- Volkswagen has canceled the ID.7 sedan in North America.
- The Passat-sized EV was previously slated for launch in Q3 2024.
- VW says that “the ongoing challenging EV climate” is responsible for the decision.
Volkswagen has officially pulled the plug on its plans to bring the ID.7 sedan to the U.S. and Canada. Previously slated to launch in the U.S. in Q3 2024, the ID.7 was delayed last May by the Germans who were, at the time, “committed to making market-driven choices.” Apparently, the market has spoken and the ID.7 isn’t destined for North America, period.
Confirmation comes from The Car Guide which leaned directly from VW’s head of communications in Canada that the brand has canceled plans for the Passat-sized electric sedan in both the U.S. and Canada. Automotive News confirmed VW’s plan, citing a company spokesperson who referenced “the ongoing challenging EV climate” as the reason behind the brand’s decision. This shouldn’t come as a total surprise, though, especially after VW suddenly removed the ID.7 from its U.S. website two weeks ago.
This isn’t just a Volkswagen problem. The EV market as a whole in North America is—to say the least—turbulent. Particularly, the U.S. market is feeling the squeeze of uncertainty as Donald Trump’s re-election has changed the course of government support for electric vehicles. The administration is attempting to roll back EV subsidies previously dolled out by the Inflation Reduction Act, and the price of EVs could skyrocket should his promised tariffs take effect.
Costs are an added challenge for automakers navigating the EV space right now. For a car like the ID.7, which was expected to carry a price tag north of $50,000, losing potential subsidies makes the sedan a tough sell.
The ID.7 already had an uphill battle to win. Not only is it an EV in an increasingly developing market, but it’s also a sedan up against a plethora of crossovers EVs. We all know how insatiable America’s appetite for crossovers can be. The price combined with the limited appeal appeal of the sedan raised red flags within VW’s dealer network. And all of those concerns finally culminated in a corporate decision that’s tough to hear: The VW ID.7 is dead in North America, before it even arrived.
Even if the ID.7 really did have a limited appeal and high price tag, you can’t help but wonder what’s next for VW. The brand hasn’t exactly struck gold with the ID Buzz, especially after critics latched onto the electric van’s weak range and apparent lack of vision. Others, however, loved it, but it doesn’t seem to be a high-volume product for the brand. Perhaps VW’s Project Trinity will help to fill the gap in the brand’s lineup, though that feels like more of a Phaeton-shaped solution than one targeted to be a battery-powered Passat.
Maybe there’s something up the German’s sleeve with its Rivian partnership. Or, perhaps Volkswagen is playing it safe and letting EVs take a back seat. Either way, we Americans will just have to admire the sleek sedan from across the Atlantic from now on.
