VW and Renault pull plug on affordable electric Twingo, Renault says
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French carmaker Renault and its German peer Volkswagen have ended talks to jointly develop an affordable electric version of the Twingo, Renault chief executive Luca de Meo said.
"I wanted to show that European industry could work together as a team, so I think this is a lost opportunity, but there may be others," Mr De Meo said on the sidelines of the VivaTech summit in Paris.
Volkswagen declined to comment.
A partnership between Volkswagen and Renault would have brought together household names from the eurozone's top two economies and formed a counterweight to Asian rivals muscling into the European market.
The collapse of negotiations could mean the German carmaker may have to go it alone in developing its own affordable electric vehicle.
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Renault will continue designing its electric Twingo, scheduled to hit the market in 2026.
European automakers are aiming to produce smaller EVs that sell below €20,000 to help them compete with Chinese brands like BYD.
Top European carmakers are betting on car sales to pick up over the year, despite warning that the market will be tough because of slowing sales growth of electric vehicles (EVs) and rising Chinese competition, while consumers struggle with high interest rates.