VinFast plans to delay the launch of its US electric vehicle factory

by Phuong Nguyen, Francesco Guarascio and Ben Klayman

(Reuters) – Vietnamese electric car (EV) maker VinFast plans to further delay its planned $4 billion (3.69 billion euro) U.S. factory in North Carolina, a company said. no one familiar with the matter, as the loss-making company strives to win the favor of American consumers.

VinFast announced in 2022 the construction of an EV and battery factory in the United States, with an annual production capacity of 150,000 vehicles, in order to benefit from the efforts of the American administration on subsidies granted to electric vehicles manufactured locally.

The company had initially planned to complete the plant in July 2024, but then pushed back the start of operations to 2025. It is considering another delay, said the source, who asked not to be identified due to the confidentiality of information.

Read alsoCounting

VinFast, which sold fewer than 1,000 cars in North America last year, told Reuters it was “conducting a thorough review and evaluation of all aspects of the manufacturing process of [leur] North Carolina plant.

Chatham County, North Carolina, where the plant’s cornerstone was laid in July, declined to comment on a possible delay.

A local government spokesperson, however, said VinFast had revised the size of the factory’s general assembly building twice. The latest revision was submitted in April and is still under review by the county permit department.


When VinFast announced its project in North Carolina in March 2022, US President Joe Biden promised that the factory would create more than 7,000 jobs.

While Republicans won North Carolina in the 2020 presidential election by a slim margin, Joe Biden’s administration is pumping a lot of money into it to win the state in the November presidential election.

Last year, VinFast sold fewer than 35,000 cars worldwide, compared to a target of 50,000 units, most of them in its own market and even though it has a factory in northern Vietnam with capacity annual production of 300,000 cars.

Moreover, most of the vehicles sold on the domestic market were to related parties and last year, the group’s net loss widened by 15% to reach $2.4 billion.

Founded in 2017 and focused entirely on EVs since 2022, VinFast, which has yet to turn a profit, posted a net loss of $618 million in the first quarter.

(Reporting by Phuong Nguyen, Francesco Guarascio and Ben Klayman; French version Kate Entringer, edited by Blandine Hénault)

©2024 Thomson Reuters, all rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. “Reuters” and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.

Source link -87