Volkswagen is dropping the all-electric ID.4 in the US in a pivot back to gas-powered SUVs

Volkswagen will no longer produce the all-electric ID.4 at its US plant in Chattanooga, Tennessee, as the German automaker shifts its focus to high-performance vehicles such as the upcoming Atlas SUV.

The company said Thursday that US customers will be able to purchase the ID.4 until the current supply runs out. VW said it expects US production to last until 2027.

Volkswagen, along with other historic automakers, has pushed back on plans to shift their focus away from gas-powered cars to electric cars, trucks, and SUVs. While some EVs have been a hit, demand has not met the high expectations that automakers had predicted. The elimination of the $7,500 tax credit last year also reduced demand, especially for higher-priced models.

EVs continue to sell, but price-conscious buyers are likely turning to used or cheaper EVs. VW started to create the ID of the middle tree.4 in 2020, he posted about $45,000. The car received a warm welcomebut then I struggled, especially with his programs. But a refresh in 2023 gave new life, and encouraged trade.

However, overall, the trading results have been a mixed bag. Sales of the VW ID.4 in 2023 exceeded 37,000 and fell by 55% the following year. Sales rebounded in 2025, rising 31% to 22,373, but failed to reach the level reached two years ago.

Globally, VW said earlier this year that EV demand is working; Volkswagen said in January that it would deliver about 382,000 electric vehicles worldwide in 2025, down 0.2%. It seems that was not enough to save the ID.4, however.

Volkswagen has said it plans to bring future models to the US factory. The introduction of the new Atlas, of the second generation of the year 2027, is important in this process, according to VW. Atlas production is expected to begin this summer and will be in bottles this fall.

A spokesperson for the company told TechCrunch that there are enough positions in the Atlas regions for ID.4 production workers to move there. The company is also offering early retirement benefits.

The company seems committed to the US market, just not one that includes EVs right now. VW said it was looking into new products for the US company that could be designed to meet the needs of US consumers and “in line with the new interest in high-performance cars.

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

VW says it will also bring a future version of the ID.4 to the North American market, but hasn’t given a timeline or details. If VW is going to bring an electric car to US consumers, it will have to be affordable.