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VW and Renault end talks to develop affordable EV, sources say

PARIS/BERLIN – Volkswagen has walked away from talks with Renault to jointly develop an affordable electric version of the Twingo subcompact car, three sources familiar with the situation said, in a setback for the EU carmakers' efforts to fend off Chinese rivals. The collapse of negotiations could mean the German carmaker may have to go it alone in developing its own affordable EV. Renault will continue designing its electric Twingo, scheduled to hit the market in 2026. Both had hoped that sharing the work would cut costs that represent a key hurdle for European carmakers in the face of cheaper cars from China. Volkswagen broke off discussions mainly because Renault had wanted to build the car in one of its plants at a time when VW is seeking to fully utilize its European production network, one of the sources said. Ampere, Renault's EV operation overseeing the Twingo program, declined to comment. A spokesperson for Volkswagen also declined to comment on the talks between the companies but said that the German carmaker was still studying its options on cheap EVs. The companies "did not succeed in finding an agreement" after several months of negotiations, one of the sources said. Another source said that an agreement had been very close, but that VW walked away from the talks and has decided to develop its own car. The sources declined to be named because the talks are confidential. VW sources said a decision on the EV plan is expected within weeks. Thomas Schaefer, CEO of the Volkswagen brand, has said he wants to launch a lower-priced EV by 2027. The second source said Renault would continue work on the Twingo without VW, but also remained open to other partners, for instance from the alliance with Nissan and Mitsubishi. It is also a blow for Renault CEO Luca de Meo's hopes for greater cooperation between European carmakers against their Chinese competitors, akin to Airbus which has stakeholders and operations across European countries. The VW-Renault tie-up for the Twingo could have formed the "basis" of an Airbus for autos, the second source said. China's automakers, the world's top EV producers, are making fast inroads in the European market, pressuring incumbents like Renault and VW to cut costs and speed up the time it takes to bring a new model to market. European automakers are aiming to produce smaller EVs that sell below 20,000 euros ($21,686) to help them compete with Chinese brands like BYD.

West Virginia researcher describes how Volkswagen got caught

The cheating scandal engulfing the world's largest automaker started with a road trip. In the spring of 2014, researchers from West Virginia were evaluating the tailpipe emissions of diesel cars made for the American market by European manufacturers, something never before studied in the academic realm. Excited by the prospect of breaking new ground, the team of two professors and two students wanted to gather as much data as possible. "And being academics, we went a little overboard," said Arvind Thiruvengadam, one of the students. "Being academics, we went a little overboard." Overboard included driving the cars for more miles than they needed to test and verify results. Drivers put about 1,500 miles on each of the first two cars in the study, a Volkswagen Jetta and BMW X5, along California roadways. For their final car, a Volkswagen Passat, they wanted even more mileage. So they took the car on a road trip from Los Angeles to Seattle and back again, collecting data from more than 2,000 miles of testing. The road trip was Volkswagen's undoing. When the West Virginia team returned to Los Angeles, they were befuddled by the test results. In theory, the Passat should have spewed the lowest levels of pollutants among the three cars. Equipped with the more modern selective catalytic reduction technology, the team expected to find minimal levels of nitrogen oxide. But the car, which had been certified at a California Air Resources Board facility prior to the start of the road trip, had elevated levels of NOx that were 20 times the baseline levels established beforehand. The researchers, comprised of professors Gregory Thompson and Dan Carder and students Marc Besch and Thiruvengadam, knew their on-board equipment functioned properly because, early in their research, they had double-checked its accuracy after recording sky-high NOx readings from the Jetta that showed 30 times the level of its baseline testing at the CARB facility. It was particularly noteworthy because the Jetta contained the first-generation Lean NOx Trap technology, not the more efficient SCR, yet both produced large discrepancies. The BMW, on the other hand, performed as expected. Today, Thiruvengadam is careful to say the research team never suspected Volkswagen of cheating on emissions testing, nor did the researchers report such a finding. They merely reported their findings to CARB officials who then further investigated.

VW “Tip of the Iceberg” in Diesel Emissions Scandal | Autoblog Minute

Some are calling Volkswagen just the tip of the iceberg in the diesel emissions scandal. Autoblog's Adam Morath reports on this edition of Autoblog Minute. Volkswagen Autoblog Minute Videos Original Video emissions scandal