{"id":81254,"date":"2025-03-17T11:17:26","date_gmt":"2025-03-17T15:17:26","guid":{"rendered":"http:\/\/autosector.com\/?p=81254"},"modified":"2025-03-17T11:17:26","modified_gmt":"2025-03-17T15:17:26","slug":"why-vw-cutting-id-4-production-as-us-sales-surge-update","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=81254","title":{"rendered":"Why is Volkswagen cutting ID.4 production just as US sales are surging? [Update]"},"content":{"rendered":"
\n\t\"Volkswagen-ID.4-production\"<\/figure>\n

Volkswagen is cutting production in Chattanooga, Tennessee, where the ID.4 electric SUV<\/a> is built. Although the ID.4 was the third top-selling EV in the US earlier this year behind Tesla\u2019s Model Y and Model 3, a company spokesperson tells us \u201ccautious demand for EVs\u201d is behind the adjustments.<\/p>\n

<\/p>\n

Volkswagen cuts ID.4 production in the US<\/h2>\n

After sales fell by over 50% in the US last year after Volkswagen halted production<\/a> and deliveries, the electric SUV made an impressive comeback in 2025.<\/p>\n

The ID.4 was the third best-selling electric vehicle<\/a> in the US in January, trailing only the Tesla Model Y and Model 3.<\/p>\n

Volkswagen sold nearly 5,000 ID.4s in January alone, putting it on pace to sell about 60,000 by the end of 2025. A company spokesperson told Electrek<\/em> that although \u201cID.4 remains in strong demand, we are adjusting production to align with a lower-than-expected EV adoption rate in the US.\u201d<\/p>\n

\tAdvertisement – scroll for more content<\/span><\/p>\n

The spokesperson added that the lower expectations are not specific to the ID.4 but to the entire US electric vehicle market. <\/p>\n

Starting March 31, Volkswagen will return to a primarily two-shift production schedule. Meanwhile, the body shop for the ID.4 will still run on three shifts.<\/p>\n

\"Volkswagen-ID.4-production\"
Volkswagen ID.4 production at Chattanooga, TN (Source: VW)<\/figcaption><\/figure>\n

Volkswagen said in a statement, \u201cThis decision reflects the need for flexibility and a profitably-run business to support continued investment and growth in the US market.\u201d The company is optimizing production across all sites, adding, \u201cGiven the currently cautious demand for EVs in the U.S., we are adjusting our production in Chattanooga accordingly.\u201d<\/p>\n

Although it didn\u2019t directly say it, Trump\u2019s tariffs on imports from Mexico and Canada are likely the biggest to blame.<\/p>\n

\"Volkswagen-ID.4-best-selling-EV\"
Volkswagen ID.4 (Source: Volkswagen)<\/figcaption><\/figure>\n

Volkswagen said its vehicles made in North America are USMCA compliant, but it\u2019s still expected to see the most damaging blow of German brands from the new tariffs.<\/p>\n

Audi and Porsche are both primarily built in Europe, while Volkswagen brand vehicles in the US are likely imported from Mexico.<\/p>\n

The spokesperson told us that VW is offering a \u201cvoluntary attrition program\u201d with complete benefits, including severance packages, retirement options, and more.<\/p>\n

\"Volkswagen-ID.4-production\"
Volkswagen ID.4 (Source: Volkswagen)<\/figcaption><\/figure>\n

Volkswagen said it remains \u201ccommitted to our team members, our customers, and our presence in Chattanooga,\u201d adding, \u201cThis change supports that commitment.\u201d<\/p>\n

The decision comes after last April\u2019s\u00a0historic decision,<\/a>\u00a0in which<\/span> VW workers at the plant became the first in the South outside of the Big Three to join the Union since 1940.<\/p>\n

On Wednesday, the UAW filed unfair practice charges against VW. In a statement, UAW president Shawn Fain said, \u201cThe UAW has notified the Trump Administration of Volkswagen\u2019s unacceptable, anti-union, anti-worker, and anti-American conduct.\u201d<\/p>\n

In response, VW said<\/a> the \u201cunions claims in its filings from March 13 are categorically false.\u201d The automaker said it \u201chas negotiated with them for months regarding a shift reduction in Chattanooga.\u201d<\/p>\n

It has also \u201crepeatedly educated them on the economics that have led to this difficult decision \u2013 shifting EV demand and an uncertain market.\u201d<\/p>\n

Electrek\u2019s Take<\/h2>\n

As we keep saying, Trump\u2019s tariffs do much more harm than good. Volkswagen is considering moving Audi and Porsche production<\/a> to the US, but it only has until early April before the tariffs kick in.<\/p>\n

Nearly every automaker has warned that added tariffs on its biggest trade partners will put the US further behind China and other emerging tech leaders.<\/p>\n

Some automakers are already turning to China for smart EV tech<\/a> (to sell globally) because it\u2019s cheaper and easier to scale. And this is just the start. Other countries, like Australia, are now opening up to Chinese-made EVs<\/a> and other tech. What\u2019s next?<\/p>\n

\n

FTC: We use income earning auto affiliate links.<\/em> More.<\/a><\/p>\n

\"\"<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Volkswagen is cutting production in Chattanooga, Tennessee, where the ID.4 electric SUV is built. Although the ID.4 was the third top-selling EV in the US earlier this year behind Tesla\u2019s Model Y and Model 3, a company spokesperson tells us \u201ccautious demand for EVs\u201d is behind the adjustments. Volkswagen cuts ID.4 production in the US […]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-81254","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/81254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=81254"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/81254\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=81254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=81254"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=81254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}