Volkswagen has officially cancelled the long-delayed ID.7 electric sedan in America, instead focusing on selling it in Europe and China.
The ID.7 is VW’s electric mid-size sedan offering, currently available (and selling well) in Europe and also in China.
Previously the ID.7 had been intended to launch in 2024 in North America, after launching in Europe in 2023. But when launch time came close, VW delayed the North American debut of the model indefinitely last May.
As recently as October, VW America’s boss Pablo Di Si (who has since moved on) said that the ID.7 could still come in 2025.
But now we know that that indefinite delay is now fully definite: the model has been canceled in the US and Canada.
The news was broken yesterday by The Car Guide, speaking with a VW Canada representative. We’ve since reached out to VW, who confirmed the news to us.
Automotive News quoted a VW spokesperson saying the decision was made due to “the ongoing challenging EV climate.” Last year in North America, EV sales grew by 9%, faster than the overall auto market which grew at 2.5%, suggesting that the market is in fact more challenging for non-EVs than EVs at the moment. Further, gas car sales have been in long term decline since 2017, whereas EV sales have risen drastically in that time period.
That growth was achieved with very few available sedan models as well, with almost every EV available in America being an SUV-type. Adding additional model availability could open up the market to more buyers who want a right-sized vehicle instead of a land yacht.
But VW has been having a challenging time itself in the US. Until recently, it only offered a single SUV model, the ID.4, in the US. While the ID.4 has brought a lot of upgrades recently, it’s also one of the few vehicles whose sales were down in a growing market (which was true even before the stop sale which has now been lifted after fixing a door handle problem). Perhaps VW could have benefitted from offering a vehicle in a different format.
VW had previously blamed its delay of the ID.7 on “market conditions.” It didn’t specify which market conditions it was referring to, but we have some suspicions.
Manufacturers have a belief that Americans only want SUVs (or so they say – really, this is at least partially driven by emissions rules), and the ID.7 is not one. Although VW at one point did try to portray it as one – when we first saw the ID.7 it was in the guise of the “Space Vizzion” concept, and VW said it “combines the aerodynamic qualities of a Gran Turismo with the generous interior space of an SUV,” trying to leverage Americans’ supposed desire only for land yachts by portraying a somewhat more sensible wagon as something it’s not.
Top comment by Connor Paull
If I remember, their proposed US pricing was expected to be a pretty silly number, starting at like 50k and going up into the high 60s for a well equipped one.
It's too bad we aren't getting it, but, just being honest, if I were deciding between the ID7 or BMW I4, or ID7 vs upcoming Benz CLA, or ID 7 vs well equipped Ioniq 6, that wouldn't really be a difficult decision and it wouldn't have gone in VW's favor.
That said, the car likely would have been higher-priced than the ID.4, as it is in Europe. The best-selling electric sedan in the US is the Tesla Model 3, with few other options outside of the luxury market. The ID.7 could have offered an alternative for buyers who are looking for something that isn’t associated with Tesla CEO Elon Musk, but its likely high starting price might have limited that appeal.
But while this is a disappointment for those of us waiting for more right-sized electric vehicles, it doesn’t mean the end for new VW EVs in the US. Automotive News quoted a VW spokesman as saying that “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.” So, stay tuned for more.
Well, if you still want an electric VW, there’s always the ID.4. To contact a local dealer and see if they have any VW ID.4s ready to sell, feel free to use our link. You can also reach out about the ID.Buzz, if a quirky electric minivan is more your speed.
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