Volkswagen is ending production of its ID.4 electric crossover SUV built and sold in the United States, the latest sign of the automobile industry’s retreat on electric vehicles as customer demand and federal support for the technology recede.
The German automaker announced in an April 9 statement that it is wrapping up production of the electric ID.4, which was its best-selling electric car. The company said the decision was made because “the EV market continues to challenge the industry, requiring measured decisions throughout the last few years to navigate this unpredictability.”
“As part of the focus toward higher‑volume products that meet market demand, Volkswagen will no longer assemble the ID.4 in Chattanooga starting mid-April 2026,” Volkswagen said in the statement. “Model Year 2026 ID.4 will remain available to customers in the U.S. through current inventory which we expect will support customer demand into 2027.”
Volkswagen added that “a future version of ID.4 is currently planned for the North American market; details will be shared at a later date.”
The news comes as EV sales represented 9.6% of U.S. auto sales in 2025, according to the Alliance for Automotive Innovation.
Why Is Volkswagen Axing the ID.4?
Volkswagen said its Chattanooga, Tennessee, assembly plant will “shift its primary focus to higher‑volume models that support sustained growth in North America.”
“Central to this effort is the launch of the all‑new, second‑generation Atlas for model year 2027, which begins production this summer and will be available in dealerships this fall,” the company added.
Volkswagen said it is committed to its Chattanooga workforce and will explore “pathways to introduce potential new product intended specifically to meet U.S. consumer needs and in line with the new focus on high-volume vehicles.”
The Volkswagen ID.4 was first introduced in the 2021 model year. The company sold 22,373 ID.4 vehicles in 2025, according to an annual sales report Volkswagen issued in December. The ID.4 was the only Volkswagen model that saw an increase in sales in 2025.
Here’s how the ID.4 sold in other years it was available in the United States, according to Volkswagen’s annual sales reports:
- 2024: 17,021
- 2023: 37,789
- 2022: 20,511
- 2021: 16,742
Other Automakers Are Getting Rid of Their EVs
Ford announced plans to transition its F-150 Lightning pickup from a fully electric vehicle to a hybrid car type known as an Extended Range Electric Vehicle (EREV).
Meanwhile, Honda axed all three of the electric models it planned to build and sell in the United States. The Japanese automaker announced in a March 12 statement that it ended its plans to produce the electric Honda 0 SUV, Honda 0 Saloon, and Acura RS.
Lamborghini also abandoned plans to develop fully electric cars by the end of the decade in favor of building more hybrids. The Italian automaker, a subsidiary of Volkswagen, confirmed to USA TODAY that it is not following its plan to build battery electric cars by 2030 because of weakening demand in the United States.
Also, Tesla is planning to end production of its Model S luxury electric sedan and Model X luxury electric SUV in the spring in favor of building robots, company CEO Elon Musk told investors on Tesla’s January 2026 earnings call.
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