Volkswagen to halt ID.4 production in the US following nearly 100,000 vehicle recall

Volkswagen plans to temporarily halt ID.4 production at its Chattanooga, TN, plant following a nationwide recall involving nearly 100,000 models. According to a VW statement, roughly 200 workers will be furloughed at the plant.

Volkswagen will halt ID.4 production in TN temporarily

The first ID.4 rolled off the assembly line at VW’s Chattanooga, TN, plant in July 2022. At the time, Volkswagen said it was looking to hire 1,000 new workers to ramp up production.

A little over two years later, Volkswagen is temporarily suspending production with a recall potentially impacting around 100,000 ID.4 models nationwide.

Volkswagen said in a statement that the temporary ID.4 production halt will result in about 200 workers at the Chattanooga plant being furloughed. The company plans to support the workers with supplemented state unemployment and 80% of their base compensation during the furlough, which starts on September 23.

The company explained, “While we address the issue, we are focused on doing right by our employees, dealers, and consumers through this disruption.”

According to Volkswagen, the production halt could last until the beginning of next year as it works to resolve the issue.

Volkswagen is working with dealers to find a quick fix. The recall, which was reported earlier this month, could potentially impact 98,806 ID.4 models in the US due to malfunctioning door handles.

The company’s letter to the National Highway Traffic Safety Administration (NHTSA) stated the door handles could allow water to enter the circuit board assembly, which may lead to the doors opening unexpectedly.

VW dealers will inspect the vehicle, replace the parts, and update the software if necessary. The service will be free of charge.

Owner notification letters are expected to be mailed on November 1, 2024. If you have questions, you can contact VW’s customer service at 1-800-8930-5298. Volkswagen’s number for the recall is 57J9. Vehicles previously repaired (23V-312 and 23V-213) will still need the new remedy.

Volkswagen said the disruption “In no way changes our commitment to the ID.4 and our growing BEV portfolio.”

The company added that the ID.4 “remains one of America’s bestselling electric vehicles.” In the second quarter, Volkswagen sold 5,690 ID.4 models in the US, down 15% YOY. VW ID.4 sales fell 28% in the first half of 2024, with 11,857 models sold in the US, down from 16,448 last year.

Volkswagen is also set to begin contract negotiations with the UAW on Thursday as President Shawn Fain rallied employees at the Chattanooga facility this week. “Are you ready to move another mountain?” Fain asked the 400 workers who attended the event.

Volkswagen’s Chattanooga plant employs around 5,500 workers. Fain is calling for workers to “earn a record contract and make history again.”

Source: Chattanooga Times Free Press