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.”

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

The German automaker won’t release a new EV until 2026, so what we see right now is what we get for the coming year. That could put Volkswagen in dire straits, especially since the German automaker struggled in China as EV adoption trended upward.