Among the requirements of Volkswagen's Dieselgate settlement with the Department of Justice back in 2016 was to start building electric vehicles locally at the company's factory in Chattanooga, Tennessee. That was a reality by 2021, when we drove our first US-made VW ID.4. Five years later, VW is moving on. After mid-April, no more ID.4s will roll down Chattanooga's assembly line, which instead will be reconfigured for the brand's newly revealed gasoline-powered Atlas SUV.
The ID.4 was well-received when it debuted in 2021, and the model had a mostly strong 2025, selling 31 percent more than the year before. But sales of the electric VW collapsed after the Trump administration abolished the clean vehicle tax credit at the end of Q3 2025; the next three months saw ID.4 sales fall by 62 percent year over year.
VW is gambling that Americans will instead want more gas-powered SUVs—probably a decision made before Trump started a war in the Middle East that has increased the price of gasoline by more than a dollar per gallon in the last few weeks. Snark aside, the Atlas is VW's second-best seller here, and VW wants the second-gen Atlas in dealerships by this fall.
