Yesterday, Volkswagen announced plans to stop assembling the ID.4 electric SUV at its plant in Chattanooga, Tennessee, as the EV market continues to "challenge the industry."
Assembly will end quickly. VW says it will stop putting together the ID.4 in mid-April and that's (checks watch) five days away.
Most popular manufacturing content:
- Podcast: 'Suicide Cords' Pulled; 12-Ton KitKat Heist; Makita Buys Panasonic Tools
- This Car Paint Requires an Armored Escort
- Toilet Malfunctions Are a Big Problem in Space
- Kimberly-Clark Products Burn After Suspected Arson Destroys Warehouse
The automaker will retool to focus on "higher-volume" models and launch the second-generation Atlas for model year 2027. The hope is to have production up and running this summer with vehicles in dealerships by fall.
The Atlas is vital to the company's U.S. strategy. It's the automaker's second-best selling model for the past three years.
The headwinds facing the EV industry, including the $7,500 federal EV tax credit that expired on September 30, 2025, have forced VW to make "measured decisions throughout the last few years to navigate this unpredictability."
The plan is to sell the remaining Model Year 2026 ID.4s still in inventory. VW expects existing inventory to support customer demand into next year. VW sold 22,373 ID.4 units in the U.S. in 2025, a 31.4% increase over 2024. VW sold more than 100,000 Atlas family vehicles in the U.S. last year.
But the ID.4 isn't dead yet. VW said it still plans to make a future version of the electric SUV--details will be shared at a later date.
VW notified employees and the local union. Hourly ID.4 workers will be transferred to other positions within the plant based on seniority and in consultation with the local union. The company is also offering a “special early retirement program” for eligible employees.
Volkswagen Group of America President and CEO Kjell Gruner said, “The Chattanooga plant has been, and will continue to be, a cornerstone of Volkswagen’s strategy in the United States.”
Click here to subscribe to IEN's daily newsletter for manufacturing news you won't read anywhere else.
