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 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.