Volkswagen has withdrawn from discussions with Renault to jointly develop an affordable electric version of the Twingo car, according to four sources familiar with the matter. This setback complicates efforts by the EU carmakers to counter Chinese competitors.
The failed negotiations mean Volkswagen may have to develop its own affordable electric vehicle independently. Renault will continue working on its electric Twingo, scheduled for market release in 2026.
Both companies had hoped that collaboration would reduce costs, a critical challenge against cheaper Chinese vehicles. However, a source noted that Volkswagen’s works council influenced the breakdown of talks, aiming to utilize its European production network fully.
“The companies did not succeed in finding an agreement,” a third source said. An agreement was close, but Volkswagen ultimately decided to develop its own car, another source revealed.
Volkswagen is expected to decide on its EV plan within weeks, aiming to launch a lower-priced EV by 2027. Meanwhile, Renault remains open to other partners, including those within its alliance with Nissan and Mitsubishi.
This development hampers Renault CEO Luca de Meo’s vision for greater European automaker cooperation against Chinese competitors, akin to Airbus. Chinese automakers are rapidly gaining market share in Europe, pushing local companies to cut costs and accelerate new model launches.
