Volkswagen will stop building the ID.4 in Chattanooga in mid-April 2026. The Tennessee plant will instead focus on the next-generation Atlas. Company says another U.S.-focused model could eventually join the lineup. The ID.4 was billed as Volkswagen’s Model Y rival, the first flag planted in its EV endeavors. Now, it’s looking more and more like that future is on hold. The automaker announced today that it will end assembly and production of the ID.4 at its Chattanooga, Tennessee, plant this month. Instead, it’ll begin building higher-volume gas-powered models starting with the all-new second-generation Volkswagen Atlas. This is a big shift for the German brand. Chattanooga became the North American home of the ID.4 in 2022, and the future looked bright at the time. Since then, the automaker has seen demand diminish, prices rise, and uncertainty grow in the EV market. “The EV market continues to challenge the industry, requiring measured decisions throughout the last few years to navigate this unpredictability,” Volkswagen said in a statement. Read: VW Warns Hundreds Of EV Owners To Park Outside Immediately After Charging “The Chattanooga plant has been, and will continue to be, a cornerstone of Volkswagen’s strategy in the United States,” said Volkswagen Group of America President and CEO Kjell Gruner. “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.” Importantly, the ID.4 isn’t going away immediately. VW expects 2026 model-year inventory already built to keep the crossover available into 2027. The company also insists that another version of the ID.4 is still planned for North America, although no timeline or details were provided. It did hint that another high- volume car designed specifically for American buyers could pop up in Tennessee at some point, but didn’t go beyond that. Right now, the brand needs high-volume hits, so it’s easy to see why the ID.4 isn’t remaining in production. While it was up in 2025 over the previous year, much of that was driven by high demand as federal tax credits ran out. For now, workers at the plant will simply move from working on the ID.4 to working on the Atlas. Some eligible workers will have the opportunity to retire early should they desire to.