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VW to Stop Making Its Top Electric Vehicle in the US

Volkswagen will keep selling current ID.4 inventory as it shifts Chattanooga capacity to the higher-volume Atlas and Atlas Cross Sport, citing weak EV demand.

  • On Thursday, April 9, 2026, Volkswagen announced it will cease ID.4 production at its Chattanooga, Tennessee plant this month, shifting focus to higher-volume gas-powered SUVs, the Atlas and Atlas Cross Sport.
  • Volkswagen cited a "challenging time" for the U.S. electric vehicle market, stating the EV sector requires "measured decisions" to navigate unpredictable consumer demand and ongoing market headwinds.
  • ID.4 sales declined 62% year-over-year in the fourth quarter of 2025, while the Atlas remains the brand's second-best-selling model; existing ID.4 inventory is expected to support customer demand into 2027.
  • Kevin Gotinsky, director of the UAW Transnational Department, confirmed all hourly team members will remain employed through role transfers, stating workers "aren't being left behind" due to union contract protections.
  • Volkswagen will launch production of a redesigned 2027 Atlas this summer with fall sales, while reiterating plans for a future updated ID.4 without providing a specific release timeline.
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The Drive broke the news in on Thursday, April 9, 2026.
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