Volkswagen Group is seeking external collaboration in its ambition to produce an electric vehicle priced at about 20,000 euros (around $21,500).
Germany’s Handelsblatt, relying on informed sources (subscription needed), reported recently that VW Group is negotiating with prospective partners for the joint development of economical electric vehicles (EVs). Renault is cited as a possible collaborator in this venture.
Overview of the Acura Integra
Renault, under the leadership of CEO Luca de Meo, a former top executive at VW Group, is anticipated to introduce a budget-friendly EV later in the decade. This new model could be a successor to the current Renault Twingo minicar, developed in partnership with Mercedes-Benz’s Smart brand. Earlier this year, Renault hinted at such a development with the Twingo Legend concept, a vehicle with nostalgic design cues inspired by the original 1990s Twingo.
Handelsblatt indicates that VW Group’s interest lies in collaboratively developing a platform for affordable EVs, though discussions with potential partners are still at a preliminary stage.
Renault Twingo Legend Concept
VW Group is concurrently developing subcompact EVs expected to be priced starting from around 25,000 euros ($26,900). Slated for release around 2025, these vehicles will represent VW Group’s Volkswagen, Skoda, and SEAT (or Cupra) brands. The Volkswagen version, likely named ID.2, has been observed during testing and was earlier showcased with the ID.2all concept this year.
The more economical EVs from VW Group are expected to be categorized in the minicar segment, reducing their likelihood of being marketed in the U.S., where larger vehicles generally dominate.
The news of this potential partnership surfaces shortly after Thomas Schäfer, CEO of VW’s namesake brand, informed staff about the brand’s declining competitiveness amidst significant ongoing cost reductions.
The challenge from Chinese automotive brands is particularly notable for many European manufacturers, both in their domestic markets and in China. To expedite EV development for China, the world’s largest market for both new vehicles and EVs, VW earlier this year entered into a partnership with Xpeng. This agreement allows VW to utilize some of Xpeng’s EV platforms. Audi, another VW Group brand, established a similar agreement with China’s SAIC earlier this year.
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Frequently Asked Questions (FAQs) about Volkswagen-Renault EV Collaboration
Is Volkswagen Group collaborating with Renault for EV development?
Yes, Volkswagen Group is reportedly in discussions with Renault and other potential partners to jointly develop affordable electric vehicles (EVs). These talks aim to create an EV with a starting price of around 20,000 euros.
What is the expected price range for Volkswagen’s planned EVs?
Volkswagen Group is working on subcompact EVs expected to be priced from around 25,000 euros. These vehicles are anticipated to be released around 2025 and will include models for Volkswagen, Skoda, and SEAT (or Cupra) brands.
Will the new affordable EVs from Volkswagen Group be available in the U.S. market?
The more affordable EVs from Volkswagen Group are expected to be in the minicar segment, which means they have a slim chance of reaching the U.S. market, where larger vehicles are generally more popular.
What are the challenges faced by Volkswagen in the EV market?
Volkswagen faces competition from Chinese brands in the European and Chinese markets. This competition has led to Volkswagen partnering with Chinese automakers like Xpeng and SAIC to speed up EV development and gain access to EV platforms.
Who is leading Renault’s EV development efforts?
Renault’s EV development efforts are led by CEO Luca de Meo, who is a former senior executive at VW Group. Renault is known to be planning an affordable EV for later this decade, possibly as a successor to the Renault Twingo minicar.
More about Volkswagen-Renault EV Collaboration
- Handelsblatt report on VW and Renault EV talks
- Volkswagen’s EV development strategy
- Renault’s affordable EV plans
- Volkswagen Group’s subcompact EVs
- EV market competition and Chinese automakers
- VW Group’s partnerships with Xpeng and SAIC
- Renault Twingo Legend concept details
4 comments
not surprised by this, the auto industry is all about collaborations these days. But will these cars ever make it to the US, that’s my question. Big cars are king here…
Wow, didn’t expect VW to team up with Renault for EVs. Interesting move, wonder how it’ll pan out with all the competition, especially from China.
pretty cool to see affordable EVs coming up, but 20,000 euros still sounds a bit high? and those Chinese brands are really shaking things up, huh?
So VW’s feeling the heat from the competition, eh? teaming up’s a smart move, but let’s see if they can really deliver on those price points.