Volkswagen just stopped making their electric ID.4 SUV at their Tennessee factory. Instead, they’re switching back to building their gas-powered Atlas SUV at the same plant.
This is a big deal because it shows how car companies are backing away from electric vehicles in America. While everyone thought 2024 would be the year EVs took off, many automakers are now pumping the brakes and going back to what sells: big gas-powered SUVs.
Following the Money
Volkswagen isn’t alone in this shift. The company realized that Americans still prefer large, familiar SUVs over electric alternatives. The Atlas has been a reliable seller for VW, while the ID.4 struggled to find its audience despite decent reviews.
The move makes business sense but signals a retreat from the electric revolution that seemed inevitable just two years ago. VW invested heavily in the Tennessee plant to build EVs, but consumer demand hasn’t matched the hype.
Dealers report that customers still worry about charging infrastructure, battery life, and the higher upfront costs of electric vehicles. Meanwhile, gas prices have stabilized, making traditional SUVs more attractive again.
What’s Next
Expect more automakers to make similar moves in 2024. Companies are realizing that the transition to electric might take longer than predicted, especially for larger vehicles. VW will likely continue making the ID.4 at other plants, but this Tennessee decision shows they’re prioritizing profits over their electric ambitions.
For car buyers, this means more gas-powered options will stick around longer than expected.
