Vinfast on Saturday announced that its North Carolina factory would be delayed, while also lowering its 2024 annual delivery target.
In a press release discussing its second-quarter financial results, Vinfast said the factory would start producing vehicles in 2028, rather than 2025, as the automaker said in its last update on the project. Construction at the 2,000-acre site in Chatham County, near the state capital of Raleigh, was reportedly paused earlier this year.
“This decision will allow the company to optimize its capital allocation and manage its short-term spending more effectively,” the release said.
Vinfast VF 9
Announced in 2022, the factory netted Vinfast a $1.2 billion incentive package from the state of North Carolina, which the automaker said at the time would complement its own $2 billion investment in the first phase of construction. Vinfast originally said the factory would open in 2024, but told shareholders earlier this year that it was aiming to complete the factory by 2025, with annual production capacity of 150,000 vehicles.
In the same release, Vinfast said it’s now aiming to deliver 80,000 vehicles this year, down from the previous target of 100,000 vehicles. The automaker reported 21,747 deliveries in the first half of 2024, with 12,058 of those in the second quarter. The automaker has a long way to go to hit even the lower target, which would still be a major increase from the 34,855 vehicles Vinfast delivered in 2023.
VinFast VF 3
Vinfast appeared to be falling behind on sales targets earlier this year, even as it added U.S. dealer franchises in an ongoing pivot away from the direct-sales model pioneered by Tesla and taken up by other EV hopefuls like Lucid and Rivian. As of April the automaker had 18 franchised dealerships in seven states, plus 15 company-owned stores and service centers in California, the nation’s largest EV market.
Vinfast’s sole offering for the U.S. is the VF 8 electric crossover SUV. A first drive of the VF 8 last year led us to warn that it simply doesn’t feel ready yet. A follow-up, the three-row Vinfast VF 9, has been officially rated with a 330-mile EPA range, but deliveries haven’t started yet. Vinfast has also shown several smaller crossovers, as well as a pickup, in concept form, and has begun taking reservations for its VF 3 mini-SUV.
