Volkswagen pointed to a 'challenging EV climate' as the reason why its electric sedan will no longer come to the U.S. and Canada.

Volkswagen may have an answer to its China woes in the form of a joint venture with XPeng, a Chinese automotive manufacturer. The two companies are working on new architecture that will underpin VW’s Chinese EVs. The first models should hit the market in 2026, and at least one will be an SUV.

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 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.

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

Due to the ongoing challenging EV climate, Volkswagen has decided to no longer offer the ID.7 to the North American market,” VW’s statement reads. The ID.7 was originally s

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