- EV startup VinFast has closed two dealerships, with a third likely to close soon.
- The company continues to grow in Asia, but its prospects for a significant footprint in the U.S. have taken a hit.
Electric vehicle (EV) startup VinFast has begun contracting its U.S. footprint.
Industry publication Automotive News reports, “VinFast’s retail network has shrunk to fewer than two dozen stores, reversing its U.S. expansion, with a Holman dealer in North Carolina the latest to exit the brand.”
VinFast, if you’re not familiar with the name, is Vietnam’s largest automaker. It launched an attempt to enter the U.S. market in 2022, even hosting KBB’s Matt Degen for a tour of its Vietnamese facilities.
The company sells two vehicles in the U.S., the VF 8 2-row midsize SUV and the VF 9 3-row model. The first VinFast model to reach the U.S., the VF 8, received abysmal reviews in 2023, but rapidly improved.
VinFast has toyed with unique plans, including a $13,500 EV and a unique plan to reimburse owners for any time their car was in the shop. The company planned a North Carolina factory and an extensive network of dealerships.
Some Dealers Appear to Have No Inventory
Yet, over the summer, warning signs began to emerge. It invested heavily in new markets in Asia while publicly reaffirming its U.S. market plans.
Now, AN reports, at least two dealerships have closed with a third likely to shutter soon, and “some VinFast stores on the automaker’s online dealer locator appear to be inactive.” Of 22 dealers on the website, AN notes, only 17 list any inventory.
Launching a new automaker is one of the most challenging prospects in business because it requires huge outlays of capital for years before there’s even a hint of profit.
Deep pockets can matter more than great products, as the ability to burn through cash lets a company learn from its mistakes and build a reputation with the public.
VinFast’s parent, Vietnam’s VinGroup, has deep pockets. But the company may see more promise for future growth outside the U.S.
