Volkswagen is offering $12,500 in customer cash on remaining 2025 ID.4 electric SUVs in the US, clearing out stock five months after ending production of the model at its Chattanooga, Tennessee plant.
Buyers can apply the bonus to the purchase or lease of a new 2025 ID.4, Electrek reported on Friday, citing Volkswagen’s current offers.
Volkswagen describes remaining inventory of the 2025 model as “very limited.”
The brand calls the incentive a “Customer Bonus,” and it runs until November 2 for private buyers at participating dealers, excluding fleet sales, according to KBB and autoevolution.
By comparison, Volkswagen is offering $2,000 on the Taos and $3,000 on the similarly sized Tiguan, according to the same report.
Chattanooga Switches to Atlas
Volkswagen confirmed on April 9 that it would stop building the ID.4 in Chattanooga from mid-April, ending production of its only US-built electric vehicle and shifting the plant’s focus to the gas-powered second-generation Atlas.
Atlas production was scheduled to begin in the summer, with the SUV reaching dealerships in the fall as a 2027 model, according to the company’s announcement.
Tennessee plant operations will focus on “higher volume models that support sustained growth in North America,” the automaker said at the time.
“The EV market continues to challenge the industry, requiring measured decisions throughout the last few years to navigate this unpredictability,” Volkswagen said in a statement then.
Volkswagen Group of America President and CEO Kjell Gruner called the move “a strategic shift” that positions Chattanooga “for long-term success and future product opportunities.”
Hourly workers in ID.4-specific roles were to be transferred to other positions within the plant based on seniority and in consultation with the local union.
In April, Volkswagen said existing model year 2026 inventory would “support US customer demand into 2027.”
The current $12,500 incentive suggests stock of the older model year is still moving slowly.
Chattanooga began series production of the ID.4 in July 2022, following an $800 million investment to electrify the plant, including dedicated vehicle and battery pack assembly facilities, according to Volkswagen’s newsroom.
Sales Collapse After Credit Expiry
US demand for the ID.4 fell sharply after President Donald Trump’s “big, beautiful bill,” signed in July 2025, eliminated the $7,500 federal EV tax credit at the end of September 2025.
The ID.4 had not qualified for the purchase credit since January 2025 because of battery-sourcing rules, but Volkswagen passed the lease version of the credit to customers as lease cash.
Buyers rushed to secure the credit before its expiry.
ID.4 sales jumped 176.0% year over year to 12,470 units in the third quarter of 2025.
Demand then collapsed.
First-quarter 2026 ID.4 sales plunged 95.6% to 338 units, according to Volkswagen of America data.
First-half 2026 sales reached 2,205 units, down 77.2% from 9,655 a year earlier.
Broader US EV sales fell 27.0% in the first quarter, according to Cox Automotive, which described the decline as a “necessary reset” after the credit expiry.
Volkswagen also recalled 44,551 ID.4 vehicles in the US in January over battery fire risk, a defect traced to misaligned electrodes in battery cells supplied by SK Battery America.
Gas-powered SUVs moved in the opposite direction.
Tiguan sales rose 55.2% in the first quarter and climbed 152.5% year over year in the second quarter, according to Volkswagen of America data.
Separately, Volkswagen recalled 44,551 2023 to 2025 model-year ID.4 vehicles in the US in January over battery fire risk, a defect traced to misaligned electrodes in battery cells supplied by SK Battery America.
ID. Tiguan to Replace ID.4
Volkswagen said “a future version of ID.4 is currently planned for the North American market,” without giving a timeline.
The successor will carry the ID. Tiguan name, following the ID. Polo and ID. Cross in Volkswagen’s revamped European electric lineup.
IG Metall Emden confirmed the name change earlier this year, according to electrive, which reported the SUV will premiere in October.
The ID. Tiguan will replace the ID.4 at Volkswagen’s Emden plant in Germany, which will be its only production site.
Prototypes spotted in testing show a boxier, more conventional SUV design than the rounded ID.4, with new doors and pop-out handles, according to Electrek.
Inside, the ID. Tiguan is expected to adopt the interior first used in the ID. Polo, including a new infotainment system and physical buttons that Volkswagen restored after driver feedback.
The SUV will use the updated MEB+ platform, Carscoops reported.
Emden currently builds the ID.4 and ID.7.
The plant is one of four German plants placed on notice as VW Group backs 50,000 additional job cuts.
Der Spiegel first reported, and Reuters confirmed through a source, earlier this month that the group had earmarked €16 billion ($18.2 billion) for job cuts and plant closures.
ID. Buzz Also Pushed Back
Clearance of the ID.4 comes as Volkswagen delays the US return of the ID. Buzz for a second time.
The electric van will skip the 2027 model year and return as a 2028 model in the first half of 2027, Volkswagen told US dealers on Thursday, according to Automotive News.
Just 38 new 2025 ID. Buzz vans remained in dealer inventory nationwide, according to Cars.com data.
Volkswagen sold 6,140 ID. Buzz vans in the US in 2025.
Built in Hanover, Germany, the ID. Buzz never qualified for the $7,500 federal credit and faces US import tariffs.
By May, Volkswagen was offering $7,500 in incentives on the van, with at least one dealer cutting the price by more than $20,000, Carscoops reported.
