Volkswagen has unexpectedly postponed the U.S. launch of its ID.7 model, withdrawing the electric vehicle even before its market debut. This news comes as a disappointment to those eagerly awaiting the new model. But what led Volkswagen to make this decision? Here are the reasons and all the details behind this surprising move.
Volkswagen ID.7 Unable to Compete in the U.S. Market! Withdrawn Before Launch
Volkswagen’s ID.7 was scheduled to arrive at U.S. dealerships by the end of this year. However, the German automotive giant decided to delay the launch unexpectedly, citing “changing market dynamics.” Interestingly, American Volkswagen dealers support this decision, as they fear significant losses.
Dealers believe that this electric car, priced over $50,000, would struggle to sell in the U.S. market and would lead to substantial financial losses. Since the ID.7 is manufactured in Germany, it does not qualify for the $7,500 federal tax credit in the U.S., making it a costly option before even hitting showrooms.
According to John Luciano, owner of Street Volkswagen and member of the Volkswagen National Dealer Advisory Council, a sedan without the Mercedes-Benz, Audi, or BMW logos would struggle to be competitive at this price point in the U.S. market.
Volkswagen’s sedan sales in the U.S. have been lackluster in recent years. While the Jetta remains popular, the Passat was withdrawn due to poor sales. The ID.7 was intended to replace the Passat and Arteon, which also struggled to gain traction. SUVs are more popular in the U.S. market, and Volkswagen is adjusting its model lineup to focus more on SUVs.
Since its launch in Europe, the ID.7 has mainly seen demand in Germany. The North American launch date is now uncertain, casting doubt on the future of the ID.7 in the U.S. market. If Volkswagen revises its pricing and feature strategy, the ID.7 might have a chance to succeed in the U.S. However, without these changes, the ID.7 risks becoming obsolete before even hitting the market.
We’ll have to wait and see how Volkswagen will adjust its strategies for the ID.7 electric vehicle model. What are your thoughts on Volkswagen’s decision? Feel free to share your opinions with us…
