Volkswagen is laying off fewer than 75 administrative and salaried employees in Chattanooga as it aims to trim spending across its business, according to a spokesperson.
The German automaker employs about 4,000 people in Chattanooga, where it manufactures the Atlas and the Atlas Cross Sport. The company will cease production of its electric SUV, the ID.4, in Chattanooga this month as sales of the vehicle lag.
“Volkswagen is implementing a global performance program to drive efficiency and cost savings at its core brand,” the company said in a statement Monday. “Some salaried and administrative positions in our U.S. business are impacted. We are not reducing the number of hourly production workers in our assembly plant with this action. As with any reorganization, we are supporting our employees through this transition.”
This occurs as sales across Volkswagen of America declined in the first quarter, dropping from 87,900 during the first three months of 2025 to 73,800 for the same period in 2026. ID.4 sales in particular have cratered. The German automaker sold 338 ID.4s in America from Jan. 1 to March 31 this year. That’s compared to 7,663 over the same time period in 2025, a nearly 96% decline.