Amid a general slump in terms of demand for all-electric vehicles across the globe, most automakers have dialed back investments and even delayed or canceled certain models. That includes Ford, which nixed plans to build a pair of three-row EV crossovers and will instead expand its hybrid offerings. As for Ford’s partner and rival, Volkswagen, it resisted those same types of changes for some time, at least, until it began to suffer financially, and ultimately decided to pivot to hybrids as well. Now, in the latest piece of EV-related fallout, VW has opted to cancel plans to bring the ID7 EV sedan to North America, too.
Back in May 2024, VW announced that it would be pushing back its planned launch date for the ID7 in North America, an all-electric sedan that’s been on sale in Europe since 2023, and is also sold in China. However, the automaker didn’t provide any sort of timeline – merely citing changing market dynamics as the reasoning behind its decision, noting that the same model is at least enjoying strong demand and critical acclaim in Europe. Now, according to Automotive News, the ID7 won’t be coming to that continent at all.
The Volkswagen ID7 was originally slated to arrive in the U.S. and Canada in Q3 2024, but now, it won’t be sold in either country. A VW spokesperson cited “the ongoing challenging EV climate” as the driving factor behind this decision. “Electric vehicles continue to be a core part of Volkswagen’s long-term product strategy, and new electric models will continue to be introduced for this market,” the spokesperson added.
Dealers were reportedly concerned that the ID7 would be priced a bit too high with a rumored MSRP of between $50,000 and $60,000, which could have also played a role in this cancelation. Regardless, facing plenty of financial headwinds, VW was recently in serious danger of closing several plants in Germany, but it did manage to strike a deal with its works council that will keep all 10 of the automaker’s European plants operational until 2030.
Comments
Probably the right move. With sedan sales declining and EV sales growing slower than expected, this car had two strikes against it. A $60,000 price would have relegated it to a niche vehicle at best.
This was news a month ago.
Electric autos with no tax credit with the Trump Administration will stop electric autos sales !
Won’t stop sales but will slow them. Remember, people buy expensive gas cars. If someone wants an EV, they won’t let the tax credit stop them from getting one. Manufacturers will probably start offering better lease deals to get them out the door, which will help.