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Volkswagen no longer plans to bring the ID7 electric sedan to the U.S. and Canada.
The sedan’s North American prospects have been in doubt since May when VW, pointing to changing market conditions, said the launch would be delayed for an unspecified amount of time.
The ID7 was originally supposed to launch in the U.S. in the third quarter of 2024.
EV adoption rates in the U.S. have slowed across the industry, with consumers hesitant over pricing, charging infrastructure and range.
A VW spokesperson cited “the ongoing challenging EV climate” for the decision.
“Electric vehicles continue to be a core part of Volkswagen’s long-term product strategy, and new electric models will continue to be introduced for this market,” the spokesperson said.
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The Car Guide first reported VW’s plan to cancel ID7 sales in North America. It is still marketed in Europe and China.
In response to the uncertain market outlook, other automakers have delayed EV launches and walked back ambitious EV sales targets set years ago. Donald Trump’s reelection in November as U.S. president has also created political and policy headwinds.
U.S. pricing for the ID7, engineered and designed with a near-premium interior, had not been released, but dealers voiced concerns that the sticker price would likely be $50,000 to $60,000 and that volumes would be low.
In October, former Volkswagen Group of America CEO Pablo Di Si said the company was ready to launch the ID7 as long as there was consumer demand and that it would “probably launch” in 2025. Di Si left the company in November.
VW held a U.S. dealer meeting in Orlando, Fla., in September and included the ID7 as part of a product display.
VW will continue to market two EVs in the U.S. ― the ID4 compact crossover and the ID Buzz electric minivan. Sales of the electric ID4 resumed in December after a stop-sale was issued in September.
VW, in the statement, said it has been encouraged “by the enthusiastic reception of the ID Buzz” and strong ID4 sales in January.