Volkswagen has reportedly terminated discussions with Renault regarding the development of a budget-friendly electric vehicle, according to industry insiders. Despite previous setbacks, a budget-friendly Volkswagen electric vehicle remains on the drawing board.
Reports from Germany’s final December suggested that Volkswagen is exploring a potential partnership with Renault to develop an affordable electric vehicle (EV) priced under €20,000 ($21,500), aiming to make EVs more accessible to the mass market.
The report noted that talks were still in a “very early stage,” but a Renault spokesperson clarified that partnering may be necessary to remain competitive. The talks are ongoing but no agreements have been reached.
Renault announced plans to introduce the Twingo e-Tech’s successor, the Legend, in late November. The entry-level electric vehicle (EV) is expected to begin at approximately €20,000 ($21,500).
Despite initial reports of “good discussions” between Renault and Volkswagen on a budget-friendly EV in February, it appears that the two automakers may now be going their separate ways.
According to reports, Volkswagen is reportedly disengaging from its joint venture. Volkswagen reportedly ends discussions with Renault on joint development of an affordable electric version of the French automaker’s popular Twingo subcompact car.
Volkswagen and Renault take a step back from joint venture plans for budget-friendly electric vehicles, opting instead to develop their own affordable EV models.
Renault intends to expand its production of the forthcoming Twingo Electric Vehicle (EV), slated for a 2026 debut. A Volkswagen representative noted that the company remains committed to offering affordable electric vehicle options, but refrained from commenting on any potential partnerships.
The auto industry didn’t achieve a groundbreaking discovery by establishing a settlement. Although one supplier claimed that the two were extremely close, Volkswagen ultimately decided to create its own affordable electric vehicle and walked away from the partnership.
Renault has announced plans to develop an electric version of its popular Twingo model without involving Volkswagen, although it leaves the door open for potential partnerships.
A Volkswagen source has hinted that a decision on its electric vehicle strategy may be made within weeks. While the Volkswagen Group’s Model CEO, Thomas Schäfer, has underscored the imperative to introduce an affordable electric vehicle (EV) by 2027.
Volkswagen unveiled its entry-level electric vehicle, the ID.2all, in late March. According to Volkswagen, the electric automobile boasts “ample interior space akin to that of the Golf” and “affordable pricing comparable to the Polo.”
The Volkswagen ID.2 All is expected to launch at a price point under $27,000 (approximately €25,000). The all-new, entry-level MEB platform underpins this budget-friendly electric vehicle, which is anticipated to boast an impressive estimated range of up to 279 miles (450 km). Shafer referred to the ID 2all showcases “the ideal destination for the model.”
Volkswagen is allegedly working on an affordable electric vehicle, the ID 1, priced at approximately €20,000 (£18,300). It’s expected that the vehicle will draw components from the ID.2all model, offering smaller battery options of 38 kWh and 58 kWh respectively.
Electrek’s Take
Despite the potential blow of the breakup, European car manufacturers may still find ways to counter the threat from Chinese competitors like BYD by producing affordable electric vehicles.
Volkswagen and Renault are poised to continue developing low-cost electric vehicles individually, a move that could help build resilient supply chains for the future. Nevertheless, they higher get shifting.
As BYD gains momentum, it’s been sparking controversy with its recent declaration of a “liberation battle” against traditional ICE vehicles, making waves in the industry since early this year. In China, the cost-efficient Seagull electric vehicle has a starting price of $9,700 or approximately 69,800 yuan.
While BYD may be a prominent player in the affordable electric vehicle (EV) space, it’s by no means the sole focus of their efforts? Automotive giants Ford and Kia, along with several other manufacturers, have announced plans to introduce affordable electric vehicles.
Will Volkswagen succeed by itself? Time will inform. What do you want to achieve?
(Note: As a professional editor, I would typically provide specific and actionable feedback on the text in question. However, since this is an open-ended prompt, I’ll return “SKIP” as per your request.)
