Volkswagen to Stop Production of the ID.4 in Tennessee Later This Month

• This means the ID.4 will retire from the North American market as this is the only manufacturing plant supplying the United States and Canada.

• The automaker says a new model of the ID.4 will be coming at a later date.

• The Chattanooga plant will now focus on production of the refreshed 2027 Atlas and possibly another new product.

Volkswagen has just announced it will phase out production of the ID.4 at its Chattanooga plant, in Tennessee, in mid April.

Since all units of the electric crossover sold in North America since 2023 have come out of this factory, this spells the end for this model in the United States and Canada.

Indeed, the automaker has confirmed that buyers will need to rely on dealer inventories to find a new ID.4 in the United States starting in a couple of weeks. Said inventory is expected to meet the demand into 2027.

While production is expected to continue in Europe, it seems unlikely the automaker will restart importing this model from Germany, like it did for the 2021 and 2022 model years.

Unlike some of its competitors, Volkswagen hasn’t abandoned electric vehicles completely, however, as it has confirmed that a new version of the ID.4 is currently planned for North America.

While details are still unknown, there are rumours that this upcoming EV could be called ID.Tiguan instead, helping its brand recognition.

With the ID.4 gone, at least temporarily, the Chattanooga plant will concentrate on the launch of the refreshed 2027 Atlas SUV, which is the brand’s second-best-selling model in North America.

This is in line with the company’s stated goal of prioritizing vehicles that generate high sales volumes, which also explains why the ID.4 is being dropped.

Indeed, the electric crossover saw its sales fall significantly over the last year or two, tied with an industry-wide trend away from electric vehicles driven by a reduction in government incentives in Canada and the United States, as well as relaxed environmental regulations that allow automakers to sell more profitable, combustion-powered vehicles without having to pay large penalties.

In addition to the 2027 Atlas, the Tennessee factory could be attributed the production of a new product in the coming months. Details are still scarce, but the company says this vehicle will also be a high-volume product.

Since the Tiguan is the brand’s best-selling model in North America, this could suggest a shift in that model’s production location. The Tiguan is currently manufactured in Puebla, Mexico for the United States and Canada.

The temporary reduction in output at the Chattanooga factory associated with the discontinuation of the ID.4 is not expected to create massive layoffs, as the automaker will transfer affected employees to different positions within the facility and offer an early retirement package to those who qualify.