Ford Mustang Mach-E Rival Pauses Production Amid Demand Slump

Amid a general slowdown in terms of demand for all-electric vehicles, automakers have altered their plans in that regard in major ways as of late. For The Blue Oval, that means pushing back planned redesigns for models like the Ford Mustang Mach-E until the end of the current decade, while the next-generation Ford F-150 Lightning and E-Transit won’t enter production until 2028. Now, Volkswagen has opted to pause production of the ID.4, a direct Ford Mustang Mach-E rival, due to this slump.

According to the Chattanooga Times Free Press, Volkswagen will pause production of the ID.4 at its plant in that same city in Tennessee in late October, and as a result, around 160 workers at the plant will be placed on furlough. Those workers will receive 80 percent of their base compensation and retain benefits while on furlough, according to Volkswagen spokesperson Michael Lowder, supplementing the state’s unemployment benefits.

“This adjustment in no way changes our commitment to the ID.4, our growing EV portfolio or our commitment to our Chattanooga team,” Lowder said. “This is a market-driven decision, based on aligning our production volume to market demand.” It’s unclear how long this pause will last, however, though VW does employ around 4,000 full-time workers at its Chattanooga plant.

ID.4 sales plummeted a whopping 65 percent from April through June compared to the same time period in 2024, totaling just 2,000 units. At least part of this can be blamed on the fact that the EV crossover lost its eligibility for the $7,500 federal tax credit back in January, but it’s also fair to note that VW’s entire lineup – except for the ID.Buzz and Golf R – experienced a drop in sales over the past quarter. As Ford Authority reported back in May, VW plans to launch a series of hybrids in the U.S. in the coming years to compensate, which it hasn’t offered in that country since 2016.