vehicles like the impending gas-powered Atlas SUV, Volkswagen will no longer produce the all-electric ID.4 at its U.S. factory in Chattanooga, Tennessee.
Customers in the United States will be able to purchase the ID.4 until the present inventory runs out, the business announced on Thursday. According to VW, U.S. inventories is expected to last until 2027.
The once-ambitious plans of Volkswagen and other legacy automakers to switch from gas-powered vehicles to battery-electric cars, trucks, and SUVs have been scaled back. Although some EVs have been popular, demand has not lived up to the high expectations set by automakers. Last year, the $7,500 federal tax credit was eliminated, which further reduced demand, particularly for more expensive models.
EVs are still in demand, but consumers who are cost-conscious are either switching to less expensive or used EVs. In 2020, VW started manufacturing the mid-range ID.4, which was priced at roughly $45,000. After being welcomed, the car had some issues, particularly with its software. However, it was revitalized and had an increase in sales in 2023.
Nevertheless, the overall sales outcomes have been inconsistent. Sales of the VW ID.4 exceeded 37,000 in 2023 but fell 55% the following year. Although sales increased by 31% to 22,373 in 2025, they fell short of the two-year high.
VW announced in January that it delivered over 382,000 all-electric vehicles globally in 2025, a decrease of 0.2%. VW stated earlier this year that EV demand is holding up on a global basis. However, it appears that was insufficient to retain the ID.4.
Future versions will be manufactured in the U.S., according to Volkswagen. According to VW, the introduction of the brand-new, second-generation Atlas for the 2027 model year is essential to this endeavor. The Atlas is anticipated to start production this summer and go on sale at dealerships this autumn.
There are enough positions in Atlas areas for ID, a corporate representative informed TechCrunch.4-specific production workers to move to. Additionally, the corporation is providing some employees with an early retirement buyout.
Although it does not yet contain an EV, the company seems dedicated to the U.S. market. According to VW, it is investigating new products for the U.S. plant that would be created especially to satisfy American consumer demands and “in accordance with the new focus on high-volume vehicles.” Cutting through the corporate jargon, one could assume that this will be a more reasonably priced small SUV.
According to Kjell Gruner, President and CEO of Volkswagen Group of America, the Chattanooga facility has been and will remain a key component of Volkswagen’s US strategy.
VW stated that a future iteration of the ID.4 will be introduced to the North American market, but it did not specify a timeframe or other specifics. If VW decides to reintroduce an electric car for American buyers, it will probably have to be reasonably priced.
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