Volkswagen plans to launch new electric models from its core VW brand in the U.S. only toward the end of the decade, keeping the focus on the ID.4 and ID. Buzz in the meantime. VW U.S. chief Kjell Gruner also sees no market potential for the upcoming compact ID. Every1 in the U.S., despite its Rivian technology.
Volkswagen is also abruptly revising the production strategy at its Chattanooga plant, phasing out ID.4 manufacturing in the coming days. The facility will instead concentrate exclusively on the second-generation Atlas, a large SUV with a combustion engine.
Kjell Gruner revealed the move during a media roundtable in New York, and Volkswagen’s Wolfsburg headquarters later confirmed it to Automobilwoche. The report attributes the planned pause in launching additional electric models in the U.S. to several factors, including the suspended $7,500 EV tax credit, U.S. tariff policies, and limited local production capacity.
Only SSP, some SDV
Volkswagen plans to bring new electric models to the U.S. only with its future SSP platform toward the end of the decade, a company spokesperson said. One candidate is an electric version of the VW Atlas, the large SUV tailored to the US market, though reports about such a model have circulated for years.
The Scalable Systems Platform (SSP) is designed as a highly flexible architecture for battery-electric vehicles across volume and premium segments, with Volkswagen outlining a total of eight SSP derivatives.
Kjell Gruner also highlighted Volkswagen’s partnership with Rivian on a new software-defined vehicle (SDV) architecture during the media roundtable. Volkswagen plans to debut the SDV software in the ID. Every1, scheduled for 2027.
However, the small electric car is unlikely to reach the U.S. market due to weak demand for compact models, where only compact SUVs are considered viable. Based on the timeline and Gruner’s earlier comments, the upcoming ID. Polo, set to launch this year, also has no prospects in the U.S. If the VW ID. Cross small SUV has a chance, is not clear.
Scout
Alongside marketing the ID.4, which was produced directly in the US, and the ID. Buzz, imported from Hanover, Germany, Volkswagen will initially focus on reviving the Scout brand in North America. Under this brand, Volkswagen plans to sell pick-ups and SUVs. While these models were originally intended to be fully electric, they are now expected to launch first with a range extender.
After delays in planning, Volkswagen now expects to deliver the first Scout vehicles in 2028 instead of 2027. It remains unclear whether the models will feature Rivian’s software. U.S. CEO Kjell Gruner welcomed the partnership, saying: “This is exactly the technology we need. It’s not just about software but also about hardware. You need a computing architecture and software that work together seamlessly.”
ID. Buzz
There’s been some confusion around the Volkswagen ID. Buzz’s skipping of the 2026 model year in the U.S. “We just skip the model year ‘26 with the ID. Buzz,” said Gruner. “We just go directly from ‘25 to ‘27.” The CEO assured the media that there wouldn’t be a gap in dealer inventory: “Against other rumors, there’s a consistent offer in the market.”
Gruner explained the decision as a simple matter of supply and demand: “We just looked at demand, supply, and then said, is it worth it to launch model year ‘26? Also, in terms of complexity reduction, we just said, we skip that part and go directly to 2027.”
ID. Buzz sales boomed globally to 60,700 units in 2025, a 102% YOY increase, but only 7,300 of those sales happened in the U.S. 2025 Buzz models are still common on U.S. dealer lots, some advertised with deep five-figure discounts.
VW Group’s American CEO assured that “there’s always going to be a Buzz out there,” confirming that 2027 production will start “in the summer” with deliveries reaching customers by early fall.
ID.4 production no longer in the U.S.
The prioritization of the large combustion-engine SUV Atlas over the mid-sized all-electric ID.4 at Volkswagen’s Chattanooga plant is primarily linked to changes in U.S. policy. Following the Trump administration’s decision to withdraw the $7,500 tax credit for electric vehicle purchases as of 30 September 2025, demand for EVs has dropped significantly.
Like most other manufacturers, Volkswagen has been affected by this shift: according to Cox Automotive, the company sold just 248 ID. 4s in the USA in the fourth quarter of 2025. Prior to the incentive’s expiration, however, sales had been growing, resulting in a 31.4% increase for the full year and more than 22,000 units delivered. However, in light of the newly announced decision, a near-term recovery in ID.4 sales in the USA appears unlikely.
“The Chattanooga plant has been, and will continue to be, a cornerstone of Volkswagen’s strategy in the United States,” said 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.”
Volkswagen will halt production of the ID.4 at its Chattanooga plant by mid-April. The 2026 model year ID.4 will continue to be offered in the USA from existing inventory, which the company expects will be sufficient to cover customer demand through 2027.
Volkswagen is keen to stress that the production halt in the USA does not mark the end of the ID.4 in the American market. A successor or updated version is already planned for North America, with further details to be announced at a later stage. According to IG Metall, the model is also expected to be rebranded as the ID. Tiguan as part of an upcoming facelift, potentially leveraging the strong market position of the combustion-engine Tiguan in the United States.
Volkswagen just presented the updated Atlas at the New York Auto Show. Around ten years after its debut, the model entered its second generation as a 5.12-meter flagship SUV with three rows of seats, continuing its strong appeal among US buyers. The Atlas is currently Volkswagen’s second-best-selling model in the United States, behind the smaller combustion-engine Tiguan.
