Volkswagen will discontinue production of the VW ID.4 at its Chattanooga, Tennessee facility, marking a shift towards higher-volume models.
“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 highervolume products that meet market demand, Volkswagen will no longer assemble the ID.4 in Chattanooga,” the company’s statement read.
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Assembly of the ID.4 electric SUV will conclude at the plant before the end of this month, with operations subsequently pivoting to manufacture the next-generation Atlas.
Production of the 2027 model year Atlas is due to be under way in summer 2026, ahead of an autumn market launch.
VW noted that the Atlas has been its “second best-selling” vehicle in the US over the past three years.
The updated version of the model was recently unveiled at the New York International Auto Show.
Existing stock of the 2026 ID.4 will remain available through US dealerships, with VW expecting current inventory levels to cover demand through to 2027.
Volkswagen Group of America president and CEO Kjell Gruner said: “The Chattanooga plant has been, and will continue to be, a cornerstone of Volkswagen’s strategy in the US.
“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.”
The company confirmed that a future version of the ID.4 intended for the North American market is under development, though no timeline or further details have been provided.
It also disclosed that it is exploring whether to introduce an entirely new model tailored to US consumer preferences, which could potentially be built at the Chattanooga site.
No specifics have been shared on that front.
On the workforce side, employees currently engaged in ID.4 assembly will be redeployed elsewhere within the facility, with placements determined by seniority.
Those who qualify will be offered early retirement.
VW confirmed that staff and the relevant local union have been briefed on the changes.
