Ben Rappaport, Chatham News + Record
With big promises, loads of cash and the open arms of the governor, VinFast announced its new facility in Chatham County to much applause.
Just over a year since that announcement, however, those cheers are being met with backlash over the crux of the company: its cars.
Last week, auto reviewers got the chance to test drive the VinFast VF8, the Vietnamese automaker’s signature all-electric crossover SUV, on American soil. The reviews were less than enthusiastic about the new EV company.
Back to the shop
“The VinFast VF8 is very, very bad,” read one headline. Other reviewers, who drove the cars at a test drive event in San Diego, California, said the car was bumpy and lacked body control, with some deeming their rides “unacceptable” or “unbearable.”
“From a ride and handling standpoint, the VF8 needs big-time help,” read one review from Steven Ewing at InsideEVs. “The crap suspension damping and motion sickness–inducing body movements aren’t even the biggest issues.”
Ewing said the car needs “a lot of work” and said it even gave him car sickness. He found it unbelievable that this car was currently on the market for American drivers due to the issues he experienced.
The car did, however, receive praise from Ewing and other reviewers for its 10-year, 125,000 mileage battery warranty. VinFast officials in a statement to stakeholders also lauded the car’s safety after receiving the “ASEAN NCAP 5-star safety rating and passed all of NHTSA’s FMVSS requirements.”
ASEAN is a new car assessment program for cars produced in Southeast Asian countries, including Vietnam. The National Highway Traffic Safety Administration’s Federal Motor Vehicle Safety Standards are meant to “prevent and reduce vehicle crashes.”
VinFast is currently planning a more than 1,700-acre manufacturing facility in Moncure which promises to bring 7,500 jobs and more than $4 billion in economic investment over the next two decades. The company received more than $1.2 billion in monetary incentives to build the project in the county.
A series of speed bumps
Much of that incentive funding is performance-based, meaning the company needs to deliver on jobs and investment promises. If it can’t sell its cars to American consumers, those once exciting goals become a much scarier prospect for the company, and local officials who have thrown their political weight behind the automaker.
The latest round of reviews is part of a string of bad press for the company in recent months. Fiscal year reports showed VinFast losing more than $2 billion in 2022, and stock prices of Vingroup, its parent company, continue to fall in Vietnam.
The first shipment of 999 EVs slated for the California coastline left Vietnam in December, but a series of administrative delays meant many customers didn’t receive their vehicles until March. Close to 3,000 VinFast cars have been shipped to North America, with a second shipment setting sale in April. Thus far, only 310 have been delivered to U.S. customers.
The VF8 comes in two versions: City Edition and Plus. The City is currently available to some North American customers. The City Edition costs $49,000 and the Plus is listed at $51,800. The seven-seat VF9 all-electric SUV is expected to cost around $83,000 when it comes to the U.S. market, according to Kelley Blue Book.
In March, the company announced it was delaying its vehicle rollout from its Chatham County facility until 2025. Vehicles were initially scheduled to be off the production line by 2024. The company said it needed “more time to complete administrative procedures.”
Three top executives of VinFast left the company later in March including its chief service officer, chief executive for global sales and chief marketing officer. The company said the officials left due to “changes in the management model and specific business requirements.”
With each hiccup, trust between the people of Chatham County and the incoming auto manufacturer decays. At a recent community meeting for Moncure, several residents expressed concern the company would not meet its goals and some feared the company wouldn’t build its N.C. factory at all.
‘Fully committed’
Despite the administrative challenges and poor early performance reviews, both the company and Chatham County officials say they are still confident in VinFast. In a statement, a VinFast spokesperson acknowledged some of the negative reviews, but assured customers they’re still on track to deliver a quality product.
“At VinFast, we are constantly working to improve our vehicles,” a VinFast spokesperson said. “Meanwhile, in North Carolina, we are focused on building a state-of-the-art automotive manufacturing complex and our commitment to this effort remains the same.”
When asked about the string of challenges the company has faced in recent months, a VinFast spokesperson told the News + Record many of these issues can be attributed to startup culture.
“VinFast is a startup with a unique working style, dedication, and pace that not everyone can adapt,” they said. “We were established when the EV industry has been facing so many difficulties, so the overall impact of the economy on VinFast’s operations was inevitable.”
Company officials added they’re confident the company can succeed in N.C. And they’re not alone in that confidence. Michael Smith, president of Chatham Economic Development Corporation, said he understood the challenges of massive projects with ambitious goals like VinFast.
“This is a long-term project that requires a massive manufacturing complex unlike anything N.C. has ever seen,” Smith told the News + Record. “With a new product launch, it’s understandable there will be some challenges.”
He said the EDC continues to meet with the company, county and state officials on a weekly basis for project updates. Smith said he believes the company will use the recent poor reviews as motivation to “improve rapidly.”
Chatham County Manager Dan LaMontagne echoed those sentiments. He said he trusted the vision of VinFast and said the manufacturing facility continues to make “forward progress.”
“We remain fully committed to the successful development of VinFast’s first U.S. production facility in Chatham County,” LaMontagne said. “And we look forward to our continued work to complete development of the site and construction of the facility.”
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The Chatham News + Record is Chatham County’s source for local news and journalism. The Chatham News, established in 1924, and the Chatham Record, founded in 1878, have come together to better serve the Chatham community as the Chatham News + Record. Covering news, business, sports and more, the News + Record is working to strengthen community ties through compelling coverage of life in Chatham County.
