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Volkswagen Delays ID.7 North American Launch, Cites Slowing EV Sales as Main Cause

by | May 22, 2024

Volkswagen pumps the brakes on ID.7 U.S. launch due to cooling sales and shifting market conditions.

Volkswagen ID.7

Volkswagen is delaying the North American arrival of the ID.7

The automotive market is an unpredictable business with automakers doing their best to cater to consumer demand while also quickly adjusting their strategy if these buyers begin to gravitate to something else. That can be a hard balancing act and sometimes an automaker is forced to make a quick decision to adapt to the changing business climate.

Volkswagen is the latest automaker to change its business plans regarding EVs and has confirmed that the North American debut of the ID.7 EV sedan is being delayed due to cooling EV demand and sales. The ID.7 was supposed to be a rival to the Tesla Model S but it appears that its future in North America is uncertain due to factors beyond its control.

Volkswagen is latest to shift EV rollout plans

Volkswagen ID.7 side profile

Volkswagen’s move comes as a result of cooling sales in the EV segment

In its announcement, Volkswagen didn’t mince words about its decision saying  “As market dynamics continue to change, Volkswagen is delaying the introduction of the ID.7 sedan in the U.S. and Canada.” The ID.7 has been on sale in Europe and other markets since late last year and was supposed to be a spiritual successor to the discontinued Passat four-door. Volkswagen didn’t reveal U.S. pricing for the four-door prior to this announcement, but rumors suggested that the ID.7 would have a base price of just under $50,000 for a base rear-wheel drive model.

That pricing would have allowed the four-door to be a prime contender in the EV sedan segment with Volkswagen stating in the past that the ID.7 would not only have impressive EV performance but that it also would arrive with segment-leading interior technology. However, all of that was apparently not enough to prevent outside factors from interfering in its launch a growing problem that has caused other automakers to revise plans for their EV models.

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Delay also highlights a bad habit for VW

Volkswagen ID.7 interior

ID.7′ delay also highlights a bad habit for VW when it comes to making North American customers wait for their latest EVs

While Volkswagen’s plans to delay the ID.7 were due to factors beyond its control, it also further exposes a bad habit that Volkswagen has gotten into in recent years and that’s making the North American market wait too long for new models to arrive. A prominent example of this is the ID. Buzz which is coming to the U.S. in late 2024. However, the van has been on sale in Europe since late 2022, with Volkswagen forcing U.S. buyers to endure an additional two-year wait before they get their chance to drive one.

Some of this wait time is due to the company being forced to modify select aspects of the van to help it comply with U.S. regulations but since the ID. Buzz is a style-oriented vehicle, it’s in a segment where shelf life and styling trends can play key roles in whether a vehicle succeeds or not. If style trends and the needs of customers shift before the model even makes it to a certain market region that can spell big trouble for an automaker and potentially doom a once-promising model to failure.

As Volkswagen prepares to expand its EV presence, the company needs to trim the wait time for U.S. buyers since our market represents a large chunk of business for the German automaker. Any further delays on EVs will potentially force impatient customers to move to other brands which takes away potential buyers for these models. While this will cost VW sales in the long run, it will also be good news for potential rivals like Tesla who can try to lure customers in by offering products that can come to market faster and also be in a prime position to deliver a vehicle that can cater to the customer’s current needs.



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