Talks failed

VW and Renault call off joint small car

Volkswagen will build the VW ID.2 on its own. The entry-level model below it as well.

(Bild: Stephan Schätzl)

Volkswagen and Renault never let on that they were talking about a joint entry-level electric car. But now an insider has leaked: the talks have failed.

The Franco-German friendship did not go far enough after all. In the end, it was not possible to find a joint solution, said a person familiar with the matter according to Reuters. The negotiations were at an advanced stage, another insider said on Friday. However, VW ultimately withdrew and wanted to develop the vehicle on its own.

A spokeswoman for Renault's electric car division Ampere and a VW spokesman declined to comment on the end of the talks. There are various options, said the VW spokesperson. A decision on the entry-level electric car had not yet been made.

The VW is coming anyway
However, it is expected that Volkswagen will make a decision in the coming weeks: At the annual press conference, VW brand boss Thomas Schäfer held out the prospect of an entry-level electric car in the range up to around 20,000 euros by 2027 and said that various options were being examined for this. It usually takes around three years to develop a car.

Renault has announced its small electric car, the Twingo, for 2026. The company has repeatedly emphasized that it can also build the Twingo on its own and does not necessarily need a partner. An insider said that Renault would remain open to other partners, for example from the alliance with Nissan and Mitsubishi, even after the talks with VW had ended.