Renault and VW could collaborate on small cheap EV development

Renault and Volkswagen are discussing a platform sharing arrangement to deliver a new compact electric model for both brands.

Luca de Meo, CEO of Renault, confirmed the talks at the Geneva Motor Show, mentioning that other potential partners were also being considered.

Renault aims to offer electric vehicles (EVs) at prices comparable to traditional combustion-engine models to compete with Chinese carmakers entering the European market with affordable EVs.

The French car maker previously announced plans to launch a full-electric Twingo by 2026, priced below £17,000. Talks with several automakers were initiated to find potential partners for this project, and Renault is now exploring the possibility of sharing the Twingo's platform with Volkswagen.

The electric Twingo will be based on a shortened version of the AmpR Small architecture, similar to the new Renault 5 - also unveiled at the Geneva show. To reduce costs, Renault is considering using less expensive lithium iron phosphate (LFP) batteries.

Renault stated that it is prepared to proceed with the Twingo project independently, if necessary. Meanwhile, VW is also working to introduce affordable small battery-electric cars, aiming for a price below £17,000. The Citroen e-C3, launched by Stellantis, has set a precedent in this segment. Partnering with Renault could facilitate VW's plans to succeed its e-Up electric minicar and related models such as the Skoda Citigo and Seat Mii.

VW's small EV successor, potentially named the ID1, is anticipated to complement the upcoming ID2 hatchback. Thomas Schaefer, VW brand CEO, expressed openness to partnerships to achieve competitive pricing.

Switching to electric drivetrains presents an opportunity for automakers to re-enter smaller segments if costs can be managed effectively.