The Atlas is muscling aside the ID.4. Volkswagen has announced that it is discontinuing Tennessee production of the electric ID.4 in order to build more Atlas SUVs at the Chattanooga plant.
The ID.4 launched in the U.S. in 2021 as an import from Germany, but production was added to the Tennessee facility in 2022. It ranked 10th on the latest Cars.com American-Made Index, which scores vehicles based on the impact they have on the U.S. economy.
Sales have dropped off dramatically this year following the end of federal tax credit support for EVs. Volkswagen sold just 338 in the first quarter compared to 7,663 during the same period last year. The company said it has enough inventory to satisfy American market ID.4 demand into 2027. Volkswagen also recently suspended imports of the German-built ID.Buzz electric minivan indefinitely.
“The Chattanooga plant has been, and will continue to be, a cornerstone of Volkswagen’s strategy in the United States,” Volkswagen Group of America President and CEO Kjell Gruner said in a news release. “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.”
Volkswagen revealed the redesigned three-row 2027 Atlas at this year’s New York International Auto Show. It’s an evolution of the original Atlas that launched in 2018, but features new exterior and interior styling. The Atlas is Volkswagen’s second-best-selling model in the U.S. behind the Mexican-made Tiguan compact SUV.
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It will be offered in front-wheel drive and all-wheel drive versions, both powered by a 2.0-liter turbocharged four-cylinder rated at 282 hp and 258 lb-ft, when it goes on sale this fall. Volkswagen plans to add a hybrid during its mid-cycle refresh, but didn’t say exactly when that will be.
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Volkswagen said it is also “exploring pathways to introduce potential new product [to Chattanooga] intended specifically to meet U.S. consumer needs and in line with the new focus on high-volume vehicles.”
