Volkswagen is talking to potential partners, including the French group Renault, about cooperation in the development of its 20,000 euro electric car, according to people quoted by the German newspaper Handelsblatt, Reuters reports.
The German automaker is interested in cooperating on a car platform that it hopes will make battery-powered vehicles affordable for the masses, Handelsblatt reported.
The talks with Renault are still “at a very early stage” and may not lead to anything, said Handelsblatt, citing sources.
Annual production of 200,000 to 250,000 vehicles is the target for both partners together, according to Handelsblatt.
Volkswagen declined to comment on the article. A Renault spokesman said the cooperation was necessary to be competitive with small electric vehicles.
“We are in various discussions, but nothing has been finalized,” said the spokesperson.
European carmakers have stepped up efforts to bring more affordable electric vehicles to market as they face increased competition from US carmaker Tesla and cheaper Chinese models.
The average retail price of an electric vehicle in Europe in the first half of 2023 was more than 65,000 euros, according to automotive research firm JATO Dynamics, compared to just over 31,000 euros in China.
Renault last month announced the launch of a new EV Twingo, called the Legend, at less than €20,000, with chief financial officer Thierry Pieton saying the aim was to democratize the electric vehicle market, while Volkswagen in March unveiled details of an all-electric vehicle under development under development, at a price of 25,000 euros, to be launched by 2025.
The German firm said at the time that it was also working on a €20,000 vehicle, but did not provide additional information.
Volkswagen CEO Oliver Blume said last month that the company had not yet made a decision on production of the car, but was confident it could get there by the second half of the decade.
2023-12-10 15:31:00
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