Volkswagen Group Explores Potential Partnership with Renault for Affordable EV Development

Volkswagen Group may seek external assistance in bringing an electric vehicle to the market at a starting price of approximately 20,000 euros ($21,500). The German automaker is reportedly in discussions with potential partners, including Renault, for joint development.

Renault's Role in Affordable Electric Vehicles

Renault, led by CEO Luca de Meo, a former senior executive of Volkswagen Group, has plans to introduce its affordable EV later this decade. Reuters noted that speculations suggest that the upcoming vehicle could be a successor to the Renault Twingo minicar, which was jointly developed with Mercedes-Benz's Smart brand.

Renault's recent teaser, the Twingo Legend concept, showcased a retro design reminiscent of the original Twingo from the 1990s.

Platform Collaborations for Affordable EVs

Volkswagen Group is expressing interest in forming partnerships for the joint development of an EV platform targeting the affordable segment, as per KTLA. However, discussions with potential partners are still in the early stages.

The automaker is already working on subcompact EVs, expected to be priced at around 25,000 euros ($26,900), with models slated for each of the Volkswagen, Skoda, and SEAT (or Cupra) brands. Notably, the Volkswagen model, likely to be named the ID.2, has been spotted testing and was previewed earlier this year with the ID.2all concept.

Volkswagen Group's strategy for the more affordable EVs revolves around the minicar segment. Consequently, the chances of these models reaching the U.S. market, where larger vehicles are typically favored, may be limited.

Global Competitiveness Concerns

The news of potential partnerships comes on the heels of Volkswagen brand CEO Thomas Schäfer openly admitting that the brand is no longer competitive, primarily due to extensive cost-cutting measures.

European brands face significant competition from Chinese automakers domestically and in the Chinese market. To expedite EV development for China, the Volkswagen brand has previously joined forces with Xpeng to gain access to the Chinese automaker's EV platforms.

Similarly, fellow Volkswagen Group brand Audi established a similar partnership with China's SAIC this year.

China, the largest market for new vehicles and EVs, is a strategic focus for Volkswagen Group. Joining forces with Chinese partners accelerates their EV initiatives in the country.

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