Volkswagen pointed to a ‘challenging EV climate’ as the reason why its electric sedan will no longer come to the U.S. and Canada. Two years ago, Volkswagen debuted a prototype of its ID.7, the sixth model in its lineup of electric vehicles,

The slick, electric sedan first introduced in 2023 was supposed to make its North American debut last year, after selling well in Europe and China, but was delayed indefinitely. Now VW is cancelling the ID.7 for the US and Canada, citing a “challenging environment for EVs.”

Plans to bring the Volkswagen ID.7 midsize sedan to the North American market, including the U.S. and Canada, have just been permanently canceled by Wolfsburg.

The joint venture with Volkswagen is drawing interest from other automakers eager to adopt Rivian's advanced tech, signaling a shift in EV industry dynamics.

The ID.7 was originally slated to go on sale in the U.S. at some point in 2024, but VW announced an indefinite delay in May of last year. There was no targeted on-sale date provided last year, which makes its complete cancellation less surprising now.

"Due to the ongoing challenging EV climate, Volkswagen has decided to no longer offer the ID.7 to the North American market," Gillies said. "Despite this, electric vehicles continue to be a core part of Volkswagen’s long-term product strategy, and new electric models will continue to be introduced for this market."

Volkswagen was supposed to launch the ID.7 EV sometime in 2024, but the automaker initially delayed it before canceling the electric sedan altogether.

The electric family sedan's tumultuous launch process ultimately ends with VW deciding not to sell it on this side of the pond.