
Sales Drop Compels VW To Reduce Production Of Its Model Y Competitor | Carscoops
Sales of the ID.4 have decreased by 19 percent during the first half of the year, prompting VW to cut production at its Chattanooga plant.
The second quarter was particularly challenging for the ID.4 in the US, as sales plummeted by 65 percent.
VW will begin reducing production and will furlough 160 workers at its plant starting in late October.
Employees will receive 80 percent of their base pay and will retain their full benefits.
The ID.4 was intended as VW's competitor to the Tesla Model Y, which is the best-selling electric vehicle worldwide. However, Volkswagen of America has announced it will lower production of the all-electric SUV at its Chattanooga plant, indicating that local sales have not met the expectations of the German brand.
A total of 160 staff members will be furloughed at the plant starting in late October. On a positive note for those affected, VW will provide supplemental support for unemployment through the state of Tennessee, allowing workers to receive 80 percent of their base pay along with full benefits.
Production Adjustments
In an interview with Auto News, a VW representative stated that fewer ID.4s will be produced in each shift moving forward.
"This adjustment does not alter our commitment to the ID.4, our expanding EV lineup, or our dedication to our Chattanooga team," they mentioned. "This is a decision driven by market demand, aiming to align our production volume accordingly."
Although ID.4 production will be reduced, manufacturing of the Atlas and Atlas Cross Sport will continue at their current levels in Chattanooga.
Sales Data Justifies the Changes
A look at the sales figures explains the reasoning behind the production adjustments. In the second quarter of this year, US sales of the ID.4 fell by 65 percent. During the first half of 2025, they decreased by 19 percent. It's clear that it would be impractical for VW to maintain previous production levels in response to insufficient demand.
It is important to highlight that 2025 is not the only challenging year for the electric SUV. Last year, VW managed to sell around 17,000 units in the US, a significant drop from approximately 38,000 sold in 2023.


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Sales Drop Compels VW To Reduce Production Of Its Model Y Competitor | Carscoops
Sales of the ID.4 have decreased by 19 percent during the first half of the year, prompting VW to cut its production at the Chattanooga facility.