Volkswagen has made a significant decision to cancel the introduction of the ID.7 sedan in North America. Initially planned for launch in the U.S. in the third quarter of 2024, the Passat-sized electric vehicle has been scrapped due to what VW describes as “the ongoing challenging EV climate.” This move follows a delay announced last May, where the company stated its commitment to making market-driven choices.
The news of the cancellation was confirmed by The Car Guide, which obtained information directly from VW’s head of communications in Canada. Additionally, Automotive News cited a company spokesperson referencing the difficult landscape for electric vehicles as the primary reason for the decision. The recent removal of the ID.7 from VW’s U.S. website further solidified the brand’s shift in strategy.
The challenges faced by Volkswagen in North America are reflective of the broader issues in the EV market. With the uncertain political climate affecting government support for electric vehicles, the U.S. market is experiencing turbulence. The potential rollback of EV subsidies and proposed tariffs could significantly impact the pricing of EVs, making vehicles like the ID.7 less appealing to consumers.
Cost considerations also played a role in VW’s decision to cancel the ID.7. With an expected price tag above $50,000, the sedan faced stiff competition in a market dominated by crossover EVs. The limited appeal of sedans further compounded the challenges for VW, leading to concerns within the dealer network and ultimately resulting in the cancellation of the ID.7 for North America.
Looking ahead, it remains to be seen what Volkswagen’s next steps will be in the EV space. While the ID Buzz has faced criticism for its range and vision, Project Trinity could offer a solution to fill the gap in the brand’s lineup. The partnership with Rivian may also present new opportunities for Volkswagen in the electric vehicle market.
As Americans will no longer see the sleek ID.7 on their roads, the cancellation serves as a reminder of the complexities and uncertainties in the evolving EV landscape. Despite the setback, Volkswagen continues to navigate the challenges of the market, with a focus on innovation and sustainability in its future endeavors.