The company is yet another competitor to legacy U.S. automakers, but experts and reviewers of the VinFast product aren’t so sure how much of a concern the EV maker should be. Still, they say its U.S. expansion shouldn’t be ignored, either. As the domestic and longstanding foreign automakers work to launch more electric and hybrid options for would-be American buyers, Vietnamese automaker VinFast Auto Ltd. is rapidly expanding its U.S. dealer network to sell its EVs. But the reviews we’ve read have been perhaps the most brutal we’ve seen for a modern car. Motortrend called the VF8 “nowhere near ready for public consumption.” Inside EVs described riding in the VF8 as “unbearable.” These are not exactly promising signs.
A CPO vehicle is an affordable, like-new car backed by a manufacturer’s warranty. Here are some of the best used car deals in March 2024. VinFast’s headquarters are in Haiphong, Vietnam, where its factory is.
“It was just a little too much, and we wanted the better model.” According to an SEC filing, his Vingroup controls 1.2 billion shares in VinFast, more than 50 percent of outstanding shares. Two of his private investment companies, Vietnamese Investment Group and Asian Star, own an additional 1.1 billion shares. Combined, the entities own about 99.7 percent of the company.
Car Dealers Expect Lower Profits Amid Higher Inventory
The carmaker broke ground on its first American factory in North Carolina last month with plans to begin production at the $4 billion facility in 2025—as of June, only 137 electric vehicles by VinFast were registered on U.S. roads. In January, VinFast said it delivered 13,513 electric vehicles worldwide in the fourth quarter, a 35% increase over the previous quarter. It sold 42,291 EVs globally between its launch in 2021 through the end of 2023. That includes 34,855 EVs sold in 2023, which was below the automaker’s forecast of between 40,000 and 50,000. If VinFast simply wanted to bring traditional gas-powered vehicles to the U.S., it would be an extremely difficult task.
In general, if VinFast can move quickly and find solid footing, it has a chance to establish itself as a player among mainstream electric vehicles – that is, EVs that everyday buyers can afford, not just those with the deep pockets needed for luxury EVs. VinFast builds its vehicles in Vietnam, at least for now. We had a chance to tour VinFast’s factories, and they are indeed state of the art. They are also nearly brand new, built from scratch in less than two years’ time. And its modern factories in Vietnam appear to be only the beginning. The company recently announced it is investing $2 billion in a factory in North Carolina.
Abuelsamid of Guidehouse remains skeptical of the vehicles and of the company’s strategic decision-making since it did not come in offering a more affordable vehicle — precisely how foreign automakers historically entered the U.S. market. Thuy, now chair of VinFast’s board, told Reuters after the automaker’s earnings report last month that fewer than 1,000 units were sold in North America last year, but the company expects the new dealerships to boost sales this year. VinFast still has much to prove in the U.S. market, just like other foreign automakers did when they set up shop. “When the Germans came in, and the Japanese and the Koreans, it wasn’t pretty,” Waatti said. “It took decades to build American trust and name recognition, and VinFast is going to be no different.” However, the company’s operational center is still in Vietnam.
Will VinFast and its parent make more than just cars in the United States?
However, VinFast does not appear to be selling many vehicles so far. The company recently revealed that 7,100 of its 11,300 global sales in the first half of 2023 were to Green and Smart Mobility, a Vietnamese taxi firm controlled by Vingroup. VinFast stock surged to a value of $82.35 on August 28th. This pushed its market cap higher than every automaker globally except Tesla and Toyota. It has since plummeted below $20, about where it was before the rally started.
- Still, they say its U.S. expansion shouldn’t be ignored, either.
- But the reviews we’ve read have been perhaps the most brutal we’ve seen for a modern car.
- It’s rarer still when an all-new automaker arrives, builds a factory, and then begins building cars that people actually like and buy.
- They are also nearly brand new, built from scratch in less than two years’ time.
They got out on the side of an exit ramp and called for help; a VinFast technician told the couple to get out of the car, lock it and wait for its system to reboot. After 45 minutes, as the pair waited for a tow truck, they got back into the car and found everything turned on again, so they drove home. They https://www.dowjonesrisk.com/ are sending it back for an inspection by the dealer. Rhett Ricart, owner of Ricart Automotive Group in Columbus, Ohio, was also impressed by VinFast after visiting the company’s Vietnam operation earlier this year. “It’s a very nice vehicle with probably the best lease in the market,” Williams said.
Vietnamese EV maker rapidly expanding network in US. Experts say don’t sleep on this
“You can’t expect everything to be 100%. It’s a baby company … things happen. And the people couldn’t be nicer.” The Sprinczeleses spent about $2,000 out of pocket to get a VF8 Plus, the higher-end model, from the Leith dealership. “We would have probably went with a Ford if it wasn’t so expensive,” said Arthur, recalling the price for the one they wanted being around $70,000.
What is VinFast? Here’s Everything You Need to Know
Thanks to a wildly fluctuating stock price, you may have seen the name VinFast in the news lately. In case you wondered just what it is — and whether Dom Toretto is involved — here’s everything you need to know. Fleetingly the world’s third-most valuable automaker, Vietnam’s new EV manufacturer is coming to America.
In the meantime, VinFast will have to fight through a crowded field with its SUV fleet. But Abuelsamid credited VinFast for setting “pretty aggressive” lease prices. Ricart says he reminds everybody that when Hyundai, Kia, Volkswagen and others entered the U.S. market, “they weren’t that good of cars.” VinFast, he said, is “way ahead of them.”
The Mach-E starts at $39,895 for the entry-level model and goes up to a starting price of $52,395 for the GT version. “The company itself is very impressive,” Williams said. “They do have cash; they’re not like one of these startups that is hoping to make it. And they’re building the first-ever manufacturing plant for automotive in North Carolina, which is going to be about 35 minutes from where our store’s at.” VinFast in November announced its expansion across the country with plans to have “hundreds” of points of sale by the end of this year. It’s also building a manufacturing plant in North Carolina, a tangible signal of its competitive intentions in the world’s richest car market. We had a chance to briefly drive a very pre-production version of the VF 8.
Who is behind VinFast?
Instead it is following what other EV startups such as Tesla and Rivian are doing by selling directly to customers. Moreover, VinFast says its cars will be sold in all 50 states. Buyers who drive fewer than about 1,000 miles per month might opt to lease the battery at $35 per month for the VF 8 or $44 for the VF 9, which covers 310 miles of range per month. Additional miles cost $0.11 per mile in the VF 8 and $0.15 in the VF 9. VinFast did recently discuss plans to bring its VF3 model, a tiny hatchback SUV, to the U.S. at a price point of $20,000. But the vehicle probably won’t reach American soil until the 2026 model year, according to Car and Driver.
“The way they’re coming into the market with aggressive leasing is something that’s been lacking.” Pham Nhat Vuong has an estimated net worth of $55.9 billion, making him the richest person in Vietnam and the 23rd richest in the world. He is the chair of Vingroup, the largest conglomerate in Vietnam, with units in the real estate development, EV, technology and retail sectors.
That will enable VinFast to build cars here in America, too. It’s rarer still when an all-new automaker arrives, builds a factory, and then begins building cars that people actually like and buy. When that new automaker is able to survive amid established, well-known competition. VinFast’s presence in the Tar Heel State led Arthur and Tracey Sprinczeles of Hillsborough to consider purchasing their first EV. The consistent Ford customers, with a 2007 Edge and a 2015 F-150 Platinum in the driveway, liked what they saw with VinFast’s aggressive lease offer. They considered Ford’s all-electric Mustang Mach-E, but the price for the model they wanted felt steep.