Volkswagen Ends U.S. Production of ID.4 EV

Volkswagen has decided to end production of the ID.4 electric crossover at its Chattanooga, Tennessee, plant. Instead, the plant will focus all of its efforts on production of the three-row, internal combustion Atlas SUV.

In a release, the automaker said that U.S. production of ID.4 would end in the middle of this year. However, Volkswagen estimates that it has built up enough inventory to satisfy customer demand of the vehicle into 2027.

Production of the crossover at other plants in different parts of the world is not affected by this decision. However, despite being made internationally, all ID.4s sold in Canada are currently produced in Chattanooga.

“This news will indeed affect Canada, as our supply of the ID.4 was the Chattanooga factory,” Thomas Tetzlaff, Volkswagen Canada spokesperson, told AutoTrader in an email. “How long our stockpiles will hold out will of course depend on local demand.”

Volkswagen cited electric vehicle (EV) market volatility as its reason for discontinuing production of the ID.4 in Chattanooga. Both Canada and, in particular, the United States have seen sales of electric vehicles falter following changes to government incentives programs and unscientific alterations to American environmental regulations.

The automaker also said that this move would allow it to focus more of the plant’s output on the higher-volume Atlas family of SUVs, which is its second-best selling model in the U.S. New for 2027, production of the second-generation model is expected to begin this summer, just as the ID.4 ends its production run.

This development is not the death knell of the ID.4, however. Or, at least, it’s not the end for electric Volkswagens in North America. The automaker said that it is exploring the possibility of introducing a new EV designed specifically for U.S. consumer needs. Unfortunately, no information about the new model are available at this time.