Volkswagen Group might flip to exterior assist in its quest to ship an electrical car with a beginning value of round 20,000 euros (roughly $21,500).

Citing individuals accustomed to the matter, Germany’s Handelsblatt (subscription required) reported over the weekend that VW Group is in talks with potential companions over joint growth of inexpensive EVs, with Renault talked about as one of many companions.

Renault, whose CEO, Luca de Meo, is a former senior VW Group government, is understood to be planning an inexpensive EV for later this decade, presumably as a successor to the present Renault Twingo minicar which was collectively deveoped with Mercedes-Benz’s Sensible model. Renault teased the chance earlier this yr with the reveal of the Twingo Legend, an idea with retro styling mimicking the unique Twingo of the Nineteen Nineties.

Based on Handelsblatt, VW Group is excited by joint growth of a platform for inexpensive EVs, however remains to be solely in early discussions with potential companions.

Renault Twingo Legend idea

VW Group is already engaged on subcompact EVs anticipated to priced from round 25,000 euros ($26,900). Due round 2025, there shall be one every for VW Group’s Volkswagen, Skoda, and SEAT (or Cupra) manufacturers. The VW, which can doubtless be known as the ID.2, has been noticed testing and was previewed earlier this yr with the ID.2all idea.

Extra inexpensive EVs from VW Group will doubtless sit within the minicar phase, which suggests they’re going to have a slim likelihood of reaching the U.S. market the place greater autos are typically favored.

Information of the potential partnership comes simply weeks after it was made public that Thomas Schäfer, CEO of the VW model, informed employees that the model is not aggressive, amid large ongoing value cuts.

Competitors from Chinese language manufacturers is especially a difficulty for a lot of European manufacturers, each at house and within the Chinese language market. To hurry up growth of EVs for China, which is the world’s greatest marketplace for each new autos and EVs, the VW model earlier this yr partnered with Xpeng in a deal that may enable it to realize entry to the a number of the Chinese language automaker’s EV platforms. Fellow VW Group model Audi additionally cast an analogous deal with China’s SAIC this yr.