Dive Brief:
- VinFast Auto will delay the start of electric vehicle production at its New Hill, North Carolina, manufacturing plant until 2028, according to a June 12 securities filing.
- The first, $2 billion phase of the EV maker’s project was initially expected to begin production this month.
- The decision will allow it to “optimize its capital allocation and manage its short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations,” VinFast said in the filing.
Dive Insight:
Citing market volatility, Le Thi Thu Thuy, chairwoman of the VinFast board of directors, said the company has adopted a “more prudent outlook that is carefully calibrated to near-term headwinds.”
“Our robust long-term strategy and proven execution capabilities position us well to meet the evolving needs of the dynamic global EV market,” Thuy said in the filing.
VinFast pivoted from a direct-to-consumer model to a hybrid sales model last year. The company expects to deliver 80,000 vehicles in 2024, 130% more than its 34,855 unit sales in 2023, according to the filing.
While the startup called its Q2 delivery results “encouraging,” it said it is facing ongoing economic headwinds and uncertainties in different macro-economies of the global EV landscape. Many automakers, including Ford and Hyundai, have also pushed back their EV manufacturing timelines in recent months.
When operational, VinFast’s North Carolina plant is expected to produce 150,000 vehicles yearly, primarily its VF7 and VF8 SUVs. The assembly and battery manufacturing facility will create 7,500 jobs, the company said in 2023.
VinFast will report Q2 earnings on Aug. 15.
