A Vietnamese EV startup with dreams of an American retail empire is quickly losing ground. [emphasis, links added]
VinFast has fewer than two dozen dealerships remaining in the US, according to Automotive News, despite the company’s ambitions of having hundreds of franchised stores.
This year, two VinFast dealerships have already shuttered, and a third will shutter at the end of 2025. Only 17 dealerships have their cars available for purchase on their websites.
For America’s electric vehicle market, VinFast is the latest EV company to crack under the weight of once-lofty expectations.
The company’s original US pitch imagined its dealership selling a full lineup of EVs, including a small pickup truck.
Investors, believing EVs could rocket-fuel their earnings after Tesla’s shocking success, flooded VinFast’s stock with $65 billion.
In 2023, the car company became richer than America’s legacy automakers, Ford and General Motors.
However, VinFast failed to deliver on its initial promise. American car buyers had only two options — the $40,000 VF 8 and the $63,000 three-row VF 9. That wasn’t enough to inspire consumers.
So far this year, only 1,413 Americans have purchased a VinFast vehicle, down 57 percent compared to last year.
But VinFast’s recent dealership woes differ from other EV startups’ struggles. While its US sales haven’t taken off, the company is still growing worldwide.
The automaker, which launched in 2017, has quickly become dominant in its home market.
VinFast offers six models for Vietnamese drivers, and in October, it celebrated the sale of its 100,000th vehicle.
The company has also stepped up sales in Europe, with new dealerships planned in France, Germany, and the Netherlands. Even soccer superstar David Beckham partnered with the fledgling brand in 2018.
But that momentum never translated to the US market, despite hearty efforts.
‘The US is one of the hardest markets to crack because we’ve got so many automakers already,’ Karl Brauer, executive analyst at iSeeCars.com, told Auto News.
‘This is like a 20-year, 30-year investment if you’re serious about the market.’
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VinFast’s recent dealership closures come as the graveyard of once-promising EV startups grows.
Last month, Bollinger, which once promised military-style electric SUVs and trucks, emailed employees to warn them that the Michigan company was racing toward its ultimate closure.
‘We received word late last night that the day has arrived,’ HR chief Helen Watson wrote. ‘We are to officially close the doors of Bollinger Motors, effective today.’
In February, Nikola Motors fully closed down. Fisker Inc. shuttered in 2024. Lordstown also ended production in 2023.
Analysts tell the Daily Mail that these EV startups made a big mistake by focusing their efforts on giant pickup trucks and SUVs.
Top photo by Duc Van on Unsplash
Read rest at Daily Mail
