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Volkswagen Halts U.S. ID.4 Assembly to Prioritize 2027 Atlas in Chattanooga

Volkswagen is pivoting to higher-volume U.S. SUVs due to uneven EV demand.

Overview

  • Volkswagen, which announced Thursday, will stop building the ID.4 in Chattanooga starting mid-April.
  • The Tennessee plant will redirect capacity to the second-generation 2027 Atlas, with production set for summer 2026 and U.S. deliveries expected in autumn.
  • Model-year 2026 ID.4s already built will remain on sale, and Volkswagen says a future North American ID.4 is planned with details to come.
  • Hourly workers assigned to ID.4 lines will move to other roles based on seniority in consultation with the local union, and an early-retirement option will be offered to eligible employees.
  • Volkswagen says the shift follows an unpredictable U.S. EV market after door-handle–related stop-sales, software and motor problems, and the loss of a federal tax credit weakened ID.4 sales.