Vietnamese automaker VinFast continues to pursue interesting new approaches to the car sales and ownership experience as it tries to grab a foothold in the American market. The latest gambit? If your VinFast car is in the shop, VinFast will pay you compensation.
What Is This Company?
If you’ve never heard of VinFast, you’re not alone. It’s a tiny player in the U.S. automotive market so far, with dealerships concentrated in Southern California and the San Francisco Bay Area.
But it’s not a tiny startup with dicey finances. It’s a new branch of an enormous company.
VinFast is a subsidiary of Vingroup, Vietnam’s largest conglomerate. Vingroup does a little of everything, operating hospitals, colleges, home builders, grocery stores, vacation resorts, and more in its home country.
Related: What Is VinFast? All About The New Vietnamese Automaker
Its automaker arm started out building licensed copies of other company’s cars in Vietnam but has expanded to designing and building electric vehicles (EVs) from scratch. The company plans to become a global force — it now has offices on five continents, with plans to sell vehicles on each.
In the U.S., those plans include a North Carolina factory.
How Are the Cars?
VinFast plans at least four cars in the U.S., all SUVs. So far, they range from the compact VF 6 to the 3-row midsize VF 9. The first dealers who’ve signed up to sell the cars are reportedly pushing the company to offer America’s least-expensive new car.
But the only one the media has driven so far is the VF 8, a 2-row midsize SUV with attractive looks by the famed Italian design studio Pininfarina. Early reviews of that car were among the worst we’ve ever seen for a car sold in the U.S.
But the early reviews don’t have to be fatal. Most of the issues were matters of programming or adjustments that could be corrected before the car reaches mass sales.
$100 to $300 Per Repair
Under VinFast’s “Special Aftersales Policy,” the company will compensate customers when their cars come in for certain repairs.
The policy divides repairs into three types, with a different payout for each.
VinFast explains:
- Type 1 issues cause inconvenience(s) that do not impact the use of the vehicle. Eligible customers will receive $100 for each Type 1 issue they experience.
- Type 2 issues render a vehicle inoperable. In addition to providing roadside assistance, VinFast will provide eligible customers with $300 for each Type 2 issue they experience.
- Type 3 issues require a repair time of more than three days. From the fourth day onward, eligible customers will receive $100 for each additional day that their vehicle is being serviced by VinFast.
The payment won’t necessarily be cash. VinFast says payment “will be available in the form of aftersales service vouchers or cash (via bank transfer or check).”
Getting Creative Because Getting a Foothold Is Hard
VinFast is one of several EV-only automakers fighting to gain a beachhead in the American market. Analysts say some will inevitably fail, and financial warning signs suggest a few may be in trouble even though their products look impressive.
VinFast is among the hardest to read. One argument says it’s little more than a meme stock unlikely to survive long. VinFast briefly appeared to be one of the world’s most valuable companies this summer before values crashed back to Earth.
Another, however, points out that it has the financial backing of an immense conglomerate. New automakers often need to lose money for a long time before they make money. Tesla famously had its first profitable quarter selling cars in its 18th year in business. Deep pockets from selling everything from apartment buildings to vacation stays at resorts could allow Vingroup to replicate that success.
