Volkswagen Terminates Cooperation with Renault on Cheap Electric Vehicle
TapTechNews May 17th news, it is learned that German Volkswagen has terminated the negotiation with French Renault on jointly developing a cheap electric vehicle, but Volkswagen's plan to launch a low-cost electric vehicle is still ongoing.
In December last year, German WirtschaftsWoche reported that Volkswagen and Renault might cooperate to produce an electric vehicle with a price of less than 20,000 euros (TapTechNews note: currently about $21,000). The report said that the negotiation was still at a very early stage at that time, but a Renault spokesman said that cooperation is necessary in order to remain competitive.
Renault announced in November last year its plan to launch the successor model of Twingo e-Tech, Legend, and the starting price of this entry-level electric vehicle is expected to remain around 20,000 euros. In February this year, Renault also confirmed that it is having good discussions with Volkswagen to cooperate in developing a cheap electric vehicle.
However, the latest news shows that the two automakers may part ways. According to Reuters, sources familiar with the matter said that Volkswagen withdrew from the cooperation with Renault.
The report said that Volkswagen called off the negotiation to cooperate with Renault to develop a low-cost version of the Twingo electric vehicle. Renault will continue to develop this electric vehicle and plans to go on the market in 2026.
A Volkswagen spokesman said that the company is still studying the plan for cheap electric vehicles but refused to comment on the partnership.
According to sources, the two sides failed to reach an agreement. Another source disclosed that the negotiation was close to success, but Volkswagen finally decided to independently develop a cheap electric vehicle and therefore withdrew from the cooperation.
Renault said that the company will continue to produce the electric Twingo alone and is also open to finding partners.
It is learned that Volkswagen will make a decision on its electric vehicle plan in a few weeks. Thomas Schäfer, the CEO of the Volkswagen brand, has previously confirmed that he hopes to launch a low-cost electric vehicle by 2027.
In March this year, Volkswagen launched its entry-level electric vehicle ID.2all. According to Volkswagen, this electric vehicle has the space of a Golf but the price of a Polo. The starting price of ID.2all is expected to be less than $30,000 (currently about $21,000), and it is built based on a new entry-level MEB platform with an expected range of up to 450 kilometers. Schäfer said that ID.2all represents the direction of development of the Volkswagen brand.
It is reported that Volkswagen also plans to develop a cheaper electric vehicle ID.1, and the price will be controlled within 20,000 euros. ID.1 may reuse some parts of ID.2all and be equipped with a smaller battery pack (38 or 58 kWh).