Renault’s project with Volkswagen is in trouble

In February 2024, Renault indicated that it had started preliminary discussions with the German car manufacturer Volkswagen to produce its future Twingo. Officially, the dialogue has not broken off, but, behind the scenes, it is explained that, for the moment, the two camps have not agreed on the conditions of the agreement.

Basically, this does not call into question Renault’s plan to produce the Twingo in question for less than 20,000 euros, but probably without Volkswagen. If everything goes as planned, marketing should take place in 2026. This model will position itself in the emerging segment of small, affordable electric cars. This is the major concern of the moment for all Western automobile manufacturers in the face of the Chinese offensive which is flooding the European market.

Officially, the divorce has not been finalized. No press release to this effect has been published so far. But Renault continues to discuss with other potential partners. Moreover, external collaborations are part of the Renault boss’ strategic plan. Luca de Meo likes to say that it is classic and natural to share platforms, car manufacturing lines, to optimize and reduce costs. He even goes so far as to imagine the entire European automobile industry united around an electric car project, like Airbus in aeronautics.

Luca de Meo will serve a second four-year term. This mandate has just been unanimously renewed by the group’s board of directors. With remuneration however contested by more than a quarter (around 27%) of the shareholders gathered at the general meeting. His remuneration – fixed and variable depending on the objectives achieved or not – could amount to between 5.5 million and six million euros per year.