Summary
- Volkswagen has decided to drop its plan to bring the ID.7 to North America due to the new administration’s plan to cut EV incentives
- The ID.7 is selling well in Europe but postponed for the US in May 2024
- The US EV market is still heavily lopsided toward Tesla
- The decision is likely bad news for Volkswagen factory jobs in Germany
- The new administration is seen as bad for the electric vehicle market
Article
The Volkswagen ID.7 has become the first casualty of the new administration’s plan to cut EV incentives, leading to the decision to drop the plan to bring the ID.7 to North America. Despite being a flagship EV model for Volkswagen and selling well in Europe, the ID.7 will not be coming to the US. The vehicle has been a top seller in Europe, trailing only Tesla’s popular models and a few other EVs. However, Americans are not currently interested in buying sedans, and the price point of the ID.7 may not have been appealing to the US market.
It is speculated that the ID.7 may not be the only casualty, as other automakers may have quietly decided not to develop or release certain EV models in the US due to the uncertainty in the market brought about by the new administration. Companies prefer stability in a market, and the current political climate is creating a lot of uncertainty for the EV industry. Volkswagen had already postponed the launch of the ID.7 for the US back in May 2024, and plans were in place for deliveries to start in the third quarter of 2024.
The change in plans for North America with the ID.7 could also have negative implications for Volkswagen factory jobs in Germany, as there were no plans for North American production of the vehicle. This decision could impact the Emden plant in Germany, where the vehicles for the US market would have likely been manufactured. The US EV market is not as strong as in Europe or China and is still largely dominated by Tesla, although its market share has decreased to about 45% of EV sales.
The overall outlook for the electric vehicle market in the US is not positive under the new administration, as President Trump is known for being opposed to clean technologies, including electric vehicles. While the US market is not the best in the world for EVs, there is hope for change in the future. Unfortunately, the US market will not get to experience the Volkswagen ID.7, but there is always the possibility that the decision may be reversed in the future. Support for independent cleantech coverage is essential to helping accelerate the cleantech revolution and bring about positive change in the electric vehicle industry.
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