Volkswagen and Renault might develop inexpensive electrical vehicles collectively – report

Might the religious substitute for the Volkswagen Up, and the fourth-generation Renault Twingo be twins below the pores and skin? Perhaps…

With Chinese language automakers making a giant impression on the inexpensive finish of the European electrical automobile (EV) market, European automotive companies are scrambling to discover a resolution.

One doable resolution is for rivals to staff as much as develop small, inexpensive EVs collectively. By sharing the price of analysis and growth, and gaining economies of scale, European manufacturers would possibly be capable to offset China’s aggressive benefits.

Handelsblatt understands Volkswagen and Renault are talks to do exactly that, with the German and French automakers scoping out if they’ll develop a automotive priced from round €20,000 ($32,700) with joint annual gross sales of between 200,000 and 250,000 per yr.

In line with the German enterprise newspaper’s sources, the discussions are at a “very early stage” and it’s doable that there will likely be no settlement.

Though Volkswagen declined to remark, Renault confirmed to Handelsblatt that it’s “in discussions however nothing has been finalised”.

A spokesperson for Renault said co-operation was crucial with a view to compete within the entry-level EV market.

Final month Renault unveiled the retro-themed Twingo Legend idea, and which is believed to preview the fourth-generation electric-only Twingo due in 2026.

On the idea’s debut, Renault indicated the brand new Twingo could be priced from €20,000, however didn’t present any particulars in regards to the automotive’s drivetrain. It additionally didn’t say whether or not it would use one among its present architectures, such because the CMF-BEV (aka AmpR Small) platform that underpins the upcoming Renault 5 hatch and Renault 4 crossover.

Given Renault is unlikely to need to discipline two completely different €20,000 EVs in Europe, a doable situation might see Volkswagen’s €20,000 EV use the identical platform as the brand new Twingo.

This wouldn’t be the primary time Renault has paired up with a rival to assist develop the Twingo. The present third-generation mannequin makes use of the identical rear-engine, rear-wheel drive structure because the Sensible ForTwo and ForFour. Certainly, each the Twingo and ForFour had been constructed by Renault at its manufacturing facility in Novo Mesto, Slovenia.

Cross-company joint ventures at this finish of the market — the place volumes may be excessive, however the revenue margins skinny — aren’t uncommon, with Peugeot, Citroen and Toyota working collectively to engineer and construct two generations of the C1, 106/107, and Aygo triplets from 2005 to 2022.

Ever since Renault purchased a controlling curiosity in Nissan within the late Nineteen Nineties, the French automaker has made a advantage out of cross-company platform sharing.

The Volkswagen Group is not any stranger to the inner use of widespread platforms throughout a big swathe of fashions and types. Outdoors of some collaborations, such because the Volkswagen Sharan/Ford Galaxy/Seat Alhambra individuals movers, in addition to the ill-fated Chrysler-based Volkswagen Routan, it has principally accomplished issues in-house, although.

That’s modified just lately, with the corporate’s wide-ranging partnership with Ford seeing the 2 share growth of the Ford Ranger/Volkswagen Amarok, Volkswagen Caddy/Ford Transit Join, and Ford Transit Customized/Volkswagen Transporter.

Ford can also be utilizing Volkswagen’s MEB structure for its European Ford Explorer crossover EV, and the yet-to-be revealed Capri crossover coupe.