Renault’s partnership with a Chinese engineering firm to develop the sub-£17,000 Twingo city car comes after talks with Volkswagen about a potential collaboration fell through. The two companies had been considering co-developing their respective entry-level city EVs, but Volkswagen will now independently bring its ‘ID 1’ to production in 2027. Despite this setback, Renault is determined to continue working on the Twingo.
Renault Group CEO Luca de Meo expressed his disappointment at the missed opportunity for European industry collaboration. However, he emphasized the importance of partnering with the unnamed Chinese firm to achieve their ambitious development timeline and reduce costs. By changing their production engineering and component sourcing methods, Renault aims to radically cut development lead times and be more competitive.
Aside from cost reduction and competitiveness, Renault is also focused on the environmental impact of the Twingo. De Meo stated that the new Twingo will have 75% less impact on the environment than the average European car. This reduction in environmental impact is crucial as authorities are expected to close cities to cars with engines. Small electric cars like the Twingo can help address this issue.
Collaborating with a Chinese firm not only provides Renault with better oversight of upcoming technologies but also reduces risks and development costs. While Renault has yet to decide on the plant that will build the Twingo, their ElectriCity industrial complex in France allows for localized production at competitive rates. This is important as the French government offers substantial EV purchase incentives that favor European-built cars.
Renault’s goal is to engineer, assemble, and ship the Twingo as cost-effectively as possible to compete in the market. The company wants to ensure that the Twingo meets the carbon footprint criteria for EV purchase incentives and remains affordable for consumers. To achieve profitability, Renault plans to explore new battery technologies that could allow for cheaper versions of the Twingo in the future.
In conclusion, Renault’s partnership with a Chinese engineering firm is crucial for the development of the Twingo city car. By focusing on cost reduction, competitiveness, and environmental impact, Renault aims to create a successful and profitable electric vehicle that meets the criteria for EV purchase incentives. This collaboration also allows Renault to stay ahead of emerging technologies and adapt to market demands, reducing risks and development costs.