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LISTEN: VW Stops Making Electric SUVs in Tennessee

Eric Sorensen

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Yesterday, Volkswagen announced plans to stop assembling the ID.4 electric SUV at its plant in Chattanooga, Tennessee, as the EV market continues to "challenge the industry."

Assembly will end quickly. VW says it will stop putting together the ID.4 in mid-April and that's (checks watch) five days away. 

The automaker will retool to focus on "higher-volume" models and launch the second-generation Atlas for model year 2027. The hope is to have production up and running this summer with vehicles in dealerships by fall. 

The Atlas is vital to the company's U.S. strategy. It's the automaker's second-best selling model for the past three years. 

The headwinds facing the EV industry, including the $7,500 federal EV tax credit that expired on September 30, 2025, have forced VW to make "measured decisions throughout the last few years to navigate this unpredictability."

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