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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 report. presentation of values.
- The first phase, $2 billion of the electric vehicle manufacturer’s project initially expected start 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 short-term growth objectives and strengthening existing operations,” VinFast said in the filing .
Diving knowledge:
Citing market volatility, Le Thi Thu Thuy, chairman of VinFast’s board of directors, said the company has adopted a “more cautious outlook that is carefully calibrated for short-term headwinds.”
“Our strong long-term strategy and proven execution capabilities position us well to meet the evolving needs of the dynamic global electric vehicle market,” Thuy said in the presentation.
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, up 130% from its 34,855 unit sales in 2023, according to the filing.
While the startup called its second-quarter delivery results “encouraging,” it said it faces economic headwinds and uncertainties in various macroeconomics across the global EV landscape. Many car manufacturers, including Ford i Hyundaithey 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 annually, primarily its VF7 and VF8 SUVs. The battery assembly and manufacturing facility will create 7,500 jobs, the company said, by 2023.
VinFast will report second-quarter earnings on August 15.
