VinFast VF9, the top model among electric SUVs Vietnam’s homegrown automaker VinFast said on March 29 that it had signed a preliminary agreement to build a factory in the U.S. state of North Carolina to produce electric sports utility vehicles and electric buses, as well as electric vehicle batteries. The move comes after the company said last March that it has plans for its own U.S. manufacturing base in addition to its existing R&D facility in San Francisco, California. The company, part of the Vietnamese conglomerate Vingroup, said…
Vietnam’s homegrown automaker VinFast said on March 29 that it had signed a preliminary agreement to build a factory in the U.S. state of North Carolina to produce electric sports utility vehicles and electric buses, as well as electric vehicle batteries.
The move comes after the company Say Last March, the company separately planned to build a manufacturing base in the United States, in addition to its existing R&D facility in San Francisco, California.
The company, part of Vietnamese conglomerate Vingroup, said it would initially invest $2 billion in the plant, its first in the U.S., and planned a total investment of $4 billion. Once all necessary permits have been obtained, construction will begin this year and is expected to be completed by July 2024. The facility will have an initial capacity of 150,000 units per year.
Making cars ‘more accessible’ to U.S. customers
“With a manufacturing facility in the U.S. market, VinFast can stabilize prices and shorten product delivery times, making our electric vehicles more accessible to customers,” said Nguyen Thi Thu Thuy, vice chairman of Vingroup and global CEO of VinFast, in a statement. .
The plant will be North Carolina’s first auto plant in the largest economic development announcement in the state’s history, the governor’s office said in a statement.
Price war with Tesla
VinFast said its entry-level SUV VF8 starts at $41,000 in the U.S., which is clearly competitive with Tesla’s compact SUV Model Y, which starts at around $64,000.
Outside North America, the company is looking to set up a factory in Germany, Say in January.
VinFast further plan A U.S. IPO in the second half of 2022, when it could raise as much as $3 billion and reach a company valuation of $60 billion.
