Volkswagen announced Thursday that it will cease manufacturing its ID.4 electric SUV at its Tennessee facility this month, pointing to difficulties facing the American electric vehicle marketplace.
The German automaker joins other manufacturers who have reduced or halted electric vehicle production following the federal government’s decision last fall to discontinue a $7,500 tax incentive for EV purchases.
The company plans to redirect its Chattanooga, Tennessee facility toward manufacturing its gasoline-powered Atlas and Atlas Cross Sport SUVs, which have higher production volumes. This summer, Volkswagen will begin producing a redesigned Atlas midsize SUV model set to reach dealerships in 2027.
While the automaker indicated it plans to develop a new version of the ID.4 specifically for North American consumers, no timeline was provided for when this model might become available. Current ID.4 inventory is projected to remain available through 2027.
Sales data shows the ID.4’s struggles, with fourth-quarter 2025 sales dropping 62% compared to the same period the previous year.
Despite ending ID.4 production, Volkswagen will continue selling its ID. Buzz electric van to American customers.
