Volkswagen to End E.V. Production at Tennessee Plant
The New York Times • • business
Key Points:
- Volkswagen announced it will cease production of the electric ID.4 SUV at its Tennessee plant this month to focus on manufacturing a new gasoline-powered Atlas SUV, reflecting a shift away from electric vehicles (EVs).
- The decision follows a significant drop in ID.4 sales in the U.S., with only about 250 units sold in the last quarter of 2025 after federal tax credits for EVs were eliminated under the Trump administration.
- Other major automakers like General Motors, Ford, Stellantis, and Honda have also scaled back EV plans due to lower-than-expected sales, while some companies like Toyota and Hyundai continue to expand their electric vehicle offerings.
- Volkswagen plans to offer a new version of the ID.4 in the U.S. but has not specified a launch date or production location, noting current inventory should meet demand through 2027.
- Despite the cutbacks, rising gasoline prices linked to geopolitical tensions have increased consumer interest in EVs, with a 25% rise in searches for electric vehicles reported by Cars.com from February to March.
