Volkswagen Ends Production of All-Electric ID.4 in the US

The German automaker will focus on producing high-volume gas-powered vehicles like the upcoming Atlas SUV, citing declining demand for electric vehicles in the US market.

Volkswagen has announced that it will no longer produce the all-electric ID.4 at its U.S. factory in Chattanooga, Tennessee. The company cited declining demand for electric vehicles in the US market, particularly among price-conscious consumers who are either turning to used EVs or lower-priced models.

The ID.4 was launched in 2020, with a starting price of around $45,000. However, sales struggled, particularly with software issues. A refresh in 2023 gave the vehicle new life, but sales still failed to meet expectations.

On a global scale, VW reported in January that it delivered around 382,000 all-electric vehicles worldwide in 2025, down just 0.2%. However, this wasn't enough to keep the ID.4 in production.

VW will continue to produce the ID.4 until the current inventory runs out, with the company expecting U.S. inventory to last into 2027.

The Chattanooga plant will shift its focus to producing the Atlas SUV, which is expected to begin production this summer and hit dealerships in the fall. VW plans to bring future models to the U.S. factory, but it seems that electric vehicles are no longer a priority.

"We are committed to the U.S. market, but we need to adapt to the changing needs of our customers," a company spokesperson told TechCrunch.

The company is also offering an early retirement buyout to some workers and will provide sufficient roles in Atlas areas for ID.4-specific production employees to transfer to.

VW claims it will bring a future version of the ID.4 to the North American market, but didn't provide a timeline or other details. If VW does bring back an electric vehicle for U.S. consumers, it will likely need to be affordable.

The move marks a significant shift in Volkswagen's strategy in the US, where the company had once been a leader in electric vehicle adoption.

• "Volkswagen is exploring new products for the US plant that would be designed specifically to meet US consumer needs and in line with the new focus on high-volume vehicles," a company spokesperson said.

The company appears committed to the US market, but it seems that electric vehicles are no longer a priority.

• The Chattanooga plant has been, and will continue to be, a cornerstone of Volkswagen's strategy in the United States, said VW Group of America President and CEO Kjell Gruner.

VW is exploring new products for the US plant that would be designed specifically to meet US consumer needs and in line with the new focus on high-volume vehicles.

• A more affordable compact SUV is likely to be a key focus for the company in the US market.

The move marks a significant shift in Volkswagen's strategy in the US, where the company had once been a leader in electric vehicle adoption.

"We are committed to the US market, but we need to adapt to the changing needs of our customers," a company spokesperson told TechCrunch.

The company is also offering an early retirement buyout to some workers and will provide sufficient roles in Atlas areas for ID.4-specific production employees to transfer to.

VW claims it will bring a future version of the ID.4 to the North American market, but didn't provide a timeline or other details. If VW does bring back an electric vehicle for U.S. consumers, it will likely need to be affordable.

• "Volkswagen is exploring new products for the US plant that would be designed specifically to meet US consumer needs and in line with the new focus on high-volume vehicles," a company spokesperson said.

The company appears committed to the US market, but it seems that electric vehicles are no longer a priority.

• The Chattanooga plant has been, and will continue to be, a cornerstone of Volkswagen's strategy in the United States, said VW Group of America President and CEO Kjell Gruner.

VW is exploring new products for the US plant that would be designed specifically to meet US consumer needs and in line with the new focus on high-volume vehicles.

• A more affordable compact SUV is likely to be a key focus for the company in the US market.

The move marks a significant shift in Volkswagen's strategy in the US, where the company had once been a leader in electric vehicle adoption.