The three major automakers are considering a merger to stay in the game amid fierce competition from Tesla and Chinese companies, all of which are trying to produce cheap electric cars.
Volkswagen, Renault, and Stellantis are considering a possible merger to create cheaper electric vehicles, fearing that this is the only way out.
Carlos Tavares, CEO of Stellantis, told Automotive News Europe that there is “a full realization that in the future, companies that cannot withstand Chinese competition will create problems for themselves.”
The ideas under consideration range from “pooling resources for development to bringing companies together across European borders to better compete in a once-in-a-generation change.” According to sources, the merger will take place in the near future, within a few months.
The year 2024 has created a number of obstacles that have affected electric vehicle sales, and automakers say they were unprepared for the new environment. For example, some governments have reduced or canceled incentives for electric vehicles. The next challenge is the stricter emissions regulations that will come into effect in the EU next year.
Renault CEO Luca de Meo proposed to create an “Airbus of autos” – a combination of resources from Germany, France, Spain and the UK to compete with rivals by bringing together the three largest European automakers to create cheap electric vehicles and build them on a large scale.
Earlier it was reported that Volkswagen, Stellantis, and Renault are working on new electric vehicles priced up to 25 thousand euros.
