https://www.reuters.com/business/autos-transportation/vw-renault-end-talks-develop-affordable-ev-sources-say-2024-05-17/ Skip to main content Exclusive news, data and analytics for financial market professionals Learn more aboutRefinitiv Reuters home * World Browse World + Africa + Americas + Asia Pacific + China + Europe + India + Israel and Hamas at War + Japan + Middle East + Ukraine and Russia at War + United Kingdom + United States + US Elections + Reuters Next * Business Browse Business + Aerospace & Defense + Autos & Transportation + Davos + Energy + Environment + Finance + Healthcare & Pharmaceuticals + Media & Telecom + Retail & Consumer + Future of Health + Future of Money + Take Five + World at Work * Markets Browse Markets + Asian Markets + Carbon Markets + Commodities + Currencies + Deals + Emerging Markets + ETFs + European Markets + Funds + Global Market Data + Rates & Bonds + Stocks + U.S. Markets + Wealth + Macro Matters * Sustainability Browse Sustainability + Boards, Policy & Regulation + Climate & Energy + Land Use & Biodiversity + Society & Equity + Sustainable Finance & Reporting + The Switch + Reuters Impact * Legal Browse Legal + Government + Legal Industry + Litigation + Transactional + US Supreme Court * Breakingviews Browse Breakingviews + Breakingviews Predictions * Technology Browse Technology + Cybersecurity + Space + Disrupted + Reuters Momentum * Investigations * More Sports + Olympics + Athletics + Baseball + Basketball + Cricket + Cycling + Formula 1 + Golf + NFL + NHL + Soccer + Tennis ScienceLifestyleGraphics PicturesPodcastsFact CheckVideoSponsored Content + Reuters Plus + Coupons My View Register * Autos & Transportation * Technology * ADAS, AV & Safety * EV Battery * Sustainable & EV Supply Chain Exclusive: VW and Renault end talks to develop affordable EV, sources say By Gilles Guillaume and Christina Amann May 17, 20247:21 PM UTCUpdated ago * * * * * * * * Volkswagen's logo A giant logo of Volkswagen is pictured on the wall of its production facility in Wolfsburg, Germany, April 28, 2016. REUTERS/Fabrizio Bensch/File Photo Purchase Licensing Rights, opens new tab * Summary * Companies * Volkswagen walks away from EV deal with Renault, sources say * Talks failed over production location, one source says * Volkswagen to develop its own affordable EV * Negotiations collapse as EU carmakers face China competition PARIS/BERLIN, May 17 (Reuters) - Volkswagen has walked away from talks with Renault to jointly develop an affordable electric version of the Twingo car, four sources familiar with the situation said, in a setback for the EU carmakers' efforts to fend off Chinese rivals. The collapse of negotiations could mean the German carmaker may have to go it alone in developing its own affordable electric vehicle (EV). Renault (RENA.PA), opens new tab will continue designing its electric Twingo, scheduled to hit the market in 2026. Both had hoped that sharing the work would cut costs that represent a key hurdle for European carmakers in the face of cheaper cars from China. A potential partnership between Volkswagen and Renault would have brought together household names of Europe's top two economies and formed a counterweight against Asian rivals muscling into the local market. One of the sources said Volkswagen's works council played a role in talks falling apart, adding a jointly developed electric Twingo could have been ready as soon as 2026. Ampere, Renault's EV operation overseeing the Twingo programme, declined to comment. A spokesperson for Volkswagen also declined to comment on the talks between the companies but said that the German carmaker was still studying its options on cheap EVs. Volkswagen (VOWG_p.DE), opens new tab broke off discussions mainly because Renault had wanted to build the car in one of its plants at a time when VW is seeking to fully utilise its European production network, a second source said. The companies "did not succeed in finding an agreement" after several months of negotiations, said a third source. An agreement had been very close, but that VW walked away from the talks and has decided to develop its own car, the fourth source said. The sources declined to be named because the talks are confidential. VW sources said a decision on the EV plan is expected within weeks. Thomas Schaefer, CEO of the Volkswagen brand, has said he wants to launch a lower-priced EV by 2027. The fourth source said Renault would continue work on the Twingo without VW, but also remained open to other partners, for instance from the alliance with Nissan (7201.T), opens new tab and Mitsubishi (7211.T), opens new tab. It is also a blow for Renault CEO Luca de Meo's hopes for greater cooperation between European carmakers against their Chinese competitors, akin to Airbus which has stakeholders and operations across European countries. The VW-Renault tie-up for the Twingo could have formed the "basis" of an Airbus for autos, the fourth source said. China's automakers, the world's top EV producers, are making fast inroads in the European market, pressuring incumbents like Renault and VW to cut costs and speed up the time it takes to bring a new model to market. European automakers are aiming to produce smaller EVs that sell below 20,000 euros ($21,686) to help them compete with Chinese brands like BYD. ($1 = 0.9223 euros) Sign up here. Reporting by Gilles Guillaume in Paris and Christina Amann in Berlin; Editing by Josephine Mason, Sharon Singleton, David Goodman and Elaine Hardcastle Our Standards: The Thomson Reuters Trust Principles., opens new tab * * * * * Purchase Licensing Rights Read Next * Mercedes automotive plant, as workers vote on whether to join the UAW, in Vance, Alabama Sustainable Finance & ReportingcategoryMercedes workers in Alabama reject union, dealing setback to UAW9:00 PM UTC * Musk pushes plan for China data center to power Tesla's AI ambitions Autos & TransportationcategoryExclusive: Musk pushes plan for China data to power Tesla's AI ambitions9:18 AM UTC * A sign above an office of the Cyberspace Administration of China (CAC) is seen in Beijing WorldcategoryExclusive: Shanghai eases data-export curbs sought by Tesla, other firms9:06 PM UTC * The New York International Auto Show, in Manhattan, New York City Autos & TransportationcategoryExclusive: Toyota repeatedly halted Mexico plant after suppliers hit by worker shortage, sources say 8:56 AM UTC LSEG Workspace Business * Traders work on the floor of the NYSE in New York Wall St Week Ahead Stock market's record-setting rebound may have further to go Marketscategory * May 17, 2024 * 10:10 PM UTC * ago A rebound that has taken the U.S. stock market to record highs this week may have further to run, if history is any guide. * Customers queue at the Apple Fifth Avenue store for the release of the Apple iPhone 14 range in Manhattan, New York City TechnologycategoryApple set to release slimmer iPhone in 2025, the Information reports10:09 PM UTC * Updated ago * A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City Mergers & AcquisitionscategoryJ&J-backed startup Rapport files for US IPO10:07 PM UTC * Updated ago * The spread of the coronavirus disease (COVID-19) in Frankfurt Take FivecategoryTake Five: The good, the bad and the ugly9:49 PM UTC * Updated ago * Traders work on the floor at the New York Stock Exchange (NYSE) in New York City MarketscategoryStocks edge up as timing of US rate cuts weighed; copper jumps9:47 PM UTC * Updated ago Site Index Browse * World * Business * Markets * Sustainability * Legal * Breakingviews * Technology * Investigations, opens new tab * Sports * Science * Lifestyle About Reuters * About Reuters, opens new tab * Careers, opens new tab * Reuters News Agency, opens new tab * Brand Attribution Guidelines, opens new tab * Reuters Leadership, opens new tab * Reuters Fact Check, opens new tab * Reuters Diversity Report, opens new tab Stay Informed * Download the App (iOS), opens new tab * Download the App (Android), opens new tab * Newsletters, opens new tab Information you can trust Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day. 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