Volkswagen will no longer produce the all-electric ID.4 at its U.S. factory in Chattanooga, Tennessee, as the German automaker shifts its resources into high-volume vehicles like its upcoming gas-powered Atlas SUV.

The firm noted Thursday that U.S. customers will be able to acquire the ID.4 until the current inventory runs out. VW remarked it expects U.S. inventory to last into 2027.

Volkswagen, along with other legacy automakers, have pulled back on once-ambitious plans to shift their portfolios from gas-powered vehicles to battery electric cars, trucks, and SUVs. While some EVs have been hits, demand hasn’t met the lofty expectations that automakers forecasted. The removal of the $7,500 federal tax credit last year further dampened demand, especially for higher-priced models.

EVs do continue to divest, but price conscious consumers are either turning to used EVs or lower prices ones. VW began producing the mid-priced ID.4 in 2020, listing at about $45,000. The vehicle received a warm reception, but then struggled, notably with its software. But a refresh in 2023 gave it updated life, and a boost in sales.

Still, overall, the sales results have been a mixed bag. VW ID.4 sales in 2023 surpassed 37,000 and then dropped 55% the following year. Sales recovered in 2025, ticking up 31% to 22,373, but failed to reach the level they hit two years prior.

On a global scale, VW commented earlier this year that EV demand is holding up; Volkswagen reported in January it delivered about 382,000 all-electric vehicles worldwide in 2025, down 0.2%. It seems that wasn’t quite enough to keep the ID.4, however.

Volkswagen commented it does plan to bring future models to the U.S. factory. The launch of the all‑new, second‑generation Atlas for model year 2027, is central to this effort, according to VW. Production of the Atlas is expected to begin this summer and will be available in dealerships this fall.

This Week Only: , where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to secure these savings.

A organization spokesperson told TechCrunch that there are a sufficient number of roles in Atlas areas for ID.4-specific production employees to transfer to. The corporation is also offering an early retirement buyout to some workers.

The business appears committed to the U.S. sector, just not one that includes an EV right now. VW noted it is exploring updated products for the U.S. plant that would be designed specifically to meet U.S. consumer needs and “in line with the latest focus on high-volume vehicles. Cutting through the corporate-speak, one could surmise this will be a more affordable compact SUV.

Volkswagen Group of America President and CEO Kjell Gruner noted the Chattanooga plant has been, and will continue to be, a cornerstone of Volkswagen’s strategy in the United States.

VW claims it will also bring a future version of the ID.4 to the North American sector, but didn’t provide a timeline or other details. If VW does bring back an electric vehicle for U.S. consumers, it will likely need to be affordable. This also touches on aspects of mobile apps.

Topics