Volkswagen is sidelining production of its electric ID.4 crossover at its Chattanooga, Tennessee, plant to make way for more Atlas capacity, in another sign that the sky is falling in the world of EVs. Volkswagen says production will officially end at the factory in mid-April, but 2026 model year ID.4s will remain available through current stockpiles and will last into 2027.
Perhaps production will make an ID Buzz-style comeback for the 2027 model year, but that remains to be seen. Lest we forget, the German automaker scaled back ID.4 output last September and completely threw in the towel on its ID.7 electric liftback sedan. From Automotive News:
U.S. sales of the ID4 rose 31 percent to 22,373 in 2025. However, demand was buoyed by a strong third quarter as shoppers snapped up models before the elimination of federal tax credits in late September.
A future version of the ID4 is planned for the North American market, but details, including where that model will be built, will be announced later, the automaker said.
The ID4 went on sale in March 2021. U.S. sales peaked in 2023 at 37,789, according to the Automotive News Research & Data Center.
Volkswagen spent $7,756 on incentives for each ID4 sold in the first quarter, according to Motor Intelligence. That was less than half the $16,815 it spent a year earlier but nearly the same as in early 2024, when incentives averaged $7,798.
[…]
U.S. production of the ID4 moved to Chattanooga from Germany in 2022.
Local ID4 production was part of an $800 million investment in the Chattanooga assembly plant, which opened in 2011.
VW executives heralded the production shift at the time, calling it a new chapter for VW in the U.S. and another milestone for the company’s electrification strategy.
The ID4 was one of the first mainstream electric crossovers in the U.S., but nagging quality issues plagued the nameplate since its launch.
Quality and reliability were problematic, as were headaches with the infotainment system, consumer studies from JD Power found.
[…]
VW said it informed employees and the UAW about the change. Hourly employees working on ID4-specific roles will be transferred to other positions at the plant based on seniority and in consultation with the UAW, VW said.
If the ID.4 does make its grand return, I wouldn’t be shocked if it carried a new name. The hot rumor is “ID Tiguan,” as Volkswagen is looking to give its electric vehicles real names (thank Christ).
But, in any case, the recently redesigned Atlas has now become the crown jewel of Chattanooga. Because of tariff exposure, VW says it’s going to prioritize higher-volume models “that support sustained growth in North America.” Since the Atlas is the automaker’s second-best seller in the U.S., it makes sense that it’s getting preferential treatment.
