VW is halting production of the US ID.4 to prioritize the larger, gas-powered Atlas model.

      Volkswagen

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      Volkswagen has announced that it will cease production of its ID 4 electric SUV at its Chattanooga, Tennessee facility and will redirect resources towards the new Atlas model.

      The company explained that this decision is aimed at “shifting [the Chattanooga plant’s] primary focus to higher-volume models that foster sustainable growth in North America,” according to a news release. The Atlas is the brand’s second best-selling model in the U.S., following the smaller Tiguan.

      Production of the ID 4 is expected to conclude shortly after this announcement, potentially within days, as VW mentioned a timeline of “mid-April.”

      It is essential to note that this move does not signify the end of ID 4 sales in the U.S.; the automaker stated that the existing stock will continue to be sold, and “a future version of the ID 4 is currently planned for the North American market,” with additional details to come later. It remains uncertain whether this will be an updated version of the current model or a next-generation ID 4. At this point, VW could not confirm if there will be a 2027 model year ID 4 available in the U.S.

      This development recalls the ID Buzz skipping a model year in the U.S., though the distinction is that the electric van was never produced locally, whereas the ID 4 was. The company indicated that it is “exploring ways to introduce an additional vehicle designed specifically to meet U.S. consumer demands and in alignment with the new focus on high-volume models.” Again, it is unknown if this new vehicle will be electric, hybrid, or solely gasoline-powered.

      Last week in New York, VW unveiled the 2027 Atlas. Built on a new platform with three rows of seating and an upgraded engine (a hybrid version is expected to follow), it’s evident that Volkswagen is targeting growth in North America and does not believe the ID 4 can achieve that, or rather, that the market is prepared for it.

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