According to two people with knowledge of the matter, VW and Renault have called off their collaboration to create a cost-effective electric Twingo vehicle, which is a blow to the European automakers’ attempts to keep up with their Chinese competitors.
The German automaker may have to go it alone in creating its own reasonably priced electric vehicle (EV) if the negotiations fail. Renault will carry on developing the Twingo electric car, which is expected to go on sale in 2026. Both had thought that splitting off the operation would reduce expenses, which are a major barrier for European automakers competing with cheaper Chinese vehicles. The EV division of Renault, which is in charge of the Twingo program, Ampere, declined to comment.
VW’s EV Strategy
A Volkswagen representative said that the German automaker was still researching its options for low-cost EVs but declined to comment on the discussions between the two companies. One of the individuals stated that after several months of negotiations, the corporations “did not succeed in finding an agreement”. Another source claimed that although there had been intense negotiations, VW had turned away and chosen to focus on creating its own vehicle. The sources asked not to be identified because the discussions are private.
A decision on the EV strategy is anticipated in a few weeks, according to VW sources. By 2027, Volkswagen CEO Thomas Schaefer plans to introduce a more affordable electric vehicle. According to the second source, Renault would go on developing the Twingo without Volkswagen, but it would also keep an eye out for potential partners, such as the alliance between Nissan and Mitsubishi.
The top EV manufacturers in the world, China’s automakers, are rapidly gaining traction in the European market and putting pressure on established players like Volkswagen and Renault to reduce costs and shorten the time it takes to launch a new model. To help them compete with Chinese manufacturers like BYD, European automakers are planning to produce smaller EVs that retail for less than 20,000 euros ($21,686).
