Automotive News Europe — 2024-05-17
Automotive Industry
Renault will continue designing its own electric Twingo, scheduled to go on sale in 2026.
Volkswagen has walked away from talks with Renault to jointly develop an affordable electric version of the Twingo car, two sources familiar with the situation said.
The collapse of negotiations would mean VW may now have to go it alone in developing its own affordable EV. Renault will continue designing its own electric Twingo, scheduled to go on sale in 2026.
Ampere, Renault's EV operation overseeing the Twingo program, declined to comment. A VW spokesperson also declined to comment on the talks between the companies but said that the company was still studying its options on cheap EVs.
Both had hoped that sharing the work would cut costs that represent a key hurdle for European carmakers in the face of cheaper cars from China.
The companies "did not succeed in finding an agreement" after several months of negotiations, one of the sources said.
Another source said that an agreement had been very close, but that VW walked away from the talks and has decided to develop its own car.
The sources declined to be named because the talks are confidential.
Renault CEO Luca de Meo had confirmed at the Geneva auto show in February that the French automaker was in talks with VW to partner on a low-cost battery-electric minicar for Europe.
De Meo also said he was speaking to other potential partners, without naming them. Renault will forge ahead with the project with or without a partner, de Meo said at the Geneva show.
Renault plans to launch a new Twingo full-electric minicar as early as 2026 with a target price of below €20,000.
VW brand CEO Thomas Schaefer has previously said he is open to partnerships to help reduce the retail price of a new small EV to below €20,000. The German automaker is falling behind in the race to bring small battery-electric cars to market at a similar price point to combustion-engine models to avoid losing out to Chinese car companies that are targeting Europe with inexpensive EVs.