VinFast, a Vietnamese electric car maker, is considering further postponing its plan to invest 4 billion US dollars to build a plant in North Carolina, according to a person familiar with the matter.
VinFast announced in 2022 that it would build an electric car and battery factory in the United States with an annual capacity of 150000 vehicles, hoping to take advantage of Biden government subsidies for American-made electric vehicles.
At the time, US President Joe Biden said the plant would create more than 7000 jobs, calling it the latest example of its economic strategy working.
VinFast originally planned to complete construction of the plant in July 2024, but later postponed the operation of the plant to 2025.
The company is now considering another extension, according to people familiar with the matter.
VinFast, which sold less than 1000 vehicles in North America last year, told Reuters, “We are thoroughly reviewing and evaluating all aspects of the plant building process in North Carolina.
” Chatham, the county where VinFast’s North Carolina plant is located, declined to comment on a possible delay.
A spokesman for the county government said VinFast had changed the size of the factory’s final assembly building twice.
The latest revision was submitted in April and the county’s license department is still under review.
In the US market, in addition to sluggish sales, VinFast was sued for failing to pay the rent for the showroom.
In addition, the company faces two separate investigations-a crash in California in April involving a VinFast VF 8 car that killed four people, and an alleged infringement of ArcelorMittal patents on aluminum used in VF 8 models.
, VF 8.
photo: VinFast, although VinFast has a factory in northern Vietnam with an annual production capacity of 300000 vehicles, it sold less than 35000 cars worldwide last year, the vast majority of which were sold in the local market.
Most of the cars sold by VinFast in China are also sold to partners.
In 2023, the company’s net loss increased by 15% to $2.
4 billion.
Overseas plans that, despite weak global demand for electric vehicles and a price war, VinFast said its target of selling 100000 vehicles this year remained unchanged as the company expanded overseas, more than double its 2023 sales target.
In the first quarter of this year, the VinFast sold less than 10, 000 vehicles, but the company attributed it to a slow start at the start of the year, especially in Vietnam.
VinFast plans to expand its automotive product lineup by the end of June, including more right-hand drive models for markets such as Thailand and Indonesia, adding that products should be seen in the second half of this year.
VinFast also confirmed plans to build an assembly plant in Indonesia and India by 2026.
In Indonesia, VinFast said, “We expect to start delivering VF E34 models soon and launch VF 5 models in the second quarter.
” VinFast, founded in 2017, has focused on electric vehicles since 2022, but the company is not yet profitable, with a net loss of $618 million in the first quarter of this year and revenue nearly tripling from the same period last year, but down 31 per cent from the previous quarter.
, return to the first electric network home page >.
