Renault’s partnership with a Chinese engineering firm to develop its sub-£17,000 Twingo city car comes after unsuccessful talks with Volkswagen about a potential collaboration. Renault had been considering co-developing their respective entry-level city EVs with Volkswagen, but the German automaker decided to work independently on its own ‘ID 1’ model. Despite this setback, Renault remains committed to the development of the Twingo and has found a partner in the unnamed Chinese manufacturing outfit.
Renault Group CEO Luca de Meo expressed disappointment at the missed opportunity for European industry collaboration but emphasized the importance of partnering with the Chinese firm to achieve the ambitious development timeframe for the Twingo. By working together, Renault hopes to identify efficiencies that can reduce costs and radically change production engineering and component sourcing. This shift could potentially enable Renault to develop the Twingo in less than 24 months, making the company more agile, virtuous, and competitive.
One of the key benefits of streamlining the development and production process is reducing environmental impact. De Meo stated that a new Twingo would have 75% less impact on the environment than the average European car. This reduction in environmental impact is crucial as authorities are increasingly pushing for cities to ban cars with internal combustion engines. By accelerating the development of small electric cars like the Twingo, Renault is aligning itself with future market trends and positioning itself as a leader in sustainable mobility.
Collaborating with a Chinese firm also allows Renault to better adapt to new technologies while reducing development risks and costs. Product boss Bruno Vanel highlighted the advantages of Renault’s ElectriCity industrial complex in France, which enables local production at competitive rates. Vanel pointed out that the Renault 5, produced in France, is profitable, indicating that building small cars in Europe can be economically viable. The French government’s EV purchase incentives that favor European-built cars further emphasize the importance of localizing EV production for Renault.
As Renault continues its development of the Twingo, the company is focused on engineering, assembling, and shipping the car as cost-effectively as possible. This is essential to compete with imported models, such as the Dacia Spring, which is ineligible for government grants due to its higher carbon footprint. By ensuring the Twingo’s affordability and efficiency, Renault aims to capture the market demand for small electric cars and contribute to a more sustainable future.
In conclusion, Renault’s partnership with a Chinese engineering firm for the development of the Twingo city car showcases the company’s commitment to innovation and sustainability. By streamlining production processes, reducing costs, and localizing EV production, Renault aims to create an agile, environmentally friendly, and competitive electric vehicle that meets the evolving needs of consumers and aligns with future market trends.
