VW's ID.7 canceled for U.S. dealers amid 'challenging EV climate'

Volkswagen has officially scrapped plans to bring the ID.7 electric sedan to the U.S. and Canada.

Driving the news: The EV, originally set to launch in North America in Q3 2024, was already delayed and has now been axed entirely due to what VW calls “the ongoing challenging EV climate.”

• The ID.7's cancellation follows VW quietly removing the model from its U.S. website two weeks ago, signaling its fate before the official announcement.

• VW's dealer network voiced concerns over the sedan’s likely high price tag, as well as its limited appeal in an SUV and crossover-dominated market.

Zooming in: The news comes just days after the inauguration of Donald Trump, which has put the future of the U.S. EV market in doubt.

• Automakers have quickly been forced to reevaluate their electrification strategies. During his first day in office, President Donald Trump froze funds intended for EV infrastructure, which may have helped alleviate range anxieties among customers.

• The Trump administration has also vowed to end EV tax credits for consumers, further limiting sales, although such a move may ultimately depend on Congress.

Looking ahead: For now, VW’s electrification strategy remains uncertain. The company is facing an uphill battle of its own after a profitability squeeze in 2024, and may be forced to make even more difficult decisions in the months ahead.

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