Volkswagen will halt production of its ID.4 electric sport utility vehicle at its Chattanooga Plant in the coming days, shifting the facility’s focus to production of the second-generation Atlas combustion-engine SUV.
The move comes as Volkswagen prioritizes higher-volume models in the U.S. market, where the Atlas remains one of the brand’s best-selling vehicles. The three-row Atlas is currently Volkswagen’s second-best-selling model in the United States after the Tiguan.
Volkswagen said the Chattanooga plant will stop ID.4 production by mid-April, with remaining 2026 model year inventory expected to meet customer demand through 2027.
“The Chattanooga plant has been, and will continue to be, a cornerstone of Volkswagen’s strategy in the United States,” Kjell Gruner, president and chief executive of Volkswagen Group of America, said in a statement.
“This strategic shift underscores the company’s commitment to Chattanooga and its workforce as we position the plant for long-term success and future product opportunities,” he added.
The decision follows weaker U.S. electric vehicle demand after the expiration of the $7,500 federal EV tax credit in September 2025, according to the company and market data.
Research firm Cox Automotive said Volkswagen sold 248 ID.4 units in the United States in the fourth quarter of 2025. For full-year 2025, ID.4 sales rose 31.4% to more than 22,000 units before the incentive ended.
Volkswagen said the ID.4 will remain available in the U.S. market and that a successor or updated version for North America is planned, with details to be announced later.
It remains unclear whether the future model will be produced locally or imported. The ID.4 is currently also built in Germany at plants in Zwickau and Emden.
Volkswagen has said it does not currently plan to introduce additional electric models in the U.S. beyond the ID.4 and ID. Buzz in the near term, with its next new U.S.-market EV expected toward the end of the decade on the SSP platform.
Separately, the group continues to develop future electric and range-extended pickup and SUV models under its revived Scout brand.