2023 VW ID.4 produced in Chattanooga launched in the U.S. [Update]

  • VW ID.4 gains a smaller, 62 kWh battery pack along with the start of U.S. production
  • Prices now begin at USD 37,495 (excl. USD 1,295 destination fee)
  • MY2023 updates bring more standard features, new colors & revised center console
  • U.S.-assembled ID.4 now available at dealers

Update: ‘ID.4 Chattanooga production for 2022 sold-out’ of ‘U.S. production’ and ‘2023 VW ID.4 price & release date’ section updated.

For two model years, 2021 and 2022, Volkswagen has sold the German-built ID.4 in the U.S. For the 2023 model year, the company has switched to a locally produced, updated, and more affordable ID.4. Here’s everything you need to know about the 2023 VW ID.4.

U.S. production

American production of the 2023 VW ID.4 takes place at the company’s Chattanooga plant in the State of Tennessee. Volkswagen started making the 2023 ID.4 at the American factory on July 26, 2022. The German automaker has invested USD 800 million into the electrification of this factory.

Chattanooga is the sixth production site for VW EVs worldwide. For the ID.4 specifically, it’s the fifth production site. Volkswagen’s own Zwickau and Emden plants in Germany and its joint ventures’ Anting and Foshan plants in China were already making the electric crossover. Localization will significantly improve the availability of the ID.4 in the U.S. Production in Chattanooga is slow to start with, but the company plans to increase the monthly output gradually.

Volkswagen plans to increase the monthly production of the ID.4 in Chattanooga from the (undisclosed) initial rate to 7,000 units in the current quarter (Q4 2022). The annual production target for 2023, the first full year of production, is 90,000 units, Pablo Di Si, President and CEO, Volkswagen Group of America, and CEO, Volkswagen North American Region, confirmed on August 23, 2022 (via Reuters). What this means is that the monthly production will further improve to 7,500 units in 2023, cutting wait times.

Preparing for production, Volkswagen had ordered hundreds of robots from Japanese robotics company FANUC for its Chattanooga manufacturing facility. The company uses these robots to produce the body and assemble the ID model’s battery.

ID.4 Chattanooga production for 2022 sold-out

With the massive demand for electric SUVs in the United States, the order book for the U.S.-built VW ID.4 is already full, reported Times Free Press on May 19, 2022. The locally-made electric SUV is already sold out owing to a mismatch in demand and supply.

Before deliveries of the locally-built ID.4 began, Volkswagen had sold 11,072 units of the German-made ID.4 in the U.S. in 2022. That was at the end of the third quarter.

ID.4 production brings new jobs to Chattanooga

To prepare for the production of the ID.4 at the Chattanooga plant in the U.S., Volkswagen is increasing its workforce. Citing Burkhard Ulrich, Senior Vice President – Human Resources, Volkswagen Chattanooga, a report from Chattanooga Times Free Press in April 2022, said that the company is hiring around 1,000 new employees to add a third shift. It will have 4,500 employees in total then, as per the report. Announcing the start of production, Volkswagen confirmed that it is hiring more than 1,000 new production team members for the Chattanooga plant.

Novonix broke ground for the country’s first anode manufacturing facility in Chattanooga on November 22, 2021. It will produce synthetic graphite anode material used in lithium-ion batteries. FoxChattanooga cites Novonix CEO Chris Burns confirming the supply of pieces for VW’s EV batteries. This production site will add 290 more jobs to the city.

2023 VW ID.4 changes

In addition to being made in the U.S., the 2023 VW ID.4 has several changes, ranging from design to features, and prices. It is available in Standard, Pro, S, Pro S, and Pro S Plus trims levels.

Exterior

The 2023 VW ID.4 looks more stylish with gloss black highlights on the front bumper and an illuminated brand logo at the rear (S, Pro S, and Pros S Plus trim levels). Moreover, it flaunts new alloy wheels across the range.

There are three new designs in total. The Standard and Pro trim levels feature the most basic, 19-inch wheels. The S and Pro S trim levels feature larger, 20-inch wheels. The top-of-the-line Pro S Plus trim level sports uniquely designed 20-inch wheels. All the exterior color options of the 2023 ID.4 are new. Unlike the old model, it is available in two-tone color schemes as well:

  • Pure White
  • Pure Gray
  • Deep Black Pearl
  • Tourmaline Blue Metallic
  • Silver Mist Metallic
  • Opal White (USD 395)
  • Aurora Red Metallic (USD 395)
  • Arctic Blue Metallic (USD 395)
  • Pure Gray with Black Roof
  • Opal White with Black roof (USD 395)
  • Tourmaline Blue Metallic with Black roof
  • Aurora Red Metallic with Black roof
  • Arctic Blue Metallic with Black roof

Interior

The 2023 VW ID.4 features a new center console that is more suitable to the needs of American consumers. The Standard and Pro trim levels include a new multi-function touch premium steering wheel. Also new is the three-zone Climatronic automatic climate control system with rear controls and heated outer rear seats, included in the Pro S Plus trim level.

The Standard trim features new stitching on the dashboard and new mélange fabric and leatherette seat side bolsters. Customers can specify their 2023 ID.4 Standard in two new interior colors—Stone or Nutmeg. The stone interior features black and gray accents, while the Nutmeg interior has brown hues.

As for the S, Pro S, and Pro S Plus trim levels, there are two new leatherette interior choices: Galaxy and Cosmic. The Galaxy interior includes black leatherette seat inserts, Platinum gray bolsters door inserts, and dashboard, and black steering wheel and displays. The Cosmic interior includes gray leatherette seat inserts, blue bolsters, door inserts, and dashboard, and white steering wheel and displays. Unlike in the 2022 ID.4, a 12-inch touchscreen infotainment system is standard in the 2023 ID.4.

2023 VW ID.4 center console
The 2023 VW ID.4 features a new center console designed according to the needs of American consumers. Image Source: Volkswagen

On the safety front, Volkswagen has updated the ID.4’s Forward Collision Warning system to include cyclist detection and added driver-initiated lane change functionality to Travel Assist. Lastly, there’s a new Park Assist Plus with a Memory Parking feature to make parking easier.

Specifications

The 2023 VW ID.4 is available with a new 62 kWh battery pack that makes it cheaper than the previous model. Powering a 201 hp permanent magnet synchronous motor mounted at the rear, it may deliver a range of 208 miles (Volkswagen estimate).

Volkswagen increased the ID.4’s maximum DC fast-charging power from 125 kW in MY2021 to 135 kW in MY2022. With the MY2023 update, it has significantly increased the DC fast-charging capability to 170 kW. Moreover, it has enabled Plug & Charge with the latest model year update. It is a standard feature across the ID.4 range and customers can use it at Electrify America charging stations.

With Plug & Charge enabled, customers don’t need to go through the fuss of the charging card authentication process to charge their ID.4 at fast-charging stations. Per the ISO 15118 standard, this technology involves encrypted and secure communication between the vehicle and the charging equipment. The automatic authentication after plugging in takes a few seconds, and then the charging starts without needing customer input.

First impressions

American and Canadian journalists have driven the Chattanooga-made 2023 VW ID.4. According to Auto Trader Canada Road Test Editor Dan Ilika (via YouTube), it drives similarly to the previous models that came from Germany. Ilika makes an interesting point that the ID.4 still doesn’t allow adjusting the regenerative braking level, which makes that feature less likable than in the Hyundai Ioniq 5 and Kia EV6.

The ID.4 wasn’t, and still isn’t, a sporty or engaging EV. As Ilika says in his review of the latest model, it’s all about efficiency. TFLEV’s Tomas Mica (via YouTube), while admitting it’s quick in acceleration and offers a zippy drive, says that he wouldn’t say it’s a fun-to-drive car. The U.S.-built ID.4 is aimed at customers prioritizing efficiency, comfort, and practicality.

2023 VW ID.4 price & release date

Prices of the 2023 VW ID.4 start at USD 37,495 and go up to USD 53,995. A destination fee of USD 1,295 is applicable across the range. Volkswagen is figuring out whether the new ID.4 meets the requirements of the Clean Vehicle Credit program, which allows a federal tax credit of up to USD 7,500 on eligible plug-in electric vehicles.

Deliveries of the U.S.-built, 2023 ID.4 have commenced, and many owners have shared images of their new ride on social media platforms. We’ve seen multiple online listings showing the new model at local dealerships, including Royal Volkswagen of Bloomington (Bloomington, IN), Napleton’s Volkswagen of Urbana (Urbana, IL), and City Volkswagen of Chicago (Chicago, IL).

Trim LevelBattery Pack2023 VW ID.4 Price
ID.4 Standard RWD62 kWhUSD 37,495
ID.4 Pro RWD82 kWhUSD 42,495
ID.4 Pro AWD82 kWhUSD 46,295
ID.4 S RWD62 kWhUSD 42,495
ID.4 Pro S RWD82 kWhUSD 47,495
ID.4 Pro S AWD82 kWhUSD 51,295
ID.4 Pro S Plus RWD82 kWhUSD 50,195
ID.4 Pro S Plus AWD82 kWhUSD 53,995
2023 VW ID.4 price list for the U.S. All configurations cost USD 1,295 destination charge extra and are eligible for a potential federal tax credit of up to USD 7,500.

VW ID.4: A launch of significance for VW’s EV ambition

As of July 26, 2022, Volkswagen has sold 190,000 ID.4s worldwide. The company expects the ID.4 to account for a third of its electric car sales by 2025, Ralf Brandstätter, BoM member responsible for China, Volkswagen Group, and Thomas Ulbrich, BoM member responsible for New Mobility division, Volkswagen Group, revealed in October 2020. By 2025, VW aims to have 1.5 million electric vehicles sold annually, with half a million accounted for by the ID.4 electric SUV alone. So the carmaker certainly has a strategy to ensure the VW ID.4 tops the sales of electric vehicles.

In its advertising, VW says the ID.4 is a car for “the millions, not the millionaires,” and the USD 37,495 price of the ID.4 is very close to the average price of a new car purchased in the United States (which is around USD 36,000). Compared to Toyota’s RAV4 Prime plug-in hybrid compact SUV, the prices of which start at USD 40,300 (excl. USD 1,335 DPH fee), the ID.4 is USD 2,805 cheaper. The gap could further widen if it becomes eligible for federal tax credits under the Clean Vehicle Credit program.

With Tesla’s massive production push, the VW ID.4 has its work cut out. Aside from regaining consumer trust after the Dieselgate scandal, the ID.4 has to appeal to and convince the Honda CR-V & Toyota RAV4 buyers that they are getting a piece of what Tesla offers sans the premium pricing. The Tesla Model Y, which is a crossover like the ID.4, costs USD 65,990 in the Long Range variant and a stiff USD 69,990 in the Performance variant.

Volkswagen accelerating U.S. EV launches

On March 21, 2022, Volkswagen announced a USD 7.1 billion investment in North America to boost vehicle range, R&D, and manufacturing in North America. The company said it aims to convert 55% of sales in the U.S. to electric vehicles by 2030. It will launch the VW ID. Buzz as its second dedicated EV in the country in 2024 and new electric SUVs from 2026, including the VW ID.8. Across brands, Volkswagen Group’s EV portfolio in America will see the addition of more than 25 new electric vehicle models through 2030. Volkswagen (the brand) will phase out gas-powered cars from the U.S. line-up by early next decade.

US-spec 2023 VW ID.4 Chattanooga assembly line
On March 21, 2022, Volkswagen announced that it targets to drive 55 percent of U.S. sales to be fully electric by 2030. Image: Volkswagen

Volkswagen Group is considering producing EV components, including battery cells and electric motors, in North America. The company aims to build a battery cell plant in the U.S. and upgrade its factories in Puebla and Silao, Mexico, to assemble EV components and EVs.

With the ID. Buzz and other popular models from the core brand and other marques, the Volkswagen Group could increase market share in the U.S. two-fold to 10 percent, former CEO Dr. Herbert Diess said after announcing the New Auto long-term strategy in July 2021, as per Automotive News.

Operations begin at USD 22 million BEL

Volkswagen Group of America (VWGoA) stated on June 8, 2022, that operations kickstarted at its state-of-the-art Battery Engineering Lab (BEL) in Chattanooga. The 32,000 square feet facility will accelerate the German brand’s push for electric vehicles in the United States. More importantly, BEL will support Volkswagen’s EV transformation, including launching the American-assembled ID.4 electric SUV.

Specialized equipment at the BEL includes the Multi-Axial Shaker Table (eMAST) that can simulate a year of average driving (9321 miles) in one week—it also conducts extreme vibration tests. More sophisticated equipment includes a drive-in climate chamber, thermal shock chamber, and water immersion tanks.

Over 100 engineers at the BEL have begun operations with a focus on battery packs and batteries for MEB-based cars. VW says there’s potential for incorporating different types of batteries for the brands across VW Group in the future. Moreover, a new team of 30 engineers will focus on climatic, mechanical, electrical, and corrosion tests of battery cells and battery packs.

This Chattanooga facility is one of the four BELs VW Group has in the world. One is in Braunschweig, Germany, and two are in Shanghai and Changchun, China.

Retail

Volkswagen has more than 600 independent dealers across the United States. It is investing millions of dollars in preparing the U.S. Volkswagen dealers for the transition to EVs. The company is drawing a lot of first-time EV buyers and customers to the brand with the ID.4, and the conquest could continue with future EV launches.

90% of ID.4 owners were first-time EV buyers, 70% were new to Volkswagen. To continue that conquest, we’ve committed over 20 million through this year to our dealer network, transforming Volkswagen dealerships into EV experience hubs serving communities across the country.

Scott Keogh, former President and CEO, Volkswagen Group of America (Volkswagen Annual Media Conference 2022 on March 16, 2022)

Electrify America announces expansion of charging network

While Volkswagen Group expands its EV line-up in the U.S., Electrify America plans to rapidly expand the country’s charging network and support the company’s EV offensive. The nation’s largest ‘open’ DC fast-charging network will more than double its footprint by 2025, Elke Temme, SVP – Charging & Energy, Volkswagen Group Components, and CEO, Elli, confirmed at the Volkswagen Group New Auto event in July 2021.

Today, Electrify America already provides the largest open network of DC fast chargers in the U.S. and is serving all models of electric vehicles on the market. I’m excited to announce that we will push our commitment into the charging network even further. Electrify America will more than double the total amount of the existing charging sites in 2025. Just let me repeat it will more than double. This means that we will have in total 10,000 charging points at this time.

Elke Temme, SVP – Charging & Energy, Volkswagen Group Components, and CEO, Elli (Volkswagen Group New Auto)

As of April 2022, there were 800 Electrify America charging stations in the U.S., with approximately 3,500 DC fast chargers either open or installed. Electrify America plans to expand its charging network to more than 1,800 stations with 10,000 ultra-fast chargers installed/under development in the U.S. and Canada by 2026.

TopElectricSUV says

With its ‘ID’ line-up of zero-emission models garnering attention globally, Volkswagen couldn’t have hoped for a better comeback from the dieselgate scandal. The company brought the ID.4 to American dealers just six months after its debut, and a little over a year later, has localized the EV. It hasn’t lowered the base price to USD 35,000 by switching to local production as originally intended, but it has made the EV significantly more accessible. Plus, with the new federal regulations mandating North American final assembly to obtain tax credits from August 16, 2022, the decision to make the ID.4 in the U.S. couldn’t have come at a better time!

Also Read: VW ID.3 SUV (ID.3 X) will compete with the Kona EV & Niro EV

Featured Image Source: Volkswagen