VinFast Shifts Gears, Delays Production to Start Later in 2028

Jul 15, 2024 11:52 PM EDT

VINFAST VF6 — (Photo : VINFAST AUTO USA/VINFAST)

Not once, but for the second time, VinFast delayed production in the North Carolina plant. Set initially for 2024, the car manufacturer enticed everyone only to announce a production delay. It's not happening in 2025, but in 2028, if another delay won't happen.

VinFast For 2028, Delays Production

VinFast is geared to begin its production this month. But the automaker announced a delay until next year. The latest? Vinfast pushed back until 2028.One reason for this delay is the lack of enthusiasm among potential buyers. Vinfast sold only 21,747 cars in the first half of 2024. One can understand Vinfast's move as a reasonable strategy with these numbers in mind.

According to WRAL News, the planned factory, anticipated to generate 7,500 employment opportunities, was initially slated to open by the end of 2025. However, production commencement has been rescheduled to 2028, as confirmed by VinFast. The company's commitment to constructing a manufacturing plant in Chatham County comes with an updated timeline for the launch of its North Carolina site.

The report also noted that despite VinFast's sustained global expansion, marked by a 25% increase in vehicle deliveries compared to the previous year. Additionally, the company acknowledges prevailing economic challenges and uncertainties across various macroeconomic environments and the global electric vehicle landscape.

Consequently, a more cautious approach has been deemed necessary for the remainder of the year.

US Production Plant

According to reports from CarScoops, the introduction of VinFast to the US market faced challenges amid a slowdown in electric vehicle adoption. Consequently, the company decided to pause the construction of its North Carolina manufacturing facility.

Initially planned for production in July 2024 with an annual capacity of 150,000 vehicles, the facility did not meet expectations despite significant state incentives. Despite a symbolic groundbreaking event and plans for VF 7 production, progress at the site has been limited, leading to downsizing and minimal advancements at the location.

In order to facilitate the first phase of production of up to 150,000 electric vehicles yearly, VinFast announced a $4 billion investment in the Chatham County factory. It mentioned that recent WRAL News sources showed that the Moncure manufacturing complex has shrunk to 782,255 square feet, a 20% reduction from the facility's original design of 995,500 square feet.

First expected to be finished in July 2024, as Reuters revealed in May of last year, the corporation pushed back the start of plant operations to 2025 and is currently considering a further delay, according to an unnamed source with knowledge of the situation.

VinFast, whose car sales in North America last year came to less than 1,000 units, told Reuters that they are presently conducting an extensive evaluation of the building processes for their facilities in North Carolina.

Reasons for VinFast's Challenges

As shared in WRAL News, Economist Mike Walden discussed the challenges faced by VinFast, highlighting the need for the startup automaker to establish credibility in a competitive industry. He noted the hurdles of low consumer adoption in the evolving EV market, cost concerns despite price adjustments and incentives, and the timing impact on their entry into the sector amid challenging market conditions.