Plans to bring the Volkswagen ID.7 midsize sedan to the North American market, including the U.S. and Canada, have just been permanently canceled by Wolfsburg.

Volkswagen has scrapped its plans to launch the ID.7 sedan in the U.S. and Canada, marking another setback in the automaker’s EV strategy amid shifting market conditions and policy uncertainty.

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.”