VW has sent out an email to ID.4 reservation holders detailing a series of changes that will be made for all ID.4s assembled after January 4, including a price hike, battery supplier changes, and an end to the reservation system as VW predicts ample availability at dealerships.

The $1,500 MSRP increase comes to all 2023 ID.4 SUVs assembled on January 4th or later. Cars assembled before that date will maintain the old MSRP. VW won’t update their website until January 4th, but sent out a table with the new MSRP numbers for all trim levels.

These prices will also apply to current reservation holders. VW says that the actual price of each car will be set by VW dealers, and that their reservation was never meant to “lock in” a price. But we have seen several reservation holders who feel understandably aggrieved by this news of a price hike before they take delivery of a vehicle they’ve been waiting patiently for.

VW already increased prices on the 2023 ID.4 by about $1,500 across the board back in August, though they also announced a lower-priced base model. In addition to this, the 2023 model qualifies for tax credits because it’s built in the US, whereas the 2022 model didn’t.

Further, especially right now with high EV demand across the board, you may not be able to find an ID.4 for MSRP, so you may have to do some negotiation with your dealer.

Thankfully, VW sees availability increasing. Due to the production numbers they’re seeing out of their Tennessee plant, VW plans to stop taking new ID.4 reservations going forward. The last day to place a reservation will be January 4th. Soon after that, VW thinks ID.4s will be readily available in their dealerships. VW will maintain their reservation list and keep working through it for any reservations placed before that date.

Part of the reason for this increased availability is due to a change in battery suppliers. Previous ID.4 model years used LG batteries, though the 2023 model was going to switch to SK batteries.

But VW is now contracting for battery supply from both SK Innovation and LG Chem, specifically for RWD vehicles with the larger 82kWh “Pro” pack. From now on, any given RWD 82kWh ID.4 may have a battery from either LG or SK. AWD cars and 62kWh “Standard” and “S” trims will have SK-supplied batteries.

ID.4s with the SK-supplied battery will have faster DC charge speeds, with a 170kW peak instead of 135kW. While VW states that an LG-supplied 82kWh battery can charge from 10-80% in about 36 minutes, the SK-supplied batteries will be able to do the same charge in about 30 minutes, assuming they are on a charger fast enough to supply these peak rates. On slower chargers, both cars should get similar charging speeds.

VW says that you can find out who supplied the battery for your vehicle by looking at the Monroney label affixed to every car, or by logging into your My ID.4 Reservation account. There is also an FAQ there with additional answers.

Battery suppliers may be additionally relevant to buyers due to EV tax credit changes in the Inflation Reduction Act. That act includes requirements for domestic or free trade sourcing of battery components and critical minerals. LG and SK are both Korean companies, but both are currently building battery plants in the US, with SK producing ID.4 batteries at their facility in Georgia.

Those sourcing requirements were set to go into effect by the end of the year, but the US Treasury delayed their guidance to “some time in March.” So for the time being, ID.4s which are assembled in Tennessee should qualify for the full $7,500 EV credit. We’ll hear more soon about whether or not they’ll qualify for the full credit after March.

Electrek’s Take

We understand that there’s a lot of change happening in the EV industry right now, with companies desperately trying to secure battery supply, comply with new tax credit requirements, manage supply chain disruptions and the inflation they are causing, and so on.

But surprising reservation holders with yet another price increase does seem a bit unfair. VW is a large enough company, and they should have worked through enough reservation holders by now, that allowing current reservation holders to lock in their prices would be reasonable. This additional $1,500 isn’t going to be make-or-break for them, but it may be the straw that broke the camel’s back for some customers.

Last year, VW compensated ID.4 reservation holders after a price increase, but we have not heard any similar plan for them to do so this year. Given that there is precedent for this sort of thing, perhaps they could offer a similar program for current reservation holders, assuming they take delivery whenever VW offers it to them.

If you’re looking for a 2023 VW ID.4, check your local dealer inventory and see if you can find one in stock. If you want to get in before the $1,500 price hike, you’ll have to find a car that was built before Jan 4 2023. But also look for a car that was built in the US in order to qualify for the US tax credit. While VW is still delivering to reservation holders, a few dealers may have inventory.