US version of the ID.4Image: VWVolkswagen only just presented the updated Atlas at the New York Auto Show. Around ten years after its debut, the model enters its second generation as a 5.12-metre flagship SUV with three rows of seats, continuing its strong appeal among US buyers. The Atlas is currently Volkswagen’s second-best-selling model in the United States, behind the smaller combustion-engine Tiguan.The prioritisation of the large combustion-engine SUV Atlas over the mid-sized all-electric ID.4 at Volkswagen’s Chattanooga plant is primarily linked to changes in US policy. Following the Trump administration’s decision to withdraw the $7,500 tax credit for electric vehicle purchases as of 30 September 2025, demand for EVs has dropped significantly.Like most other manufacturers, Volkswagen has been affected by this shift: according to Cox Automotive, the company sold just 248 units of the ID.4 in the USA in the fourth quarter of 2025. Prior to the incentive’s expiration, however, sales had been developing positively, resulting in a 31.4% increase for the full year, with more than 22,000 units delivered.However, in light of the newly announced decision, a near-term recovery in ID.4 sales in the USA appears unlikely.“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.”As part of its shift towards higher-volume models aligned with market demand, Volkswagen will halt ID.4 production at its Chattanooga plant by mid-April—just days from now. The 2026 model year ID.4 will continue to be offered in the USA from existing inventory, which the company expects will be sufficient to cover customer demand through 2027.Volkswagen is keen to stress that the production halt in the USA does not mark the end of the ID.4 in the American market. A successor or updated version is already planned for North America, with further details to be announced at a later stage.However, it remains unclear whether this future model will be built locally. One possibility is an import from Germany, where the ID.4 is currently produced in Zwickau and Emden, with manufacturing set to be consolidated at the latter. According to IG Metall, the model is also expected to be rebranded as the ID. Tiguan as part of an upcoming facelift—potentially leveraging the strong market position of the combustion-engine Tiguan in the United States.It also recently emerged that Volkswagen does not intend to launch any additional electric models in the USA for the time being, focusing instead on the ID.4 and the ID. Buzz. The next all-electric model is not expected to reach the US market until the end of the decade and will be based on the new SSP platform. At the same time, the group is pushing ahead with the revival of the Scout brand, under which Volkswagen plans to offer pickups and SUVs as both battery-electric vehicles and range-extended models.vw.com