Volkswagen Takes $600M Loss Halting US EV Production in Tennessee

Key Details Volkswagen will record between $480 million to $600 million in writedowns during the first quarter after deciding to stop making the ID.4 electric SUV at its Chattanooga, Tennessee plant. The charge represents 60% to 75% of the original $800 million investment VW spent to retool the facility for EV production. Why It Matters ID.4 sales in the US collapsed 96% in the first quarter following the removal of federal EV tax credits. This dramatic demand drop forced VW's hand to halt production of its only American-made electric vehicle. The decision reflects broader industry struggles as automakers including GM and Ford have also taken multi-billion dollar writedowns while scaling back EV and battery investments. Looking Ahead VW's core brand continues facing headwinds in the second-largest car market, with tariffs and a product lineup weak on popular rugged SUVs and pickup trucks. Despite the writedown charge, VW expects earnings before interest and taxes to improve versus the prior year, though first-quarter margins remain uncertain. The company reports full first-quarter results on April 30.