Pablo Di Si, CEO of Volkswagen North America stated that although a hybrid option is possible, going with a plug-in would make more sense. The idea behind it is to avoid cannibalizing other (EV-only) entities such as the Scout brand which was recently announced and led by Di Si's predecessor Scott Keough.
At the moment, Volkswagen's top priority is to improve their SUVs: like the refreshed 2024 Atlas and Atlas Cross Sport featuring premium materials and amenities throughout the cabin. As for future models, they are considering all possibilities but Pablo Di Si suggested that the upcoming Atlas will most likely be offered as a plug-in if cost allows for it. The same goes for Taos and Tiguan models; nothing has been decided yet but they'll continue to be sold alongside EV ID.4 vehicles as well.
Source: CarBuzz