CHATTANOOGA, Tenn. — Any day now, the first U.S.-made Volkswagen electric vehicle will roll out of a $4 billion-plus plant located on 1,400 acres just outside this small mid-South city. VW’s American dealers have been selling ID4 electric SUVs for a year and a half, but they’ve been imported from Germany.

Starting with the 2023 model year — arriving in dealerships in mid- to late October — all ID4s will be built here.

VW’s celebrating that milestone with new features and a lower-priced base model. The changes are intended to supercharge ID4 sales, which totaled just 6,657 through September.

On sale shortly

Based on the full parking lots outside the assembly plant here, VW dealers will have plenty of ID4s in stock, as soon as the automaker sorts its way through a shortage of car haulers to get them to showroom floors.

The ID4 is a pleasant vehicle to drive with a roomy and comfortable interior. Seating five and available with either rear- or all-wheel drive, it competes with EVs like the Ford Mustang Mach-E, Hyundai Ioniq 5 and Kia EV6. Conventionally powered alternatives include some of America’s best-selling vehicles, such as the Chevrolet Equinox, Ford Escape, Honda CR-V, Toyota RAV4 and VW’s own Tiguan.

How much will the ID4 cost?

Prices for the 2023 ID4 will start at $37,495 for a base model, which comes with a smaller battery — and hence shorter range — than the ID4s VW has sold so far. The base 62 kilowatt-hour battery is available only with rear-drive vehicles. They develop 201 horsepower and have an estimated range of 201 miles.

The bigger 82 kWh battery offer a range of up to 275 miles. It’s available with either 201-horsepower rear-drive or 295-horsepower all-wheel drive. AWD models scored an EPA range estimate of 255 miles.

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I drove a well-equipped ID4 AWD Pro S Plus from Nashville to Chattanooga on a route that included interstate highways, city streets and curving mountain roads.

It was comfortable and reasonably responsive. VW doesn’t offer the one-pedal driving setting popular with many EV owners, but the ID4’s max-regeneration setting and sport mode made for enjoyable driving on fast, twisty roads.

My test vehicle stickered at $53,745. All prices exclude destination charges.

9 new features owners will want

In addition to the base model’s smaller battery and lower price, the 2023 ID4 gets several welcome upgrades:

• Standard 12-inch touch screen, up from 10 inches.

• New center console with bigger cupholders, more storage and an arm rest.

• Improved pocket to hold phones for wireless charging.

• Available VW badge on the tailgate lights up red, like the SUV’s full-width running lights.

• Hands-free parking, including autonomous parking of up to 160 feet in up to five locations.

• Built in Plug and Charge compatibility (coming via over-the-air updates).

• Three-zone climate control.

• Driver initiated hands-free passing while using adaptive cruise control.

• A faster maximum DC fast-charging speed of up to 170 kW allows 82 kWh ID4 Pro and Pro S EVs to charge from 10% to 80% battery in 30 minutes, quicker than the 2022's 135 kW max. The 62 kWh battery can accept up to 140 kW. DC fast charging is key to making EVs practical for long, city-to-city drives. Owners do nearly all their daily charging overnight at home with 240-volt outlets.

What about those tax credits?

The U.S.-made ID4s will qualify for a federal tax credit, but neither VW nor the federal government knows exactly how much or when.

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That’s because the new credits in the Inflation Reduction Act were crafted to promote production of batteries and their materials in North America and other countries that are deemed reliable suppliers.

The original EV tax credit, which is still available on most EVs until Jan.1, 2023, was enacted in 2008 to encourage automakers to build EVs and for drivers to try the new technology. It succeeded, as demonstrated by the surging number of EVs on the market and rapidly increasing sales.

The new incentive, which can reach $7,500 per vehicle, has a different purpose: to ensure that the U.S. and its partners produce key parts of batteries, which will become vital to our economies. Think of it as insurance against economic blackmail of the sort Russia tried to use by cutting off Europe’s natural gas after it invaded Ukraine.

Want certainty? Buy now

That’s the geopolitics of the issue. The pocketbook economics are that few if any EV batteries are likely to meet the law’s requirements Jan. 1.

That’ll feel like a bug to buyers who’d like a price break and automakers who want to sell more EVs, but it’s actually a feature. Remember: If the parts and materials were built here now, there’d be no need for the incentive. The policy succeeds as production in strategically secure places increases.

The U.S. Department of Treasury, automakers and suppliers from around the world are working feverishly now to figure exactly what the law means to 2023 EV prices. They might have definite figures by New Year’s, but anybody who wants a sure thing should by their EV before Dec. 31.

2023 VW ID4 at a glance

Five-passenger rear- or all-wheel-drive midsize electric SUV

Available fall 2022

Base price: $37,495 (all prices exclude destination charge)

Primary model tested:

2023 VW ID4 AWD Pro S Plus

Price as tested: $53,745

Drivetrain: Motors of front and rear axles. Single-speed direct drive.

Power: 295 horsepower, 328 pound-feet of torque

EPA estimated range: 255 miles

Gasoline equivalent (mpg equivalent): 115 city/99 highway/109 combined

Battery: 82 kWh lithium-ion battery.

Charging time: 6 hours, 15 minutes at 240 volts; 30 minutes 10%-80% DC fast charging

Maximum charging rate: 170 kW

EPA estimated range: 245 miles

Wheelbase: 108.7 inches

Length: 180.5 inches

Width: 72.9 inches

Height: 65.1 inches

Ground clearance: 6.8 inches

Passenger volume: 101.2 cubic feet (with glass roof)

Cargo space: 30. cubic feet behind rear seat; 64.2 with rear seat folded

Curb weight: 4,877 pounds

Payload: 959 pounds

Towing capacity: 2,700 pounds

Built in Chattanooga, Tennessee

Contact Mark Phelan: 313-222-6731 or mmphelan@freepress.com. Follow him on Twitter @mark_phelan. Read more on autos and sign up for our autos newsletter. Become a subscriber.

This article originally appeared on Detroit Free Press: VW ID4 electric SUV cuts price, battery size of 2023 base model