Volkswagen walks away from the negotiating table to create its own cheap EV
2 hours ago
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- VW and Renault have spent months negotiating the terms of an agreement to work together to create a sub-€20,000 EV.
- Insiders now report that the talks have broken down, and the companies will not work together.
- Each brand will now develop its own inexpensive EV.
Volkswagen and Renault have not been able to come to an agreement regarding collaboration on an inexpensive electric vehicle, and now the two automotive giants will have to go their own way.
Talks between the companies were first confirmed by Renault in December, when the discussions were described as being at a very early stage. Although the companies could not ultimately come to an agreement, sources say that they got close to reaching a deal.
Read: VW In Talks With Renault To Collaborate On €20,000 EV
The companies had been involved in months-long negotiations over the project, which both brands hoped would help lower the cost of developing a small EV, but VW decided to walked away from the deal, reports Reuters. It was understood that the project would lead to the creation of the next Twingo, which Renault will now develop itself, and is set to go on sale in 2026 with a starting price of less than €20,000 (around US$21,700 at current exchange rates).
Sources say VW’s decision to walk away from the negotiating table was prompted by its decision to develop a platform on its own, which would mark its latest change in attitude. A year ago, the German automaker was feeling bold about the cost savings its new in-house developed batteries would bring, and claimed that its upcoming €25,000 (around US$27,200) EV will be profitable, and that a €20,000 EV would even be possible.
However, by November, Volkswagen CEO Oliver Blume wasn’t so sure that the brand would be able to make a profitable EV at the lower price point. Hopes for the project were revived by the revelation that the German automaker was in talks with its French competitor, and now it seems VW believes it’s a good enough idea to pursue on its own.
Just because this partnership will not come to fruition doesn’t mean that Renault will give up on collaborating with other brands. The company’s CEO, Luca de Meo, has talked openly about his desire to work with other European brands to compete with incoming Chinese EVs. The executive has proposed an Airbus-style collaboration between brands to strengthen the continent’s industry, and lower costs.
Note: The story includes an independent rendering that is unrelated to VW
