Volkswagen ends ID.4 production at Chattanooga plant

Volkswagen will cease ID.4 assembly at its Chattanooga, Tennessee plant from mid-April 2026, redirecting production capacity toward the second-generation Atlas sport utility vehicle for model year 2027. The new Atlas is due to begin production this summer and reach dealerships in autumn 2026, with the model having ranked as Volkswagen’s second best-selling vehicle in the US for the past three years.

Existing model year 2026 ID.4 inventory is expected to support US customer demand into 2027. Volkswagen said a future version of the ID.4 for the North American market remains planned, with details to follow. The company attributed the production shift to ongoing uncertainty in the US electric vehicle market and a strategic focus on higher-volume products.

Volkswagen Group of America said it is also exploring the introduction of a new model at Chattanooga tailored to US consumer demand, though no timeline has been confirmed. Hourly workers currently assigned to ID.4-specific roles will be transferred to other positions within the plant based on seniority and in consultation with the local union, with an early retirement programme offered to eligible employees.

In a statement, Kjell Gruner, President and Chief Executive Officer of Volkswagen Group of America, said: “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.”

Source: Volkswagen