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 ID.4 production at Chattanooga, TN (Source: VW)
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.
2024 Volkswagen ID.4 (Source: VW)
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.
2024 Volkswagen ID.4 (Source: Volkswagen US Media Site)
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 ID.4 production at Chattanooga, TN (Source: VW)
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.”
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Stock Chart IconStock chart icon
Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
XCMG battery swap crane; via Etrucks New Zealand.
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.