Volkswagen AG VWAGY is reportedly in preliminary discussions with French automobile maker Renault SA RNSDF RNLSY and different potential companions to develop an economical electrical automobile priced at round €20,000 ($21,476).
The talks with Renault are of their nascent phases and should not essentially result in a definitive partnership, reported Reuters, citing Germany’s Handelsblatt newspaper.
The joint purpose with any companion could be to fabricate 200,000-250,000 automobiles yearly, the report learn.
A spokesperson for Renault emphasised the significance of cooperation in competing successfully within the small-entry electrical automobile section whereas confirming totally different ongoing discussions, in keeping with the report.
European automakers, together with Volkswagen and Renault, are more and more targeted on introducing extra reasonably priced electrical automobiles. The shift comes as they face stiff competitors and lower-priced Chinese language fashions.
Citing JATO Dynamics, a analysis agency specializing in autos, Reuters reported the typical retail value of an electrical automobile in Europe exceeded €65,000 within the first half of 2023, in comparison with about €31,000 in China.
Renault lately launched a brand new electrical model of its Twingo mannequin, named Legend, priced below €20,000. In the meantime, Volkswagen introduced in March the event of an all-electric automobile for round €25,000, set to launch by 2025, as per the report.
Additionally Learn: Volkswagen Targets Sub-$35K Electric Vehicle For US Market: Report
Value Motion: VWAGY shares are buying and selling greater by 0.19% at $13.35 on the final examine Friday.
Disclaimer: This content material was partially produced with the assistance of AI instruments and was reviewed and printed by Benzinga editors.
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