Lower Prices Through Shared Costs
Volkswagen and Renault are in discussions to collaborate on manufacturing a competitively priced electric automobile, according to a German news piece.
According to Handelsblatt, cited by Automotive News Europe, Volkswagen is looking to collaborate with Renault to develop a new platform for the production of electric cars. This is in response to the increasingly competitive market of Chinese EVs, which offer attractive prices. The two automakers are reportedly aiming for 200,000 to 250,000 vehicles annually, although talks are still “at a very early stage.”
A Renault spokesperson informed Reuters that the company must collaborate with other firms to remain competitive in the market of affordable electric cars. “We are in the midst of several conversations, but nothing has been settled yet,” the Renault official added. Volkswagen declined to comment on the issue.
Renault is appearing to forge an alliance for the coming Twingo set for release in 2026. The estimated expenditure for this is approximately $21,000, making it a very affordable and economical choice for those wanting to purchase an electric vehicle.
Renault has declared that their new Twingo will entail significantly reduced production costs, being half as much to make as a conventional compact SUV. As it will use an innovative software-oriented platform, it will necessitate a smaller quantity of parts than a traditional urban motorcar. Furthermore, it should be exceedingly economical with a projected energy consumption rating of 200 MGPe.
Let’s not overlook Volkswagen’s strategy of introducing an electric-powered small automobile. The forthcoming ID.2all gives a glimpse into the electrified era of Golfing and is projected to materialize by 2025. Despite having a base price of $26,000, this German-made compact vehicle is still too pricey for most shoppers, warranting the necessity of a cheaper alternative, especially now that the e-Up has perished.
An affording Volkswagen electric car, the ID.1, will accommodate the general public. Working alongside each other, the two companies would be able to cut back on manufacturing expenses, which would be advantageous for those purchasing the vehicles.
Renault is making a determined effort to curb expenditures, basing the Twingo, 5 and 4 on the Ampr Small platform (formerly CMF-B EV). This approach significantly leans upon extant auto engineering to achieve cost savings. It’s important to highlight that Groupe Renault produces one of the most reasonably priced EVs – the Dacia Spring. It retails at under €21,000 (approximately $22,600) before subsidies, evidence that the company possesses expertise when it comes to inexpensive electric automobiles.
It is unlikely that neither car (the Renault nor Volkswagen) will be available in the USA. The Chevrolet Bolt costs under $27,000 at starting rate prior to incentives. Maybe the increase of electric vehicles will provide more cost-efficient EVs for America. As an example, the least pricey Volkswagen EV locally is the ID.4 with a lowest MSRP of slightly under $39,000.