VW Indefinitely Delays ID.7 Launch in North America

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VW has postponed the ID.7 launch in the U.S. and Canada for an indefinite amount of time.

The automaker cited changing “market dynamics” for the delay. VW stressed that it was doing well overall in North America, and that ID.7 demand in Europe (where the electric sedan has been on sale since 2023) was “higher than expected.”

The company said it was still devoted to electric vehicles, including the recently upgraded ID.4 crossover and the fourth quarter arrival of the ID.Buzz, its revival of the Microbus.

The move isn’t surprising given multiple challenges. The North American EV market has been rough, with brands like Ford and GM shifting some attention toward hybrids. Even category leader Tesla has fallen short on sales and laid off staff. The ID.7 would be entering a field where even moderate sales might not be feasible.

There are also factors unique to the continent. SUVs tend to dominate North America. They represented 53.5% of sales in the first third of 2022, according to JATO Dynamics. In its delay notice, VW noted that its 27.5% first quarter growth was spurred by SUVs like the Atlas, ID.4, Tiguan, and Taos. The ID.7 might not be a strong seller even with thriving EV demand.

VW is already selective with the EVs it brings to North America. It doesn’t offer the Golf-like ID.3, for instance. However, it’s unusual for a car brand to commit to launching an EV in the region, only to back out (at least temporarily) later on.

Some competitors may welcome the move. Hyundai and its Kia badge recently said they were still devoted to an EV transition. The VW ID.7 delay creates an opportunity for comparable cars to snap up share, such as the Ioniq 6.