Vietnam's VinFast Preparing to Sell Electric Crossovers in the U.S.
Image credit: VinFast
VinFast, Vietnam's first auto company, announced it has set up a US headquarters and said showrooms will be opening soon in California.
The company plans to enter the U.S. market with two electrical crossovers, the VFe35 and VFe36, and begin sales in March 2022.
VinFast has an 8.4 percent market share in Vietnam, but said it will need to raise additional funds to fund its global expansion.
VinFast became Vietnam's first domestic automaker in 2019 when it began selling two gasoline-powered vehicles, the Lux A2.0 sedan and the Lux SA2.0 crossover, in its home market. Now the young company has announced plans to expand into North America and Europe, with the aim of starting sales in the US in March 2022. The automaker's global range of products will focus on electrical crossovers.
VinFast sold around 30,000 vehicles in Vietnam last year. The company has not yet made a profit, but is growing rapidly in Vietnam, where it will become the fourth most popular car brand this year with a market share of 8.3 percent. The company is part of Vietnam's largest conglomerate known as Vingroup JSC. In a statement on Monday, Vinfast said it had opened offices in North America and Europe with the aim of opening showrooms in California soon. The company also added that Van Anh Nguyen, CEO of VinFast's US operations, recently moved to the US from Vietnam.
Image credit: VinFast
VinFast has admitted it needs more funding for its expansion plans and is proposing to either go public on the US stock exchange or merge with a special purpose acquisition company (as EV startup Lucid Motors did earlier this year) to procure these finances. VinFast had originally considered an offer in the second quarter of this year that would help raise $ 2 billion in funding, but Reuters reported the offer was delayed.
VinFast is currently building five vehicles. The Lux A2.0 is based on the BMW 5 Series of the F10 generation and the Lux SA2.0 is based on the bones of the F15 version of the BMW X5, both cars coming from the pen of the Italian design house Pininfarina. VinFast's first EV is the VFe34, a subcompact crossover based on an exclusive VinFast platform, and there's also the compact Fadil, a redesigned Opel Karl city car. VinFast also made a 500-unit run of the President, a version of the Lux SA2.0 that packs a 420-horsepower 6.2-liter GM V-8.
The entry of the Vietnamese brand into the US market will be based on the upcoming VFe35 and VFe36, a compact and medium-sized electric crossover. Details on the US-specific models have not yet been announced. VinFast had originally targeted sales of 56,000 electric vehicles in 2022, but the global shortage of semiconductor chips has forced VinFast to reduce that target to 15,000 units.
You might like it too
Future cars to wait for: 2021-2025
You should check here to buy the best price guaranteed products.
Ethereum, the No. 2 behind bitcoin, fights off challengers that offer cheaper and faster blockchains
The week in Bidenomics: crazy talk on inflation
Cawthorn says Fauci should be prosecuted if the GOP takes back Congress in 2022
Strange behaviour of Earth's core reveals a mystery inside our planet
January Jones' Abs Are Front And Center In Her New At-Home Bikini Photoshoot
Hurry! This Nordstrom tank top is now only $8 for a limited time