Volkswagen Shuts Down Tennessee Plant's EV Production at the Worst Possible Time
Gizmodo • • business
Key Points:
- Volkswagen will cease production of its fully electric ID.4 SUV at its Chattanooga plant starting mid-April, shifting focus to the gasoline-powered second-generation Atlas SUV, which will begin production in summer and hit dealerships in fall.
- The decision is a setback for EV adoption in the U.S., as the Atlas consumes roughly five times more energy than the ID.4, raising concerns among environmentalists.
- Volkswagen plans to continue selling existing ID.4 inventory until about 2027 and will maintain ID.4 production in China and the EU, with a future North American version in development.
- The move reflects broader challenges in the U.S. EV market, exacerbated by the reduction of the $7,500 EV tax credit and high tariffs on Chinese EV imports, while Chinese and European EV markets continue to grow strongly.
- Rising global oil prices, driven by geopolitical tensions such as Iran’s closure of the Strait of Hormuz, have increased interest in EVs, with U.S. online searches for EV models up 20% recently and Chinese EV exports accelerating despite global disruptions.
