Volkswagen announced on Thursday that it will no longer assemble ID.4 vehicles at its Chattanooga plant.
The company said it will prioritize the launch and production of the new second-generation Atlas.
Volkswagen says this second-generation Atlas has a bolder design, smarter technology and premium features.
Volkswagen is not getting rid of the ID.4, though. In a news release, the company said the vehicles will still be available to customers with its current inventory. Volkswagen plans to release future models of the ID.4 as well.
In addition, Volkswagen stated that it is looking to add another vehicle model to be assembled at the Chattanooga plant.
Volkswagen will begin production of the 2027 Atlas this summer. They will be available in dealerships in fall 2026.
The change comes due to the electric vehicle market trends. Volkswagen states that it is focusing on higher-volume products that meet market demand, and that the Atlas has been one of its best-selling models over the last three years.
Chattanooga’s Volkswagen plant will stop assembling ID.4 vehicles in mid-April.
According to the news release, the company has already informed employees of the upcoming change.
Hourly employees with ID.4-specific roles will be transferred to other positions in the Chattanooga plant. Those new positions will be based on seniority and consultation with the union. Volkswagen said it will also offer an early retirement program to eligible employees.
“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.”
