VW's Most Mediocre Vehicle Is Dying So Gas SUVs Can Thrive

1 day, 14 hours ago - 12 April 2026, carbuzz

Volkswagen EVs just can't catch a break. Only a few weeks after announcing that the ID. Buzz electric van would skip the 2026 model year due to excessive stock, the automaker confirmed that its assembly plant in Chattanooga, Tennessee, would cease production of the ID.4 in order to free up capacity for the second-generation Atlas family SUV.

The last ID.4 will roll off the American-market assembly line in the next week or so, making 2026 the final model year for the company's first long-range EV.

Slow Sales And A Challenging EV Market Kill The ID.4

In 2025, Volkswagen moved 22,373 examples of the ID.4 from its showrooms, an increase of the previous year's 17,021. However, in the final quarter of 2025, only 248 electric VW crossovers found new homes, with the stark dropoff in demand tied to reduced EV tax incentives and a more competitive segment than ever. For example, despite facing the same fiduciary challenges as the ID.4, Hyundai's Ioniq 5 moved 47,000 units, even proving reasonably popular in the challenging fourth quarter thanks to 5,900 shoppers.

Even if the ID.4 matched last year's overall pace and sold around 20,000 units this year, that would still be a drop in the bucket compared to the Atlas, which consistently sells in six-figure numbers when combining both its two- and three-row body styles. For 2025, for example, Volkswagen sold 71,044 Atlases and 31,564 Atlas Cross Sports, far outstripping the sales of the compact electric crossover.

As a result, Volkswagen of America will end production of the ID.4 before the second-generation 2027 Atlas hits the assembly line. The move will allow VW to concentrate on the higher-demand (and likely higher-profit) three-row SUV, whose development and production costs will likely be cheaper thanks to the similarities its platform and engine have with the first-gen Atlas. Meanwhile – and despite its higher price – the ID.4 is likely far more expensive to build owing to its large battery and novel platform.

Is Volkswagen Exiting The EV Market Entirely?

The German automaker says it will have enough stock of the ID.4 to keep up with consumer demand into the first few months of 2027, a story that echoes the ID. Buzz, whose 2025 holdovers are still being offered at dealers despite there not being a 2026 model available. As a result, we're a bit concerned that Volkswagen is turning its back on the relatively fickle EV segment. That said, during a round-table discussion at the New York International Auto Show last week, Volkswagen executives very ardently quashed rumors that the ID. Buzz was being killed off, iterating that the stylish van will return for the 2027 model year, following a reintroduction sometime in late summer or early fall.

The company also says that it will offer "a future version of the ID.4" in America, with specific vehicle details and timing to be announced later. We suspect the followup to the compact SUV will be renamed the ID. Tiguan, a move that would bring it in line with the electric ID. Polo (formerly known as the ID.2). And although the current-generation ID.4 has never truly wowed us with phenomenal range or great value, the automaker's EV concepts, like the ID. EVERY1 subocompact hatch and ID. Cross small SUV, seem like big improvements over its current crop. We hope a classy, crisply styled ID.4 followup arrives soon with improved dynamics and range.