By Christopher Otts
Volkswagen will stop producing the ID.4 electric crossover at its Tennessee assembly plant, the latest casualty in the U.S. auto industry's retreat from EVs.
Production of the crossover will stop in mid-April as the plant prepares to change its higher-volume gas SUV, the Atlas, to the 2027 model year, the German automaker said Thursday. The ID.4 is VW's lone EV built in the U.S.
"The EV market continues to challenge the industry, requiring measured decisions throughout the last few years to navigate this unpredictability," Volkswagen's American subsidiary said.
VW said its U.S. dealers would continue to sell the ID.4, with enough vehicles in stock to last into next year.
No production workers will lose jobs as a result of the change, the company said. The plant has a single assembly line for the Atlas and ID.4, and workers in other areas specific to the EV will be reallocated to support Atlas production.
The company is offering a buyout for employees over age 55 years old, a spokesman said. The plant employs about 3,000 hourly workers.
The Chattanooga plant's workforce recently joined the United Auto Workers, giving the UAW a historic breakthrough in the South.
VW said it is honoring a recent commitment to the UAW to explore a new vehicle for the Chattanooga plant. A "future version" of the ID.4 is planned for North America, but a spokesman wouldn't say when it will be introduced or where the vehicle will be assembled. The ID.4 is also built in Germany for European markets.
The ID.4 made its debut in 2021 and once represented a key part of VW's electric ambitions in the U.S. At the time, the automaker was in the midst of an aggressive strategy to go all-electric, including targeting up to 55% of its U.S. sales to be battery-powered vehicles. It has since walked back that goal, extending its plans for more internal-combustion models.
The ID.4, which currently starts at $45,095 in the U.S. and boasts up to 291 miles of electric range, was intended to be a volume-selling option for American families competing with popular crossovers like the Toyota RAV4.
While the ID.4 garnered critical accolades, sales struggled in recent years like many EVs in the U.S. That challenge was exacerbated when sales were halted for months in late 2024 and early 2025 over a door handle recall.
VW sold 22,373 of the crossovers in the U.S. in 2025, up from 17,021 in 2024, according to Motor Intelligence. The ID.4 was the 10th-best-selling EV in the U.S. in 2025, just behind the Chevrolet Blazer EV, according to the firm.
VW dealers had just over 1,400 ID.4 models in stock as of March, enough to last 271 days at the vehicle's current sales pace, according to Motor Intelligence.
Write to Christopher Otts at christopher.otts@wsj.com
(END) Dow Jones Newswires
April 09, 2026 12:39 ET (16:39 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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