Volkswagen Group of America (VGoA) announced new plans for its Chattanooga, Tennessee production plant.
Since July 2022, Volkswagen’s Tennessee plant has been churning out both the midsize Atlas SUV as well as its all-electric SUV offering, the ID.4. Now, though, the automaker announced Thursday it plans to change strategy, dropping American production of the ID.4 starting in mid-April. From next week onward, it aims to “shift its primary focus to higher-volume models that support sustained growth in North America”, like the second-generation Atlas.
Despite its decision to drop the ID.4, this isn’t necessarily the end of the EV’s story. Part of the company’s statement notes a future version of the ID.4 is planned for the North American market. So, VW’s electric SUV isn’t going away entirely, but the next-generation version may not be assembled in America, like the current model you can currently buy here.
“Volkswagen is exploring pathways to introduce potential new product intended specifically to meet U.S. consumer needs and in line with the new focus on high-volume vehicles. Details will be announced as decisions are made.”
VGoA emphasized its commitment to the plant and its workers throughout the statement, in at least an indirect nod toward the plant’s recent unionization in February. As part of the shift in production, the company says workers currently supporting ID.4 production will be transferred to other positions in the plant, based on seniority. A “special early retirement program for eligible employees” will also go into effect, so while it won’t directly be laying off employees, it may reduce the overall workforce through early retirement as the Atlas becomes Chattanooga’s sole product (again, at least for now).
