(Added Renault spokesperson in paragraphs 5-7, added context from paragraph 8)
Volkswagen VOWG_p.DE discusses with potential partners, including French Renault
RENA.PA, to cooperate on the development of its 20,000-euro ($21,476) electric car, German newspaper Handelsblatt reported Friday, citing people familiar with the matter.
The German automaker is interested in cooperating on a platform for the car that it hopes will make battery-powered vehicles affordable to the general public, Handelsblatt reported.
Discussions with Renault are still “at a very early stage” and could lead to nothing, according to Handelsblatt, citing sources.
Annual production of 200,000 to 250,000 vehicles is the goal of both partners, according to Handelsblatt.
Volkswagen declined to comment on the report.
A Renault spokesperson said the cooperation was necessary to be competitive with low-cost electric vehicles.
“We are having various discussions, but nothing has been finalized,” the spokesperson said.
European automakers have stepped up efforts to bring more affordable electric vehicles to market as they face increased competition from U.S. automaker Tesla TSLA.O and cheaper Chinese models.
The average retail price of an EV 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 Twingo EV, called Legend, for less than 20,000 euros, with finance director Thierry Pieton saying the aim was to democratize the EV market, while Volkswagen presented in March details of a fully electric vehicle under development for 25,000 euros, which is expected to launch by 2025.
The German company said at the time that it was also working on a 20,000 euro vehicle, but did not provide further information.
Last month, Oliver Blume, Volkswagen’s chief executive, said at the address that the company had not yet made a decision on whether to produce the car, but was confident it could achieve it. by the second half of the decade.
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