A partnership between Volkswagen and Renault to develop a small electric car priced below 20,000 euros has hit a snag, reportedly due to concerns from the Wolfsburg works council regarding the production location of the vehicles.
Speculation about the potential cooperation has been circulating for months, with Renault expressing interest in partnering shortly after the launch of the Twingo Electric. Volkswagen confirmed in March that they were working on the design but had yet to finalize the implementation. Currently, four scenarios are under consideration.
One of the options, known as the ‘Amsterdam’ project, reportedly involved utilizing a Renault architecture (a more affordable version of the AmpR Small) while Volkswagen would provide the electric drive. Renault was expected to manufacture the electric car, possibly at its Novo Mesto plant in Slovenia where the Twingo is produced. Although Volkswagen had been exploring these scenarios, Renault CEO Luca de Meo had hinted at an imminent agreement with the German automaker.
However, according to Manager Magazin, the head of the VW works council, Daniela Cavallo, has not given her approval, expressing reservations about the alliance, particularly regarding the plan to have Renault build the electric car. Volkswagen has several underutilized plants in Europe, such as the MEB factory in Zwickau, and Audi is seeking a successor project for the Brussels plant when production of the next generation of the Q8 e-tron moves to Mexico. These factors have led to concerns among the VW workforce about manufacturing a potentially high-volume project elsewhere.
In response, Volkswagen is considering developing and building the potentially named ID.1 model completely in-house to demonstrate to the works council, with detailed figures, that production at Renault is not only more economical but also the best approach for the Group brands to realize the project. However, this solo project is not intended to proceed but rather to facilitate the cooperation with Renault.
The decision is expected to be made “in the next few weeks” by the management in conjunction with the head of the works council. The negotiations may address not only fundamental reservations about the project but also internal communication issues, with reports suggesting that Cavallo felt involved “inappropriately late.”
