Affordable EVs are on a lot of people’s minds these days, but one name is conspicuously absent from the conversation. Volkswagen (VW) launched its ID family of electric vehicles (EVs) seven years ago with the promise of electric mobility for “the millions, not millionaires.” However, in the United States, that promise remains unfulfilled.
The VW Group has invested heavily in its luxury brands, Audi and Porsche, even creating the new Scout brand to compete with Rivian. Meanwhile, its flagship brand seems to have stagnated. Currently, VW only offers the aging ID.4 crossover in the U.S. market—a troubling situation for a project that once held great promise for making EVs accessible.
The ID Vision
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In the wake of the “Dieselgate” emissions scandal, Volkswagen shifted its focus to EVs as a means to rehabilitate its image and comply with stricter emissions regulations. The introduction of a flexible architecture called MEB aimed to support multiple models built in large volumes, thereby creating the economies of scale necessary for affordable, profitable EV production.
VW’s first MEB-based model, the ID.3, was launched in Europe, designed like a compact hatchback reminiscent of early 1990s designs. The name was symbolically chosen to denote its importance—similar to the original Beetle and the Golf, which revolutionized compact car design. By 2028, VW projected it would offer 50 electric models, contributing to 15 million cumulative global sales.
Understanding American consumer preferences, VW opted to launch the ID.4—a crossover SUV—to compete with market staples like the Toyota RAV4. Production was planned at its Tennessee factory, with pricing set competitively at around $35,000.
The ID.4 Reality
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Initially, VW fulfilled its commitment with the ID.4, launched in 2021. While it presented as a somewhat generic vehicle, it successfully entered the market, equipped with 260 miles of range and a starting price of $41,190. An all-wheel drive variant was introduced shortly after, and production ramped up significantly at the Tennessee facility.
In 2023, VW sold a high of 37,789 units, but subsequent issues—including a door-latch recall—led to a production halt that negatively impacted sales in 2024. Production resumed just as federal EV incentives were canceled, as well as amidst economic turbulence, reducing the overall sales to 23,373 units for that year. Unfortunately, the combination of a production slowdown and increasing competition left the ID.4 struggling; only 248 vehicles were delivered in Q4.
The ID.4 is now considered an older model by industry standards, falling behind competitors such as the Hyundai Ioniq 5 and Kia EV6. With a maximum range of about 290 miles per charge and escalating prices reaching around $45,000, it struggles to compete with the more affordable yet superior alternatives available in the market.
Distractions
Volkswagen
What led to this state of affairs? A case of mission creep is partly responsible. VW did launch a cheaper version of the ID.4 for the 2023 model year, yet it still remained just below $39,000, offering only 209 miles of range—the pricing falling short of initial expectations.
At the same time, VW diverted its focus to two models that have failed to gain traction. The ID.7 sedan, with sleek design, was always an uphill battle in the U.S. market, where sedan sales have dwindled. Despite efforts to promote the ID.7, it was eventually shelved before sales could begin.
Additionally, VW has been teasing a modern reinterpretation of the iconic Microbus, based on MEB architecture. The production model, ID.Buzz, didn’t reach the U.S. until 2025, and only in an overpriced form that attracted minimal interest. As of now, the ID.Buzz has been paused for the 2026 model year, possibly affecting its initial appeal among American consumers.
Can VW Turn Things Around?
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It’s easy to view VW’s faltering EV initiatives as indicative of the company’s inability to grasp the nuances of the U.S. market—a challenge that previously contributed to the Dieselgate scandal. Nonetheless, fresh reports indicate a potential turn of fortunes. According to Automotive News Europe, the forthcoming refresh of the ID.4 may rebrand it as the ID.Tiguan. This change would align it more closely with the popular Tiguan name, likely offering a familiar entry point for American consumers.
If executed well, the refreshed ID.4/Tiguan could still hold relevance in a market favoring small electric crossovers. With a domestic manufacturing base that many competitors envy, VW’s path to becoming a trustworthy player in the EV sector remains plausible. While the ambition behind the original ID project may have dimmed, the demand for affordable, practical electric vehicles is still as strong today as it was at its inception.
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