Volkswagen- Representational | Image:Volkswagen Virtus
EV partnership hits dead end: German auto major Volkswagen has turned its back to car maker Renault and moved away from talks that were being held to jointly develop an affordable electric version of the Twingo car, two persons privy with the matter said. This has come as a setback for the EU carmakers’ continuing efforts to keep a check on competition from Chinese rivals who manufacture cheaper cars.
The end to negotiations would mean the German carmaker Volkswagen will now have to alone go ahead with developing its own affordable EV. Renault will continue designing its own electric Twingo, which is slated to hit the global auto market in 2026.
The two car manufacturers had aimed to reduce costs, a significant challenge for European automakers facing competition from cheaper Chinese cars by collaborating on the project. Ampere, Renault’s electric vehicle division overseeing the Twingo program, declined to comment. Similarly, a spokesperson for Volkswagen did not comment on the discussions between the companies but mentioned that the German automaker is still exploring its options for affordable electric vehicles.
After several months of negotiations, the companies “did not succeed in finding an agreement,” according to one source. Another source mentioned that an agreement was nearly reached, but VW ultimately withdrew from the talks and has opted to develop its own vehicle. Both sources requested anonymity due to the confidentiality of the discussions.
(With Reuters Inputs)
