Monday, June 17, 2024
NewsVinFast delays (again) the construction of its North Carolina plant

VinFast delays (again) the construction of its North Carolina plant

  • Production of the first North American vehicles from VinFast will have to wait until 2025.

  • Building this plant on U.S. soil is crucial for VinFast to bring the same benefits to its customers as consumers of other electric brands.

  • The production plant, when erected, is expected to create as many as 7,000 jobs and assemble 150,000 vehicles per year, according to the automaker.


 

The construction of the production factory on US soil for Vietnamese carmaker VinFast’s will have to wait. This was stated by the manufacturer’s officials in an interview with Reuters.

The plant had recently received its construction permit, but to proceed, VinFast must also obtain its permit from the U.S. Army Corps of Engineers to minimize damage to water quality and wetlands.

Building this plant on U.S. soil is crucial for VinFast to bring the same benefits to its customers as consumers of other electric brands. The Biden administration’s financial incentives (applicable to many electrified models) in the U.S. are very popular, and it’s even fair to say that these discounts for American motorists are enough to push a manufacturer to build a production plant in the U.S.

Last year in March, VinFast announced with great fanfare its plans for a $4 billion assembly plant in Chatham County, North Carolina.

Unfortunately, the young automaker must now delay production of its electric SUV lineup until 2025. The original goal was to begin production in July 2024.

VinFast still delivered its first vehicles earlier this month – but those were produced at the brand’s local factory in Viet Nam –, with the first 45 customers all based in California. Those who follow automotive news may recall that VinFast caused quite a stir when its container ship painted in the brand’s colors arrived in the state of California last November.

The production plant, when erected, is expected to create as many as 7,000 jobs and assemble 150,000 vehicles per year, according to the automaker.

As Reuters reports, VinFast suffered a 55 percent loss last year, while its revenue fell about 6.9 percent.

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