Volkswagen will no longer produce the all-electric ID.4 at its US plant in Chattanooga, Tennessee, as the German automaker shifts its resources to high-volume vehicles like the upcoming Atlas gas-powered SUV.
The company said Thursday that U.S. customers will be able to purchase the ID.4 until current inventory runs out. VW said it expects U.S. inventory to last until 2027.
Volkswagen, along with other legacy automakers, has scrapped once-ambitious plans to shift their portfolios from gas-powered vehicles to battery-electric cars, trucks and SUVs. While some electric cars have taken off, demand hasn’t lived up to the high expectations automakers had predicted. The elimination of the $7,500 federal tax credit last year further reduced demand, especially for higher-priced models.
EVs continue to sell, but price-conscious consumers are either turning to used EVs or lower prices. VW began production of the mid-priced ID.4 in 2020, priced around $45,000. The vehicle was warmly received, but then struggled, mainly with its software. But a refresh in 2023 gave it new life and a sales boost.
However, overall, sales results were mixed. Sales of the VW ID.4 in 2023 exceeded 37,000 and then fell by 55% the following year. Sales rebounded in 2025, rising 31% to 22,373, but fell short of the level reached two years earlier.
Globally, VW said earlier this year that demand for EVs is holding up. Volkswagen said in January it delivered about 382,000 pure electric vehicles worldwide in 2025, down 0.2 percent. It seems this wasn’t enough to keep the ID.4 going, however.
Volkswagen said it plans to bring future models to the U.S. plant. The launch of the all-new, second-generation Atlas for the 2027 model year is central to that effort, according to VW. Production of the Atlas is expected to begin this summer and will be available in dealerships this fall.
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A company representative told TechCrunch that there are a sufficient number of roles in Atlas regions that ID.4-related production employees can be moved to. The company also offers an early retirement buyout to certain employees.
The company seems committed to the US market, but not the market that includes EVs right now. VW said it is exploring new products for the US plant that will be designed specifically to meet the needs of US consumers and “in line with the new focus on high-volume vehicles. If the corporate talk is over, one would assume this will be a more affordable compact SUV.
Volkswagen Group of America President and CEO Kjell Gruner said the Chattanooga plant has been and will continue to be the cornerstone of Volkswagen’s strategy in the United States.
VW claims it will also bring a future version of the ID.4 to the North American market, but did not provide a timeline or other details. If VW brings back an electric vehicle for US consumers, it will probably have to be affordable.
