VinFast to construct US$2bil EV manufacturing unit in US

HANOI: Vietnam’s automaker VinFast mentioned on Tuesday it has signed a preliminary deal to initially make investments US$2bil (RM8.41bil) to construct a manufacturing unit in North Carolina to make electrical buses, sport utility automobiles (SUVs) together with batteries for electrical automobiles ( EVs).

The unit of Vietnam’s largest conglomerate Vingroup , mentioned it plans to have a complete funding of US$4bil (RM16.83bil) in its first United States manufacturing unit complicated.

Building ought to start this yr as quickly as the corporate will get obligatory permits, and is anticipated to complete by July 2024. The plant’s preliminary capability shall be 150,000 items per yr, VinFast mentioned.

“With a producing facility proper within the US market, VinFast can stabilize costs and shorten product supply time, making our EVs extra accessible to prospects,” mentioned Nguyen Thi Thu Thuy, Vingroup vice-chairman and VinFast World CEO.

VinFast has begun taking pre-orders globally for 2 electrical SUVs with a purpose to start delivering them within the fourth quarter.

US President Joe Biden mentioned the VinFast funding, which can create greater than 7,000 jobs, is “the most recent instance of my financial technique at work.”

“It builds on latest bulletins from firms like GM, Ford, and Siemens to put money into America once more and create jobs, mentioned Biden, who set an bold purpose for half of recent automotive gross sales to be electrical by 2030.

This shall be North Carolina’s first automotive plant and it’s the largest financial growth announcement within the state’s historical past, the governor’s workplace mentioned in a press release.

VinFast mentioned costs for its VF8 sport SUV began from US$41,000 (RM172,576) within the US.

By comparability, a Tesla SUV sells for round US$63,000 (RM265,160).

VinFast is concentrating on international EV gross sales of 42,000 this yr.

VinFast is betting huge on the US market, the place it hopes to compete with legacy automakers and startups with inexpensive electrical SUVs and a battery leasing mannequin.

Different EV startups like Rivian and Lucid have slashed their manufacturing targets this yr resulting from provide chain disruptions brought on by coronavirus, which hit their share costs.

Tesla CEO Elon Musk mentioned final yr, “It is insanely troublesome to succeed in quantity manufacturing at inexpensive unit price.”

VinFast, which grew to become Vietnam’s first totally fledged home automotive producer in 2019, plans to transition to all-EV manufacturing from late 2022.

Exterior of North America, the corporate is on the lookout for a plant in Germany, it mentioned in January. — Reuters


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