DETROIT, April 9 (Reuters) – Volkswagen (VOWG.DE), opens new tab said on Thursday it will end production of ​the ID.4 electric SUV out of ‌its Tennessee plant this month, citing a challenging time for the U.S. electric vehicle ​market.

Automakers have scaled back or canceled ​production of EVs after the federal ⁠government last fall ended the use ​of a $7,500 tax credit toward the purchase ​of an EV.

  • Volkswagen is shifting production at its Chattanooga, Tennessee, plant to its higher-volume gas-powered ​SUVs, the Atlas and Atlas Cross ​Sport.
  • The automaker will launch production this summer of a ‌redesigned ⁠version of its Atlas midsize SUV, scheduled to go on sale in 2027.
  • Volkswagen is planning a future version of ​the ID.4 ​for the ⁠North American market, but did not provide timing on its ​release.
  • The current inventory of ID.4 ​is ⁠expected to last into 2027.
  • ID.4 sales declined 62% year-over-year in the fourth quarter ⁠of ​2025.
  • Volkswagen will still offer ​the ID. Buzz electric van in the U.S. market.