Volkswagen has decided to delay the all-electric ID. Buzz minivan for the 2026 model year in the U.S., joining a growing list of automakers re-evaluating their aggressive EV strategies. This move follows similar pauses by Mercedes-Benz on EQE and EQS production, and Ford’s recent announcement to equip the F-150 Lightning with a gasoline-powered range extender.
The Broader Trend: EV Demand Slowdown
The decision reflects a wider industry shift as EV sales growth slows and profitability remains elusive for many manufacturers. Companies are facing pressure from high production costs, limited consumer demand, and political factors like tariffs. Volkswagen’s internal communication to dealers states that pausing production allows them to focus on existing inventory and prepare for a potential 2027 relaunch.
However, the core issues driving this delay – including the ID. Buzz’s high price ($60,000), limited range (around 230 miles), and loss of U.S. federal tax credits – remain unresolved. The 15% tariff on German-made vehicles further complicates the situation.
Ford and Stellantis Lead the Retreat
Other automakers are responding to these challenges by shifting away from pure EVs. Ford is taking a $19.5 billion hit to retool its EV operations and introduce extended-range vehicles with gasoline engines. This follows a $5 billion loss on its EV division last year. Stellantis is pursuing a similar strategy with its upcoming Ram pickup, while General Motors explores plug-in hybrids as full-size EVs struggle to gain traction.
The Range-Extender Option
One potential solution for the ID. Buzz is to incorporate a range-extending gasoline engine, similar to Ford’s approach. While VW has not commented on this possibility, the van’s spacious design could accommodate such a modification. This might lower the price and address range concerns for U.S. buyers.
Sales Figures Paint a Clear Picture
Through the first three quarters of the year, VW has sold fewer than 5,000 ID. Buzz units in the U.S. Meanwhile, more affordable EVs like the Nissan Leaf and Chevrolet Bolt are gaining popularity. The contrast highlights the price sensitivity of the U.S. market.
The Tesla Factor
The struggles of other EV models underscore Tesla’s dominance in the U.S. market. Automakers rushed to replicate Tesla’s success, but many consumers have shown a preference for the established brand. The industry is now grappling with the reality that replicating Tesla’s market position is far more challenging than anticipated.
Ultimately, Volkswagen’s decision to pause ID. Buzz production is a symptom of a broader correction in the EV market. Automakers are adjusting to slower growth, higher costs, and evolving consumer preferences. The future of EVs in the U.S. will likely involve a mix of battery-electric, hybrid, and gasoline-powered vehicles, rather than a rapid transition to all-electric dominance.
