Vietnamese EV automaker VinFast will start its first batch in North Carolina next week. As it will officially be groundbreaking on an earlier revealed production facility. It has been a difficult journey for VinFast, but its mode of operation quite suits its name. It shows a drastic increase in sales figures by the time of start deliveries of its VF 8 EV in the US. While the recall for the complete first batch makes slowed down everything.
Being a new industry is now compensating customers who face issues with their new EV. However, the step taken does not seem to be a financially long-term strategy but VinFast is able to manage the fund. This is because of its parent VinGroup, and the latest SPAC merger at an equity value of over $23 billion.
However, VinFast keeps expanding its market approach worldwide. All of its EVs are presently produced in Vietnam and shipped to other places. While, the company aims to start delivering EVs to US consumers, which are to be built locally in the upcoming production facility in North Carolina.
The company promised to invest $2 billion in the first phase of the site. This is to focus on the groundbreaking in September 2022 before the start of the production which is scheduled to mid-2024. He already got all the necessary approvals to start the constriction in February. Although, it got delayed the start of U.S. production till 2025.
VinFast breaks ground July 28, EV production set for 2025
Therefore, after performing groundbreaking by its official dignitaries that going to happen next week. The company will initiate a three-year process that will substantially make its first-ever production unit.
In addition to the above info, the new plant came into existence as a result of a $1.2 billion incentives package awarded to VinFast by North Carolina. The amount would be the largest package in the state’s 234 years of history. The phase of the production facility, for which it currently got permission will include two areas. The first is EV production and the other one is their assembly. The site will approximately cover 1,800 acres in Chatham County and target an annual output of 150,000 vehicles. As per the VinFast CEO Madam Le Thi Thu Thuy with respect to this forthcoming facility:
The manufacturing facility in North Carolina is one of VinFast’s key projects. When it begins operations, the factory will be VinFast’s primary supplier of electric vehicles to the North American market, allowing us to optimize production and business activities. We hope the construction of the factory in Chatham County will contribute to advancing the clean energy economy in the US and help to support North Carolina’s green mobility strategy.