Lee Seymour 1 B101 - The Technology Context How environmental factors affect the price of a product Renault Clio Extreme vs. Environment By Lee Seymour

Lee Seymour 2 Product & Price Product - Renault Clio Extreme 1.2 Price - £9.615 Basic Product Info: Unleaded Petrol Hatchback Air Bags 3 Door Renault eco² Technology Emission Control Standard – Euro 4 Figure 2.1 Figure 2.2

Lee Seymour 3 New Technology In Product The Renault Clio Extreme has the new eco² technology built into reduce the environmental impact of motoring. What is eco² A Renault eco² vehicle meets three strict environmental criteria covering the whole life cycle: Manufacturing – vehicles must be manufactured at plants certified to ISO 14001, which certifies a plant’s approach to environmental progress. Since 1996, Renault has reduced its energy consumption by 25%, its water consumption by 57%, waste by 65%, volatile organic compound (VOC) emissions by 38%, and water-borne toxic discharge by 44%. In 2006, 39 industrial sites, covering over 90% of Renault operations worldwide, were certified to ISO In 2008, all Renault’s factories are certified ISO Emissions – vehicles must have CO² emissions of 140 g/km or less, or biofuel-compatible (ethanol E85 or biodiesel B30). End of life/ Recycling – vehicles are 95% recoverable at the end-of-life and at least 5% of plastics used in new vehicles are made from recycled materials. Figure 3.1 Figure 3.2

Lee Seymour 4 Reason Price Has Changed The amount of vehicle excise duty (road fund licence) payable on new cars varies depending on the level of CO2 (carbon dioxide) emissions produced by the vehicle and the type of furl used. The table below illustrates the CO2 banding and therefore, the amount of Vehicle Excise Duty payable. The Renault Clio Extreme is in a very low Tax band because of the new eco² technology used in this car so it must have CO² emissions of 140 g/km or less. Figure 4.1 This would affect the price because they have put the Renault eco² technology in the vehicle to prevent less CO2 emissions being produced by the car. They can raise their prices because they are one of the top 3 manufacturers out there using this product in there cars so you are really paying for the fact that no other cars have this technology yet. Also on the plus you pay less Tax on your car.

Lee Seymour 5 Numerical Estimate This shows that there has been a drop in sales when you compare last October 2007 with October 2008 this may be affected because the price has risen by £410 (4.45%). Figure 5.1

Lee Seymour 6 Supporting Source The price for the Renault Clio Extreme 1.2 has gone up by £410 (4.45%) because of the eco² technology used in the car. They are one of the top 3 manufacturers that use this in their cars. Figure 6.1

Lee Seymour 7 Conclusion The price for the Renault Clio Extreme has gone up because of the new environmental rules that car manufacturers have to abide by. Renault have implemented a new technology in the Renault Clio Extreme called Renault eco² this is very clever product it makes your car in a low tax band so you pay less tax on your car but the main issue is it emits less CO2 emissions into the environment, so this is making motoring more environmental friendly. Renault are one of the top 3 manufacturers to be using this product as well therefore the price of the Renault Clio Extreme has risen by £410 (4.45%).

Lee Seymour 8 References Figure 2.1: Figure 2.2: Figure 3.1: Figure 3.2: 451c-409e-89c0-f7f63bf1ebf2/newsitemdisplay.aspx Figure 4.1: Figure 5.1: entes_mensuelles/ Figure 6.1: