Volkswagen ID.7 Electric Sedan Has Been Canceled for Good
Concerns are growing among Volkswagen's board members that sweeping cuts agreed with unions late last year will not be enough to turn around the struggling carmaker's core brand, the Handelsblatt business daily reported on Thursday.
Plans to bring the Volkswagen ID.7 midsize sedan to the North American market, including the U.S. and Canada, have just been permanently canceled by Wolfsburg.
With more than 40,000 sales in its debut year, the ID.7 is off to a strong start, and newly boosted by the addition of an estate.
Volkswagen may have an answer to its China woes in the form of a joint venture with XPeng, a Chinese automotive manufacturer. The two companies are working on new architecture that will underpin VW’s Chinese EVs. The first models should hit the market in 2026, and at least one will be an SUV.
Some air shipments of car components by Volkswagen India were briefly held up by custom authorities in Mumbai due to a $1.4 billion tax demand, leading to delays in spare part supplies at dealerships,
All Porsche and Audi EVs are currently built outside the US, making them particularly exposed to an increase in tariffs. The Audi Q5 is built in Mexico, while Porsche EV models are produced in Europe.
President Trump has threatened import tariffs on automobiles seemingly forever, ranging from 25 percent to 300 percent depending on how he’s feeling that day, but the administration seems poised to launch a new raft of import tariffs on February 1.
The Volkswagen Group has raised alarms over U.S. President Donald Trump’s proposed tariffs on Mexican imports.
Volkswagen is exploring the possibility of sharing its excess production lines in Europe with Chinese EV makers.
Tesla, meanwhile, benefits significantly from carbon credit sales. In 2023, the company earned $1.79 billion from credits, and its income from such sales more than doubled to $2.8 billion last year.
The Czech carmaker first entered the Indian market in January 2000, setting up its factory in Chhatrapati Sambhajinagar (formerly Aurangabad).