Volkswagen and Renault divorce on the electric car

Volkswagen and Renault divorce on the electric car
Volkswagen and Renault divorce on the electric car


The idea of ​​creating a European consortium for electric cars, already renamed “Airbus”, crashes even before receiving the green light. It was the German company that pulled the plug on the project Volkswagen stopping the ongoing negotiations with the French Renault.

The idea was to jointly develop a low cost electric car and thus enter into competition with Chinese-produced e-cars. Starting from those of LeapMotor of which Stellantis is preparing to become the reseller on a European scale.

In short, Turin strengthens relations with Beijing with an agreement that is probably fruitful from a commercial point of view. In the long term, by agreeing to act as a Trojan horse for the Dragon’s cars, it risks an own goal on its own small cars, such as the new electric Panda made in Serbia. Not to mention the warning from the United States, which placed high duties on cars produced inside the Great Wall.

With negotiations interrupted, both Renault and Volkswagen will continue on their path to create a battery-powered small car. The objective was to pool the huge investments. Suffice it to say that cars made in China have production costs between 20 and 30% lower, thanks to the level of salaries and the strength of the former Celestial Empire on raw materials.

However, Renault and Volkswagen, as the Reuters agency wrote, were unable to reach an agreement. Hence the end of the European electric car Airbus. Another failure for gretini after Mercedes’ decision to produce petrol engines even after 2035.

But above all, a further setback for the CEO of Renault, the Italian Luca De Meo, who a few months ago had already had to shut down the billion-dollar listing project of Ampere, i.e. Renault’s electric hub.

The main breaking point between the German and French companies would have been related to the choice of which systems to use for the common low-cost e-car. Basically Renault he wanted to concentrate everything on Ampere while Volkswagen saturate the production of its European factories.

It is clear that the choice has strong political and relationship implications with the governments of the respective countries. As confirmed by the no-holds-barred battle underway between the Franco-Italian Stellantis and the Meloni executive on the fate of the Italian factories of the former Fiat.

Read also: Volkswagen compensates 60 thousand Italians for the Dieselgate scandal.

Many plants along the Peninsula are in difficulty, things are even worse for Mirafiori which is in agony and paralyzed until September due to a lack of models. Business Minister Adolfo Urso wants to find at least a second manufacturer willing to start a plant in Italy. Talks are underway with China’s DongFeng.

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