A report suggests that Volkswagen and Renault may collaborate to manufacture affordable electric vehicles.

Volkswagen in Talks with Renault Over Small EV Collaboration

Reports out of Europe suggest that Volkswagen and Renault are in discussions to collaborate on a plan to produce affordable electric vehicles priced under €20,000 ($A33,000). This potential partnership, if it comes to fruition, could result in the production of up to 250,000 vehicles per year.

The news of these discussions comes as both companies have expressed public interest in bringing small electric vehicles to the market at an accessible price point. Volkswagen has announced its intention to introduce the ID.1 by 2027, while Renault plans to bring a production version of the one.twingo concept to market in 2026.

The discussions between the German and French car giants are said to be at a “very early” stage, according to German publication Handelsblatt. However, comments from top executives at both companies indicate that there is already work underway on these vehicles.

However, the potential partnership is still uncertain, as it would likely require a substantial reworking of the current designs of both companies. While Volkswagen and Renault have declined to comment on the ongoing talks, Reuters reports that Renault is looking to find a partner for the electric vehicle project early next year.

In addition to the ID.1, Volkswagen has been working on a larger ID.2 electric city hatch, which is set to hit the market in 2025 with a price of around €25,000 ($A42,000). Similarly, Renault is developing the 2025 model Renault 5 city hatch as a one size larger option than the tiny Twingo.

The Volkswagen Group has a history of collaborating with other brands on electric vehicles, having previously licensed its MEB electric car platform to Ford for two SUVs, the upcoming Explorer and another rumored model.

Both Volkswagen and Renault’s efforts in the electric vehicle space represent a commitment to offering affordable and sustainable transportation options to consumers. As electric vehicles continue to gain in popularity, collaborations between major automakers may become more common in order to maximize efficiency and reduce costs associated with developing new technology.

The potential collaboration between Volkswagen and Renault has the potential to significantly impact the electric vehicle market and the future of sustainable transportation. While the talks are still in the early stages, they represent a step towards providing more accessible electric vehicles to consumers.

As the automotive industry continues to invest in electric vehicles and sustainable transportation solutions, partnerships and collaborations between major players will likely become increasingly common. The development of affordable electric vehicles is an important step towards reducing the environmental impact of transportation and providing consumers with more choices when it comes to sustainable mobility options.