Image Credit: Volkswagen Group of America
The Tennessee Conservative [By Adelia Kirchner] –
Volkswagen Chattanooga says they will be reducing production of the ID.4 electric SUV and consequently putting “a small number of employees” on furlough.
According to a statement released by Volkswagen Chattanooga on Tuesday, around 160 employees will begin their furloughs next month.
“We are adjusting our ID.4 production in Chattanooga, which will result in a temporary furlough for a small number of employees beginning in late October,” the statement read. “We’re committed to supporting our team during this time and will supplement unemployment from the state of Tennessee, so affected employees will still receive 80 percent of their base compensation and continue to be covered by all current benefits. Affected employees were notified this morning.”
“This adjustment in no way changes our commitment to the ID.4, our growing EV portfolio, or our commitment to our Chattanooga team. This is a market-driven decision, based on aligning our production volume to market demand,” the company continued.
Workers will still receive 80% of their salaries and be covered by their current employee benefits while on furlough.
Impacted employees were notified at work on Tuesday morning.
Claudia Kramer, an economics professor at University of Tennessee-Chattanooga, told News Channel 3 that the company’s decision was at least a temporary “pause with the hope and desire” that workers would soon be back on the job.
“That I think is less concerning than someone who was fired or let go completely without any benefit,” she said.
This is not the first in recent history that Volkswagen Chattanooga has put a number of their employees on pause.
Approximately 200 employees were furloughed in September 2024 after a recall on the ID.4 occurred. Those workers were back on the job by January 2025.
While on furlough, employees reportedly received 80% of their base pay through state unemployment and maintained access to the employee benefits they held at the time.
The ID.4 was previously shipped to the U.S. from overseas.
U.S. production of the German manufacturer’s first fully electric SUV began in 2022 and Volkswagen’s Chattanooga plant was the first in the country to produce the ID.4.
Meanwhile, Ford Motor Company’s production of electric vehicle batteries at a West Tennessee plant has been postponed until 2027.
Ford chalks these timeline changes up to consumer demand for electric vehicles and consequently, electric vehicle batteries.
The company’s electric vehicle sales were down by around 10% as of last month.
About the Author: Adelia Kirchner is a Tennessee resident and reporter for the Tennessee Conservative. Currently the host of Subtle Rampage Podcast, she has also worked for the South Dakota State Legislature and interned for Senator Bill Hagerty’s Office in Nashville, Tennessee. You can reach Adelia at adelia@tennesseeconservativenews.com.
2 Responses
Moneyed folks bought Teslas as status symbols. EVs aren’t ready for prime time, the grid’s not adequate either.
Claudia Kramer, Econ Prof at UTC, says she’s less concerned about being ‘furloughed’ than laid off (easy for her to say, she’s a state employee with tenure and huge benefits!) But, if anyone has their ‘eyes and ears’ open, they’d know that the U.S. Taxpayers are NO LONGER on the hook and paying for the BIDEN subsidizations of EV’s! With the passage of Trump’s 2025-2026 “One Big Beautiful Bill”, the U.S. Taxpayers are no longer on the hook – EV SUBSIDIES ARE OVER! Tennesseans are NOT so lucky! Given the fact that Bill Lee has given the store away to Ford and Volkswagen, Tennessee tax payers have subsidized these EV DINOSAURS! These companies are waking up to see the writing on the wall. Unfortunately, thanks to Bill and our poor leadership in the State Legislature, the Tennessee tax payers are going to get a pounding from furlough’s to poor “investment of our tax dollars”! The EV is OUT of favor with U.S. tax policy and law. And, hopefully, it won’t be back! But, again, Tennessee worker’s and tax payers won’t be so lucky!