By Kalea Hall

DETROIT, April 9 (Reuters) – Volkswagen said on Thursday it will ‌end production of the ID.4 electric ‌SUV out of its Tennessee plant this month, ​citing a challenging time for the U.S. electric vehicle market.

Automakers have scaled back or canceled production of EVs after the federal ‌government last ⁠fall ended the use of a $7,500 tax credit toward the purchase ⁠of an EV.

* Volkswagen is shifting production at its Chattanooga,Tennessee, plant to its ​higher-volume gas-powered ​SUVs, theAtlas and ​Atlas Cross Sport. * The ‌automaker will launch production this summer of aredesigned version of its Atlas midsize SUV, scheduled to go onsale in 2027. * Volkswagen is planning a future version ‌of the ID.4 forthe North ​American market, but did ​not provide ​timing on itsrelease. * The current ‌inventory of ID.4 is ​expected to ​last into2027. * ID.4 sales declined 62% year-over-year in the fourthquarter of 2025. * Volkswagen will ​still ‌offer the ID. Buzz electric van inthe ​U.S. market.

(Reporting by Kalea Hall; ​Editing by Jan Harvey)