VW Canada announces $2,500 price increase on new and existing ID.4 orders [Update]

Volkswagen has notified existing ID.4 reservation holders they will be paying more for their electric SUV when it finally arrives. The price increase comes at a time when customers have been experiencing lengthy delivery delays and the removal of previously standard features.

In an email sent to existing reservation holders on Monday, VW Canada says they are increasing the price of all 2023 ID.4 models in Canada by $2,500. The price increase will go into effect on March 31, 2023, with VW specifying in the email it also applies to existing orders.

The price increase is a bitter pill to swallow, especially for existing reservation holders, some of whom have already been waiting well over a year for their electric SUV to arrive. In the email VW blames a combination of “unprecedented demand” and “ongoing supply chain constraints” as a reason for the lengthy delivery delays and the price increase.

VW says the main driver behind the price increase is an increase in “the cost of raw materials critical to the production of EV batteries.” As for the delivery delays, VW hopes those will decrease with the production ramp at their new facility in Chattanooga, Tennessee, which is now producing the ID.4 specifically for the North America market. Previously the automaker was importing the cars from Europe.

UPDATE March 28 11:10am PT: In a statement to Drive Tesla, a VW Canada spokesperson said the price increase was “unavoidable” due to “significant increases in raw material costs” and a weaker Canadian dollar. Customers whose ID.4 is already on their way to a dealer will not see a price increase, but everyone else who is outside of that window will be subject to the new higher price. The spokesperson said those opting out of their purchase will receive a full refund of their deposit.

Not only will customers be paying more for the ID.4 in a few days, they will also be receiving fewer standard features. As we have previously reported VW has been forced to remove the heat pump from Canadian orders due to semiconductor shortages. Supply chain constraints have also forced the removal of the 360° cameras, power folding mirrors and premium digital sound and the  subwoofer from some configurations.

The price increase for the ID.4 in Canada comes a few months after a similar $1,500 price increase in the US.

You can read the full email below, shared with us by our reader Sam.

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