Negotiations between Volkswagen and Renault regarding the production of an affordable electric car have hit an impasse, Reuters reports citing its own sources. Apparently, the corporations were close to signing a cooperation agreement, but now say they intend to pursue their own EV projects independently.
The first rumors about such a collaboration emerged back in December. Insiders are now saying that it was the German corporation that broke off first when Renault insisted on localizing the production at its own factory. Volkswagen had apparently wanted to provide some much-needed workload for its own manufacturing capacities in Europe. That said, some claim that the real reason for VW to stop the negotiations was that the company faced the need to review its entire development strategy as the EV market began slowing down.
According to the reports, the main idea behind the cooperation was to introduce a cheap and efficient EV in Europe to combat the stiff competition from the invading Chinese brands. Since the talks have fallen through, Renault will now have to bring its Twingo EV Concept into production on its own. As a part of the Renault-Nissan-Mitsubishi alliance, the company may also seek assistance from the other brands. As for VW, it actually plans to unveil a new cheap EV in a few days, so we’d better stay tuned and not draw any premature conclusions.
The way things are now, Renault plans to launch its next affordable EV in Europe in 2026, and Volkswagen intends to do the same in 2027.