Volkswagen Renault is expected to cooperate with affordable electric vehicles to compete with Chines

Mondo Cars Updated on 2024-02-28

In the face of the impact of China's affordable electric vehicles and Tesla's recent price reduction in the United States, the weakness of European automakers in terms of price and cost control of electric vehicles has been exposed. While the EU's postponement of the internal combustion engine cap may provide some respite for automakers as they face the transition to electric vehicles, it will not solve the competition issues that are hindering Europe's transition to an electric era. Foreign media Bloomberg recently pointed out that European automakers, which were originally competitors to each other, will consider joining forces to fight against affordable electric vehicles from China, but they are still in the preliminary conception, and the views of various car manufacturers on cooperation are still in consensus.

Volkswagen ID2all concept car.

According to the report, Volkswagen, Stellantis and Renault are considering a tripartite cooperation to show their respective advantages and share the cost of electric vehicle research and development, so as to launch more competitive electric vehicles in the United States and China, and further compete with electric vehicles in the United States and China. In terms of the market, Bloombergnef reported that the growth rate of electric vehicle sales this year will be the slowest since 2019. The slowdown in EV sales is likely to make automakers more competitive in the EV space. This slowdown is mainly due to the fact that many countries are no longer paying additional subsidies for electric vehicles, leasing companies are hesitant to continue to maintain electric vehicles, and the insurance cost of electric vehicles in Europe is higher than that of gasoline vehicles, for example in the United Kingdom, which is twice as high as that of gasoline vehicles.

Citroen E-C3

According to Bloomberg's calculations based on corporate and regulatory data, Volkswagen could face fines of up to more than €2 billion if it fails to reduce its carbon emissions. It's good now, electric cars don't do it, and they don't do it. Fortunately, the European Union has relaxed the restrictions on fuel vehicles, bringing some respite to car manufacturers and resetting the pace of electric vehicle promotion.

At this time, Renault ceoline de meo jumped out and called for European automakers to cooperate in an Airbus-like alliance to bring together the technology and capital of Germany, France, Spain and the United Kingdom to compete with other car brands. Luca de MEO believes that Airbus in Cars will help share the huge R&D costs of affordable electric vehicles, while allowing them to benefit from a larger scale.

Volkswagen ID3. Affordable electric vehicles for the brand. But in the European market, the car is 7,000 euros more expensive than the dolphin exported to Europe by China's BYD; In addition, in order to cater to the Chinese market, Volkswagen IDA series of electric vehicles, which are sold cheaper in China than in Germany, have caused dissatisfaction among Germans. Therefore, it is important for Volkswaen to control the cost of electric vehicle development, and Volkswagen's new CEO Ooliliver Blume took the helm and immediately canceled the 2 billion euro plan for Germany's electric vehicle factory led by former CEO Herbert Diess, and said that it was ready to further reduce costs.

Stellantis CEO Carlos T**ares is more ambitious for the three-way partnership, and he prefers mergers and acquisitions rather than the other two. He has said that we are fully aware that working with companies that cannot compete with Chinese automakers will cause us problems. Volkswagen's own MEB electric vehicle platform technology is currently shared with Ford Ford of the United States and Mahindra Group of India, and whether the future cooperation with Stellantis and Renault will dominate the electric vehicle platform technology will be the focus of future observation.

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