Volkswagen of America will stop producing the ID.4 all-electric SUV at its plant in Tennessee later this month, shifting that production capacity to higher-volume models.
“The Chattanooga plant has been, and will continue to be, a cornerstone of Volkswagen’s strategy in the United States,” said Volkswagen Group of America President and CEO Kjell Gruner. “This strategic shift underscores the company’s commitment to Chattanooga and its workforce as we position the plant for long-term success and future product opportunities.”
That shift means a focus on the newly revealed second-generation 2027 Atlas. The company’s flagship SUV, it’s been the second-best selling vehicle in VW’s U.S. portfolio behind the Tiguan. EV fans need not worry about the ID.4, as a new version aimed at the North American market is in the works, officials said, adding plant production may be increased.
“Volkswagen is exploring pathways to introduce an additional vehicle intended specifically to meet U.S. consumer needs and in line with the new focus on high-volume vehicles,” the company said in a statement.
The move is in response to the slow sales of VW’s first-ever EV for the U.S. market. The company’s electric vehicle sales in the U.S. are down significantly. Sales of the company’s other all-electric model, the ID. Buzz, were halted late last year due to a lack of interest.
VW’s plan mirrors that of many U.S. car companies that have seen EV sales fall significantly since the U.S. Congress, with the support of the Trump administration, eliminated the $7,500 federal tax credit last fall.
The ID.4 sold well through the first three quarters of 2025; however, sales fell 61.6 percent in the final three-month period. The company sold just 248 ID.4 SUVs in Q4 2025, compared to 646 during the same period in 2024. Overall, ID.4 sales were up 31.4 percent in 2025, with VW moving 22,373 units compared with 17,021 the year before. Buyers wanting a 2026 model year ID.4 can still get them while supplies last on dealer lots, officials noted.
[Images: Volkswagen of America]
