Key Takeaways
- VinFast’s North Carolina plant will only come online in 2028.
- Vietnamese automaker is facing the same market volatility as other EV makers but remains ambitious in its plans.
- VinFast has been steadily increasing sales and expects to shift 80,000 units globally this year.
Vietnamese automaker VinFast has confirmed what we suspected: its American assault has hit a bump in the road and production at its North Carolina plant has been delayed even further. The company announced the news in a press release, citing economic challenges, macroeconomic uncertainties, and a shift in the global EV landscape as the reasons for its latest delay. This plant was promised to grow jobs in the region, and VinFast was granted some $1.2 billion in state and county incentives to make its dream of producing EVs on US soil possible. However, the plant, first announced in March 2022, is now only “expected to begin production in 2028.”
VinFast
VinFast is a Vietnamese automaker launched in 2017, and the first-ever Vietnamese auto manufacturer. A subsidiary of the broader VinGroup, VinFast manufactures combustion and electric vehicles but only sells EVs in the USA, launching four models stateside: the VF6, VF7, VF8, and VF9 – a series of electric crossovers. Plagued with quality control issues, VinFast’s start to life in the US has not been smooth sailing, but with plans to build EVs in North America, it remains committed to growth.
- Founded
- June 2017
- Founder
- Pham Nhat Vuong
- Headquarters
- Haiphong, Vietnam
- Owned By
- VinGroup
- Current CEO
- Pham Nhat Vuong
North Carolina Is Unhappy With Delays
In 2023, after receiving permission to begin construction, VinFast held a groundbreaking ceremony for its new plant in North Carolina and announced that production of the VF 7 would take place in 2025. This 995,500-square-foot facility was supposed to provide 7,500 jobs for local workers and initially targeted an annual production figure of 150,000 EVs. This figure would include the VF 8, which launched first. The company later declared that the factory would begin operations in 2025, but now that date has been pushed back to 2028, and when the facility does finally go online, it may not be quite as impressive as state and county officials were originally expecting.
Add CarBuzz to your Google News feed.
“We have adopted a more prudent outlook that is carefully calibrated to near-term headwinds, taking into full consideration the realities of market volatility and potential challenges. Our robust long-term strategy and proven execution abilities position us well to meet the evolving needs of the dynamic global EV market.”
– Madam Thuy Le, Chairwoman of the Board of Directors, VinFast
According to The Carolina Journal, construction was put on hold after what was originally touted as the “crown jewel of VinFast’s global expansion” had its plans altered. “In December 2023, VinFast submitted revised foundation plans that changed the footprint and square footage to 782,255,” according to Chatham County public information officer Kara Lusk, who also told the news outlet that VinFast’s construction permit had been placed under review as a result.
VinFast Still Sees Huge Potential In America
VinFast has reported global sales of 12,058 units for the second quarter of 2024, representing a 26% year-on-year increase. In the first half of this year, 21,747 vehicles were sold, versus 34,855 over the entirety of 2023. Despite these underwhelming sales, many of which come from orders from other companies within the VinGroup parent conglomerate, VinFast still expects to sell 80,000 vehicles worldwide by the time January 2025 rolls around.
Can it get there? With attractive lease deals and a remarkable warranty package, some consumers may be willing to take a chance on the relatively young automaker, and if the low-cost VF 3 launches here, it could attract new buyers. However, VinFast has been investigated by the NHTSA over a deadly crash, its vehicles offer paltry driving range, and quality control is a serious issue. Still, the company seems determined, and as long as funding doesn’t dry up, we will continue to hold out hope that VinFast will keep its promises to North Carolina and Chatham County.
Related
VinFast Pays American Customers Every Time Its Cars Break
Now that’s a guarantee you won’t find anywhere else.
Source:
The Carolina Journal
#VinFast #Hits #Brakes #American #Invasion
