordable and fully incorporated navigation solution available for Renault customers for several models. This will lead to growth in business of both the companies. TomTom now expects the unit to achieve a long-term margin on earnings before interest and taxes of 20%.

in-car-tom-tom-gpsRenault was the first car producer to provide wholly incorporated navigation in 1994. This first test drive in Europe in Safrane took place with Carminat. The facility given by TomTom makes the driving comfortable and stress free. In partenership with TomTom, Renault will provide up-to-date and fully incorporated navigation system for Renault customers for about 500 euros.

TomTom will improve Renault’s product quality by integrating best ergonomics, quality, safety and reliability.

These navigation devices are now playing  a crucial role in driving. In the last few years there is an explosive growth in the demand of navigation systems which made Renault to think about partnership with world’s biggest navigation elucidation provider and so their customer can get benefit from easy-to-use navigation of TomTom.

This partnership is a success for TomTom, as a navigation provider. But it is also success for its subsidiary Tele Atlas which makes digital maps used by car navigation systems and which wins an important carmaker. This Tele Atlas will provide maps for Renault deal. NAVTEQ is a competitor of Tele Atlas and is current map data provider of Renault for its Carminat navigation system. But according to spokesperson of Renault the existing navigation system will be available for high end models. According to Renault at least half of the people who buy the car will pay extra 500 euro for this TomTom navigation system where it is offered.

TomTom is continuously updating their products, softwares according to user’s need. It creates an in-car navigation category and it is now a number  one brand. This partnership will result positively according to both companies.

In Japan approximately one customer in two times purchases a fixed navigation system. Little by little they will offer this facility everywhere, and last year around 14% of car buyers had fixed navigation system in Europe.

TomTom has sold more than a 15 million portable navigation systems according to GfK Marketing Services of Nuremberg in Germany. TomTom Company shows 19.1 million sales in Europe in 2008.  it is expected that this navigation system provided to Renault customers by Renault with the help of TomTom will attract the car buyers who are not looking at a Renault. TomTom affiliation with Renault is elite in 2009, but with this TomTom is free to co-operate with other car makers starting in 2010 on similar embedded navigation system.

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