VW Withdraws From Negotiations On Cheap EV Development By Renault

Renault Twingo EV. (Doc. Renault Group)

JAKARTA - Volkswagen (VW) announced it had withdrawn from talks with Renault to develop an affordable electric model, Twingo.

The failure of these negotiations means that VW must develop its own entry-level electric car. Meanwhile, Renault will continue the plan for Twingo independently which is scheduled to be sold in 2026.

Reporting from Automotive News, Monday, May 20, one of the sources argued that the two had failed to meet the word agree' in negotiations that had been going on for several months. Another source said that the deal was very close, but VW withdrew from talks and decided to develop his own car.

Earlier in February, Renault Group CEO Luca de Meo confirmed that it was in talks with VW to partner in designing a battery-electric-based compact car for the European market.

The two initially hoped that the partnership would cut costs that are a major obstacle for European automakers in the face of affordable car attacks from China.

De Meo also said he was talking to other potential partners, without naming them. Renault will continue the project with or without partners.

The diamond logo manufacturer plans to launch the latest Twingo EV in early 2026 with a target price of under 20,000 euros (around IDR 347 million).

Earlier, Volkswagen CEO Brand Thomas Schaefer, said it was open to partnerships to help reduce retail prices for new small electric vehicles by under 20,000 euros.

The German automaker lags behind the competition to market small battery-electric cars at the same price as combustion engine models to be able to compete with Chinese car companies targeting Europe with cheap electric vehicles.