VW-Renault Collaboration on Sub-€20,000 EV Falls Through

Failed Negotiations

After months of discussions, Volkswagen and Renault have decided not to collaborate on the creation of a sub-€20,000 electric vehicle.

Individual Development

Following the breakdown of talks, both companies will now pursue the development of their own affordable EV models.

Initial Talks

In December, Renault confirmed the early-stage discussions with Volkswagen. Despite coming close to a deal, the companies were unable to reach an agreement.

Renault’s Next Twingo

The project was expected to lead to the development of the next Twingo by Renault. The French automaker will now proceed with the project independently, with plans to launch the EV in 2026 at a price below €20,000.

VW’s Independent Path

Volkswagen’s decision to walk away from the collaboration was driven by its choice to develop its platform. The German automaker aims to create a profitable €25,000 EV and explore the possibility of a sub-€20,000 model.

Future Collaborations

While the VW-Renault partnership did not materialize, Renault remains open to collaborating with other European brands to compete with Chinese EVs. CEO Luca de Meo has proposed an Airbus-style collaboration to strengthen the industry and reduce costs.

Conclusion

Despite the setback in negotiations, both Volkswagen and Renault are committed to advancing their electric vehicle offerings and exploring new partnerships in the future.