Volkswagen announced on Thursday that due to the challenging environment in the U.S. electric vehicle market, it will halt production of the ID.4 all-electric SUV at its Chattanooga plant in Tennessee starting this month, shifting capacity to the higher-selling fuel-powered SUVs Atlas and Atlas Cross Sport. The Chattanooga plant began producing the ID.4 in 2022, but sales of the ID.4 plummeted following the cancellation of tax credit policies, while Atlas sales far surpassed those of the ID.4 during the same period. Volkswagen stated that the existing inventory of 2026 ID.4 models is expected to meet customer demand until 2027, and hourly workers involved in ID.4 production will be transferred to other roles or offered early retirement.
