Volkswagen’s head of North America, Pablo Di Si, is reportedly on the verge of departure following disappointing sales of the ID.4 electric vehicle in the U.S. market. According to insiders cited by German publication Manager Magazin, the decision is not yet finalized but is expected to be announced in the coming weeks. The move may also prompt changes to the timeline and strategy for Volkswagen’s U.S. brand Scout, a revival aimed at bolstering the automaker’s presence in the American market.
Volkswagen had aimed to sell 100,000 units of the ID.4 annually in the U.S., supported by the expansion of its factory in Chattanooga, Tennessee. However, sales have fallen short of this goal, with only 16,400 units sold in the first three quarters of 2024. Compounding the issue, the ID.4 has been plagued by technical defects and recalls, including a recent warning from U.S. authorities that the vehicle’s doors could open while driving. The recall affects nearly 100,000 vehicles, and Volkswagen is currently barred from selling the ID.4 in the United States.
The financial performance in North America has also been below expectations. Volkswagen’s earnings target for the region is reportedly €1.3 billion short of projections for 2025, with €700 million attributed to higher discounts and an additional €900 million due to lower sales and an unfavorable model mix. Di Si’s overly optimistic planning is believed to have contributed to the underperformance, insiders say, making his departure likely. Stefan Mecha, head of VW in China, and Klaus Zellmer, CEO of Škoda, are rumored to be potential successors.
The U.S. market presents significant challenges for Volkswagen beyond the ID.4. Expectations for the ID.Buzz, initially seen as a potential hit, have waned, and the SUV Atlas, a key model for the U.S. market, is aging. Additionally, the launch of Scout, a revitalized U.S. brand under Volkswagen’s portfolio, is now facing delays. Originally planned for the end of 2026, the Scout launch may be pushed back to 2028.
