Two of the biggest European automakers are abandoning talks around a joint effort to develop an affordable EV version of Renault’s Twingo car.

European automakers are feeling increased pressure from Chinese companies that are flooding the market with EVs, driven in large part to the subsidies Beijing pays to help home-grown companies compete more effectively in global markets.

According to sources that spoke with Reuters, the two companies have ended their talks toward an affordable EV Twingo, with the manufacturing location being the main sticking point. Renault reportedly wanted to build the vehicle entirely in one of its plants, while VW wanted to use its own production network.

Both companies will reportedly continue in their efforts alone, although it’s safe to say that VW will likely have an advantage over Renault.