VW stops sale of ID4 over faulty door handles, halts output and furloughs employees

Volkswagen is issuing a stop-sale on its ID4 electric compact crossover and will halt production in Chattanooga as the brand searches for a remedy to fix faulty door handles.

The automaker is recalling 98,806 ID4s because of defective door handles that offer insufficient water protection. The glitch can lead to printed circuit board malfunctions if water seeps through and causes an "open command" to the door lock while the vehicle is moving.

The recall affects 2021-24 ID4s, and all door handles are included. The ID4 is VW's first volume electric vehicle and first electric crossover sold in the U.S.

VW does not have a fix for the issue and said in a statement that it will temporarily stop ID4 production at its Chattanooga factory until a repair is available. The statement said VW will furlough 200 employees at the factory starting Sept. 23.

"We are supporting them by supplementing unemployment from the state of Tennessee so they will still receive 80 percent of their base compensation and will continue to be covered by all current benefits during this time," VW said in the statement. "We are also exploring ways to support our dealers while we determine a remedy for our customers."

The stop-sale order applies to new, unsold ID4s as well as pre-owned inventory.

Andrew Savvas, VW's head of U.S. sales, told Automotive News that the automaker is aiming to have a remedy in place by the start of 2025.

The recall also impacts ID4s that were built in Zwickau, Germany, according to documents posted on NHTSA's recall database. Production for the U.S. market shifted from Zwickau to Chattanooga in 2022.

U.S. sales of the ID4 fell 28 percent to 11,857 in the first half of 2024, according to the Automotive News Research & Data Center.

The 2024 ID4 with the 82-kilowatt-hour battery received a boost in power and range.

"We've had success with this car in the past," Savvas said. "It's now about being fully committed to fix the car as soon as possible and get it back on the road."

Georgia Hall contributed to this report.