by Decline in Volkswagen ID.4 Sales in the US
The second quarter proved particularly unsuccessful for the ID.4 electric crossover in the American market, where sales fell by 65 percent. In response, Volkswagen decided to reduce production of this model at its Chattanooga plant starting from the end of October. This decision will lead to the temporary layoff of 160 employees. However, the company guarantees that employees will receive 80 percent of their base salary and retain all benefits.
Strategic Changes and Company Comments
The ID.4 was initially positioned as Volkswagen’s answer to the Tesla Model Y, which is the world’s most popular electric vehicle. However, reality turned out to be less optimistic. A brand representative noted:
This is a market-oriented decision aimed at aligning production volumes with demand. It in no way affects our commitment to the ID.4, the expansion of our electric vehicle portfolio, or our team in Chattanooga.
Production of other models, such as the Atlas and Atlas Cross Sport, will remain unchanged.
Sales Dynamics and Market Trends
Sales statistics clearly demonstrate the reasons for these changes: for the first half of 2025, ID.4 sales in the US fell by 19 percent, and in the second quarter the decline was already 65 percent. This trend is not new — even in 2024, Volkswagen sold only about 17 thousand units compared to 38 thousand in 2023.
The global electric vehicle market continues to grow, but competition has intensified significantly. Many manufacturers, including Volkswagen, are facing the fact that consumers are increasingly choosing models with more favorable leasing terms or technological advantages. The reduction in ID.4 production may be a temporary measure while the company adapts its strategy to new challenges.
