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Volkswagen Stops ID.4 Production Amid Massive Recall Of Over 98,000 EVs

Chattanooga Plant Halts Production, Impacting 200 Workers, As Volkswagen Addresses A Door Handle Defect In 2021–2024 ID.4 Models

2 min read

By Michael Phoon • September 18, 2024

Volkswagen ID.4 (Image: Volkswagen)

Volkswagen has announced a temporary suspension of ID.4 production at its Chattanooga, Tennessee plant following a nationwide recall affecting over 98,000 electric vehicles (EVs). 

ID.4 Recall

The recall impacts around 98,806 ID.4 SUVs from model years 2021 to 2024. According to a notice filed with the National Highway Traffic Safety Administration (NHTSA), the door handles may allow water to enter the circuit board assembly, potentially causing doors to open unexpectedly while the vehicle is in motion. This poses a serious safety risk to occupants and could lead to damage or injury to people outside the EV.

Volkswagen has stated that it is not aware of any crashes or injuries resulting from this issue. However, the company is taking proactive measures to address the problem.

Production Halt and Worker Furloughs

As a result of the recall, Volkswagen is implementing the following measures:

  • Temporarily suspending ID.4 production at the Chattanooga plant
  • Furloughing approximately 200 workers starting September 23
  • Supporting furloughed employees with supplemented state unemployment benefits and 80% of their base compensation
  • Continuing to provide all current benefits to affected workers during the furlough period

Michael W. Lowder, a Volkswagen spokesman, stated, “While we address the issue, we are focused on doing right by our employees, dealers, and consumers through this disruption.”

The production halt could last until the beginning of 2025 as the company works to resolve the issue and implement a fix.

Impact on Sales and Dealers

With Volkswagen’s stop-sale order for both new and pre-owned ID.4 inventory, this comes at a challenging time for the model as U.S. sales of the ID.4 fell 28% to 11,857 units in the first half of 2024, according to the Automotive News Research & Data Center.

Andrew Savvas, Volkswagen’s head of U.S. sales, told Automotive News that the company is aiming to have a remedy in place by the start of 2025. He emphasized the company’s commitment to the ID.4, stating, “We’ve had success with this car in the past. It’s now about being fully committed to fix the car as soon as possible and get it back on the road.”

Customer Notification and Repair Process

Volkswagen plans to notify vehicle owners by mail on November 1, 2024. The company will instruct customers to bring their vehicles to Volkswagen dealers, who will:

  • Inspect the vehicle
  • Replace the door handles if necessary
  • Update the vehicle’s software

Notably, all services related to this recall will be provided free of charge to owners.

Broader Context and Future Outlook

This setback comes at a crucial time for Volkswagen’s EV strategy in the conutry. The Chattanooga plant, which employs around 5,500 workers, began producing the ID.4 in July 2022 after an $800 million investment to prepare the plant for EV production.

Despite the current challenges, Volkswagen remains committed to its electrification goals. Lowder emphasized, “This disruption in no way changes our commitment to the ID.4 and our growing BEV portfolio. The ID.4 remains one of America’s best-selling electric vehicles.”

The coming months will be critical for Volkswagen as it seeks to address the recall, resume production, and maintain its position in the competitive EV market while navigating labor negotiations and broader industry challenges.

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