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Volkswagen Halts U.S. ID.4 Production, Shifts Chattanooga Plant to Gasoline SUVs

The move reflects weaker U.S. electric‑car demand after the federal tax credit ended.

Overview

  • Volkswagen will stop building the ID.4 in Tennessee this month as it converts the Chattanooga line to the Atlas and Atlas Cross Sport gasoline SUVs.
  • The company cited a tougher market for electric cars after the $7,500 federal incentive ended, noting ID.4 sales fell 62% in the fourth quarter of 2024.
  • VW expects existing U.S. ID.4 inventory to cover sales into 2027.
  • The electric ID. Buzz van will remain available to U.S. buyers.
  • Production of an updated Atlas is set to begin this summer for a 2027 sale, and VW flagged a future North American ID.4 with no launch date.