Volkswagen is actively seeking partners to aid in its ambitious goal of creating an electric vehicle priced under €20,000 (approximately $21,500 at current exchange rates). Early reports suggest that the company is in preliminary talks with the French automaker Renault regarding potential collaboration on this platform.
This past April, the German automaker announce its intention to develop a compact electric vehicle priced below €20,000. However, Group CEO Oliver Blume expressed uncertainty last month about the feasibility of achieving this goal while maintaining profitability.
Now, Volkswagen is currently exploring potential partners interested in collaborating on this project, according to reports from Germany’s Handelsblatt. An undisclosed source revealed that the company is “at a very early stage” of talks with Renault on the program.
Read: Actually, VW Isn’t 100% Sure It Will Be Able To Make A Sub-€20K EV
Although VW refused to comment, Renault told Reuters that cooperation is necessary to be competitive in the small EV market. A spokesperson added that the company is in “different discussions but nothing has been finalized.”
Both companies are currently implementing cost-cutting measures, given the challenges posed by the development of EVs and a slowdown in sales within the auto industry. Volkswagen has set a goal to achieve €10 billion ($10.8 billion USD) in savings by 2026, whereas Renault is striving to reduce EV production costs by 50% through the use of artificial intelligence.
More: A Look At 10 New Volkswagen EVs Coming By 2026
Besides automakers, consumers are also increasingly focused on cost savings. Pricing has become the primary concern for prospective EV buyers, even surpassing range anxiety. In Europe, the average price of an EV exceeds €65,000 (approximately $69,900 USD).
As a result, both VW and Renault have a strong incentive to develop an electric vehicle that is genuinely affordable. According to Handelsblatt’s source, the automakers are aiming to produce between 200,000 and 250,000 of these sub-€20,000 EVs annually.
Volkswagen is no stranger to partnering with other automakers on EVs. The new European-market Ford Explorer EV is based on VW’s MEB platform. Other automakers, like Honda and GM, have attempted to gain financial advantages by sharing electric platforms. That partnership has since been canceled, though.
