Volkswagen and Renault may partner on cut-price electric cars – report

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New overseas reports claim the two European automotive giants are discussing a plan to collaborate on small €20,000 ($AU33,000) electric vehicles.


Volkswagen is looking to partner with another major automotive brand to build an upcoming affordable electric vehicle priced from less than €20,000 ($AU33,000), according to reports out of Europe.

And among the candidates – according to German industry publication Handelsblatt (via Automotive News Europe) – is French car giant Renault, with the European car giants reportedly already in talks.

The publication says these discussions are still at a “very early” stage, and that Volkswagen is looking to produce up to 250,000 vehicles per year with its yet-to-be-determined partner. 

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VW ID.2 concept.

News of this discussion between the German and French automotive giants comes after each manufacturer has expressed public interest in bringing a small electric vehicle priced from or less than €20,000 ($AU33,000) to showrooms.

Volkswagen has announced an intention to produce such a vehicle by 2027, known as the ID.1, which Renault announced plans to introduce a production version of the recently-unveiled Twingo concept in 2026.

Comments by top executives from the companies suggests work is well underway on these vehicles, so it is unclear how comprehensive a potential partnership could be – given moving to a new, common architecture or sharing electric motor and batteries could require a near-ground-up rework of both companies’ current designs.

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According to Reuters, both Volkswagen and Renault declined to comment on news of ongoing talks. 

However the news agency said Renault is looking to find a partner for the electric-vehicle project by early next year.

Alongside the ID.1, Volkswagen has been working on a larger ID.2 electric city hatch, which it aims to bring to the market in 2025 priced from about €25,000 mark ($AU42,000) – as a rival to the upcoming €25,000 Renault 5 city hatch, which is a size larger than the pint-sized Twingo.

The Volkswagen Group is no stranger to collaborating with other brands on electric vehicles, as it has licensed its MEB electric-car platform tof Ford for two SUVs, the upcoming Explorer and a second model rumoured to reprise the Capri badge. 

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