Volkswagen announced it will cease production of its ID.4 electric crossover at its U.S. manufacturing facility, ending production of the automaker's only American-made electric vehicle. The decision comes after the electric crossover struggled with sales in recent years.

The ID.4 was Volkswagen's primary electric vehicle offering in the American market, manufactured domestically as part of the company's push into the electric vehicle sector. Despite initial expectations, the model failed to gain significant traction with U.S. consumers.

According to reports, Volkswagen has sufficient inventory of the ID.4 to last into 2027, indicating the extent of the sales shortfall. The decision reflects broader challenges automakers face in the U.S. electric vehicle market, where consumer adoption has been slower than anticipated in some segments.

The move represents another instance of an automaker scaling back electric vehicle production in favor of traditional gasoline-powered SUVs in the American market. Volkswagen has not announced immediate plans for a replacement electric vehicle to be manufactured in the United States.

The company's decision to halt U.S. production of the ID.4 may impact its broader electrification strategy in North America, though Volkswagen continues to offer electric vehicles imported from other markets.